Posted August. 01, 2017 09:23,
Updated August. 01, 2017 09:30
Korea's home-grown convenience store chain operator GS25 enters Vietnam market for the first time in its 27-year history.
GS Retail announced on Monday that the company has signed a deal with Vietnamese SonKim Group to set up a joint venture to operate its business in Vietnam. GS Retail and SonKim Group have invested shares with a ratio of 3 to 7. SonKim Group engages in construction industry and operates clothing stores in Vietnam.
GS Retail will offer its trademark right, skills and know-hows for convenience store management. The Joint venture will pay royalties whenever the number of GS25 stores increases in Vietnam. The first GS store will be open in Ho Chi Minh city this year.
The company expects that it will earn tens of billions of won each year through royalties and income from dividend of its 30 percent share in the future. “The convenience store business is highly likely to succeed in Vietnam as the population of people under the age of 35 accounts for 57 percent of the total," GS Retail said.