Media Mart Vietnam Corporation (Media Mart), among the leading electronics retailers in Vietnam, is in talks with foreign partners for funding injection, Nguyen Thanh Hai, the firm’s marketing director, told the Vietnam Economic newspaper.
Several well-known retailers from Singapore and Japan have showed interest in buying shares of Media Mart, Mr. Hai said, adding such a partnership will bring more capital and expertise to Media Mart.
The two sides have agreed to some provisions of a possible deal, but Media Mart has rejected the partners’ proposal to acquire a dominating stake. “We will focus only in retail sale of electronics items, which is our core business. Thus we will not sell more than a 50% stake,” Mr. Hai tipped.
Foreign investors want to expand their network though cooperation deals with Vietnamese companies. The aforementioned Singaporean investor seeks to set foothold in Vietnam as Singapore’s domestic electronics market has been on the decline, he commented.
“Even without foreign funding, Media Mart will proceed with its expansion strategy,” the manager said.
The firm will open more outlets in Hanoi and Lao Cai province, aiming to reach its goal of 25 supermarkets in key localities in the northern region. “In Hanoi, we will expand our network to 20 in the time to come from nine currently,” he said.
Overseas investors have driven attention to the electronics market in Vietnam, which has seen growing consumerism, middle class and Internet users.
Tran Anh Digital World JSC (TAG), among Vietnam’s leading computer and technology product retailers, has announced a plan to open a series of outlets in the final months of 2015 after Japan’s Nojima lifted its holding in the firm to 31% in June.
Power Buy, a unit of Thailand’s largest retail conglomerate Central Group, earlier this year acquired a 49% stake in Ho Chi Minh City-based NKT New Solution and Technology Development Investment Joint Stock Company, the owner of the well-known Nguyen Kim electronics appliance supermarket chain.
Another local retailer, Pico Joint Stock Corporation (PICO), is rumored to have sold a 49% stake to Thailand’s largest retail conglomerate Central Group.