Econ
Retailer Big C Vietnam stops ordering clothes from local partners
The move raises concern that Big C, backed by foreign owner, would gradually phase out Vietnamese products for imported ones.
Central Group Vietnam, the owner of the retail chain Big C Vietnam, announced it has stopped ordering clothes from local partners.
The decision was made following changes in strategy from Central Group Thailand, said Central Group Vietnam in a statement.
Representatives of some textile companies currently providing clothes for Big C said the announcement has put them into difficult situations, while others voiced concern that Big C would gradually phase out Vietnamese products for imported ones.
Following the acquisition of Big C in 2016, an executive of Central Group Vietnam had made the commitment that 90 – 95% of its products would be locally made, while pushing for greater presences of Vietnamese products in the market.
Last August, CEO of Central Group Vietnam Philippe Broianigo revealed a plan to invest an additional US$500 million in Vietnam’s retail market in the next five years, taking the total investment capital of Central Group in Vietnam since 2012 to US$2 billion.
The group’s penetration in Vietnam is represented by 250 stores, each covering 700,000 square feet, in more than 37 provinces/cities and the group plans to reach 720 stores by 2020, Broianigo said in a press conference in Bangkok on August 22, 2018.
Central Group Vietnam is a member of Central Group, which has been present in Vietnam since July 2011. The group's business activities in Vietnam range from electronics, sports, fashion, shopping centers and hotels to e-commerce and supermarkets.
The group made the headline in Vietnam following its acquisition of a chain of 33 supermarkets and hypermarkets owned by Big C for US$1.05 billion in April 2016.
Illustrative photo.
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Representatives of some textile companies currently providing clothes for Big C said the announcement has put them into difficult situations, while others voiced concern that Big C would gradually phase out Vietnamese products for imported ones.
Following the acquisition of Big C in 2016, an executive of Central Group Vietnam had made the commitment that 90 – 95% of its products would be locally made, while pushing for greater presences of Vietnamese products in the market.
Last August, CEO of Central Group Vietnam Philippe Broianigo revealed a plan to invest an additional US$500 million in Vietnam’s retail market in the next five years, taking the total investment capital of Central Group in Vietnam since 2012 to US$2 billion.
The group’s penetration in Vietnam is represented by 250 stores, each covering 700,000 square feet, in more than 37 provinces/cities and the group plans to reach 720 stores by 2020, Broianigo said in a press conference in Bangkok on August 22, 2018.
Central Group Vietnam is a member of Central Group, which has been present in Vietnam since July 2011. The group's business activities in Vietnam range from electronics, sports, fashion, shopping centers and hotels to e-commerce and supermarkets.
The group made the headline in Vietnam following its acquisition of a chain of 33 supermarkets and hypermarkets owned by Big C for US$1.05 billion in April 2016.