Mobile retailer closes shops at Thai-owned Big C

Việt Nam’s leading retailer of mobile phones, Thế Giới Di Động, has closed  二 二 outlets it had at the now Thai-owned Big C supermarket after failing to strike a deal.— Photo zing.vn

HCM CITY — Việt Nam’s leading retailer of mobile phones, Thế Giới Di Động, has closed  二 二 outlets it had at the now Thai-owned Big C supermarket after failing to strike a deal.

MWG, owner of the mobile phone retailer, wanted to sell electronic products instead of mobile phones at the Big C outlets, according to media reports. MWG also owns giant electronics retail chain, Dienmayxanh.

However, Thailand’s Central Group, which recently acquired Big C’s operations in Việt Nam, owns a  四 九 per cent stake in another major Vietnamese retailer, Nguyễn Kim.

This is the reason Big C ended the deal with MWG, according to media speculation.

An MWG spokesperson told Việt Nam News in an emailed reply: “The closure was completed last month. This is an unexpected happening.”

Thế Giới Di Động has more than  一,000 outlets nation-wide, and the closure of  二 二 stores is not expected to affect its operations much.

Experts said while the parting of ways is appropriate from Big C’s business perspective, it gives rise to a fear that Vietnamese retailers could be edged out of their home market.

However, foreign retailers, including Thai, account for less than a  一0 per cent market share.

Thế Giới Di Động eyes revenues of US$ 二 billion this year as they grow at over  五0 per cent a year, as do profits.

The MWG spokesperson said it was expected to overtake CoopMart as Việt Nam’s biggest retailer soon.

Big C has  三 二 outlets around Việt Nam, while many other foreign retailers also have plans to strengthen their position in the country. — VNS