Alfamart to open 10 outlets in Vietnam

News - PT Sumber Alfaria Trijaya Tbk, who owns the retail network Alfamart minimarket, will open Alfamart outlets in Vietnam .

PT Sumber Alfaria Trijaya Tbk, who owns the retail network Alfamart minimarket, will open Alfamart outlets in Vietnam.

“The agreement is expected to be completed in September, so the outlets could be opened this year,” said the PT Sumber Alfaria Trijaya Director of Corporate Affair, Solihin, in Jakarta, on Monday late afternoon.

Expansion will be carried out by opening ten counters in Hanoi, Vietnam. The business might be carried out in the form of partnership. “Alfa might become a minority with 49 percent ownership,” he said.

There are rules forbidding foreign entities from owning the majority share.

Alfa also plan to keep the Alfamart brand as the name of the outlets. The goal is to promote Indonesian brands in the region.

Previously, Alfa conducted surveys in Malaysia and Thailand.

Vietnam was chosen because its economic growth is quite fast. “The market characteristics resemble Indonesia,” said the Manager of Community Relations Yoelianto Simoatmojo.

Up until August 2010, Alfamart have owned 17 branches in all Indonesia. Meanwhile, the amount of minimarkets has reached more than 4300. They plan to expand it to 5000 at the end of 2010.

In the first half of 2010, Alfa net sales amounted to Rp6.1 trillion.

The net profit is about Rp33.7 billion, higher than at the same period in 2009, when it was Rp24 billion. “Bt the end of the year, the profit is targeted to grow to Rp200 billion,” he said.

The target is expected to grow on the assumption that profit will grow 10 percent compared to 2009’s net profit of Rp186 billion.

54 percent of Alfa is owned by its founder PT Sigmantara Alfindo. PT Cakrawala Mulia Prima owns 6.48%, Argo Volantis Pte Ltd , a subsidiary of Northstar Pacific Partners owns 28.52% and the rest belong to the public.