05 Mar 2012
The retailer said it reached a US$3.5 million contract with Fashion Group’s Son Kim company that operates the Vivi Home Shopping operations in the Ho Chi Minh City area.
Under the deal, GS Shop will initially buy a 30 percent stake in the home shopping network for $1.5 million to become the second-largest shareholder. This will be followed by a $2 million injection of funds that will make it the single largest shareholder of Vivi with 43 percent stake.
“Vietnam, with a population of 90 million, is the world’s 14th most populous country and by entering the fast emerging consumer market, GS Shop can create positive synergy with its operations in nearby India and Thailand,” the company said.
The company entered the Indian home shopping market in late 2009 and set up a Thai operation last year. The company, meanwhile, said that it plans to expand Vivi’s operations beyond Ho Chi Minh City to encompass Hanoi,
Vietnam’s capital city and the ports of Haiphong and Da Nang within the year.