Economy
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| Việt Nam’s leading retailer of mobile phones, Thế Giới Di Động, has closed 22 outlets it had at the now Thai-owned Big C supermarket after failing to strike a deal.— Photo zing.vn |
HCM CITY — Việt Nam’s leading retailer of mobile phones, Thế Giới Di Động, has closed 22 outlets it had at the now Thai-owned Big C supermarket after failing to strike a deal.
MWG, owner of the mobile phone retailer, wanted to sell electronic products instead of mobile phones at the Big C outlets, according to media reports. MWG also owns giant electronics retail chain, Dienmayxanh.
However, Thailand’s Central Group, which recently acquired Big C’s operations in Việt Nam, owns a 49 per cent stake in another major Vietnamese retailer, Nguyễn Kim.
This is the reason Big C ended the deal with MWG, according to media speculation.
An MWG spokesperson told Việt Nam News in an emailed reply: “The closure was completed last month. This is an unexpected happening.”
Thế Giới Di Động has more than 1,000 outlets nation-wide, and the closure of 22 stores is not expected to affect its operations much.
Experts said while the parting of ways is appropriate from Big C’s business perspective, it gives rise to a fear that Vietnamese retailers could be edged out of their home market.
However, foreign retailers, including Thai, account for less than a 10 per cent market share.
Thế Giới Di Động eyes revenues of US$2 billion this year as they grow at over 50 per cent a year, as do profits.
The MWG spokesperson said it was expected to overtake CoopMart as Việt Nam’s biggest retailer soon.
Big C has 32 outlets around Việt Nam, while many other foreign retailers also have plans to strengthen their position in the country. — VNS
