Ministop Vietnam Company Limited (Vietnam)

The subject is running chain of convenient stores with brand of Ministop. It is considered as member of Aeon Group. Until now, the subject has had about 156 stores in Vietnam. Ministop has set a goal of expanding the number of its convenience stores in Vietnam to 200 stores by 2023, 300 stores by 2024 and 500 stores by 2025. Thus, by the end of 2023, the company may not achieve this goal. The economic recession, high rental prices and Vietnamese people's habit of buying on the sidewalk without getting off their motorbikes are some barriers to the expansion plans of this convenience store chain. Ministop is also gradually withdrawing from the Chinese and South Korea, to focus resources on the only foreign market, Vietnam. It is expected that the company will increase revenue significantly in the following years.Currently, Ministop is implementing a "new store" system providing fresh foods, such as vegetables and fruits, or selling a variety of spices. Ministop is aiming to meet the needs of Vietnamese people to cook for themselves. In 2022, about 34 Ministop stores in Vietnam became "new stores". This "new store" recorded a daily sales growth of 24% compared to other stores. Also thanks to this "new store", Ministop's 2022 revenue in the Vietnamese market increased sharply compared to the previous year. In recent years, there has been a system of convenience stores under the small and medium business model, which provide essential items for daily life, combined with some dining, free air conditioning and wifi services is growing like mushrooms in Vietnam. It is not difficult to see famous foreign brands such as Circle K (USA), Ministop (Japan), GS25 (South Korea), 7-Eleven (Thailand) and Vietnamese companies and corporations such as Co.op Smile of Saigon Co.op, Winmart+ of Masan which are racing to gain a larger market share in the convenience store sector, a lucrative piece of the Vietnamese retail market at present. Among these, Circle K is considered the strongest "player" when holding the leading position with a market share of 48%, followed by Family Mart of 18.8%, Ministop of 14.3% and 7-Eleven of 7.3%. Vietnam has about 6,740 convenience stores by the end of 2022, of which Ho Chi Minh City leads with more than 2,600 stores, followed by big cities like Hanoi and Da Nang.