Ho Chi Minh City-based supermarket franchise Citimart recently announced a partnership with Japanese retail giant Aeon designed to boost their sales in Vietnam’s rapidly growing retail market.
Under the partnership, Citimart, which has renamed its 30 stores “Aeon Citimart,” will sell Aeon's Topvalu brand foods and daily necessities, Citimart founder Nguyen Thi Anh Hoa told news website Thoi Bao Kinh Te Saigon Online on Sunday.
Aeon will assist Citimart in building the new brand and controlling product quality in the hopes of increasing the number of Aeon Citimart stores to 500 by 2025, Hoa said.
The cooperation between Aeon and Citimart aims to take advantage of the two sides’ strength for development, she said, adding that the Japanese firm hasn't purchased shares or contributed capital as part of the cooperation.
Aeon is also negotiating a partnership with Fivimart, which has around 15 stores in Hanoi, Japanese newspaper Nikkei reported last month.
“They (Fivimart and Citimart) will be supplied with products sold at Aeon stores in Malaysia and Thailand, and the three companies will work together to cultivate local food and daily necessities suppliers and develop unique products,” Nikkei said, without quoting sources.
Aeon opened a shopping mall in Ho Chi Minh City's Tan Phu District, its first move into Vietnam, in January. The Japanese retailer just launched the second mall in HCMC's neighbor province of Binh Duong earlier this month.
Other foreign retailers, including South Korea's Lotte Mart and France's Big C, are also making plans to increase the number of supermarkets in Vietnam.
Vietnam's retail market is expected to post revenue of more than US$80 billion in 2014 and $100 billion in 2016, VnExpress said last month, quoting the German market research firm Statista.