Strategic cooperation agreement sees Central Group acquire 49% of Nguyen Kim.
The Central Group Vietnam and Nguyen Kim Trading JSC officially announced a strategic cooperation agreement on February 2, with the former taking a 49 per cent share of the latter. The agreement took effect on January 9.
Mr. Philippe Broianigo will become the CEO and Mr. Nguyen Van Kim will retain his position as Nguyen Kim's Chairman of the Board of the Directors. The two sides also announced a five-year business plan, in which Nguyen Kim will become the leading electronic retailer in Vietnam and Southeast Asia. It plans to develop its retail outlets from the current 20 to 50 throughout the country by 2019. The plan also focuses on launching new trading centers and selling other categories besides home appliances. A digital marketing strategy is also part of the plan, with 50 per cent growth in online turnover compared with 2014 being targeted. With this strategy the Central Group officially enters Vietnam's retail market after launching two fashionable shopping centers in Ho Chi Minh City and Hanoi as well as other retail outlets.
Last month Power Buy, a leading Thai electronics store operator, informed the Thai stock exchange that it completed a deal to buy a 49 per cent stake in the NKT New Solution and Technology Development Investment JSC, which is the owner of Nguyen Kim Trading JSC. Power Buy is a member of the Central Retail Corporation, the retail unit of Central Group.