The Hanoitimes - Vingroup has added Vien Thong A as its subsidiary in the group’s latest financial statement with 100% of voting right and 64.46% equity interest.
Vietnam’s largest privately-run conglomerate Vingroup has completed the acquisition of mobile retail chain Vien Thong A, according to Vingroup’s quarterly consolidated financial statement.
According to the financial statement, Vingroup has added Vien Thong A as its subsidiary with 100% of voting right and 64.46% equity interest.
Vien Thong A is one of the largest mobile device retailers in Vietnam. Founded in 1997, the retail chain has 200 stores across the country, including the “shop-in-shop” model within the BigC and CoopMart supermarkets and 100 maintenance centers.
Early 2017, Hoang Ngoc Vy, CEO of Vien Thong A, revealed the plan to restructure the chain and seek investors to expand its business operation.
The acquisition of Vien Thong A would solidify Vingroup stance in the retail chain of mobile and electronic devices through VinPro, its electronics retail arm.
VinPro was launched in March 2015 as part of the property giant’s foray into the nation’s US$4.5-billion electronics retail market. It has two brands: VinPro for big stores in Vincom Retail’s shopping malls, and VinPro+ for smaller stores.
Vietnam’s electronic and electrical appliances market is expected to expand by 11.9% by 2020, according to Boston Consulting Group and consumer information company GFK Vietnam.
Previously, VinCommerce, a subsidiary of Vietnam's largest privately-run conglomerate Vingroup, has completed the acquisition of the supermarket chain Fivimart from Nhat Nam Trade Company. After completing the deal, the Fivimart supermarket chain along with its 23 supermarkets will be renamed to VinMart, focusing on fresh, healthy food and consumption goods coming from its own brand.
Vingroup’s revenue in consumer retail (i.e. sale of goods in supermarkets and retail outlets) reached VND12.89 trillion (US$552.61 million) in the first nine months of 2018, up 40.9% year-on-year or VND3.74 trillion (US$160.31 million).