FPT Retail has confirmed investing in the drugstore chain Long Chau, marking a start in a completely new business sector from 2018. Earlier, the two technology device distributors, The Mobile World and Digiworld, also started to attack on the pharmaceutical market, by the acquisition of drug chains.
It can be seen that the pharmaceutical sector has a lot of potentials for long-term growth as Vietnam has just stepped into the “post – golden population” phase, and also reached the stage of population aging. Discussing this issue, Pharmacist Dr. Nong Thi Tien – Headmistress of Pasteur College of Medicine and Pharmacy said that the pharmaceutical market of Vietnam was so attractive. This is “the wildland” that has not been excavated much so the fact that many businesses jumped into it is not difficult to understand.
The pharmaceutical sector is growing more and more with the appearance of many domestic and foreign investors. FPT Retail also has similar steps to other “big bosses” in the technology device business sector in Vietnam when buying some drug stores.
Earlier, many electronics retailers directly in rival with FPT Retail, including The Mobile World and Digiworld also ambitiously entered into the ground for pharmaceuticals. Specifically, The Mobile World is in the negotiation process to acquire a chain of pharmacies with a scale of 10-15 stores in Ho Chi Minh City and it could possibly be the drugstore chain Phuc An Khang.
Meanwhile, Digiworld in mid-August 2017 has shook hands with Vinamedic, officially setting its foot in the distribution of functional foods sector. The product that Digiworld distributes is Kingsmen, a line of male enhancement products.
“Rumor” of FPT Retail’s investment in pharmaceutical retail has “popped” up earlier this year. However, this company has not released any official information to the media, because, it is said to be only in the negotiation stage, hence no official confirmation.
Most recently, in the introduction session of FRT investment opportunities held in Ho Chi Minh City last week, FPT Retail CEO Nguyen Bach Diep shared that since January 2017 the company had bought and merged several stores in the new industry and had completed writing maintenance software. FPR Retail also opened one to two stores of this industry.
On December 5, the Saigon Economic Times asserted, “FPT Retail has confirmed investing in the drugstore chain Long Chau, marking a start in a completely new business sector from 2018.”
FPT Retail owns two retail chains including FPT Shop (retail of technology products) and F.Studio (supplying authentic Apple products and accessories) with more than 450 stores nationwide. The number of stores has increased more than seven times in the period 2012-2017 and is expected to increase more in the near future. Executives of FPT Retail emphasized that building a new retail chain will not affect the company’s overall profits, heading in the direction of making each store profitable.