Two leading retailers from Vietnam and Singapore have set up a joint-venture that will open its first hypermarket in Ho Chi Minh City this month.
Vietnam’s Saigon Co.op and Singapore’s NTUC FairPrice held a ceremony on May 4 to celebrate their new agreement and the receiving of the investment license.
Saigon Co.op is the largest retailing chain in Vietnam, while NUTC FairPrice is also the largest grocery retailer in Singapore, with a network of more than 230 outlets. The company accounts for 57 percent of the Singaporean retailing market with its FairPrice Xtra chain.
The Saigon Co.op – FairPrice joint-venture will invest in and operate two hypermarket chains in Vietnam, under the brands of Co.opXtra hypermarket, and Co.opXtra plus, a model that combines hypermarket and large-scale distribution chain.
The two chains are expected to supply some 50,000 different commodities with outlets spanning dozens of thousands of square meters.
The first Co.opXtra plus in Vietnam will serve demand from all kinds of customers, from individual and household to companies and restaurants, the company said in a statement.
The first Co.opXtra plus outlet is expected to open in Thu Duc District on May 17.
The joint-venture has a total registered capital of US$6 million, according to newswire VnExpress. Saigon Co.op holds a 64 percent stake.
The two retailers said they have aimed to open one to two new hypermarkets in Vietnam on an annual basis, and reach the target of 20 such outlets countrywide by 2020.