Recently, at the Annual General Meeting of Shareholders of Truong Hai Auto Corporation (THACO), Mr. Nguyen Hung Minh, Vice Chairman of THACO’s Board of Directors announced that THACO acquired E-Mart, South Korean biggest retailer chain when have reached 3 official agreements on the acquisition of E-Mart supermarket in Vietnam on May 20.
E-Mart Vietnam Co.,Ltd has transferred total transferred shares to THACO, including the existing store, E-Mart Supermarket (Phan Van Tri, Ho Chi Minh City) and developing projects in Viet Nam.
Also, the two parties have signed a franchise agreement. Accordingly, South Korean E-Mart Inc. will grant exclusive trade rights to THACO with E-Mart brand in Vietnamese market (including EmartMall e-commerce platform). This franchise agreement lasts for 9 years.
THACO will also distribute E-Mart’s NoBrand private label products in Vietnamese market, according to the agreement.
Declining to state the acquisition value, but Mr. Minh said THACO expected to complete the transaction with E-Mart Inc. next June. After that, they will focus on designing of stores in detail and operating effectively E-Mart supermarket.
Specifically, about E-Mart’s business strategy and development in Vietnam, Mr. Tran Ba Duong, Chairman of THACO’s Board of Directors said that the shopping centers would integrate both showrooms displaying and maintaining automotive brands that the company distributes, combining E-Mart hyper-supermarkets, along with food service, entertainment, wedding center, v.v.
It is expected that the total revenue in 2021 of E-Mart supermarket system will reach more than 1,800 billion VND, an increase of about 10% compared to 2020.
Mr. Duong added that the plan to open new business locations for the next year was feasible when these projects already had premises and facilities such as IIA complex or the second project of E-Mart in Go Vap, Ho Chi Minh City. It is expected that THACO will put 3 more supermarkets into operation next year and operate 11 supermarkets across Vietnam by 2025, which is less than 5 years after the acquisition of E-Mart Vietnam.
|Writer: Dinh Tung||Editor: Viet Ha|