E-mart, a retail affiliate of Shinsegae Group, has laid the groundwork for entering Vietnam by signing a memorandum of understanding with the Vietnamese government ahead of its first store opening in the country in December.

Korea’s largest discount store chain signed an MOU with the Vietnam Traffic Safety Committee to provide 10,000 free motorbike helmets to children living in Ho Chi Minh City each year, according to E-mart on Wednesday.

“E-mart has been preparing for this project, which will become an important momentum that signals the beginning of its business in Vietnam,” said Choi Gwang-ho, general director of E-mart Vietnam.

The corporate social responsibility program is E-mart’s marketing strategy to enhance its corporate image with government officials and Vietnamese consumers.

“We will focus on maximizing the corporate brand image to stabilize our business here by persistently carrying out campaigns in which the Vietnam government and other civil organizations can participate,” Choi said.

Vietnam is an attractive market for Korean supermarket chains as the country’s disposable income has surged more than 95 percent over the past five years, leading to growing consumption levels.

While traditional markets still account for 75 percent of Vietnam’s total retail spending, it will soon be modernized in a form of department stores and supermarkets with rapid urbanization, according to experts.

In Vietnam, E-mart doesn’t want to repeat its bitter Chinese experience where its accumulated losses hit 53 billion won ($48.5 million) in 2014.

The company said in December that it was shutting down four stores in Tianjin, which leaves it with only 10 in China, including eight in Shanghai. This is a sharp fall from 27 at its peak after advancing into the Chinese market in 1997.

Shinsegae vice chairman Chung Yong-jin has reportedly visited Vietnam several times since 2010 to secured a 20,000-square-meter plot in Ho Chi Minh for the company’s flagship discount supermarket.

The second store is due to open early next year near Tan Son Nhat International Airport. Shinsegae has recently gained the Vietnamese authorities’ approval to invest $60 million into the project.

By Park Han-na (hnpark@heraldcorp.com)