The Retail Giant: Generating $170 Million in Annual Tax Revenue

Masan Group’s Chairman, Mr. Nguyen Dang Quang, stated in the 2023 Annual Report, “Business indicators are our targets but never our destination.” The true motivation that drives Masan daily is to become a source of pride for Vietnam by serving consumers not only in Vietnam but also globally. The philosophy of “Doing well by doing good” has propelled Masan to become the largest private consumer retail group. They strive and aspire to create societal values a thousand times greater than when they first embarked on this journey of service.

One of the visual representations of the value Masan creates is the amount of money contributed to the state budget each year. In 2023, Masan Group contributed over VND 4,400 billion to the state budget, ranking them among the top 10 in the Private100 – Leading Group. For many years, Masan Group has consistently contributed VND 4,000-5,000 billion annually to the budget. The group’s subsidiaries, such as Masan Consumer and Masan High-Tech Materials, each contribute over VND 1,000 billion. Notably, Masan High-Tech Materials is the largest taxpayer in Thai Nguyen province.

Masan Group’s contribution to the state budget in 2023

According to the ‘PRIVATE 100 – Leading Group’ ranking, only a little over 30 units achieved tax contributions exceeding VND 1,000 billion (including 12 banks), and just 10 units contributed more than VND 4,000 billion (including 3 banks). Non-financial enterprises achieving this feat are industry leaders in large-scale economic sectors with sustainable and efficient production and business operations.

Masan Group’s ranking in the ‘PRIVATE 100 – Leading Group’

In addition to being one of the largest taxpayers in the provinces where its factories operate, Masan Group also creates jobs and improves the livelihoods of local people. Furthermore, they allocate a portion of their profits to community development through initiatives that assist and empower individuals to overcome challenges and improve their lives.

In 2023, Masan and its subsidiaries contributed nearly VND 32 billion to social welfare across the country, more than doubling the amount from 2022, especially in the localities where the company operates.

Each business unit within the group implements 15-20 programs annually, measuring their impact through financial contributions, donations, and volunteer activities. During 2022-2023, Masan’s initiatives spanned various fields, including eye surgery support, scholarships, promoting green consumption, and projects on clean water and environmental sanitation.

Masan’s initiatives in eye surgery support and green consumption

Masan’s initiatives in scholarships and clean water and environmental sanitation projects

Masan Group is currently one of Vietnam’s leading private economic groups, with its main pillars being Consumer Goods, Retail Distribution, and Finance.

From 2018 to 2023, Masan Group’s total assets continuously grew to over VND 147,000 billion (nearly USD 6 billion). Gross revenue remained stable at over VND 76,000 billion, and pre-tax profits reached thousands of billions of VND. As of the end of 2023, the total number of employees in the group was 35,878.

As of August 12, the group’s market capitalization exceeded VND 108,000 billion. Masan Consumer, a subsidiary, reached a market capitalization of over VND 153,000 billion, making it the largest company in the FMCG industry.

This value was built upon Masan Consumer being the fastest-growing FMCG company in Southeast Asia, with a compound annual growth rate (CAGR) of over 15% from 2017 to 2022 and a net profit margin (NPAT margin) of 20%. Despite a subdued consumer environment, Masan Consumer’s profit in 2023 still grew by more than 30%, and its net profit margin reached nearly 46% – the highest in history.

Masan Consumer’s impressive financial performance

Meanwhile, the second pillar in the ecosystem, WinCommerce, maintained its leading position in the market with a 25% share of modern trade value and a 50% share of the network. According to the latest report, WinCommerce has consecutively turned a profit in June and July, demonstrating that Masan Group’s operational solutions are on the right track.

Since 2023, amid challenges in the modern retail industry, WinCommerce shifted its focus from pure network expansion to store renovation and operational efficiency improvement instead of opening 800-1,200 new stores as initially planned. This decision has supported WinCommerce in achieving EBIT profits in Q3 and Q4 of 2023 and Q1 of 2024, with even better results in Q2 of 2024. After 10 years of operation, the system of nearly 3,700 stores/supermarkets has brought profits to Masan and demonstrated its ability to generate sustainable profits.

“We have overcome macro and micro instability while focusing on key innovations to gain market share in most consumer-retail categories,” said Mr. Nguyen Dang Quang. “The strategy of ‘Focusing on the Core, Maximizing Value’ has proven to be optimal in an era of high volatility and uncertainty.”

Masan Group’s transformation and focus on innovation

Masan Group, which started as a pure consumer goods company, has now transformed into a “Consumer of Things” platform, connecting a myriad of needs, all aimed at serving consumers with essential daily products and services of better quality at reasonable prices based on the philosophy of “Doing well by doing good.”

The group’s sustainability report affirms that the values Masan pursues are fully aligned with the United Nations Sustainable Development Goals (UN SDG) and reflect compliance with the International Finance Corporation’s (IFC) stringent Environmental and Social Performance Standards. Their ESG efforts are far-reaching, encompassing sustainability in supply chain management, responsible sourcing, employee welfare, and community development.

This future-oriented vision demonstrates Masan’s commitment to advancing the sustainability agenda and integrating ESG principles into its strategic and operational framework. By setting clear and achievable KPIs, Masan pledges accountability and ensures that its journey towards sustainability achieves positive milestones and impacts.

Masan’s commitment to sustainability and ESG integration

“To be honest, there were days when I wondered if we had strayed from this compass, but 2023 reminded me that we are still applying this formula every day,” shared Chairman Nguyen Dang Quang.

With the grand vision of “Every Vietnamese Family, Every Masan Product” and “Every Family in the World, at Least One Masan Product,” Masan took a significant step in 2023 by redefining its target market from 100 million Vietnamese consumers to 8 billion global consumers, opening up exceptional long-term growth opportunities.

Masan’s global vision and expansion

Kicking off with the consumer goods sector, Masan Consumer’s “Go Global” strategy propelled export revenue to an impressive VND 1,005 billion, propelling the CHIN-SU brand past 400 chili sauce brands to rank among the top 8 best-selling products on Amazon and claiming the top spot on Coupang in South Korea.

In March, at Foodex Japan 2024, Masan Consumer introduced specialty spice seeds and powders, Sriracha chili sauce, and Chin-Su spring rolls to Japanese consumers and representatives from over 60 other countries and regions, receiving positive feedback.

“Go Global” will be a significant growth driver for Masan Consumer in the medium and long term. This strategy targets two goals: first, to contribute 15% of revenue from international business by 2027, and second, to develop CHIN-SU into an international brand that brings Vietnamese spices to the world. With a current growth rate of 4%, Masan Consumer aims for an additional 2-3% growth each year, equivalent to nearly four times the growth by 2027.

Masan Consumer’s “Go Global” strategy and CHIN-SU’s international expansion

Masan’s expansion efforts are driven by the desire to bring better products to consumers and elevate Vietnamese brands to a global stage.