(Image Source: PR Newswire)
Vietnam’s Masan Group announced its plans to increase technology investments and expand partnerships to meet rising local demand for e-commerce.
Masan is building a business model similar to that of India’s Reliance Industries’ Jio unit. By providing a variety of services, including supermarkets, food production and financial services, the Ho Chi Minh City-based company strives to reach 50 million customers in the next three to five years.
According to CEO Danny Le, their ultimate aim is to cover 80% of a customer’s daily needs. This “end game”, however, would not be possible without improved online and offline infrastructures. “Our digital telecom platform will be the foundation of our loyal ecosystem,” said Mr Le in an email.
Fortunately for the Masan Group, things have been looking up in recent years. Just in 2021, its shares rose by 83%, thus outpacing the benchmark VN-Index’s 34% advance. Given the growing interest of investors in Southeast Asian markets, it is realistic to expect even further growth in the future. Based on a study done by Alphabet’s Google, Temasek and Bain & Co, Vietnam’s digital economy will be worth US$52 billion by 2025.
E-commerce sales currently account for around 2% of Vietnam’s retail market, which leaves spacious room for growth. “I do expect that to double, potentially triple over the next couple of years. Masan itself is trying to align its business to ensure that we can offer consumers both an off- and online experience…,” said Mr Le in a recent TV interview.