Thai Retail Giant Posts $5.7M Daily Revenue in Vietnam, Faces Stiff Competition

Thai retail giant Central Retail has reported an average daily revenue of approximately VND105 billion (around $5.7 million) from its operations in Vietnam. However, the company's performance lags behind domestic Vietnamese retail chains such as Bach Hoa Xanh and WinCommerce (under Masan Group), which have posted higher revenues. According to its interim financial report, Central Retail's Vietnamese operations generated VND19.2 trillion (approximately 24 billion baht) in revenue in the first half of the year, a slight decrease of about 2% compared to the same period last year. Vietnam is the second-largest market for Central Retail, contributing around 20% to its global sales, after Thailand. Food remains the dominant segment, accounting for 86% of sales, or VND20.6 trillion (20.6 billion baht), which was flat year-on-year. The fashion segment saw a significant increase of 23%, reaching VND1.6 trillion (1.6 billion baht). The decline in overall revenue was primarily driven by the electronics segment. Sales in this category fell by nearly 35% to VND1.7 trillion (1.7 billion baht) due to the divestment from the electronics retail chain Nguyen Kim. Central Retail completed the sale of Nguyen Kim to Pico Holdings in late April for approximately 1.2 billion baht (over VND950 billion). Following the transaction, the company recorded a loss of 79 million baht from the disposal of investment and a valuation loss of 49 million baht. Central Retail entered the Vietnamese market in 2012 and operates several retail brands, including GO!, Tops Market, Lan Chi Mart, and Supersports. The group currently manages 330 stores and shopping centers across 26 provinces and cities nationwide. As of June 30, its total assets in Vietnam stood at approximately 30.8 billion baht, down from 35.5 billion baht at the end of last year. Globally, Central Retail reported total revenue of nearly 130 trillion baht in the first half of the year, a decrease of nearly 4% year-on-year. However, net profit increased by 35.2% to over 5 trillion baht, attributed to cost reduction efforts.