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Siam Piwat pounces on opportunities in Vietnam
Siam Piwat Co, the operator of Siam Center, plans to branch out into Vietnam over the next 3-5 years to capitalise on the country’s growing economy.
Vietnam is an attractive market for Siam Piwat because the government is stable, the economy continues to grow and there are few big shopping complexes like the ones Siam Piwat specialises in, said Chollachat Meksupha, first executive vice-president for the business development and investment division.
“We have been approached and contacted by retailers in many Asean countries, including Malaysia, Vietnam and Myanmar, to help establish shopping complexes or manage retail stores,” Mr Chollachat said. “We are open to all proposals from our own investment, manage retail stores and look for merger and acquisition schemes both domestically and internationally for related retail businesses that can create synergy with Siam Piwat’s core business. Myanmar may not be a good fit for us right now, but we are ready for Vietnam.”
According to the Vietnam Retailers Association, huge retail opportunities exist in Vietnam because only 10-15% of the sector is modern retail business, while the rest is traditional retail.
Vietnam is an important country for many Thai firms looking to invest abroad.
Berli Jucker Plc, the owner of Bic C Supercenter, and Central Group have established their own footholds in Vietnam. Central recently announced a 15-billion-baht investment to expand its retail business in Vietnam over the next five years.
On the domestic front, Siam Piwat will continue to explore new market opportunities in property and retail, like its partnership with Simon Property Group to develop three outlet malls in Thailand.
“The retail market is expected to continue growing despite digital disruption and fast-changing consumer behaviours,” Mr Chollachat said. “Competitors are coming to Thailand from all over the world, but Thailand’s retail market is still growing, especially in Bangkok, thanks to factors like economic upturn, urbanisation, increased purchasing power of middle-income earners, an increasing number of tourists and the government’s support.”
As a result, he said, the company has never stopped studying the feasibility of projects in prime locations, with world-class entertainment and various retail formats that can create added value.
“We are seeking joint venture partners on the global stage that can bring expertise, help revolutionise our offerings and diversify our portfolio, which consists of fashion, cosmetics, food and beverage, and auditoriums,” Mr Chollachat said.
The number of companies under Siam Piwat Group has risen to 40, up from 20 just five years ago.
Source: https://www.bangkokpost.com/business/news/1539658/siam-piwat-pounces-on-opportunities-in-vietnam