Hiway takes the high road to the retail market

Last week, locally invested-Hiway Vietnam Company officially declared it would jump into the retail market with an aim to have 20 stores in Hanoi and northern provinces during 2012-2016. Hiway Vietnam Company, a joint venture between Son Ha Group and its strategic shareholders, will see Son Ha Group hold a 75 per cent share and pour $45 million into the mix.

Le Vinh Son, chairman of Hiway Vietnam Company, said three stores would be opened in Hanoi in 2012 - the Ha Dong Hiway, Hoang Quoc Viet Hiway and Dien Hiway supercentres. The 12,000 square metre Ha Dong Hiway branch and 3,000sqm Hoang Quoc Viet store would come online in the third quarter, while the others would come online in the fourth quarter.

Son said the firm was confident it could compete as there was room for new investors to prosper in the market. “We cannot deny that the current demand from consumers as well as the supply of supermarkets and modern facilities may not meet the market’s demand. The shopping habits of local residents have moved from traditional to modern facilities,” Son said.

Besides, its biggest competitive advantage was that Hiway owned nearly 10 locations for its facilities. Pham Hong Thai, deputy director of  Hiway Vietnam Company, said  the Hiway system was built on main traffic routes that brought benefits for customers with  3,000-12,000sqm retail areas with food courts, fashion, game and cinema areas.

Over the last several years, specialised supermarkets have been mushrooming and many of have become familiar to domestic consumers, such as home appliance centres Nguyen Kim, Tran Anh, Pico or Best Caring and garment supermarkets Vinatex Mart.

Meanwhile, foreign retailers such as Big C, Metro Cash & Carry, Lotte, E-Mart also have big plans.
Aeon Corporation, well known for its Jusco supermarket chain, saw Vietnam as its key market. It was expected become one of the three leading retailers in Asia during the next 10 years, in which Vietnam would become Aeon’s fourth foreign market after China, Thailand and Malaysia.

The largest retailer in South Korea, E-mart also expected to see 52 stores before 2020 after it signed a joint venture contract with the Binh Duong province-based U&I Investment Corporation to make it first step into Vietnam in July 2011.