According to the agreement, Vingroup’s retail arm VinCommerce and its subsidiary VinEco would merge into Masan Consumer Holdings, the retail consumer business of Masan.

Vingroup is now able to focus on its core businesses while Masan found its last piece of a puzzle to build an empire of consumer retail.

This move is part of Vingroup’s restructuring process, aiming to reallocate its resources to core businesses of industry and technology to compete globally, said a company executive.

Both SK Group and South Korea’s National Pension Service (NPS) would contribute US$430 million to the fund.

Besides rapid urbanization, the rising income of consumers is one of the reasons for the booming of the Vietnamese retail market.