Vietnam’s Vingroup to complete retail exit by closing VinPro chain

Vingroup is to complete its exit direct retail businesses, shutting down its electronic business VinPro within this month.

The closure of Vinpro is considered a sudden decision as the group acquired electronics chain Vien Thong A last year with more than 200 stores to strengthen VinPro’s presence. Recently, Vien Thong A’s website and Facebook page changed branding identity to VinPro.

“VinPro outlets have very good locations in the Vincom shopping centre system,” said Quang Viet Nguyen, CEO of Vingroup. “It will be very easy to rent these premises after VinPro stops operating, without affecting the operation of Vincom centres.”

The company has also announced the merger of its e-commerce platform Adayroi with e-payment unit VinID. According to Quang, the merger is not because its e-commerce segment was under pressure of losses as the company’s first goal is to create a platform to support the Vingroup ecosystem.

“Merging Adayroi with VinID not only helps store data about customer behaviour but also creates a new platform where customer needs are better predicted,” Quang said.

Earlier this month, Vingroup announced an agreement with consumer products manufacturer Masan Group, to move its VinMart supermarket and convenience-store business into Masan in a new company in which Vingroup will hold a minority stake.

The company has said it wants to focus on industrial and manufacturing business including its motor vehicle, television, tourism and smartphone businesses. It is also about to launch an airline.