NTUC Fair Price to open grand supermarkets in Vietnam

May 05, 2013 | 23:49

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A license to form a trade joint venture in Vietnam between Singaporean retailer NTUC Fair Price and Vietnamese partner Sai Gon Co.op was granted on May 4th.

Under the license, the trade joint venture has $ 6 million as its initial investment capital, of which the Vietnamese partner contributes 64 percent.

The joint venture aims to build two chains of supermarkets named Co.opXtra and Co.opXtraPlus.

According to President of Saigon Co.op, the joint venture is expected to open one or two grand supermarkets in large Vietnamese cities and that the first Co.opXtra Plus will be inaugurated in mid May in Thu Duc district, Ho Chi Minh City.

Observers believed that the two models of supermarkets will be a potential rival, directly competing with famous foreign retailers operating in the domestic market and that the Vietnamese market will see a fierce competition between retailers.

According to CEO of NTUC Fair Price Tan Kian Chew, the joint venture will provide opportunities for local producers as its supermarkets will attract their goods and they will also have opportunity to participate in the company’s global distribution network.

TBKT

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