E-Mart on Monday has signed a strategic alliance with a Vietnamese company to expand local business.
According to industry, it has announced that it will sell its 100 per cent stake in E-Mart Vietnam to THACO, a Vietnamese company, and convert its local business into a franchise.
The E-Mart had opened its first store in Vietnam, Ho Chi Minh Gobab, in 2015, but it was difficult to open additional stores due to certain problems, such as licensing.
According to its quarterly report released on the same day, the board of directors approved the sale of its stake in Vietnam.
THACO is Vietnam's fourth-largest company in the business of automobiles, real estate, and agriculture, and it owns a number of business sites and shopping malls.
E-Mart predicts that through this alliance, it will be able to open more than 10 additional stores by 2025.
As of last year, there were 1,200 kinds of Korean products handled by Gobab branch. Of these, about 85 per cent are E-Mart's own brand products such as No-Brand.
In addition, considering that about 70 per cent of no-brand products are manufactured by domestic SMEs, E-Mart predicted that additional openings would lead to an increase in exports of Korean SMEs.
"The strategic alliance with THACO is expected to enhance the growth and profitability of Vietnam's business at the same time," an E-Mart official said. (ANI/Global Economic)
( With inputs from ANI )
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