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Vietnam’s biggest distributor opens first commercial center
The country’s largest distributor, Vietnam Distribution Associate Network Development and Investment Joint Stock Company (VDA) owned by four leading local retailers, opened its first commercial center in the central city of Danang last week.
The VND265-billion VDA Danang Commercial Center, including a commercial area and 18 houses for the first phase, is located at 478 Dien Bien Phu Street, Thanh Khe District.
VDA, with the cooperation of Co.opMart store chain operator Saigon Co.op, Saigon Trading Group (Satra), Hapro and Phu Thai Group, has assigned Saigon Co.op to operate the commercial area covering 15,000 square meters.
Saigon Co.op last week also opened a new store at the VDA Danang Commercial Center, its first store in Danang and 44th nationwide.
Saigon Co.op has invested VND30 billion in the new store which covers 13,000 square meters inside the VDA Danang Commercial Center.
The Co.opMart Danang store, which stocks more than 30,000 items with more than 90% supplied by local companies, also houses a bookstore, fashion shops, a restaurant, a food business area, an entertainment area and cosmetic counters.
Nguyen Ngoc Hoa, Chairman of Saigon Co.op, said the new commercial center had many retail and food shops as well as a bowling center. The products include fashion clothes, textiles, shoes, cosmetics, glasses, sports equipment and jewelry items of big local and foreign brand names.
VDA plans to develop an office building there later this year and to open a general depot in the Mekong Delta province of Hau Giang next month.
VDA was launched in Hanoi in 2007, becoming the country’s largest distributor. The VND600-billion (US$37.5 million) company is 25% owned by Saigon Co.op, Saigon Trading Group (Satra), Hapro and Phu Thai Group.
The cooperation between these four enterprises was seen as a preparatory step to improving their competitiveness in the face of stronger competition when Vietnam opened up its retail and distribution sectors in 2009 under the country’s commitments to the World Trade Organization.
At the time, Company General Director Nguyen Thi Hong Minh said VDA would become the country’s key distributor and logistic services provider able to compete with international rivals.
Vietnam’s distribution market is gradually being opened to international participation and many have already come to Vietnam, including Metro Cash & Carry, Big C, Parkson, Wellcome and Lotte Shopping. Retail revenue in Vietnam has been increasing by some 20% annually.
VietNamNet, SGT
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