A consortium led by GIC, Singapore’s sovereign wealth fund, and Vingroup Joint Stock Company (Vingroup), signed agreements for an investment in VCM Services and Trading Development Joint Stock Company (VCM), a subsidiary of Vingroup that engages primarily in consumer retail in Vietnam. The consortium collectively invested USD 500 million for a minority stake in VCM.
VCM operates more than 100 VinMart supermarkets and around 1,700 VinMart+ convenience stores across the country. A statement from GIC said that “GIC is confident in the growth outlook for disposable incomes and household consumption in Vietnam”.
The retail sector in Vietnam has been growing rapidly in recent years, driven by a fast expanding middle class. According to a report form Deloitte, he retail sector recorded a compound annual growth rate (CAGR) of 10.97% between 2013 and 2018 . Total retail revenue is expected to reach USD 180 billion by 2020, representing an increase of 26.6% from 2018. Vietnam is forecast to be the fastest-growing convenience market in Asia by 2021, according to data from the international grocery research organization (IGD).
(Source: GIC; Straits Times; Deloitte)