Thailand’s largest retailer Central Retail Corporation (CRC) has just announced an additional investment of 50 billion baht, equivalent to US$1.45 billion, in Vietnam for the next five years, its largest-ever capital channeling into the country.

The investment is aimed at expanding the corporation’s presence in the Vietnamese market, Thailand’s newspaper Bangkok Post reported.

Explaining the decision, CRC CEO Yol Phokasub said the firm considers Vietnam as a potential market with impressive economic growth.

Vietnam’s retail market is estimated at $49.7 billion per year, annually expanding 10-12 percent.

CRC poured over 10 billion baht, or $290 million, into enlarging its retail business in Vietnam in 2012-22.

“Vietnam’s economy will continue growing regardless of uncertainties in the world,” said Olivier Langlet, CEO of Central Retail Vietnam.

He pegged Vietnam’s gross domestic product growth at 6.7 and 7.2 percent in 2023 and 2024, respectively, well above Thailand's annual average of 3.5 percent in the next two years.

“This will make Vietnam the fastest-growing market in Southeast Asia,” Langlet added.

CRC currently has more than 340 stores with a total floor area of over 1.2 million square meters in 40 cities and provinces in Vietnam. 

CRC Vietnam’s revenue jumped to 38.6 billion baht ($1.12 billion) in 2021 from 300 million baht ($8.7 million) in 2014.

The company set a target to develop its food business nationwide to cement its leading position in the hypermarket segment in Vietnam, according to the executive said.

In addition, the firm will upgrade 10-12 branches of its Nguyen Kim electronics chain and open three to five new GO! shopping malls.

Its Vietnam business also plans to double the number of its stores to 600 in 57 out of 63 cities and provinces in the country by 2027, with a total floor area of two million square meters.

Furthermore, the company will install solar panels on the roofs of 20 GO! shopping malls and electric vehicle charging stations while diminishing the use of plastic bags.

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