SonKim Group bets $100 million on retail sector

Following its partnership with Korean-backed GS25 Retail, SonKim Group has moved on to set up a joint venture with Japan-based Watami Group, which runs a chain of pub-style restaurants in Japan and across Asia.

A joint venture between SonKim and Watami was launched in Ho Chi Minh City on May 19, with plans to open up to 30 Kyo Watami restaurants across the country.

According to SonKim Group chairman Nguyen Hoang Tuan, retail is an area of focus for which the company has set aside some $100 million alone to invest. 

"We want to create a retail system of its own though investments in home shopping, online shopping, food and convenient stores. We aims to become the gateway for international retailers to come in and utilise our system to do business in Vietnam," said Tuan.

SonKim has capitalised on its track-records in real estate development to set up various building complexes in prime locations in Ho Chi Minh City and other provinces, that will support its retail and restaurant business.

“Apart from being successful in the real estate market, we are preparing for our grand entrance into the retail sector,” said Tuan.

SonKim is leveraging on the giants and has teamed up with GS25 Retail and now Watami. 

Tuan said that the company has a long vision for the development of retail business and thus learning from the experienced partners and leveraging on their sound financial background is the best way to go.

SonKim has currently had three major business arms, including real estate, media and retail.

The firm has four retail subsidiaries consisting of SonKim Fashion, an underwear manufacturing joint venture with Quadrille & Vera, SB Furniture and a home-shopping platform VSG Shop. 

SonKim has over 400 shops nationwide and also the manufactures underwear brands like Jockey, Vera, J.Buss and WOW.

Last August, SonKim partnered GS25 Retail to launch the GS25 convenient store brand, boasting an ambition to open 2,500 stores in the next 10 years.

SonKim has been developing a number of high-end properties, like the Gateway Thao Dien, the Nassim, Serenity Sky Villas and the Metropole Thu Thiem, in Ho Chi Minh City.