The Largest Retail Company in Vietnam
SK Group announced on April 6 that it has signed a contract to purchase a 16.3 percent stake in VinCommerce, a distribution subsidiary of Masan Group in Vietnam, for 460 billion won.
SK said the investment is in accordance with its strategic partnership with Masan Group, and SK secured valuation gains and the right to additionally invest in the general consumer goods business.
VinCommerce operates 2,300 convenience stores and supermarkets in Vietnam. It is the largest retail company in Vietnam with a 50 percent market share. Its sales have grown 30 percent from US$1.1 billion in 2019 to US$1.4 billion last year and are expected to hit US$1.8 billion in 2021.
"We expect VinCommerce to grow into an omni-channel operator like Alibaba and Amazon that combines online and offline channels," an SK official said. "We invested in future distribution value chains expected to grow rapidly in the Southeast Asian market."
In Vietnam, modern distribution markets such as convenience stores and supermarkets are expected to grow more than 25 percent a year. In particular, an online and offline distribution vision that VinCommerce is building is receiving favorable reviews.
SK South East Asia Investment was jointly established by SK Inc., SK Innovation, SK Telecom, SK Hynix, and SK E&S in 2018. It is expanding its business by acquiring stakes in major Vietnamese companies such as Masan Group, Vin Group, and Imexpharm.