Giant mobile retailer closes shop at now Thai-owned Big C

HCM CITY (Biz Hub) — Viet Nam's leading retailer of mobile phones, The Gioi Di Dong, has closed 22 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 Viet Nam, owns a 49 per cent stake in another major Vietnamese retailer, Nguyen Kim.

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

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

The Gioi Di Dong has more than 1,000 outlets nation-wide, and the closure of 22 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 10 percent market share.

The Gioi Di Dong eyes revenues of US$2 billion this year as they grow at over 50 percent a year, as do profits.

The MWG spokesperson said it is expected to overtake CoopMart as Viet Nam's biggest retailer soon.

Big C has 32 outlets around Viet Nam, while many other foreign retailers also have plans to strengthen their position in the country. — VNS