The market has been abuzz with rumours that VinPro had picked up a stake in Vien Thong A a few months ago. However, one of the two people who spoke to DEALSTREETASIA said the retailer is currently considering an investment in Vien Thong A.
VinPro was launched in March 2015 as part of the property giant’s foray into the country’s $4.5-billion electronics retail market. Similar to its VinMart mass retail chain, the company operates two brands — VinPro for big stores located in Vincom Retail’s shopping malls, and VinPro+ for smaller stores.
Established in November 1997, Vien Thong A has nearly 200 stores across Vietnam and 100 warranty centres.
Vietnam’s middle and affluent population is projected to hit 33 million and consumption of electronic and electrical appliances is expected to expand by 11.9 per cent by 2020, according to BCG and GFK Vietnam. As a lot of companies compete to seek a meaningful slice of this market, it is dominated by two biggies, Mobile World and FPT Retail.
Still, M&A activity in this vertical remains robust. Mobile World recently acquired over 95.2 per cent of Hanoi-based Tran Anh Digital World, while Central Group had earlier purchased a 49 per cent stake in Nguyen Kim Trading Joint Stock Company, which used to be among the leading electronics retailers in the country.