Mobile World targets $1.5 bil revenue in 2016

March 9, 2016 | 11:55 pm PT

Mobile World JSC (MWG), one of the biggest mobile device retailers in Vietnam, plans to rake in $1.5 billion in revenue this year and gain a foothold in Cambodia, Laos and Myanmar in 2017.

The two targets were announced at the firm’s 2016 general shareholder meeting held in Ho Chi Minh City on February 26 following the firm's success in 2015, when it passed the $1 billion revenue mark.

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Vietnamese customers look at tablets at a MWG store in Ho Chi Minh City. Photo: VnExpress.

In 2016, MWG has targeted VND34.16 trillion ($1.53 billion) in consolidated revenue, up 35 percent year on year, and VND1.38 trillion in post-tax profits, a 29 percent year-on-year increase.

In 2015, MWG pulled in VND25.25 trillion in revenue and VND1.075 trillion in post-tax profit, rising 7 percent and 21 percent year-on-year respectively.

MWG is preparing to open its first foreign stores in Myanmar, Laos and Cambodia in 2017, said Tran Kinh Doanh, general director of the firm.

Doanh said there are many domestic mobile device players in the three regional markets, but many are lacking in terms of organization and service, adding that MWG is among the most successful mobile device retailers in Southeast Asia.

Regarding local network expansion, MWG is going to open 100 new stores this year to increase its local mobile retail market share to 35 percent.

As of August 2015, MWG’s market share was 30 percent, followed by FPTShop with 10 percent, said Nguyen Duc Tai, chairman of the firm’s board of directors.

MWG has further expansion goals in 2016, and plans to open 50 new Dien May Xanh (blue-label electronics-electrical) outlets.

Its Green Grocery convenience store chain will also be expanded locally this year, the company’s general director said, without giving further details.

MWG will focus on e-commerce in an effort to boost online sales to VND3 trillion, an 80 percent year-on-year increase, and look for opportunities to take over or buy into other Vietnamese retailers, said Doanh at the meeting.

Doanh told Tri Thuc Tre newswire on the sideline of the meeting that the firm is considering both opening new stores and acquiring other retail chains for expansion in the local market.

Although acquisitions will be more expensive than opening new stores, they will be much faster, Doanh told Tri Thuc Tre.

MWG shares on the Ho Chi Minh Stock Exchange (HoSE) closed at VND75,000 per share on February 29, down 0.7 percent from the previous day.