"Fifty percent of the retail market in Vietnam has fallen into the hands of Thais, and the domestic retail market is already 'dead to the shoulder,'" said Vu Vinh Phu, Chairman of the Hanoi Supermarket Association.
The race to own Big C Vietnam chain has finally come to an end after almost half a year, with the victory belonging to the Central Group, a Thai group, with the value of $1.4 billion, higher than the predicted number of $800 million.
Big C Vietnam's new owner - Central Group – is not a stranger. Previously, the group marked its presence in Vietnam through the acquisition of 49% stake in the electronic supermarket chain of Nguyen Kim.
Thus, both large retail chains of Metro Cash & Carry and Big C Vietnam have been sold to Thai groups. And after the Big C Vietnam deal, up to 50% of the Vietnam's retail market is now in the hands of the Thais.
"Big C is like a pretty girl, who is sold to the one offering the highest price,” said Vu Vinh Phu - Chairman of the Hanoi Supermarket Association. “The end of the deal means the balance of Vietnam's retail market has been leaning heavily toward foreign companies, mainly Thai firms."
The Chairman of the Hanoi Supermarket Association said that Thai firms will produce goods in Thailand and transport it to Vietnam. Thai products are going to be on the shelves of 43 stores and 30 shopping centers of Big C Vietnam.
"I have said many times that when the Thais occupy 50% of the market share, both Vietnamese producers and consumers will become hired workers," Phu said.
Phu warned, "the risk of death" is at the shoulder because the market share is narrowing for domestic products. To sell their products at supermarkets, Vietnamese suppliers have to satisfy a lot of conditions and have to pay high discount.
Source: http://english.vietnamnet.vn - Nam Son
Keyword : Big C Vietnam, sold to, Thailand, Vietnamese retailers, in danger.
