Retail grocery chain Bach Hoa Xanh’s revenue up 50% in 2 months
Bach Hoa Xanh, a retail grocery chain under Mobile World Investment Corporation, posted revenue of VND6 trillion ($242.4 million) in the first two months of 2024, a year-on-year increase of 47%, according to Mobile World.
The chain maintained average revenue of VND1.8 billion ($72,727) per month per store - a break-even level for three consecutive months, the corporation said.
The driving force for revenue growth came from the fresh food and fast moving consumer goods (FMCGs) segments. Of which, fresh food soared more than 70% and FMCGs 40% compared to the same period last year.
The company said it had made preparations in terms of goods and logistics, ensuring smooth operations, full and diverse supplies, and stable prices.
Since its establishment in 2015, the Bach Hoa Xanh chain has failed to post a profit. Its total accumulated losses so far have surpassed VND8.6 trillion ($347.47 million).
In 2023 alone, the chain suffered a loss of VND1.21 trillion ($48.49 million), down 59% compared to 2022. By reaching break-even point in December 2023, the leadership expected that the chain to turn a profit for the parent corporation from 2024.
As of the end of February, the chain had 1,698 stores in operation, unchanged from the end of last year. This year, Mobile World said it will open new stores selectively and seek to grow sales at existing stores by improving quality, stabilizing the fresh food segment, and selling more FMCGs.
Mobile World aims to continue to increase market share for the chain and maintain a double-digit revenue growth rate, given the trend of food and FMCGs shopping shifting from traditional market channels to modern retail outlets.
According to international market research firm Euromonitor, Vietnam's traditional retail market share in 2023 fell to 87.5% from 88.5% in 2022. At present, the total number of modern retail sales points exceeds 7,800, but only 1% of traditional markets. The scale of the food and FMCGs market in Vietnam is estimated at more than $50 billion and is constantly growing with new products to meet consumer needs.
At the beginning of the year, the Mobile World board of directors issued a plan to mobilize capital for the Bach Hoa Xanh chain through the private offering of shares in Bach Hoa Xanh Technology and Investment JSC. The number of shares expected to be issued will be equivalent to 5-10% of existing shares, and the capital mobilization is expected to be completed in the first half of 2024.
Mobile World is listed on the Ho Chi Minh Stock Exchange as MWG, and closed Friday at VND49,100 ($1.98) per share.
- Read More
Southernmost Ca Mau province moves to better tap eco-tourism strengths
The Ca Mau World Biosphere Reserve, which includes the Ca Mau National Park, the U Minh Ha National Park, and the coastal protective forests, not only offers substantial economic benefits but also provides a clean environment that can provide many attractive ecological tourism experiences for visitors.
Travel - Sun, December 8, 2024 | 8:16 pm GMT+7
Vietnamese firms face numerous barriers in green transformation
Enterprises require significant capital to invest in machinery and production processes to embrace green transformation, says Nguyen Quoc Anh, chairman of the Ho Chi Minh City Rubber-Plastic Association.
Companies - Sun, December 8, 2024 | 8:06 pm GMT+7
Vietnamese carmaker VinFast starts work on fifth EV plant project
Vietnamese startup automaker VinFast on Sunday kicked off an electric vehicle (EV) plant project in the central province of Ha Tinh - its second in Vietnam and fifth globally.
Industries - Sun, December 8, 2024 | 4:00 pm GMT+7
Vietnam poised to achieve 15% credit growth target: central bank
Vietnam is on track to meet its 2024 credit growth target of 15%, with credit expansion reaching 12.5% as of Saturday, according to Dao Minh Tu, State Bank of Vietnam (SBV) Deputy Governor.
Economy - Sun, December 8, 2024 | 10:42 am GMT+7
Thailand loosens EV production regulations
Thailand’s Board of Investment (BoI) has announced that the government would extend deadlines for electric vehicle (EV) manufacturers to meet domestic production quotas, addressing weak local market demand.
Southeast Asia - Sun, December 8, 2024 | 10:09 am GMT+7
Vietnam's state capital management 'super commission' to cease operation
Vietnam's Commission for the Management of State Capital at Enterprises (CMSC) will end its operations soon and transfer the management of 19 state-owned groups and corporations back to relevant ministries.
Economy - Sun, December 8, 2024 | 9:53 am GMT+7
Vietnam mining firm Nui Phao appoints new general director
Ashley McAleese has been appointed general director of Nui Phao Mining Company, a subsidiary of Masan Group, effective from January 1, 2025.
Companies - Sun, December 8, 2024 | 9:09 am GMT+7
Vietnam stock market may secure upgrade in Sept next year: broker
Vietnam’s stock market could achieve an upgrade to emerging market status as early as September next year, forecast Vietcap Securities.
Finance - Sun, December 8, 2024 | 8:00 am GMT+7
Taiwan’s top rubber firm TSRC to shut down southern Vietnam plant
TSRC, formerly known as Taiwan Synthetic Rubber Corp., will cease all production activities at its compounding materials plant in Vietnam’s southern province of Binh Duong by the end of this year.
Investing - Sat, December 7, 2024 | 10:35 pm GMT+7
Tupperware Vietnam to cease operations on December 31
Tupperware Vietnam has announced that it will officially cease operations by the end of this year and already stopped supplying goods to its dealers.
Companies - Sat, December 7, 2024 | 10:08 pm GMT+7
Vietnam targets GDP growth beyond 10% in 2026-2030: Prime Minister
Vietnam targets a GDP growth of 7% in 2024 and 8% in 2025, in order to prepare for an annual growth beyond 10% in 2026-2030, Prime Minister Pham Minh Chinh said at a monthly cabinet meeting on Saturday.
Economy - Sat, December 7, 2024 | 4:28 pm GMT+7
Vietnam 'best destination' for relocation from China to Southeast Asia: WHA exec
Vietnam is the “best destination” for relocation from China to Southeast Asia amid the “trade war” (between China and the U.S.) starting in 2018, said WHA Corporation CEO and chairperson Jareeporn Jarukornsakul.
Industrial real estate - Sat, December 7, 2024 | 3:13 pm GMT+7
Sunshine’s realty arm to acquire stake in developer of $206 mln resort in central Vietnam
A subsidiary of multi-sector corporation Sunshine Group JSC will acquire a significant stake in the developer of a VND5.23 trillion ($206 million) real estate project in Vietnam’s central province of Thua Thien-Hue.
Real Estate - Sat, December 7, 2024 | 1:17 pm GMT+7
Vietnam inflation up 3.69% in 11 months
Vietnam's consumer price index (CPI), an indicator of inflation, went up 0.13% from October to November and 3.69% in the first 11 months of this year.
Economy - Sat, December 7, 2024 | 11:05 am GMT+7
Major Vietnamese banks rush for share issuances to raise charter capital
Major banks in Vietnam like BIDV, Vietcombank, and VietinBank, all state-controlled, are preparing to issue billions of shares in the near future to strengthen their capital base and meet capital adequacy ratio (CAR) requirements.
Banking - Sat, December 7, 2024 | 8:03 am GMT+7
Popular Vietnamese TikToker arrested for fraud, police seize $197 mln assets
Pho Duc Nam, a popular TikToker known as Mr Pips, has been arrested for allegedly masterminding a network to scam investors out of their money.
Society - Fri, December 6, 2024 | 10:47 pm GMT+7