Mobile World to sell 20% stake in $1.5 bln grocery retailer
Vietnamese retail giant Mobile World Investment Corp. is seeking the sale of up to 20% of its grocery unit Bach Hoa Xanh in a deal expected to value the chain at more than $1.5 billion.
"We have chosen an adviser and are working together closely to prepare needed documents for the deal. It is expected to complete by the first quarter of 2023," a Mobile World spokesperson told Reuters on Wednesday in an emailed statement.
The Ho Chi Minh City-based Mobile World, listed on the Ho Chi Minh Stock Exchange as MWG with market value of about $4.2 billion, is active in the retail sale industry, primarily computer and electronics retailing.
Its The Gioi Di Dong electronics chain and Dien May Xanh, a network retailing consumer electronic products and household appliances, will still be the main sources of cash flow, estimated to account for 75-80% of total revenue, according to the company.
Meanwhile, the company would suspend new openings for Bach Hoa Xanh, a chain of supermarkets and grocery stores, to strengthen its operating platform before expanding from 2023. MWG expects Bach Hoa Xanh to contribute 20-25% of the company's total sales.
The company has been renovating Bach Hoa Xanh for the past few months to cut costs, improve corporate identity, and boost profitability. To date, the platform operates more than 1,700 outlets in south-central and southern regions, according to its website’s updates.
Bach Hoa Xanh has closed a total 400 stores compared to the beginning of the year and completed changing the new layout for almost all existing stores. MWG chairman Nguyen Duc Tai has said he expected the chain would be profitable in the fourth quarter this year.
With its Omni-channel retail strategy, MWG expects online sales to continue growing by 50% in 2022 and increase its contribution in total revenue to 15%.
Omni-channel retailing is a new concept in which all sales and interaction channels are considered together. Thai giant retailer Central Group is seeking to become the No.1 Omnichannel platform in food and property in Vietnam in the 2022-26 period, with 30 billion baht (almost $828 billion) planned as fresh investments for the goal.
Many mass grocery retailers (MCR) are expanding in Vietnam, capitalizing on the country’s fast-growing grocery sector and increased food spending, Fitch Solutions said in a sector report Monday.
Food and non-alcoholic drinks still take up the largest slice of household spending categories in Vietnam at 21.2% of the 2022 total. This rate is expected to remain the same up to 2026, but spending on food and non-alcoholic will still grow strongly, averaging growth of 10.7% a year, over the next five years, from VND1,025 trillion ($44.2 billion) in 2022 to VND1,557 trillion ($63.8 billion) by 2026, according to the report.
- Read More
Vietnam’s Masan MEATLife posts $4.14 million in Q3 after-tax profit
Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, recorded net profit after tax and pre-minority interest (NPAT Pre-MI) of VND105 billion ($4.14 million) in the third quarter of 2024.
Companies - Tue, October 29, 2024 | 3:25 pm GMT+7
Vietnam’s PV Gas, Russia’s Zarubezhneft to further core area cooperation
PV Gas, under state-owned Petrovietnam, and Russia’s state-owned Zarubezhneft will further cooperate in oil-gas and energy activities, the former said on Monday.
Energy - Tue, October 29, 2024 | 3:05 pm GMT+7
Vietnam steel major Hoa Phat’s net profit may reach $1 bln with new mill
Hoa Phat Group, which claims to be the biggest steel producer in Vietnam and Southeast Asia, may record a net profit of VND20-25 trillion ($793-991 million) when its new mill in the central region becomes fully operational, according to Vietcombank Securities (VCBS).
Companies - Tue, October 29, 2024 | 2:42 pm GMT+7
World Bank’s IFC plans $200 mln loan to LG Innotek Vietnam
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, plans to make a sustainability-linked loan (SLL) of up to $200 million to LG Innotek Vietnam Haiphong Co., Ltd.
