Mobile phone retailer Vien Thong A shuts up shop
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Vien Thong A, one of Vietnam’s earliest mobile phone retail chains, has shut all outlets after two decades of operation.
All its Ho Chi Minh City shops were closed as of Thursday, some featuring “property for lease” signs while others held nothing but empty shelves.
Vien Thong A, established in November 1997, operated 240 outlets nationwide at its peak, some inside supermarkets like Big C, alongside 100 maintenance stations.
The chain was listed among Asia Pacific’s top 500 retailers by market researchers Euromonitor and business magazine Retail Asia, with revenues quadrupling from $102 million in 2013 to $416 million in 2017.
In the same year, CEO Hoang Ngoc Vy announced a plan to restructure the company, seeking investors to expand the business.
In September 2018, the company’s legal representative was replaced by Mai Thu Thuy, a senior Vingroup employee.
Vingroup, Vietnam’s largest private conglomerate, confirmed it had acquired the chain in November 2018, managing a total 242 Vien Thong A shops as well as electronics chain VinPro as of September last year.
However, Vien Thong A outlets started to close down soon after Vingroup announced it would dissolve VinPro to focus on technology and manufacturing in December last year.
Vietnam’s consumer electronics retail market reached revenues of $609 million last year, a year-on-year increase of 15 percent, and is estimated to expand by 11.7 percent this year, according to German data portal Statista.
Questions & Answers
Q.What was the scale of Vien Thong A's operations at its peak?
What was the scale of Vien Thong A's operations at its peak?
At its most successful, Vien Thong A operated 240 outlets across Vietnam and had 100 maintenance stations. Some of its stores were located within large supermarkets like Big C.
Q.When did Vien Thong A's financial performance show significant growth?
When did Vien Thong A's financial performance show significant growth?
The company's revenues quadrupled from $102 million in 2013 to $416 million in 2017. This growth saw them listed among Asia Pacific's top 500 retailers.
Q.What is the current state of the wider consumer electronics market in Vietnam?
What is the current state of the wider consumer electronics market in Vietnam?
The Vietnamese consumer electronics retail market generated $609 million in revenue last year, showing a 15 percent year-on-year increase. It is projected to grow by a further 11.7 percent this year.
Q.What was Vingroup's apparent strategy after acquiring Vien Thong A?
What was Vingroup's apparent strategy after acquiring Vien Thong A?
Vingroup acquired Vien Thong A in November 2018, managing 242 shops alongside its VinPro electronics chain. However, outlets began closing after Vingroup announced its plan to dissolve VinPro to focus on technology and manufacturing.
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