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
World-class talent ‘absolutely central’ to success of Vietnam's international financial center ambition: Tony Blair Institute

World-class talent ‘absolutely central’ to success of Vietnam's international financial center ambition: Tony Blair Institute

Damian Hickey, regional director, South East Asia, Tony Blair Institute talks with The Investor on international investors’ interest in Vietnam’s dual-campus international financial center (IFC) model and suggests ways to attract world-class talent for the country’s IFC ambition.

Finance - Thu, July 31, 2025 | 10:53 am GMT+7

Vietnam retail major FPT Retail’s accumulated profit jumps by over $36 mln in H1

Vietnam retail major FPT Retail’s accumulated profit jumps by over $36 mln in H1

Vietnamese retail major FPT Retail’s undistributed post-tax profit rose nearly 2.7 times to VND1.5 trillion ($57.16 million) at the end of June, up VND955 billion ($36.39 million) from the beginning of this year.

Companies - Thu, July 31, 2025 | 10:00 am GMT+7

Super typhoon verifies claim management excellence of Vietnam’s leading insurer

Super typhoon verifies claim management excellence of Vietnam’s leading insurer

PVI Insurance Corporation winning the “Outstanding Claims Management” category at the Country Awards for Excellence 2025 hosted by Insurance Asia News (Hong Kong) affirms its strong service quality, not only within Vietnam but also in the broader regional insurance community.

Companies - Thu, July 31, 2025 | 9:03 am GMT+7

New sellers on Amazon must seriously invest in branding: Lixibox exec

New sellers on Amazon must seriously invest in branding: Lixibox exec

New sellers on Amazon should be prepared to invest in their business and view early mistakes as inevitable learning experiences, not reasons to quit, said Sao Lonsdale, CEO of Lixibox, a Vietnamese beauty brand.

Companies - Thu, July 31, 2025 | 9:00 am GMT+7

MBBank records 18% profit growth in H1, among top earners in Vietnam's banking system

MBBank records 18% profit growth in H1, among top earners in Vietnam's banking system

Hanoi-based MBBank (MB) posted a pre-tax profit of VND15.89 trillion ($606.43 million) in H1/2025, up 18% from a year earlier and meeting half of its full-year target.

Banking - Thu, July 31, 2025 | 8:06 am GMT+7

Vietnam's leading developer Novaland divests from series of major projects

Vietnam's leading developer Novaland divests from series of major projects

Novaland, a major real estate developer in Vietnam, said it had completed the transfer of a 49% stake in its subsidiary Gia Duc Real Estate Co. Ltd., in a deal worth nearly VND1.73 trillion ($65.98 million) in June.

Real Estate - Thu, July 31, 2025 | 8:00 am GMT+7

Two Vingroup subsidiaries to sign $180 mln contractor for commercial complex in Hanoi

Two Vingroup subsidiaries to sign $180 mln contractor for commercial complex in Hanoi

Vietnam Exhibition Fair Center JSC (VEFAC), a unit of conglomerate Vingroup (HoSE: VIC), has secured board approval to sign a contractor agreement with fellow subsidiary Vincons Construction Investment and Development JSC to develop a cultural, service and commercial complex in Hanoi’s Giang Vo ward.

Real Estate - Wed, July 30, 2025 | 4:29 pm GMT+7

Vietnam's state utility EVN posts $314 mln in post-tax profit after long period of losses

Vietnam's state utility EVN posts $314 mln in post-tax profit after long period of losses

State-owned giant Vietnam Electricity (EVN) made a remarkable turnaround in 2024, recording a post-tax profit of more than VND8.24 trillion ($314.2 million), ending a prolonged period of losses.

Companies - Wed, July 30, 2025 | 2:03 pm GMT+7

Masan’s beverage chain Phuc Long books nearly 64% profit growth on strong food sales

Masan’s beverage chain Phuc Long books nearly 64% profit growth on strong food sales

Phuc Long Heritage JSC, a beverage subsidiary of retail giant Masan Group (HoSE: MSN), posted a net profit of VND86 billion ($3.28 million) in the first half of this year, up 63.5% year-on-year, according to its parent firm’s financial statement.

Companies - Wed, July 30, 2025 | 1:51 pm GMT+7

Vietnam's pharma major Bidiphar achieves 60% of year's profit target after 6 months

Vietnam's pharma major Bidiphar achieves 60% of year's profit target after 6 months

Binh Dinh Pharmaceutical Medical Equipment JSC (Bidiphar) reported revenue of VND916 billion ($34.98 million) and pre-tax profit of VND202 billion ($7.71 million) in H1/2025, fulfilling 46% and 60% of the year's respective targets.

Companies - Wed, July 30, 2025 | 11:36 am GMT+7

Vietnam earns $3.7 bln from steel exports in H1, down 22.5%

Vietnam earns $3.7 bln from steel exports in H1, down 22.5%

Vietnam raked in $3.7 billion from exporting 5.66 million tons of steel in the first half of 2025, down 13% in volume and 22.5% in value year-on-year.

Economy - Wed, July 30, 2025 | 10:30 am GMT+7

Challenges mount for Vietnam’s Century Synthetic Fiber Corporation

Challenges mount for Vietnam’s Century Synthetic Fiber Corporation

Ho Chi Minh City-based Century Synthetic Fiber Corporation is facing a myriad of difficulties as it has failed to raise capital, while hundreds of billions of VND (VND100 billion = $3.82 million) in project-related debt near maturity.

Companies - Wed, July 30, 2025 | 9:11 am GMT+7

Vietnam’s Long Thanh may enter global mega airports club next decade: report

Vietnam’s Long Thanh may enter global mega airports club next decade: report

Long Thanh International Airport, under construction in Vietnam’s southern province of Dong Nai, is expected to join global mega airports capable of handling at least 100 million passenger arrivals annually by the next decade, a report said.

Infrastructure - Wed, July 30, 2025 | 9:00 am GMT+7

Vietnam's agri major BAF enjoys skyrocketing 444% profit growth in Q2

Vietnam's agri major BAF enjoys skyrocketing 444% profit growth in Q2

BAF Vietnam Agriculture JSC, which owns the "Vegetarian Pig" brand, posted impressive business results in Q2/2025 amid a volatile pork market, with after-tax profit soaring 444% year-on-year.

Companies - Wed, July 30, 2025 | 8:00 am GMT+7

Vietnam benchmark VN-Index’s plunge opens up buying opportunities: expert

Vietnam benchmark VN-Index’s plunge opens up buying opportunities: expert

The 4.11% drop of the VN-Index on Tuesday after hitting an all-time high is "reasonable" and "could set a new price base for incoming capital flows", said Tran Hoang Son, director of market strategy at VPBank Securities (VPBankS).

Finance - Wed, July 30, 2025 | 12:24 am GMT+7

Central Vietnam province okays Hoa Phat's $393 mln railway track project

Central Vietnam province okays Hoa Phat's $393 mln railway track project

The Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority on Tuesday gave in-principle approval to a $393 million rail track and special steel project by Hoa Phat Dung Quat Rail and Special Steel JSC, a subsidiary of steel giant Hoa Phat.

Industries - Tue, July 29, 2025 | 5:19 pm GMT+7