IFC, a member of the World Bank Group, is considering an investment of USD 20 million in GS25, a convenience store chain in Vietnam. IFC visited five stores and a warehouse in Thu Duc City, Ho Chi Minh City in February and March 2022 to evaluate the proposed plan. The investment will be used to enhance the presence of the local operator GS25, a joint venture between South Korea’s GS Retail and Vietnam’s Son Kim Retail, in which Son Kim owns a 70% stake.
A total of USD 46 million would be spent on construction, equipment, tools, supplies, and store rental deposits as part of the chain’s expansion strategy.
GS25 entered Vietnam in 2017 based on the GS25 convenience store idea from South Korea. A typical GS25 store includes around 150 square meters of shopping area and space for dining. The shops offer ready-to-eat and ready-to-cook items and fresh food and beverages. The store chain prominently displays products made in Korea.
By early November 2022, the retailer had 200 stores in Ho Chi Minh City and surrounding provinces. Its expansion plan was announced amid a post-pandemic recovery in retail and domestic consumption.
GS25 is encountering fierce competition from other convenience store chains. Specifically, Circle K has 413 outlets in Vietnam, while FamilyMart boasts 150 and Ministop has launched 136.
(Sources: VNExpress; Vietstock)