Japanese corporation invests in Vietnamese Cungmua e-commerce system

By Dang Hoa - Apr 19, 2018 | 07:59 AM GMT+7

TheLEADERAfter ACA Investments, Japan-based Scroll Corporation has become the second largest stakeholder of Cat Dong, which owns e-commerce sites Cungmua.com, Shipto.vn and Nhommua.com with 26.9 per cent stake.

Japanese corporation invests in Vietnamese Cungmua e-commerce system
The business partnership agreement announcement ceremony between Scroll and Cungmua.com.

The deal was implemented thanks to the intermediary ACA Investments. This is the result of Cat Dong’s two-year effort in connecting with Japanese investors. This has been seen as CatDong's strategy in recovering its leading position in the Vietnam market.

According to the agreement, Cat Dong and Scroll would make the most of their strength in different aspects, focusing on Vietnam market.

Specifically, Cat Dong will sell Japanese products provided by Scroll on its websites like CungMua.com, NhomMua.com, and Shipto.vn.

Furthermore, tours to Japan operated by Scroll will be sold on these websites. The two sides will together offer solutions in e-trading, logistics, warehousing and business expansion.

The Japanese firm would take two seats on the Vietnamese company’s board as part of the deal. It would also send experts to Vietnam to work as the staff to promote the consulting and e-commerce.

Also, representative of ACA Investments Hiroyuki Ono said that Cungmua team member would be sent to Scroll's headquarter for training programs.

According to Cat Dong CEO Ho Quang Khanh, the cooperation with Scroll helps the company stabilize its strategy in products, tours and branded merchandise of the company.

The company would choose suitable suppliers and prioritize for foreign brands that have enough budget and long-term marketing strategy to provide retail packaging solutions.

Scroll is a Japanese e-commerce company trading fashion goods, cosmetics and dietary supplements.

According to the corporation’s representative, choosing Vietnam as one of its investment destinations is because Vietnam has retained a close relationship with Japan and a rapid economic development for many years.

Earlier in 2015, ACA Investments invested in Cungmua and take 37 per cent stake which is still remained in the company.

At the end of May 2017, ACA Investment decided to involve further in Vietnam’s retail market by purchasing 20 per cent stake in Bibo Mart.

Hiroyuki Ono said that via ACA Investments’ funds, it could connect Japanese firms having desire to expand their investments into the retail chains in Vietnam to Vietnam market.

Reality shows that in recent years, Japan’s large corporations have continuously strengthened their presence in Vietnam retail market.

The involvement of Japanese firms in Vietnam retail market has been stronger.

Especially, Aeon Mall has shown its ambition in strongly expanding its operation in Vietnam. On last March 11, the construction of $200 million Aeon Mal Ha Dong project was commenced. The mall is expected to be put into operation by the end of next year.

Aeon Mall Ha Dong would be one of the largest trading centers in Vietnam and also one of Aeon’s five shopping malls in Vietnam. This corporation’s ambition is opening 20 shopping malls in Vietnam by 2020.

Aeon has also promoted the merger and acquisition of existing supermarkets. Currently, Aeon is owning 49 per cent stake in Citimart whose name has been changed into AEON Citimart and 30 per cent stake in Fivimart system.

Another Japanese retail tycoon Takashimaya has also invested about $47 million in Saigon Centre and other real estate projects in Vietnam since 2012.

By the end of last June, 7-Eleven entered Vietnam market to become Japan’s third convenience store brand in Vietnam, following FamilyMart and MiniStop.

The number of 7-Eleven stores in Ho Chi Minh City has been raised to 13 units. Earlier, this brand announced to open about 20 stores by the end of 2017 and up to 100 units within next three years.

Hachi Hachi, a Japanese convenient store chain, first appeared in Ho Chi Minh City in 2007 attracted a lot of attention from people. After that, Daiso Japan, Tokyo Mart, Tokutokuya, Tokyo Life also established their store systems of which presence has been widespread in Vietnam.