China’s CDH Investments acquires 5% stake in Vietnam grocery chain

By Anh Minh
Wed, April 10, 2024 | 4:38 pm GMT+7

China’s CDH Investments, through Green Bee 2 Private Limited, has completed the acquisition of a 5% stake in grocery chain Bach Hoa Xanh, a subsidiary of Vietnamese retailer Mobile World.

The proceeds will be used to finance operations and growth needs of the grocery chain and its unit Bach Hoa Xanh Trading JSC, Mobile World said in a Tuesday release, without revealing the deal’s value.

A Bach Hoa Xanh grocery store. Photo courtesy of Mobile World.

A Bach Hoa Xanh grocery store. Photo courtesy of Mobile World.

A Reuters report has cited a letter to CDH Investments from the Ho Chi Minh City Department of Planning and Investment as saying that the deal was valued at VND1.8 trillion ($72 million). This gives Bach Hoa Xanh Technology and Investment JSC, which runs the grocery chain, a price tag of $1.44 billion.

Initially, Bach Hoa Xanh had planned to sell up to 20%, but steadily improving performance that is expected to deliver a net profit this year and beyond, led a change of plans, Mobile World said.

It added that the new investor was willing to buy more shares and support the firm’s leadership with long-term plans. Notably, the investor would not directly join operations or control Bach Hoa Xanh, Mobile World emphasized.

CDH Investments said in a statement that Mobile World will remain the controlling shareholder of Bach Hoa Xanh Investment, next to CDH Investments and the company's management.

“This marks CDH Investments' latest commitment in Vietnam and our second transaction with the Mobile World group of companies. Vietnam is one of CDH Southeast Asia's priority markets for its superior macro-economic and structural outlook and we are particularly optimistic about the future of its organized grocery retail sector,” said Thomas Lanyi, Southeast Asia head of CDH Investments.

Established in 2002, alternative assets management firm CDH Investments has operations across Greater China and Southeast Asia. The firm claims to manage six USD-denominated private equity investment funds and other investment products, with cumulative assets under management exceeding $20 billion.

The Bach Hoa Xanh minimart chain has around 1,700 stores across southern and south-central Vietnam, offering fresh foods, vegetables and other goods of daily basic needs.

Established in 2015, it incurred a loss of VND1.21 trillion ($48.4 million) in 2023, the eighth year in a row, leading to accumulated losses of VND8.6 trillion ($344 million). With 2023 revenues reaching VND31.6 trillion, the chain is expected to contribute around 30% to Mobile World’s total revenues this year.

Shares of Mobile World, listed on the Ho Chi Minh Stock Exchange as MWG, closed down 1.9% at VND51,800 ($2.1) apiece Wednesday after ending at a six-month high at VND52,800 Tuesday.

Comments (0)
  • Read More
Europe-Asia Industry Cooperation Forum to take place in Hanoi today

Europe-Asia Industry Cooperation Forum to take place in Hanoi today

The Vietnam's Association of Foreign Invested Enterprises (VAFIE), in association with F&H International Industry, will organize the Europe-Asia Industry Cooperation Forum in Hanoi today.

Economy - Wed, June 11, 2025 | 7:30 am GMT+7

Thailand's SCG Packaging becomes sole owner of Vietnam's leading plastics firm Duy Tan

Thailand's SCG Packaging becomes sole owner of Vietnam's leading plastics firm Duy Tan

SCG Packaging Public Company Limited (SCGP), a subsidiary of Thailand's multi-sector giant SCG, has acquired an additional 30% stake at Duy Tan JSC, becoming the sole owner of the leading producer of rigid plastic packaging products in Vietnam.

Companies - Tue, June 10, 2025 | 10:53 pm GMT+7

VinaCapital fully divests from Vietnam’s private hospital chain Tam Tri

VinaCapital fully divests from Vietnam’s private hospital chain Tam Tri

The Vietnam Opportunity Fund (VOF), managed by VinaCapital, has announced its full divestment from local hospital chain Tam Tri Medical, according to a filing with the London Stock Exchange.

Finance - Tue, June 10, 2025 | 4:43 pm GMT+7

CapitaLand breaks ground on its first luxury low-rise project in northern Vietnam

CapitaLand breaks ground on its first luxury low-rise project in northern Vietnam

Singapore's CapitaLand Development (CLD) has broken ground on The Fullton, a luxury low-rise residential development with a gross development value of approximately $800 million.

