FamilyMart Co., Ltd. and ITOCHU Corporation announce the establishment of Vina FamilyMart Co.,Ltd. ("VFM"), a joint venture established in Vietnam in partnership with Phu Thai Group Joint Stock Company ("Phu Thai", headquartered in Hanoi) for the purpose of operating FamilyMart stores in Vietnam.
VFM is the first joint venture to be set up in Vietnam by a Japanese retailer. With establishment scheduled for completion in early August, it is expected to begin business operations in the middle of that month. To expand store operations throughout Vietnam, FamilyMart will grant a master license to VFM for its future operations within the country, and conclude area franchise agreements with the venture.
Even within the thriving Asian market, Vietnam shows striking growth potential. Given that its population has a low median age, rapid growth in consumption can be expected in years ahead. As things stand, the convenience store sector is still in its infancy in Vietnam, but FamilyMart, an operator originating in Japan, has already established one store in Ho Chi Minh City (in December 2009) and operates a total of seven stores in the country as of today. FamilyMart stores now being developed are operated by Family Company Ltd., a wholly owned subsidiary of Phu Thai.
Underpinning the new joint venture are the nationwide local logistics network operated by Phu Thai, the operational expertise of FamilyMart in the convenience store sector, and the procurement reach of ITOCHU. These three strengths will not only accelerate store openings and build up the FamilyMart franchisee base in Vietnam, but will also contribute to the general development of retailing in that country, and its overall modernization, by proposing new modes of consumption and enjoyment to local consumers.