Parkson to exit Vietnam market
HCMC – Parkson Vietnam has filed for voluntary bankruptcy proceedings to the HCMC People’s Court on April 28
In the documents submitted to the Singapore Stock Exchange, Parkson Retail Asia (PRA) - Parkson Holdings Group (Malaysia) holding 67.96% of the shares - stated that due to business losses, Parkson will leave Vietnam. These losses have accumulated over the past few years as the business environment has faced challenges since Covid-19.
In its recent announcement, Parkson Holdings also mentioned the challenges posed by a lack of support on land issues, closures due to epidemics, and difficulties in land taxation.
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The group believes that it is not commercially feasible for Parkson to continue its business in Vietnam. Applying for bankruptcy (starting from April 28th) will bring maximum benefits to Parkson Vietnam.
In the fiscal year 2022, Parkson's operations in Vietnam recorded a pre-tax loss of S $2.3 million ($1.7 million), while in 2021, the pre-tax profit was S $13.7 million. Stopping its business in Vietnam is also considered in line with the group's focus on Malaysia. The company stated that Malaysia remains optimistic about the market outlook.
In the submitted documents, Parkson Holdings also acknowledged that the bankruptcy of Parkson Vietnam is expected to have a negligible impact on the group's re![]()
venue for the 2023 fiscal year.Leaving Vietnam, PRA currently only operates in Malaysia and China.
On the afternoon of April 28th, the Parkson Inn store located on Le Thanh Ton Street (Zone 1) was operating normally.
Parkson has been operating in Vietnam since 2005 and has opened nearly a dozen new commercial centers in various provinces over the next nine years. However, by 2014, the investment wave of Parkson had stopped as the company began not to open more shopping centers.
By 2015-10 years into the market - Parkson has entered a phase of continuous closure of shopping malls.
In January 2015, the commercial center in Keangnam (Pham Hung Street, Me Tri, Hanoi) was closed. In May 2016, Parkson Paragon (Nguyen Luong Bang Street, District 7, Ho Chi Minh City) relocated after five years of operation. Seven months later, the Parkson Vietnam Building also ceased operations. In March 2018, Parkson Flemington disappeared from the shopping map of Vietnam. In October 2018, Parkson Cantivil An Phu (HCMC) closed.
In July 2020, PRA proposed to sell Parkson TD Plaza Hai Phong to Thuy Dong Construction and Trading Company located in Haiphong for $10 million.
See more:
Historical turning point: Vietnam's multi-billion industry shaking
Vietnam's largest Mercedes-Benz dealer reduced profits dozens of times
In its recent announcement, Parkson Holdings also mentioned the challenges posed by a lack of support on land issues, closures due to epidemics, and difficulties in land taxation.
The group believes that it is not commercially feasible for Parkson to continue its business in Vietnam. Applying for bankruptcy (starting from April 28th) will bring maximum benefits to Parkson Vietnam.In the fiscal year 2022, Parkson's operations in Vietnam recorded a pre-tax loss of S $2.3 million ($1.7 million), while in 2021, the pre-tax profit was S $13.7 million. Stopping its business in Vietnam is also considered in line with the group's focus on Malaysia. The company stated that Malaysia remains optimistic about the market outlook.
In the submitted documents, Parkson Holdings also acknowledged that the bankruptcy of Parkson Vietnam is expected to have a negligible impact on the group's re
venue for the 2023 fiscal year.Leaving Vietnam, PRA currently only operates in Malaysia and China.On the afternoon of April 28th, the Parkson Inn store located on Le Thanh Ton Street (Zone 1) was operating normally.
Parkson has been operating in Vietnam since 2005 and has opened nearly a dozen new commercial centers in various provinces over the next nine years. However, by 2014, the investment wave of Parkson had stopped as the company began not to open more shopping centers.
By 2015-10 years into the market - Parkson has entered a phase of continuous closure of shopping malls.
In January 2015, the commercial center in Keangnam (Pham Hung Street, Me Tri, Hanoi) was closed. In May 2016, Parkson Paragon (Nguyen Luong Bang Street, District 7, Ho Chi Minh City) relocated after five years of operation. Seven months later, the Parkson Vietnam Building also ceased operations. In March 2018, Parkson Flemington disappeared from the shopping map of Vietnam. In October 2018, Parkson Cantivil An Phu (HCMC) closed.
In July 2020, PRA proposed to sell Parkson TD Plaza Hai Phong to Thuy Dong Construction and Trading Company located in Haiphong for $10 million.
See more:
Historical turning point: Vietnam's multi-billion industry shaking
Vietnam's largest Mercedes-Benz dealer reduced profits dozens of times
