Vietnam's retail major Mobile World expands Xiaomi product distribution

Vietnam's leading retailer Mobile World signed a strategic cooperation agreement with China's electronics giant Xiaomi last Thursday to expand the distribution of electronic devices, home appliances, and IoT products in 2025.

The signing ceremony, that occurred in Ho Chi Minh City, followed a visit last December by Lu Weibing, president of Xiaomi's international business division, along with members of the company's board of directors, to Mobile World.

Meeting for the signing of the deal, the two parties reviewed their 2024 achievements and outlined strategic plans for 2025. Moving beyond smartphones, the partnership will focus on expanding into categories such as IoT devices and home appliances.

A Mobile World representative highlighted the growing trend of integrating smart devices into unified ecosystems, which aims to provide users with a modern, seamless, and convenient living experience.

For instance, IoT products like air purifiers, security cameras, and smart home appliances can connect and synchronize to form an ecosystem that users can control and manage through a single platform, the rep noted.

Before announcing the partnership, Mobile World had already established itself as a leader in Xiaomi sales in Vietnam. In 2023, despite market challenges, the retailer sold over one million Xiaomi smartphones, becoming one of Xiaomi's top seven global retail partners and receiving the prestigious Xiaomi Legend Partner award in October 2023.

By 2024, Mobile World reached a milestone of 1.5 million Xiaomi smartphones sold, reflecting nearly 40% growth compared to the previous year. These achievements highlight the effectiveness of their collaboration in offering diverse, competitively priced products to consumers.

Looking ahead, Mobile World aims to continue driving sales growth in 2025, further advancing the adoption of smart technologies in Vietnam.

In the 11 months of 2024, 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 2024 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.

Mobile World in December 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 then market price (VND61,500).

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.

Mobile World is listed on the Ho Chi Minh Stock Exchange (HoSE) as MWG. The MWG ticker on Monday at VND58.60 ($2.31) per share.