On August 19, the Board of Directors of Mobile World Investment Joint Stock Company passed a resolution to dissolve one of its subsidiaries.
The subsidiary in question is Tran Anh Digital World Joint Stock Company, with the enterprise code 0101217009. The reason for the dissolution is Mobile World’s restructuring of its subsidiaries to optimize their operations.
Prior to Tran Anh, several other Mobile World subsidiaries were also dissolved for similar reasons.
In early May, MWG dissolved 4K Farm Joint Stock Company and Logistics Toan Tin Joint Stock Company as part of a restructuring of its subsidiary group to optimize operations.
Previously, the company had planned to implement 4K Farm with a model of technology transfer and support for farmers to grow safe vegetables with four standards: no pesticides, no growth stimulants, no preservatives, and no genetically modified seeds. However, by the end of 2023, the corporation determined that this subsidiary had essentially ceased operations due to unsatisfactory business results and misalignment with the overall development orientation.
Logistics Toan Tin, established in November 2021, mainly operated in the field of road freight transportation. According to MWG, this logistics company provided warehousing services and supplied goods to Bach Hoa Xanh, The Gioi Di Dong, and An Khang supermarkets nationwide.
The 4K Farm model was discontinued in May 2024.
In recent years, Mobile World has continuously launched and then discontinued multiple business models shortly after their inception.
Specifically, AVAFashion, a family fashion chain, closed down in mid-2022, just six months after its grand opening. The AVAJi jewelry chain also disappeared, and AvaSport shut down dozens of stores.
Another quickly launched and discontinued business line was eyewear. After a nine-month trial of adding eyewear displays in mobile phone stores, this venture was deemed unpromising and shut down.
The “Dien Thoai Sieu Re” (Super Cheap Phones) chain, which sold phones priced under 8 million VND and aimed to attract small mobile phone stores and households, was also dissolved after two years of operation.
Vuivui.com, an e-commerce website launched in 2016 with the goal of providing customers with a safe, reliable, and convenient online shopping experience with competitive prices and nearly 40,000 products, was shut down in 2018, just two years after its launch.
Overseas, Mr. Nguyen Duc Tai’s company also closed Bluetronics, an electronics chain in the Cambodian market, after six years of operation.
In addition to discontinuing ineffective business models, MWG is focusing on the quality rather than the quantity of stores for its existing retail chains in pharmaceuticals, groceries, and phones.
During the Q2 2024 investor meeting, MWG representatives stated that the company had essentially completed the closure of The Gioi Di Dong and Dien May Xanh stores.
In the first half of this year, Dien May Xanh closed 91 stores, leaving only 2,093 sales points. This was the most significant store closure in the history of the Dien May Xanh chain.
Similarly, 25 thegioididong.com phone stores had to cease operations. An Khang Pharmacy closed 46 sales points, leaving only 481 pharmacies in operation. In the future, this pharmacy chain plans to close nearly 200 more stores, maintaining approximately 300 operating pharmacies.
“The number of stores will be adjusted depending on the situation. If the market develops strongly and opportunities arise, we will focus on expanding our scale to increase revenue and market share. However, in the current challenging market context, MWG is more focused on the ‘quality’ of each store,” said the MWG representative.
