Vietnam’s MWG closes once-famous consumer electronics subsidiary
Vietnam’s MWG closes once-famous consumer electronics subsidiary
Mobile World Investment Corporation (MWG), a leading mobile phone and consumer electronics retailer in Vietnam, has announced the dissolution of its subsidiary Tran Anh Digital World JSC in an attempt to optimize its business performance.
Vietnam’s Mobile World Investment Corporation has announced the dissolution of its subsidiary Tran Anh Digital World JSC. Photo: Supplied |
This is the third MWG subsidiary to have been shut down in the past four months.
Eight years ago, Tran Anh was one of the most popular consumer electronics brands in northern Vietnam.
It established a partnership with Nojima Corporation, a Japan-based company mainly engaging in the sale of digital home appliances, opening Japanese-style electronics stores to bring a breath of fresh air to the local market.
In late 2016, Tran Anh was operating 28 electronics stores in northern provinces and cities like Hanoi, Ninh Binh, Phu Tho, Hai Duong, Hai Phong, and Bac Giang, wrapping up the year with its sales surpassing VND4 trillion (US$160 million) before managing to raise the number of its outlets to 39.
The company encountered a considerable number of challenges during its business expansion, even though it boasted plenty of advantages and prime locations.
Its sales began slumping significantly in 2017, sustaining losses of more than VND60 billion ($2.4 million).
In 2018, MWG completed the acquisition of Tran Anh Digital World Company.
Tran Xuan Kien, former board chairman at Tran Anh Digital World Company, told the press at the time that the consumption of electronic products reaching a saturation point and the strong growth of e-commerce prompted the company to sell a majority of its stakes to MWG.
Tran Anh Company then had its business model transformed by the new owner but the downward spiral of its turnover continued.
According to its recent financial statement, Tran Anh booked VND134 billion ($5.4 million) in revenue by offering retail spaces and offices for lease, as well as earning interest from its savings, all yielding nearly VND16 billion ($638,300) in after-tax profits in 2022.
By mid-2024, Nguyen Duc Tai had served as board chairman at Tran Anh, holding a 99.33-percent stake in the firm.
Earlier, Tran Anh Digital World JSC began listing its TAG shares on the Hanoi Stock Exchange in 2010.
TAG shares were delisted from the northern bourse in 2018 before moving to the Unlisted Public Company Market (UPCoM).
Tran Anh was subsequently forced to leave the local stock market following the cancelation of its public company status.
Aside from Tran Anh Company, MWG in mid-2024 announced the dissolution of two other subsidiaries, namely Fully Trusted Logistics Joint Stock Company in Ho Chi Minh City and 4KFarm Joint Stock Company in neighboring Ba Ria - Vung Tau Province.
As of mid-2024, MWG's The Gioi Di Dong - Topzone retail chain has seen a reduction of 134 stores over the past year, leaving a total of 1,046 locations in operation.
MWG also closed 196 Dien May Xanh electronics stores, operating 2,093 outlets now, during the same period.
The company cut the number of its An Khang drugstores by 45 units in June, expecting to take the total back to 300 at the end of this year.
