French retailer Auchan is to invest $500 million in Vietnam within the next 10 years, according to its group managing director Philippe Longuet. Auchan will also expand its offer of Vietnamese products in its other markets.
Last year, retail sales of goods and services in Vietnam showed growth of 16%, with the market expected to grow by 10% annually in the coming years.
Auchan’s announcement of its entry into Vietnam follows its plans to set up 60 stores in India to tap the emerging market nation’s growing retail potential. Last year, Indian government relaxed legislation to allow foreign retailers such as US supermarket giant Walmart to set up shop in India and sell directly to Indian consumers to boost investment from abroad.
It is not yet clear whether Auchan planned to establish franchise operations or set up its own direct retail outlets. It already has 13 hypermarkets in India under a franchise deal with Max Hypermarket India.