Foreign retailers rush in where locals fear to tread  Customers at a cosmetics shop at Lotte supermarket in While domestic retailers are struggling to pay rents at shopping malls amid plunging sales,their foreign counterparts are coming in with long-term plans. News website VnExpress quoted the general director of an unidentified real estate consultancy as saying that it is scouting for space for a Japanese retail giant. “They have entered Japanese retailers do not insist on downtown spots, and prefer populated areas near new urban zones like District 7. Another Japanese retailer and one of Asia’s leading ones, AEON, has also announced plans to enter Vietnam in 2014 with the biggest shopping mall in western HCMC. The 3.51-hectare mall will be located at Lotte, the fifth biggest retailer in The retailer has two outlets in HCMC and one each in neighboring Fast food brand like KFC, Burger King, and pizza chains have always been doing well in Starbucks CEO Howard Schultz told the Wall Street Journal that its first and only Vietnamese outlet in HCMC is exceeding expectations. The country, where more than eight million people are still hungry - a four-fold drop from a decade ago -- according to the UN’s FAO, is also considered a promising market for wine. There was a delegation of 11 wine producers from Johnathan Hanh Nguyen, chairman of Imex Pan Pacific, one of the largest conglomerates in “Its populations is young, and many young employed people in urban areas earnwell, are well-informed, and love to show off their social status.” Pointing to shopping malls not being crowded, Le Quang Hanh, general director of property company “It is a long-term game for the big boys.” They would be prepared to take losses initially, but then they would have few local competitors left in such a promising market where three-fifths of the nearly 90 million people are under 35. But foreign players, with their deep pockets, experience, and management capability, would help revive the market, he added. Thanh Nien News |
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