GS Shop, South Korea's No. 1 home shopping company, said Monday that it has
entered the emerging Vietnamese market by acquiring stakes in a local
operator.
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.
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