Masan to speed up tech investments for e-commerce growth in Vietnam

Masan Group has reportedly announced its plans to accelerate the technological partnerships and acquisitions to line up operations to cater to the e-commerce demands in Vietnam.

Danny Le, Chief Executive at Masan Group, stated that the firm offers plethora of services like retail network of mini marts and supermarkets, production of food and financial services, and is now planning to serve almost 50 million consumers in the coming three to five years.

Le continued that Masan wishes to become the go-to firm for almost 80 per cent of daily needs of consumers. Moreover, he added that the company needs to speed up and leverage on its online and physical networks.

The firm believes that Masan’s digital telecom platform will serve as the foundation of their loyal ecosystem.

Danny further stated that e-commerce represents 2% of Vietnam’s retail market and to accelerate the growth of e-commerce of Masan the firm wishes to focus on areas like supply chains, logistics an fintech.

As per credible sources, the digital economy of Vietnam will predictably rise to US$52 billion by 2025, a yearly 29% increase from 2020. The online shopping will account for 10% of the retail sales in Vietnam and 50% in Hanoi and Ho Chi Minh City by 2025.

Reportedly, the CrownX which takes care of Masan’s interests in Masan Consumer VinCommerce and Holdings has raised almost US$1.5 billion of investment from investors like Alibaba Group, Platinum Orchid, Seat Town Master Fund and others globally in 2020. 

According to credible reports, Masan aims to build a business model like that of India’s Reliance Industries Jio unit, in which there’s a provision of wireless telecommunication services. One of Masan’s unit acquired a 70 per cent stake in Mobicast JSC.

For the uninitiated, Masan’s shares observed an increase of up to 3.4 per cent and its stock has reached 83 per cent this year.

Source credits:- https://www.straitstimes.com/business/economy/vietnams-masan-to-ramp-up-tech-investments-to-expand-e-commerce