Retail major MWG expects 50% online sales growth

By Trang Nguyen
Mon, August 22, 2022 | 4:23 pm GMT+7

With its Omni-channel retail strategy, Mobile World Investment Corporation (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. MWG, listed on the Ho Chi Minh Stock Exchange, is a company active in the retail sale industry, primarily computer and electronics retailing.

The Gioi Di Dong, a mobile phone retail chain, and Dien May Xanh, a chain specialising in the retail sale of consumer electronic products and household appliances, will still be the main sources of cash flow for the company, estimated to account for 75-80% of total revenue, according to the company.

Bach Hoa Xanh is a chain of supermarkets and grocery stores. Photo courtesy of MWG.

Bach Hoa Xanh is a chain of supermarkets and grocery stores. Photo courtesy of MWG.

This year, MWG said it would open new Dien May Xanh, Supermini and Topzone outlets; expand store size or convert from The Gioi Di Dong to Dien May Xanh for stores with high revenue and potential; trade new products and services to increase revenue for existing stores; boost revenue for Bluetronics to break even; and at the same time, venture into the Indonesian market.

Supermini stores provide about 60% of the list of basic telephone and electronic products on an area of 120-150 square meters. Topzone stores sell Apple products only. Bluetronics is the largest electronics retail chain in Cambodia.

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.

Bach Hoa Xanh recorded revenue of VND2,350 billion ($100.4 million) in July, down 45% from the peak of the same period last year. In the first seven months of the year, Bach Hoa Xanh reaped a revenue of VND15,200 billion ($649 million), contributing more than 18.6% to MWG's total revenue.

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.

As of the end of July, the company has 1,735 Bach Hoa Xanh stores, with an average revenue at each store hitting about VND1.3 billion ($55,520).

According to MWG chairman Nguyen Duc Tai, the Bach Hoa Xanh chain would be profitable in the fourth quarter this year.

In the pharmaceutical retail segment, the gross profit margin of 365 An Khang drug stores in the first half of the year remained above 20%.

In 2022, MWG sets a revenue target and after-tax profit plan of VND140,000 billion ($5.98 billion) and VND6,350 billion ($271.2 million), respectively.

On the Ho Chi Minh Stock Exchange, the MWG shares price hit VND66,500 ($2.84) per unit at the closing session on August 22.

Comments (0)
  • Read More
Vietnamese billionaire-backed VinSpeed raises capital to $573 mln

Vietnamese billionaire-backed VinSpeed raises capital to $573 mln

VinSpeed High-Speed Rail Investment and Development JSC, where Vietnamese billionaire Pham Nhat Vuong holds a controlling stake, has raised its capital from VND6 trillion to VND15 trillion ($573.5 million).

Infrastructure - Wed, July 16, 2025 | 4:33 pm GMT+7

Vietnam's airport operator ACV to issue 1.4 bln shares in record dividend

Vietnam's airport operator ACV to issue 1.4 bln shares in record dividend

State-owned Airports Corporation of Vietnam (ACV) plans to issue over 1.4 billion shares as stock dividends at a 64.58% ratio, its all-time high.

Companies - Wed, July 16, 2025 | 3:44 pm GMT+7

Vietnam seeks economic expansion at 8.3-8.5% this year: Prime Minister

Vietnam seeks economic expansion at 8.3-8.5% this year: Prime Minister

Vietnam needs to achieve a GDP growth rate of about 8.3-8.5% this year, creating momentum to reach a double-digit level in the 2026-2030 period, said Prime Minister Pham Minh Chinh.

Economy - Wed, July 16, 2025 | 3:00 pm GMT+7

Vietnam targets $4.5 bln in cashew exports for 2025

Vietnam targets $4.5 bln in cashew exports for 2025

Vietnam is aiming to export cashews worth $4.5 billion in 2025, up 2.7% year-on-year, according to the Ministry of Agriculture and Environment. To hit this target, the sector must generate around $2.2 billion in the second half.

Companies - Wed, July 16, 2025 | 1:31 pm GMT+7

Indonesia sees great opportunities to boost exports to Europe

Indonesia sees great opportunities to boost exports to Europe

The Indonesian Chamber of Commerce and Industry (Kadin) expressed optimism that the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) will boost trade between the two sides.

