Korean convenience store chain GS25 to enter Vietnam
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South Korea’s GS25 convenience store chain is about to make its Vietnam debut after forming a joint venture with Son Kim Group.
Vietnam will be GS25’s parent GS Retail’s first foreign market, with the first store scheduled to open before the year ends.
“We received requests from many countries, including China and other Southeast Asian countries, to export our brand,” a GS Retail spokesman said.
“After months of research, we concluded that Vietnam had the largest potential for growth.”
GS Retail, holds 30 per cent of the JV, will sign a master franchise agreement with the JV later to receive royalties on trademark rights and operation.
GS Retail and Son Kim worked together on Vietnam’s VGS home shopping in the past.
Vietnam’s large population and rising consumer spending have encouraged a number of international convenience stores to come.
In June, 7-Eleven stepped into the market and now has four locations in Ho Chi Minh City.
Questions & Answers
Q.Which company is GS25 partnering with to enter the Vietnamese market?
Which company is GS25 partnering with to enter the Vietnamese market?
GS25 is forming a joint venture with Son Kim Group for its entry into Vietnam. The two companies have previously collaborated on the VGS home shopping business.
Q.Why did GS Retail choose Vietnam as its first foreign market?
Why did GS Retail choose Vietnam as its first foreign market?
GS Retail chose Vietnam after extensive research, concluding that the country offered the largest potential for growth. They received brand export requests from various other countries.
Q.What is GS Retail's stake in the new joint venture?
What is GS Retail's stake in the new joint venture?
GS Retail holds a 30 per cent stake in the joint venture. They will later sign a master franchise agreement to receive royalties on trademark rights and operations.
Q.Has any other major international convenience store recently entered the Vietnamese market?
Has any other major international convenience store recently entered the Vietnamese market?
Yes, 7-Eleven entered the Vietnamese market in June. It currently operates four locations within Ho Chi Minh City.
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