Real Estate - Tue, June 10, 2025 | 4:26 pm GMT+7

Vietnam’s major affordable housing developer Hoang Quan appoints new CEO

Vietnam’s major affordable housing developer Hoang Quan appoints new CEO

Hoang Quan Real Estate Consulting-Trading-Services JSC (HoSE: HQC), a major affordable housing developer in Vietnam, has appointed Nguyen Long Trieu as its new general director, effective from Monday.

Real Estate - Tue, June 10, 2025 | 4:00 pm GMT+7

US Cargill announces exit from aquafeed business in Vietnam

US Cargill announces exit from aquafeed business in Vietnam

Cargill, one of the leading animal feed producers in the U.S., has withdrawn from the aquafeed business in Vietnam, said Maxime Hilbert, interim general manager for aqua nutrition at Cargill Thailand & Vietnam.

Industries - Tue, June 10, 2025 | 3:26 pm GMT+7

USD price likely to hit record high of VND26,300 in Q3, drop to VND26,100 in Q4: UOB

USD price likely to hit record high of VND26,300 in Q3, drop to VND26,100 in Q4: UOB

Singaporean bank UOB on Monday said its updated forecasts on the USD/VND exchange rate are VND26,300 per USD in Q3/2025; 26,100 in Q4/2025; 25,900 in Q1/2026; and 25,700 in Q2/2026.

Economy - Tue, June 10, 2025 | 2:38 pm GMT+7

Four pillars set stage for Vietnam private sector breakthrough: expert

Four pillars set stage for Vietnam private sector breakthrough: expert

The four resolutions recently issued by the Politburo, Vietnam's highest decision-making body, mark a critical turning point, opening up major opportunities for Vietnam’s private sector to thrive, said Tran Du Lich, former director of the Ho Chi Minh City Institute of Economics.

Economy - Tue, June 10, 2025 | 12:37 pm GMT+7

How Vietnam’s functional food market evolves

How Vietnam’s functional food market evolves

With the presence of major domestic and international brands, along with strong government efforts to dismantle counterfeit product rings, Vietnam's functional food market is expected to continue its upward trajectory in the coming time.

Economy - Tue, June 10, 2025 | 12:18 pm GMT+7

Visa introduces Click to Pay in Vietnam for online shopping experience 'transformation'

Visa introduces Click to Pay in Vietnam for online shopping experience 'transformation'

Visa has introduced Click to Pay with leading banks and payment facilitators in Vietnam - the first market in Southeast Asia to see the solution that aims to transform online shopping experience.

Finance - Tue, June 10, 2025 | 8:48 am GMT+7

Vietnamese banks leverage national data integration to reach customers

Vietnamese banks leverage national data integration to reach customers

Banks in Vietnam are developing fully digital lending services, enabling customers to apply for and receive loans entirely through online platforms.

Banking - Mon, June 9, 2025 | 11:28 pm GMT+7

Vietnam’s garment-textile exports top $17 bln in five months

Vietnam’s garment-textile exports top $17 bln in five months

Vietnam’s garment and textile exports exceeded $17.58 billion in the first five months of 2025, up 9% year-on-year.

Companies - Mon, June 9, 2025 | 11:21 pm GMT+7

Vietnam's coastal hospitality real estate poised for a new wave of growth

Vietnam's coastal hospitality real estate poised for a new wave of growth

As competition intensifies and the tourism sector rapidly evolves post-pandemic, hospitality real estate investors and hotel operators are adopting more innovative approaches to optimize operations and tap into new revenue streams, write Avison Young Vietnam analysts.

Consulting - Mon, June 9, 2025 | 11:01 pm GMT+7

Rules on private placement bond issuance should be tightened: Vietnam Finance Minister

Rules on private placement bond issuance should be tightened: Vietnam Finance Minister

Allowing only companies that have liabilities five times higher than their equity at maximum to issue bonds via private placement is a necessary move to mitigate risks and prevent abuse, said Finance Minister Nguyen Van Thang.

Finance - Mon, June 9, 2025 | 6:19 pm GMT+7

EV maker VinFast commits to purchasing all output for Vietnamese suppliers

EV maker VinFast commits to purchasing all output for Vietnamese suppliers

Vietnamese electric vehicle maker VinFast has committed to purchasing all products for domestic suppliers that join its production chain.

Companies - Mon, June 9, 2025 | 5:21 pm GMT+7

Phat Dat affirms leadership role in southern Vietnam's property market following successful launch of La Pura project

Phat Dat affirms leadership role in southern Vietnam's property market following successful launch of La Pura project

The official launch of the La Pura project by Phat Dat Real Estate Development Corp on Sunday in the southern province of Binh Duong made a significant impact, with over 95% of the total inventory in the Zenia sub-zone successfully transacted.

Real Estate - Mon, June 9, 2025 | 4:07 pm GMT+7