The Shareholders’ Burning Question: “What Would Become of Mobile World Without Nguyen Duc Tai?” and the Captain’s Revealing Response

At The Gioi Di Dong (MWG)’s 2Q24 investor meeting, alongside queries about the company’s performance, shareholders also showed keen interest in the retail giant’s long-term strategy and direction.

When asked about MWG’s core values and what the company would preserve in the absence of Mr. Tai (Nguyen Duc Tai, Chairman of MWG’s Board), the Chairman affirmed that MWG has core values established over its existence and development journey. These values form the foundation and are instrumental in the company’s success.

“Regardless of who leads MWG, these values will continue to be upheld and maintained. We will not depart from what has propelled The Gioi Di Dong from 5 stores with a few billion VND in revenue to a $5 billion revenue enterprise with multiple chains and thousands of stores as it stands today.”

“These are the constants that will not change over time. First is the customer – central to all our thoughts and actions at MWG; second is integrity – we do what we say; and third is honesty and uprightness – no scheming, just fair business dealings. There’s a lot of work, but we can definitely sleep soundly at night knowing we have no ill intentions towards anyone,” shared the Chairman.

Mr. Nguyen Duc Tai asserted that MWG will uphold these critical values over time, continuously upgrading them, and assured that there would be no “U-turns.”

MWG’s success over the past two decades bears the indelible mark of Mr. Nguyen Duc Tai, who steered the company to become Vietnam’s leading retail empire and a regional force, with annual revenues surpassing 100,000 billion VND.

However, MWG’s path hasn’t been without challenges. After a period of rapid growth, the years 2022-2023 presented difficulties for the retail conglomerate amid a weak market, plummeting consumer demand, and intensifying competition. MWG’s full-year 2023 profit plunged to a 10-year low of 167 billion VND. In his letter to shareholders earlier this year, Mr. Nguyen Duc Tai apologized for the record-low profit and stock price decline and pledged to strive for improved business performance in 2024, reflecting better on the company’s value and shareholder investment efficiency.

The Chairman walked the talk, as evidenced by a series of aggressive moves to restructure each store chain and a “less-for-more” strategy initiated even before the signs of weakness. As a result, MWG swiftly rebounded with two consecutive profitable quarters in 1Q24 and 2Q24, achieving remarkable growth compared to the same period last year. For the first half, MWG’s after-tax profit reached 2,075 billion VND, a 5,200% surge from the first half of 2023, thus surpassing 86.5% of the full-year profit target.

According to MWG’s leadership, consumer spending will likely stagnate or even decrease for non-essential items compared to 2023. However, with a robust financial foundation and a streamlined “body” post-restructuring, the Chairman assured that the company is poised to tackle market fluctuations, possessing the leeway and determination to actualize its 2024 goals.

Looking ahead to 2025, Mr. Nguyen Duc Tai forecasts a brighter outlook for the retail market compared to 2024, barring any new wars. Geopolitical stability is also crucial for the economy. The Chairman believes that maintaining a 15%-30% growth rate will bring MWG’s profit close to 5,000 billion VND in the next two years.

For the longer-term vision of 5-10 years, Mr. Nguyen Duc Tai ambitiously aims for MWG to attain a $10 billion revenue milestone. However, he acknowledges the challenge in achieving this goal, suggesting the need to expand into new business areas. MWG’s growth also hinges on various factors, including favorable macroeconomic conditions, to realize the desired 20% annual growth rate.