vietnam attractive to japan retailers

Up to half of Japanese firms knocking at the Japan External Trade Organization (Jetro) for business information are interested in Vietnam’s retailing industry, the head of the HCMC office of the Japanese trade promotion agency said on Wednesday.

Kitashima Satoshi, director of Jetro in HCMC, told a seminar on investment promotion in HCMC that over the past few months, many Japanese enterprises had come to his office seeking advice in doing business in Vietnam, and many retailers have shown increasing interest in Vietnam. They are researching to set up business in the domestic market, especially in the city, he told the seminar organized by Vietnam Rubber Group to call for investors into its forthcoming industrial parks and urban areas.

“They want to set up retail companies or build production facilities to sell goods to Vietnamese customers,” Satoshi said, adding between 40 and 50 Japanese companies came to Jetro in HCMC each month to find business opportunities in Vietnam.

Weak domestic consumption in Japan and strong yen has encouraged Japanese retailers to expand their business overseas, he said. Vietnam are surpassing China and India to become the most lucrative market to Japanese businesses as Vietnam has now allowed the establishment of 100% foreign owned retailers in line with its WTO commitments, he added.

“Japanese companies have invested much in manufacturing in Vietnam. And now a lot of Japanese investors are turning their eye on the services and distribution sectors,” he explained.

In fact, big names such as Takashimaya, Best Denki, Sumitomo and Daiso have plans to set up offices in Vietnam after their surveys of the local market.

Best Denki Corporation, one of Japan’s leading electronics supermarket operators, has clinched a franchising contract with Ben Thanh Marketing Co. Under the agreement, Ben Thanh Marketing’s Carings electronics store chain will get technical, marketing and training support from Best Denki, while in return, the local firm will pay a certain fee for the use of the Japanese partner’s brand name.

Daiso, a popular Japanese convenience store operator, opened a parity shop on the first floor of the FUSO duty-free supermarket in Moc Bai Economic Zone in Tay Ninh Province also under the form of a franchise contract with HCMC-based Tri Phuc Co. It is expanding presence to other provinces and cities including HCMC.

Tags: Vietnam business news, Vietnam retail market