Vietnam's retail giant Mobile World to keep growing even if market stagnates: chairman

Mobile World Investment Corporation (MWG), a leading retailer in Vietnam, will continue to grow even if the market stagnates or retreats, said chairman Nguyen Duc Tai.

Responding to shareholders’ questions at the 2025 AGM on Saturday, Tai said companies directly exporting to the U.S. may clearly feel the pinch from the U.S. reciprocal tariffs, but MWG is affected indirectly as consumers tighten their purse strings.

The chairman expressed confidence that Vietnamese leaders can manage the current situation and have plans in place to offset the impact on exports.

Sharing Tai’s views, CEO Vu Dang Linh explained that MWG operates in retail and sells domestically, sourcing goods from Asia.

"Therefore, the company will only face indirect impacts from the U.S. tariffs, as tax policies weigh on consumer spending, with exports influencing employment and income," he said.

The CEO stressed that MWG has undergone multiple restructurings, making it more agile and better able to adapt to market fluctuations. Over the years, it has built strong resources, which enhances its resilience and provides numerous opportunities.

Speaking about the business strategy for electronics and phones, Tai said the store-based growth model has its limits and cannot continue indefinitely.

MWG is entering a new phase, leveraging its existing scale to drive qualitative growth, the chairman remarked.

Providing further analysis, board member Doan Van Hieu Em said MWG has moved past the stage of expanding its store network.

“The market in 2025 is expected to see modest growth of 5-8%, but we are setting ambitious growth targets for the coming years,” he said, noting the company’s market share is projected to reach 70-80% by 2030 from the current 50-60%.

“With market changes presenting both challenges and opportunities, we see growth opportunities in each product category through partnerships in a 'familyship' model. This approach creates differentiation, enabling us to continue expanding our product range within each store.”

Em also suggested solutions to increase average revenue per store and optimize operational costs, such as offering deferred payment options when purchasing power declines, or implementing add-in services to ensure customers can use the product for its entire lifetime.

“The online opportunity is also a trend, and we have adapted and found our way forward,” he added.

Record revenue target, with net profit only trailing behind 2021

For 2025, the company aims to achieve revenue of VND150 trillion ($5.76 billion) and net profit of VND4.85 trillion ($186.38 million), representing increases of 12% and 30%, respectively, compared to 2024.

This would mark record-high revenue, while net profit would only fall short of the 2021 record.

The AGM approved a cash dividend payout of up to 10% for 2024, or VND1,000 ($0.038) per share. With over 1.46 billion shares outstanding, the company is estimated to distribute a maximum of VND1.46 trillion ($56.1 million).

The retail giant also planned to repurchase up to 10 million MWG shares (approximately 0.68% of the total shares outstanding), with aim aim of reducing its charter capital and increasing value for existing shareholders.

The funds for the buyback are expected to come from undistributed post-tax profit, based on the most recent audited financial statements. The transaction will take place after receiving approval from the State Securities Commission (SSC), with the board of directors determining the exact timing in line with market conditions.

According to the announced Employee Stock Ownership Plan (ESOP), the ESOP allocation will not only depend on achieving profit targets but will also be tied to MWG's stock performance relative to the VN-Index (with a condition of a more than 5% increase in the general index).

Regarding personnel matters, the board of directors for 2025-2028 is expected to be reduced to eight members. Tran Huy Thanh Tung, Dao The Vinh, and Dang Minh Luom will not be included, while Vu Dang Linh, who was appointed CEO in April 2025, will join the board.

MWG reported a revenue of VND24.52 trillion ($959.5 million) in the first two months of the year, or VND416 billion ($16.44 million) per day.

The two-month revenue represented a 13.5% increase compared to the same period last year and 16% of the year's target of VND150 trillion, according to the company.

Mobile World is listed on the Ho Chi Minh Stock Exchange as MWG, which closed Friday at VND60,500 ($2.33) per share.