A part of the VND2.5 trillion budget The Gioi Di Dong (MWG) shareholders approved for the M&A plan will be spent to buy a 25 percent stake of Tran Anh Digital. 

In 2016, MWG’s Dien May Xanh chain stated it held 16 percent of the domestic home appliance market share, while Tran Anh said it held 17 percent of the northern market.

Dien May Xanh believes that M&A is the quickest way for it to implement the plan to hold 25 percent of the market share in 2017 and 30 percent by 2018. 

The expansion will be easily implemented as Dien May Xanh is among the top 3 in Vietnam and Tran Anh is among the top 3 in the north.

According to GfK Vietnam, the electronics & home appliance market in the first six months of the year was valued at VND103 trillion, an increase of 13.2 percent over the same period last year. 

The electronics & home appliance market in the first six months of the year was valued at VND103 trillion, an increase of 13.2 percent over the same period last year.

Dien May Xanh reported revenue of VND13.381 trillion for the first half of the year, up by 140 percent over the same period last year. It plans to have VND5.127 trillion in revenue and VND49 billion in pre-tax profits in 2017. 

By August, Dien May Xanh had opened 481 shops each of which covers an area of several hundred square meters.

Meanwhile, Tran Anh’s scale has expanded rapidly from several shops to 39 shops in the northern and central regions. Once Tran Anh becomes a part of Dien May Xanh’s network, it will help Dien May Xanh increase its coverage and presence in the two markets. Tran Anh’s understanding about the market will help Dien May Xanh enter the northern market more easily.

Other chains, including Cho Lon, MediaMart, Pico, Vinpro, Thien Hoa and HC, and hundreds of small merchants have also expanded,
.

The southern market is dominated by three big players – Nguyen Kim, Cho Lon and Dien May Xanh. In the north, MediaMart and Tran Anh are the best known names.

A market report by HCMC Securities says Dien May Xanh would serve as the major driving force for MWG in 2017-2018.

As for Cho Lon, Lien An Thach, sales director of the chain, said Cho Lon would open more shopping centers, but it would only eye crowded areas with density of 150,000 people for each sale point.

Nguyen Kim has more than 50 sale points all over the country with both large-scale and small shops and shops-in-shops.

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