Once the first and the largest distributor of home appliances, Nguyen Kim has lost its market share as its rival expanded too rapidly.

After five years of holding a 49% stake in Nguyen Kim Trading JSC, Thailand’s Central Group has now taken full control of the local firm's home appliance store chain, as confirmed in its recent financial reports.

As one of the most dynamic economies in the region, Vietnam’s young retail market has great potential as it is increasingly more competitive and attractive to foreign investors.

Many home appliance shops have had to sell food, medicine, watches, and glasses and join forces with partners to sell more products, because the profit from their core businesses has been insufficient.

VietNamNet Bridge - Rural areas, which digital product retailers have ignored in the last five to seven years, have now become a major ‘battlefield’.

Not only are they expanding networks by setting up new shops, home appliance chains are also trying to change their business models and increase online sales in an effort to get bigger market share.

Thailand’s Central Group and its Vietnamese partner Nguyen Kim Group are working on a plan to open seven new Big C supermarkets this year after they completed procedures to take over all Big C assets in the country.

VietNamNet Bridge - It is expected that the spending on electronics and refrigeration products in Vietnam will reach VND157 trillion a year by 2020, including VND60 trillion on the former and VND97 trillion on the latter.

VietNamNet Bridge - The majority of Vietnamese are fond of foreign-made products, causing obstacles for Vietnamese household goods manufacturers. 

VietNamNet Bridge - As the competition in the market has become ‘scorching hot’ in the last three years, many home appliance distributors have decided to join hands with foreigners to receive support from powerful partners.

How much does the Central Group have to pay to acquire Nguyen Kim? Why has the Thai investor accepted to buy only 49 percent of Nguyen Kim’s shares? Both questions remain unanswered.