Hapro thinks outside the square

In a recent Hanoi workshop discussing Vietnamese goods in the modern retail system, one of Vietnam’s leading corporations in export, import, production and trade services voiced its proposal to be supported in hiring suitable business spaces in Hanoi and some northern locations to expand footprints in urban and rural areas.

Particularly, Hapro wants to increase visibility of its HaproMart and HaproFood in Hanoi’s crowded residential quarters, resettlement and new urban areas like Trung Hoa-Nhan Chinh, My Dinh, Dinh Cong, Viet Hung and Van Quan.

Hapro also proposed for a specific mechanism giving it the right to hire first floor space at residential blocks in these above urban areas, about one or two venues at each urban area, each venue covering 300-500 square metres to enlarge HaproMart and HaproFood chains.

In this respect, Hanoi Supermarket Association chairman Vu Vinh Phu assumed Hapro had reasons to make the move since the group was expected to become a leader in Hanoi’s trade sector.

Hapro possesses several hundred shops, but up to 30 per cent of them are small in size measuring between 10-20sqm and mingled among private housings, making it difficult to boost trade.

Phu, once the chairman of Hapro founding project and former deputy director of Hanoi Trade Department, did not advocate Hapro’s intention to ask for this special mechanism saying that “Hapro has for long enjoyed too many incentives compared to other Hanoi retailers but has not yet developed effectively. It now needs to compete impartially with other businesses.”

Phu assumed human resources quality was a thorny issue at Hapro. Around 20 per cent of staff at this group are aged above 45 years old whereas half of staff, including top management posts, have yet to be trained in modern trade.

The current operational apparatus remains cumbersome with lax cooperation among different sections. Hapro’s Vietnamese product distributors have paid undue attention to design improvements while materials had to travel different stages, resulted in high input costs.

Besides, Hapro’s negligence to equitising move is believed to hinder the group’s further development in a market economy.  
“The ability to grasp opportunities timely is essential in doing business, but Hapro not yet acute in this respect,” Phu said.

Phu said the Hanoi base group would soon open a new trade centre in Cat Linh street for supermarket trading and office space leasing.
“It would be a smart move if it took place a decade ago but not now since office rental has plummeted in recent years,” Phu said.