Mr. Tetsuya Nagaiwa, Head of Vietnam Business, Overseas Business Group

On Friday, November 27, 2020, the first MUJI store in Vietnam, MUJI PARKSON LE THANH TON, opened in Ho Chi Minh City (Vietnam's largest city) with the largest sales floor among MUJI stores in Southeast Asia. This time, we interviewed Mr. Nagaiwa, who is in charge of Vietnam Business, about the efforts made towards the opening of the first new store in Vietnam, as well as his future plans and goals.

■About the Vietnamese market and MUJI PARKSON LE THANH TON
　Vietnam boasts a high GDP growth rate in recent years. It maintains a positive growth despite the influence from COVID-19, and is attracting worldwide attention as one of the leading markets in Southeast Asia. Another feature is that the population is young with an average age of 30, and the young generations are very active in consumptions. Ho Chi Minh City is the economic center of Vietnam, and we opened our first store in the very center of the city – the same area as GINZA/Shibuya/Shinjuku in the case of Japan. I regard the opening of this largest store in Southeast Asia a significant step toward raising our brand awareness in Vietnam

■Past experience and lesson learnt from the opening of a new store in a new country
　I worked in the Store Sales Division in Japan for nine years (seven years as a store manager) before becoming the person in charge of Malaysia Business. After that, I worked in MUJI Thailand to prepare for the establishment of a local subsidiary in Vietnam. Since I was a store manager in Japan, I have always reminded myself to “do good things immediately, stop bad things right away,” and I am still taking such actions even now.
　Launching MUJI business in a new country was far more difficult than I had imagined. Since Vietnam is a socialist country, there are rules about almost everything. All products that have direct contact with the skin, such as cosmetics and food items, must obtain certain licenses before they are imported. In addition, we need to deal with the authorities in every aspect, such as applying for the establishment of a company, submitting a declaration of the nature of the business, and making a declaration of the impact that the store has on the surrounding environment, etc. In order to gather the information necessary for these local operations, I learned about regulations and laws in Vietnam by directly meeting a large number of people after arriving in Vietnam, making use of the communication skills I have leant when I was a store manager in Japan. Also, there were many unexpected issues such as the requirement of a store installation permit right before its opening, and we were not able to proceed with our original schedule. As a result, I would always prepare a number of options and respond calmly and flexibly no matter what happened. I believe that these are very important points to start a new business in a new country.

■Communication with local staff
　I always remind myself that I should communicate my thoughts to the staff in my own words. On the first day of work for each staff, I would explain to him or her what Ryohin Keikaku and MUJI is, what MUJI Vietnam is aiming for, and so on. I have been doing this since the pre-opening stage up till now. Although many store staff are unable to speak English and we need to use interpretation, I still believe that it is important to talk with each other face in face and communicate my thoughts directly. I always feel happy and rewarded when the employees understand what I tried to convey, and that they sympathize with my own ideas about MUJI. Just like other countries and regions around the world, MUJI Vietnam is full of staff members who truly love MUJI.

■Customer response after opening
　In Vietnam, we are focusing on the sale of OS items, which form the basis of our daily life. With RKJ's production transfer progressing, approximately 30% of the items handled are manufactured in Vietnam. The reduced transportation costs are not included in the profit, but are reflected in the price of the product, which is more affordable for the local people. Customers respond well to products such as short-sleeved T-shirts, sandals, cleaning products, towels, and other items. The sales of cleaning goods ranked high even among all MUJI stores around the world, and sales volume of ballpoint pens exceeds 10,000 pieces per week. Many customers have said that they are happy to have this store in Vietnam - a nice store with everything they need.

■Future goals for MUJI Vietnam
　We will continue to provide MUJI products at affordable prices in order to serve the lives of the people of Vietnam. At the same time, as a foreign company, we will contribute to the local society by pay taxes through our businesses that can generate steady profits. In Vietnam, there are still few entertainment opportunities, so we want to provide a place where people can come visit the store, discover new things and make connections with each other.
　For example, I am thinking about inviting local craftsman to hold workshops for hand-knitted baskets, which is a traditional Vietnamese culture. If the young generations who visit our store participate in such workshops, they may become interested in traditional crafts, and in this way it might lead to the succession of the local culture. We hope that MUJI Vietnam would help the local people carry on what they have been cherished so far, such as the traditional culture that may have been lost due to rapid economic growth, by connecting people to people and people to the community.