Vietnam’s business giant Vingroup said on Wednesday it will exit from its retail business to focus on its core strategy of becoming an industrial and tech company.
The Hanoi-based firm said it will merge its e-commerce site Adayroi with e-payment unit VinID, and wind up its electronics retailing business VinPro.
The move comes barely two weeks after the merger of its supermarket chains and agribusiness with Masan Group. Vingroup, however, remains a shareholder in the new business after the merger.
The latest transactions will be completed by the end of this month.
Vingroup launched Adayroi in 2014 to keep its retail business competitive amid the e-commerce boom. The website was subsequently upgraded to the “new retail” model integrating its existing online and offline networks.
“Merging Adayroi with VinID not only helps store data about customer behaviour but also create a new platform where customer needs are better predicted,” Vingroup said.
However, it did not reveal how VinID would be structured after the merger. VinID, which recently acquired local e-wallet MonPay, also runs a loyalty programme for customers of the Vinmart and Vinmart+ supermarket chains.
Meanwhile, Vingroup had acquired electronics retailer Vien Thong A earlier to expand its VinPro network, which was launched in 2015.
“The withdrawal from retail reaffirms Vingroup’s determination to become a leading industrial and technology services corporation,” it said.
From being Vietnam’s largest real estate and retail group, Vingroup is changing its core by focusing on VinFast cars, VinSmart electronic devices and other technology products. In addition, the company is also expanding into education and aviation.