VietNamNet Bridge - The prices of some smartphones reached a record high in the year, while shakeups occurred in the industry among leading players.
Mr Doan Van Hieu Em
Vingroup took over Vien Thong A
Vien Thong A, the 21-year-old technology product distributor, was taken over by Vingroup, the largest private Vietnamese company of its kind.
Vien Thong A was older than The Gioi Di Dong, FPT Shop and Mai Nguyen. Once a powerful distributor, Vien Thong A’s golden age ended in mid-2000s, when it had to compete with The Gioi Di Dong and FPT Shop. The retailer then fell to the third position and was swallowed up by Vingroup.
Acquiring Vien Thong A was just one small step by Vingroup, which has been expanding its business fields at lightening speed. Within one year, Vingroup launched its car brand, built a smartphone factory and marketed its first smartphone models. The conglomerate plans to make TVs and IoT devices as well.
Vien Thong A was older than The Gioi Di Dong, FPT Shop and Mai Nguyen. Once a powerful distributor, Vien Thong A’s golden age ended in mid-2000s, when it had to compete with The Gioi Di Dong and FPT Shop. The retailer then fell to the third position and was swallowed up by Vingroup. |
The Gioi Di Dong has new CEO
Doan Van Hieu Em, after many years of being responsible for mobile phone distribution in The Gioi Di Dong Group, has become CEO of The Gioi Di Dong and Dien May Xanh, the two best known retail brands of the group.
Meanwhile, Tran Kinh Doanh, the predecessor of Em, has been assigned to Bach Hoa Xanh, specializing in distributing home appliances.
The Gioi Di Dong’s decision shows that the company is putting high hopes on young managers. Em is the youngest manager among the most prestigious technology product distribution chains in Vietnam.
The Gioi Di Dong and Dien May Xanh reported revenue of VND55 trillion in the first 11 months of 2018.
Smartphone prices reach record high
To maintain high growth, smartphone manufacturers raised selling prices.
In late 2017, iPhone X 64 GB hit the Vietnamese market with the selling price of VND29.99 million, while iPhone X 256 GB was VND34.79 million. These were record high prices for smartphone models sold on a large scale.
The next generations of iPhone, iPhone Xs and Xs Max even had higher prices. iPhone Xs Max 512 GB was sold at VND43.99 million in November 2018.
Market becomes saturated
Unlike previous years, The Gioi Di Dong and FPT Shop in 2018 did not race to open new retail shops. Only several new shops of the chains opened last year. The groups focused on improving service quality. This shows that the market is getting saturated.
US$1=VND22,200
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