Central Group, controlled by Thai billionaire family Chirathivat, mulls $1.5B Vietnam investment

Central Group, a Thai billionaire-controlled conglomerate, is considering a significant $1.5 billion investment in Vietnam, according to Wallaya Chirathivat, the chairwoman of the firm. Chirathivat, speaking at a press briefing, highlighted Vietnam's rapid economic growth, with GDP expanding at an average of 8-10% annually, outpacing the regional average.

The country's large population of over 100 million consumers, willing to shop through modern retail channels, and its extensive geographic structure from north to south, presented ample opportunities for development. Central Group, which entered Vietnam in 2012 through Central Retail, currently operates 330 stores and shopping malls across 26 provinces and cities.

The company aims to double its investment in Vietnam, driven by its commitment to Vietnam's retail, shopping malls, and hotel sectors. Olivier Langlet, CEO of Central Retail Vietnam, revealed that the company has identified 200 potential locations for further development across urban areas. The company is already developing two properties in China-bordering Quang Ninh city, which will add an additional 1,000 rooms.

However, the ambitious investment proposal faces challenges such as the high cost of land in Vietnam, requiring careful financial planning to ensure returns meet shareholders' expectations. Despite these challenges, Central Retail's revenues in Vietnam reached over 24 billion Thai baht (US$722 million) in the first half of the year, accounting for 20% of the company's total revenues, making Vietnam its second-largest market after Thailand.

The Chirathivat family, who own Central Group, ranked fourth in Thailand's Forbes list of the 50 Richest People for nine consecutive years.