Enterprise

How Has Nguyen Kim Fared Under Thai Ownership After a Decade?

After a decade-long investment of over $200 million to acquire Nguyen Kim, Central Retail has now fully divested its stake, incurring a staggering $190 million loss in the process.

Administrator

25 December, 2025

On December 23, the domestic business community was taken aback by the news that Central Retail Group (Thailand) would divest its entire direct and indirect investment in Nguyen Kim Investment and Development Joint Stock Company (owner of the eponymous electronics retail chain) and its subsidiaries, valued at approximately 1.14 billion baht (USD 36 million). The buyer is Pico Holdings.

Notably, the divestment price is only one-sixth of the initial investment, after nearly a decade of Central Retail pouring over USD 200 million to acquire and control Nguyen Kim.

With this transaction, Central Retail will record a non-cash asset impairment loss, estimated at 5.9 billion baht (approximately USD 190 million), in its Q4 2025 financial results.

Central Retail Vietnam stated that this move aligns with the company’s strategy to restructure and optimize its investment portfolio, aiming for long-term and sustainable growth.

Inefficient Business Operations

Central Retail began investing in Nguyen Kim in 2015, acquiring a 49% stake in NKT, the parent company of the electronics chain.

At that time, Nguyen Kim was still a leading brand in the retail market for genuine electronics.

By 2019, Central Retail acquired the remaining 51% stake, achieving 100% ownership. The deal was valued at approximately VND 2.6 trillion.

Under Central Retail’s ownership, the Nguyen Kim network was significantly upgraded and expanded, reaching over 70 stores nationwide at its peak.

However, business performance fell short of expectations. The chain gradually downsized, now operating only about 59 stores—a modest figure compared to Dien May Xanh’s 2,000+ outlets, which dominate the market.

According to Central Retail Corporation’s (CRC) financial report for the first nine months of 2025, electronics revenue in Vietnam totaled 3.88 billion baht, an 18% decline year-over-year. This is cited as the primary reason for the group’s decision to exit Nguyen Kim and refocus resources on other business segments.

Central Retail has divested its entire stake in Nguyen Kim at a price equivalent to one-sixth of the initial investment.

Nguyen Kim Before Thai Ownership

Historically, Nguyen Kim was a symbol of Vietnam’s electronics retail market. Founded in 1996 with its first store on Tran Hung Dao Street (Ho Chi Minh City), Nguyen Kim was a pioneer in modern, genuine electronics retailing. By late 2007, the chain expanded to Hanoi, marking its entry into the northern market.

In 2010, a Nielsen survey revealed that 99% of consumers voted Nguyen Kim as Vietnam’s top electronics retailer. By 2015, when Central Group acquired a 49% stake, Nguyen Kim operated 21 stores nationwide, holding a 12% market share—surpassing Dien May Xanh (8%) and Dien May Cho Lon (7.5%).

Between 2015 and 2016, Nguyen Kim’s revenue reached approximately VND 9.5 trillion, an impressive figure at the time.

However, the “first-mover” advantage quickly eroded as The Gioi Di Dong accelerated the expansion of Dien May Xanh. Within years, Dien May Xanh overtook the market, now contributing about 44% of The Gioi Di Dong Group’s total revenue.

Nguyen Kim attempted an e-commerce partnership with FPT Shop in 2019, but the initiative lasted only a few months. Meanwhile, online shopping trends surged.

Metric’s 2024 report shows a 41% increase in electronics sales on e-commerce platforms, intensifying pressure on traditional retailers burdened by high overhead costs.

Pico, the buyer, is a well-known electronics brand in northern Vietnam. Established in 2007, it once operated 24 stores in 2020. However, its current website lists only about 10 active stores.