16:14 | 23/12/2018 Companies
Sumitomo Corp. will open its first supermarket in Vietnam this month, targeting increasingly well-off middle-class consumers.
|The retail market of Vietnam has already seen many names from Japan with various forms of investments - Photo by VnExpress|
Fujimart Vietnam Retail, a joint venture between Sumitomo and Vietnam’s BRG Group, has announced it will open its first supermarket in Hanoi by the end of this year.
The corporation also plans to open two outlets in the capital city next year.
"Although the retail sector is very competitive, the macroeconomic situation shows that the Vietnamese market is still growing at a double-digit rate. With a positive economic outlook next year, we expect living standards to continue rising," said a Sumitomo representative.
In Vietnam, the middle and affluent class, categorized as those earning US$714 a month or more, would double to 33 million, about a third of the population, between 2014 and 2020, the Nikkei Asian Review reported recently, citing a study by the Boston Consulting Group.
The supermarket will follow the Japanese model, where prepared foods will be made in-store, and temperature control will keep food fresh, the representative said.
Sumitomo Corporation, a 100-year-old Japanese trading, investment and real estate corporation, has been in Vietnam since 1995. It has also operated for 50 years in the retail industry.
In Vietnam, through its subsidiary fund ACA Investment, the corporation also has a stake in Bibomart, a retail brand for moms and babies.
Prior to this project, Sumitomo has cooperated with four Vietnamese investors, including the BRG Group, in implementing a US$4 billion smart city investment project in Hanoi’s Dong Anh District.
Vietnam’s retail market has already seen many names from Japan in various forms of investments, including Aeon, Takashimaya and 7-Eleven.