Industries - Tue, October 29, 2024 | 10:11 am GMT+7
Vietnam banks' earnings outlook ‘relatively positive’: PYN Elite Fund
The Q3/202 earnings growth of Vietnam’s listed companies will likely settle around 20-30% and banks’ earnings outlook for the next 12 months is also relatively positive, said the Finland-based PYN Elite Fund.
Finance - Tue, October 29, 2024 | 9:39 am GMT+7
Chinese e-commerce giant Temu's Vietnam entry: unfair competition or market economy norm?
Vietnam's social media is currently inundated with ads from Temu, the e-commerce platform under China’s PDD Holding, showcasing a diverse array of products – from electronic chips to refrigerator mats – at discounts of up to 90%, and raising concerns about its strategy and compliance.
Opinion - Tue, October 29, 2024 | 7:55 am GMT+7
China’s BYD to repair Apple tablets with $375 mln northern Vietnam project
Chinese giant BYD is set to repair Apple tablets at its factory in Vietnam’s northern province of Phu Tho.
Industries - Mon, October 28, 2024 | 10:27 pm GMT+7
Singapore spends $270 mln on AI infrastructure, human resources
Singapore’s National Research Foundation (NRF) will allocate $270 million to the National Supercomputing Centre (NSCC) in the next three years to train specialists and develop next-gen supercomputers in order to boost AI through supercomputing talent and infrastructure.
Southeast Asia - Mon, October 28, 2024 | 10:21 pm GMT+7
Malaysia to leverage 2025 ASEAN chairmanship to advance regional carbon initiatives
Malaysia’s ASEAN 2025 chairmanship provides the best opportunity to promote carbon trading and carbon credits among its member countries, says Sarawak’s Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni.
Southeast Asia - Mon, October 28, 2024 | 10:20 pm GMT+7
Vietnam, UAE elevate relations to comprehensive partnership
The United Arab Emirates (UAE) has become Vietnam's first comprehensive partner in the Middle East, underscoring the two nations' commitment and high expectations for a strengthened, practical and effective collaboration.
Politics - Mon, October 28, 2024 | 10:16 pm GMT+7
UAE plans to hold conference to promote investment into Vietnam: minister
The United Arab Emirates (UAE) has plans to organize a large-scale conference in Vietnam to canalize investment from the UAE and elsewhere into the Southeast Asian country, says a minister.
Investing - Mon, October 28, 2024 | 5:41 pm GMT+7
Sustainable packaging key focus area in Suntory PepsiCo Vietnam growth strategy: exec
Suntory PepsiCo Vietnam is actively promoting various initiatives in sustainable packaging as a key focus area in its development strategy, says Do Thai Vuong, deputy general director in charge of external affairs and communications.
Companies - Mon, October 28, 2024 | 5:02 pm GMT+7
Nuclear power Vietnam’s choice to ensure sufficient energy: country top leader
Nuclear power is the path for Vietnam to ensure sufficient electricity supply by 2045, Party General Secretary To Lam said Saturday at the ongoing National Assembly session.
Energy - Mon, October 28, 2024 | 4:33 pm GMT+7
Vietnam Electricity’s northern unit seeks German support in finance, technology
Northern Power Corporation (EVNNPC), a unit of state utility Vietnam Electricity, is seeking further support from the German government and state-owned German development bank KfW to reach sustainable growth.
Energy - Mon, October 28, 2024 | 4:16 pm GMT+7
Leading UAE firms plan to expand investment cooperation in Vietnam
Four leading UAE corporations collaborating with Vietnamese firms have plans to expand investment cooperation in the country, executives told Prime Minister Pham Minh Chinh in Abu Dhabi Sunday.
Industries - Mon, October 28, 2024 | 3:53 pm GMT+7
Real estate developer Nam Long achieves only 3% of year's profit target
Nam Long Group, a major real estate developer in southern Vietnam, recorded an after-tax profit of VND15.5 billion ($610,345) in the first nine months of 2024, reaching only 3% of its annual target.
Companies - Mon, October 28, 2024 | 3:00 pm GMT+7