Central Retail recently announced a five-year plan for 2022-2026, in which the Thai retailer plans to invest more than THB30 billion ($825.6 million) towards reaching four goals: becoming a multi-channel platform and the leading food and shopping center business in Vietnam, increasing its revenue to THB100 billion ($2.7 billion), posting revenue growth from omnichannel platforms of 15 per cent, and expanding to 55 of Vietnam’s 63 cities and provinces.

Vibrant playground

It also targets three key measures consistent with its “CRC Retailligence” strategy to achieve growth goals: expanding and strengthening core business activities, becoming a retail pioneer in the digital era, and promoting new growth drivers and seizing new opportunities. According to Mr. Olivier Langlet, CEO of Central Retail Vietnam, it recognizes the potential and strong business development opportunities that Vietnam holds and also views it as a key strategic market, growing year-on-year to post revenue of nearly THB38.6 billion ($1.06 billion) within a decade, or 22 per cent of its total revenue.

Among major Thai investors in the country, Bangkok Bank is actively promoting its business activities as it believes it holds a great deal of potential. The bank’s capital size already ranks among the top 3 foreign bank branches in Vietnam, and it plans to have more capital injected in the year to come to support future growth.

Mr. Tharabodee Serng-Adichaiwit, Senior Vice President and General Manager of Bangkok Bank Vietnam and Vice Chairman of the Thai Chamber of Commerce and Industry in Vietnam (ThaiCham), said Vietnam has been one of the most prosperous economies in the region post-pandemic, with growing local consumption, rising investment, and a sharp jump in exports, which in turns has benefitted Bangkok Bank in growing its revenue and lending. “The most impressive fact is that we have been visited by over 500 Thai investors this year inquiring about how to invest in Vietnam,” Mr. Serng-Adichaiwit said.

Similarly, SCG is in the process of building the Long Son Petrochemical (LSP) plant in southern Ba Ria-Vung Tau province, which will be SCG’s largest investment outside Thailand, with total capital of more than $5 billion. Mr. Roongrote Rangsiyopash, President and CEO of SCG, said the project will be completed by the end of this year and SCG plans to begin commissioning and testing in the fourth quarter in order to put it into operation in the first half of next year.

“Vietnam has been paid attention by investors around the world and there are all kinds and nationalities of players in all industries, so competition is fierce, including in banking, due to the growing interest,” said Mr. Serng-Adichaiwit.

Market of promise

Vietnam’s investment environment is also recovering strongly post-pandemic and new trends in the market are providing substantial opportunities for foreign investors. Mr. Serng-Adichaiwit said conditions in Vietnam are outstanding, in particular its growing market and free trade agreements (FTAs), and these are appealing factors for Thai investors.

Mr. Langlet said that Central Retail has strengthened the relationship and cooperation between Thailand and Vietnam by providing opportunities to connect the governments of the two countries through diverse projects, including “Thai Goods Week” at Tops Market, “Taste of Vietnam” in Thailand, and many business networking events to connect small and medium-sized (SMEs) and partners of potential.

“The Vietnamese Government has done a good job, with stable monetary policy, one of the lowest inflation rates in the region, and a steady VND,” said Mr. Serng-Adichaiwit. “For example, amid rising prices, Vietnam’s electricity cost has been maintained and is only half of the cost in Thailand, so Thai investors are very happy.”

Similarly, Mr. Rangsiyopash said SCG’s business activities were severely affected by Covid-19 but it received various support from the Vietnamese Government. In particular, local administrations helped SCG by providing guidance and even allocating vaccines for its workers and contractors, in order to guarantee that it could continue with construction activities. “I am very optimistic about the recovery of Vietnam’s economy and the pace of business recovery,” he emphasized.