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|Performance of top Vietnamese businesses|
Forbes Asia recently announced the Best Over A Billion list, which names the 200 top-performing listed companies across Asia Pacific with revenues of $1 billion or more. Seven Vietnamese companies made it to the list – Masan Group, Mobile World, Sabeco, Vietjet, Vinamilk, Techcombank, and Vingroup. Most remarkably, Mobile World has witnessed a significant increase in its phone, electronics, and grocery chain stores. Last year, Mobile World was set to reach its revenue target of $4.9 billion, exceeding expected net profits of $150 million.
Since being listed on stock exchange, Mobile World has always been among the 50 top-performing listed companies in Vietnam. The group earned revenues of VND25.4 trillion ($1.1 billion) in 2015, almost equal to other major companies and banks, and in 2018 it achieved revenues of VND85.6 trillion ($3.69 billion) in 2018, more than triple the 2015 figure.
|Revenue growth of Vietnamese companies on the Best Over A Billion list|
Compared with other companies, Mobile World has enjoyed a spectacular breakthrough over the past few years. In 2020, the company has set the target to reach VND122.5 trillion ($5.28 billion) in profits, up 34.4 per cent against 2019. If the company maintains a compound annual growth rate of over 52 per cent, it is likely to reach the $10 billion milestone soon.
The company is also accelerating expansion of Dien May Xanh and Bach Hoa Xanh chains to capitalise on market opportunities.
According to retail analysis by GfK, the Dien May Xanh chain currently holds 40 per cent of the electronics retail market, far surpassing competitors Nguyen Kim chain (70 stores) and Cho Lon Electronics (71 stores). The chain has a huge potential to increase sales and market share by extending its reach to other segments such as watches, glasses, and appliances. Meanwhile, the Bach Hoa Xanh chain has 1,000 stores in operation but it has yet to fully participate in the food retail segment. With a big market capacity, there is still much room for the chain to scale up and grow revenue. Once Bach Hoa Xanh’s revenue surpasses the combined revenue of thegioididong.com and Dien May Xanh, Mobile World will achieve the $10 billion mark.
When many retailers have faced mounting losses and even withdrawn from the race, the corporation is still earning high profits and offers greater security to investors. The group is also one of the top blue-chip stocks with the strongest growth in 2019.