After aggressively expanding its business in Vietnam in the past two years, mainly through acquisition deals, Thai retail giant Central Group now plans to ease the buying spree to focus on generating profits over the next three years.
The conglomerate's plan was reported by Thailand's newspaper The Nation on Monday, soon after it acquired Vietnam's biggest foreign-owned supermarket chain Big C for 1 billion euros (US$1.13 billion) from France's Casino Group.
Last year the group also bought a stake of 49 percent in electronics chain Nguyen Kim, which has recently acquired the local operation of online fashion marketplace Zalora from Germany's Rocket Internet. In 2014, Central Group opened two Robins department stores in Hanoi and Ho Chi Minh City.
Central wants to focus on reaping profits from its businesses in Vietnam, since there is profitability pressure now that the group has reduced its fixed assets to fund activities here, according to the newspaper.
While the group is slowing down its acquisitions in Vietnam, it will not close the window on future deals, Prin Chirathivat, deputy chief executive officer with Central, was quoted as saying.
The multi-sector giant has yet to bring many of its businesses to Vietnam such as food, property and hospitality, The Nation reported.
With the huge purchasing power of its people and retailers that Central can buy, Vietnam is now shaping up as a second home for the group, Chirathivat was quoted as saying.