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DHI to establish subsidiary in Vietnam

Released at: 08:00, 01/09/2017

DHI to establish subsidiary in Vietnam

Photo: Zalo

South Korea's largest distributor announces establishment of Vietmate.

by Minh Do

South Korea’s leading distributor, DHI, has decided to set up a subsidiary in Vietnam, Vietmate, after a year of exploring and evaluating Zalo’s potential in e-commerce, with the goal of using the Zalo platform to distribute quality South Korean products in the Vietnamese market.

In addition to representatives from DHI and the Zalo Corporation, the signing ceremony for the new subsidiary was also attended by representatives from the South Korean Consulate, the Korea Trade-Investment Promotion Agency (KOTRA), and South Korean provinces’ chambers of commerce seeking investment opportunities in Vietnam.

Vietnam has been an attractive destination for Japanese and South Korean investors in recent years, especially in trade and technology. The cultural similarities between the countries are important in promoting economic cooperation.

South Korean companies highly value Zalo’s development and see enormous growth potential on the platform. Mr. Shin Deok-Hwa, CEO of Vietmate, believes that Zalo is like Kakao Talk in South Korea, which is a particularly successful commercial platform in the country.

Assessing the cooperation between DHI and Zalo, the Consul General of the Republic of Korea, Mr. Moon Byung Chul, said: “This is not just a cooperative arrangement between two normal businesses, it is also representative of the mutual development cooperation between Vietnam and South Korea.”

According to the South Korean Consulate, there are more than 50,000 South Korean companies operating in Vietnam and more than 140,000 South Koreans working and living in the country, and this cooperative arrangement with Zalo is expected to help South Korean people access and purchase products in their hometowns more easily.

Under the agreement, Vietmate will initially focus on distributing and promoting cosmetics and beauty products at Zalo shop. This will help Vietnamese people in general and South Koreans in Vietnam in particular to gain access to high quality products instead of unsafe cosmetic options.

Zalo, owned by VNG, had 80 million users as at August and 120 million daily messages exchanged via its system. It ranks first in use, with 80 per cent of users having the app on their smartphone, followed by Facebook Messenger with 73 per cent, Viber 40 per cent, Skype 37 per cent, and Line 18 per cent, according to a report from Appota on Vietnam’s mobile market released in May.

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