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MWG to gain after-tax profit of $71.7mn for 2016

Released at: 08:48, 10/11/2016

MWG to gain after-tax profit of $71.7mn for 2016

Photo: Duc Anh

Estimates of business results for this year announced.

by Do Huong

Chairman of the Mobile World JSC (MWG) Nguyen Duc Tai has announced that after-tax profit in 2016 has been estimated at VND1.5 - 1.6 trillion ($67.5 - $71.7 million) and it will have 1,200 stores nationwide by the end of the year.

Mr. Tai confirmed with VET that its online business holds a 10 per cent market share and leads the online retail market, followed by Lazada. Online turnover for this year was VND3.5 trillion ($157 million) as at October.

Its thegioididong.com chain stores accounted for 40 per cent of total mobile retail share as at October, according to GfK. Small mom & pop stores accounted for 20 per cent while other chain stores accounted for 40 per cent.

Its dienmayxanh.com chain stores, meanwhile, accounted for 16-17 per cent of total consumer electronics retail share as at October.

Mr. Tai also announced the group was the third largest retailer in the country, behind Co.op Mart with $1.2 billion in turnover and Big C with $900 million. “The company will overtake these two retailers in the near future with $1.8 billion in turnover,” he said. “We have determined that our growth strategy in the 2016-2018 period relies on the thegioididong.com and dienmayxanh.com chains and their online business. In the 2019-2025 period our strategy will focus on Bach Hoa Xanh and vuivui.com - our online supermarket.”

Bach Hoa Xanh is targeting Vietnamese housewives who prefer to save time on shopping by visiting chain stores. Its turnover now stands at VND1 billion ($44,700) per month in each outlet.

It plans to open 80 stores in cities and provinces around the country and its business results for 2017 will prove how effective this model is. “If we succeed we will launch a range of stores nationwide by 2018,” Mr. Tai said. “For now, we cannot give any figures on profits from Bach Hoa Xanh.”

There is major potential in Vietnam’s grocery sector, which is worth $60 billion; higher than the value in both the mobile devices and consumer electronics industries, of $6 billion. Bach Hoa Xanh’s rival is mom & pop stores. It expects to account for 10 per cent of total grocery turnover.

vuivui.com has launched its website in Ho Chi Minh City. Mr. Tai said its online business accounts for 5 per cent of total retail turnover and will expand to 20 per cent in the future. “MWG plans to become the No. 1 online retailer by 2020,” he said.

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