Japanese retail giant teams up with Fivimart and Citimart to take on Vietnamese market.
Japanese retail giant Aeon has officially announced that it will team up with two Vietnamese major supermarket operators - Fivimart and Citimart - as it expands its business in both the country and also across Southeast Asia.
Aeon will acquire 30 per cent of Fivimart and 49 per cent in Citimart, with the company having first revealed its intention of teaming up with the Vietnamese retailers last October.
“Vietnam will be one of the next consumer giants, and alliances with local partners are important because we see almost no chance of winning if we open outlets independently,” Aeon President Motoya Okada told the Japanese media at a recent press conference in Tokyo.
Aeon will provide products under its “Top Value” brand name to Fivimart and Citimart for distribution and coordinate with them to develop new products and expand distribution networks. It will also target building a chain of 200 stores, which are expected to generate combined annual revenue of 100 billion Yen ($848.1 million) in Vietnam.
Aeon is already involved in several projects in Vietnam, including Aeon Malls in Ho Chi Minh City and Binh Duong province and Aeon Mall Him Lam in Hanoi’s Long Bien district.