Southeast Asia - Wed, July 16, 2025 | 1:24 pm GMT+7

Malaysia tightens export controls on US-origin AI chips

Malaysia tightens export controls on US-origin AI chips

The Malaysian Ministry of Investment, Trade and Industry (MITI) has announced that all exports, transhipment, and transit of high-performance artificial intelligence (AI) chips originating from the United States will require a Strategic Trade Permit under the Strategic Trade Act 2010 (STA 2010).

Southeast Asia - Wed, July 16, 2025 | 1:21 pm GMT+7

Auto manufacturing project in central Vietnam raises investment by over $810 mln

Auto manufacturing project in central Vietnam raises investment by over $810 mln

Vietnamese automaker Kim Long Motor Hue JSC (Kim Long Motor) has received approval from Hue authorities to raise investment in its automotive manufacturing and assembly complex in the central city by VND21.18 trillion ($809.94 million).

Industries - Wed, July 16, 2025 | 12:40 pm GMT+7

State capital at FPT Telecom transferred to Vietnam's Ministry of Public Security

State capital at FPT Telecom transferred to Vietnam's Ministry of Public Security

Vietnam's Ministry of Public Security has assumed the role of representing the state ownership at FPT Telecom, after taking over MobiFone in February.

Companies - Wed, July 16, 2025 | 12:12 pm GMT+7

Vietnam's steel giant Hoa Sen surpasses full-year profit target by 29% after 9 months

Vietnam's steel giant Hoa Sen surpasses full-year profit target by 29% after 9 months

Hoa Sen Group (HSG), one of Vietnam’s leading steelmakers, reported a net profit of VND647 billion ($24.8 million) for the first nine months of its fiscal year starting October 2024, exceeding its full-year target set under an optimistic scenario by 29%.

Companies - Wed, July 16, 2025 | 8:17 am GMT+7

Northern Vietnam city receives $15.6 bln in pledged investment capital post-merger

Northern Vietnam city receives $15.6 bln in pledged investment capital post-merger

Over $15.6 billion in investment capital was committed for the northern port city of Hai Phong on Tuesday, a record high.

Industries - Tue, July 15, 2025 | 11:12 pm GMT+7

Honda cements Vietnam motorbike market dominance with 10% sales growth

Honda cements Vietnam motorbike market dominance with 10% sales growth

Honda Vietnam (HVN) reported a 10% year-on-year increase in motorcycle sales to nearly 2.3 million units in fiscal year 2025, which ended on March 31, according to the company’s annual report.

Companies - Tue, July 15, 2025 | 5:42 pm GMT+7

Foreign investors net buy over $497 mln on Vietnam's stock market from July 1-15

Foreign investors net buy over $497 mln on Vietnam's stock market from July 1-15

VN-Index, which represents the Ho Chi Minh Stock Exchange, dropped by 9.77 points to 1,460.8 on Tuesday, ending its seven-session gaining streak.

Finance - Tue, July 15, 2025 | 5:13 pm GMT+7

UPS eyes opportunities in Vietnam's free trade zone, airport projects

UPS eyes opportunities in Vietnam's free trade zone, airport projects

Leading global shipping and logistics firm UPS is eyeing business opportunities at the Danang city-based free trade zone and the Long Thanh International Airport in Dong Nai province.

Economy - Tue, July 15, 2025 | 3:58 pm GMT+7

Vietnam PM asks Marubeni to expand investment in gas-fired, offshore wind power

Vietnam PM asks Marubeni to expand investment in gas-fired, offshore wind power

Marubeni should expand its activities in Vietnam in the fields of gas-fired and offshore wind power, export of electricity to ASEAN countries, and development of AI and big data, said Prime Minister Pham Minh Chinh.

Economy - Tue, July 15, 2025 | 12:21 pm GMT+7

Vietnam’s wood pellet industry needs production standardization to meet global demand: experts

Vietnam’s wood pellet industry needs production standardization to meet global demand: experts

Businesses should invest in developing dedicated raw material zones to reduce the Vietnamese wood pellet industry’s reliance on secondary supply sources and ensure compliance with legality and sustainability standards, said an expert.

Economy - Tue, July 15, 2025 | 9:18 am GMT+7

Riding out tariff turbulence, investment funds in Vietnam report strong growth gains

Riding out tariff turbulence, investment funds in Vietnam report strong growth gains

Many equity funds in Vietnam have posted strong growth returns, with gains exceeding 30% since the market’s April 10 trough in 2025, data collected by The Investor shows.

Finance - Tue, July 15, 2025 | 9:00 am GMT+7