The Republic of Korea (RoK)’s major convenience store chain CU will open its stores in Vietnam, following the success in Mongolia.

At the signing ceremony of the franchise deal between BGF Retail
and its Vietnamese partner (Photo: BGF Retail)

The move is part of the expansion plan in foreign markets of CU operator - BGF Retail. The company said it will enter Vietnam’s market after the signing of a master franchise contract with CUVN, a Vietnam-based convenience store operator backed by local Vietnamese companies including retailer SNB.

Under the master franchise deal, BGF Retail will share its brand and business knowhow in convenience store operation with its Vietnamese partner that will be responsible for investment and operations.

BGF Retail also entered Mongolia last year under a master franchise deal with a local company. The RoK operator expects its experience in Mongolia would help it gain a strong foothold in the Southeast Asian market which has high growth potential.

BGF Retail and CUVN aim to open their first Vietnamese outlet in the first half of 2020.

Park Jae-gu, chief executive of BGF Retail, said the company will continue overseas expansion by making forays into fast-growing emerging markets.