Mobile World Investment Joint Stock Company (MWG) has announced its strategic direction to list its two core retail chains – The Gioi Di Dong (mobile phones and accessories) and Dien May Xanh (consumer electronics) – as independent entities, collectively referred to as MW. The target date for this initial public offering (IPO) is 2030.
"The IPO is not primarily for fundraising, but rather a strategic move to enable MW to operate independently, transparently, and appropriately for each stage and chain," stated MWG's leadership.
This means MWG is planning to list all three of its core retail chains. Since 2022, they have been signaling the intention to IPO Bach Hoa Xanh, their grocery and consumer goods chain. Initially planned for 2022-2023, the restructuring process has delayed this IPO.
Along with the listing plan, MWG aims to double the 2025 profits of The Gioi Di Dong and Dien May Xanh by 2030, maintaining an annual growth rate of over 15%.
According to Vietcap Securities, The Gioi Di Dong and Dien May Xanh generated a net profit from business activities of approximately 4,328 billion VND in 2024, more than 2.2 times the 2023 figure. However, this is still less than half of the estimated profit for 2022. Before 2024, these two chains were MWG's only profitable segments, supporting the company while it invested in loss-making chains like Bach Hoa Xanh and An Khang pharmacy.
Starting next year, The Gioi Di Dong and Dien May Xanh will shift their focus from expansion to improving quality. MW will not engage in price wars, instead concentrating on "selling peace of mind, speed, experience, and service."
Both chains will expand collaborations with partners and develop exclusive products to attract customers. TopZone (part of The Gioi Di Dong) aims to become a strategic bridge with Apple, bringing Vietnam closer to Tier 1 status – joining the first group of markets where Apple launches new products, alongside major markets like the US, Europe, China, Japan, and Singapore.
MW also operates EraBlue, a consumer electronics retail chain in Indonesia, in a joint venture with a local partner. The leadership stated that EraBlue, which has already broken even, will lead the Indonesian market in revenue and store count by 2030. The upcoming plan involves accelerated expansion, targeting 500 stores long-term and aiming for an IPO according to the joint venture roadmap.
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Exterior of The Gioi Di Dong and Dien May Xanh stores. Photo: MWG |
Exterior of The Gioi Di Dong and Dien May Xanh stores. Photo: MWG
In the first half of this year, the revenue of The Gioi Di Dong and Dien May Xanh increased by 12% to over 49,400 billion VND, despite operating 200 fewer stores compared to the beginning of 2024 and not opening any new locations. Management attributes market share growth to expanded services and customer credit offerings, such as discounts from a single purchase applicable to multiple product lines, increasing customer loyalty.
Mobile phones, tablets, and laptops saw a 20-50% year-on-year growth, while washing machines, home appliances, and televisions maintained single to double-digit growth. Air conditioner sales were below expectations, attributed to a cooler summer than usual.
Tat Dat
