The Corporation for Financing and Promoting Technology (FPT) has invested 40 billion VND in establishing FPT Retail Ltd. Co. which specialises in selling and maintaining medical, educational, scientific and technology products. FPT Retail has opened four hi-tech retail centres under the "IN" trademark in Ha Noi and HCM City.

FPT Retail Managing Director Le Quang Vu said that after opening the four stores, his company would continue to open up centres in Ha Noi, Hai Phong, central Thanh Hoa province, Vinh city in central Nghe An province, Da Nang city, HCM City and Can Tho City this year as part of its strategy to develop its hi-tech retail system.

“FPT Retail plans to increase its number of stores to 60 in 2008 and to 100 by 2009 nationwide with 400 million USD in annual revenues,” he added.

Meanwhile, the military-owned mobile service provider Viettel joined the domestic mobile retail market by buying out mobile phone retail system of the International System Investment and Trade Co, Ltd (Nettra) that owns a chain of 107 shops in HCM City, Ha Noi and central Da Nang city.

One of the country’s two largest mobile phone service providers MobiFone has also announced a plan to jump into the terminal equipment retail market.

Telecom experts said that these moves are in response to foreign investors looking to establish wholly foreign-owned businesses in Viet Nam’s retail sector by 2009 under the country’s commitment to the World Trade Organisation (WTO).

However, many foreign investors have already decided to invest in Viet Nam’s retail market through franchise or joint venture forms.

Japan-based Best Denki Corporation hooked up with the Ben Thanh Marketing Co, Ltd Company to set up a supermarket chain of electronic goods called “Best Carings”. C.J. Raj, Regional Marketing and Business Development Director of Best Denki in Singapore, said that Viet Nam boasts a large retail market potential, especially its electronic goods market. The country’s total turnover of home appliances might reach 3 billion USD per year.

Best Denki and Ben Thanh Marketing Company will continue to open 10 more home appliance supermarkets in big cities. “Best Denki wants to be the biggest electronics retailer in Viet Nam over the next five years,” C.J. Raj has revealed.

In early May 2007, the Jabil Circuit Technology Group of the US made its official presence in Viet Nam by announcing the establishment of Jabil Viet Nam Company capitalized at close to 100 million USD.

With a population of over 84 million people and a national consumption value that reached almost 21 billion USD in 2005, the multi-national distribution groups have considered Viet Nam an ideal business destination.

According to a recent survey by AT Kearney Group of the US, Viet Nam ranks fourth, behind India, Russia and China, in the global market allure.

Source: VNA.