Vietnam retail major Mobile World buys back shares from departing employees
Mobile World, one of the leading retailers in Vietnam, spent over VND4.3 billion ($169,000) repurchasing more than 431,000 MWG shares from employees who had left the company, at VND10,000 ($0.4) apiece or only 16% of the current market price (VND61,500).

A Mobile World store. Photo courtesy of the company.
The company reported that these shares, repurchased in December, were part of the Employee Stock Ownership Plan (ESOP), which allows employees to purchase company shares at a significantly lower price.
Following the buyback, MWG's treasury shares rose to 759,968, and the company announced a corresponding reduction in its charter capital, with the total number of voting shares now at just over 1.46 billion.
This was the third time this year that MWG had bought back ESOP shares. The company repurchased 328,789 shares in May and 154,211 shares in February. Last year, it also conducted three rounds of ESOP share buybacks.
ESOP is a widely used incentive tool, allowing companies to offer employees shares at below-market prices. However, these shares are subject to transfer restrictions for a certain period. If an employee leaves the company before the required holding period, they are required to return the shares to the company at the agreed price, which is typically much lower than the current market value.
This move came after the firm’s comprehensive restructuring process, which chairman Nguyen Duc Tai said was aimed at "reducing quantity, increasing quality."
In the 11 months of this year, MWG cut 56 Mobile World (mobile phones) stores, 160 Dien May Xanh (electric and electronic home appliances) stores, 201 An Khang pharmacies, and two Ava Kids outlets. Meanwhile, its Bach Hoa Xanh food and consumer goods retail chain also closed several stores before reopening some later.
The number of employees who left MWG between January and September reached 5,156, with the highest number of exits in Q1. This was one of the most significant layoffs in MWG’s history, accounting for 60% of the total job cuts in 2023. The company had cut 8,594 jobs in 2022.
Tai explained some employees left the company as they felt their income was no longer attractive or for other reasons. However, the rate of involuntary layoffs was very low, he emphasized.
According to him, the restructuring process has been mostly completed, with store closures decreasing in Q4. The company is confident that the current workforce is of high quality and strong performance.
MWG had set aside an employee bonus provision of nearly VN1.69 trillion ($66.4 million) by the end of September. This fund will be used for year-end bonuses, with an average of over VND28 million ($1,100) per employee, which is equivalent to approximately three months' salary.
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