Central Retail’s exit signals a brutal shake-out in Vietnam’s consumer electronics retail market

Central Retail’s Exit Signals Intensifying Competition in Vietnam’s Consumer Electronics Retail Market

Central Retail’s withdrawal underscores the mounting competitive pressure in Vietnam’s consumer electronics retail sector, as Dien May Xanh continues to consolidate its overwhelming market dominance.

In late 2025, Vietnam’s electronics retail market was taken by surprise when Thailand’s Central Retail announced the divestment of its entire investment in NKT New Technology Development and Investment JSC—the legal entity owning the Nguyen Kim electronics retail chain—to PICO Holdings. More than a routine merger-and-acquisition transaction, the deal serves as a clear signal of the increasingly cutthroat nature of competition in Vietnam’s electronics retail industry.

A “Bitter Aftertaste” After a Decade of Investment in Nguyen Kim

According to Central Retail’s disclosure, the transaction value stood at approximately USD 36 million, equivalent to nearly VND 1 trillion. The figure came as a major surprise, given that the Thai retail conglomerate had previously invested several trillion dong to acquire and gain control of what was once Vietnam’s leading consumer electronics chain.

Central Group began investing in Nguyen Kim in 2015 by acquiring a 49% stake in NKT, thereby indirectly owning part of the electronics retailer. By mid-2019, Central Retail spent an additional VND 2.6 trillion to acquire the remaining 51%, officially assuming full control of Nguyen Kim and its subsidiaries. At the time, Nguyen Kim was regarded as a strategic pillar for Central Retail’s expansion in Vietnam’s electronics segment.

However, following the divestment, Central Retail stated that it would record a loss of nearly VND 5 trillion in the fourth quarter of 2025. After a decade-long foray into Vietnam’s electronics retail market, the Thai group has exited with disappointment, raising broader questions about the sector’s true attractiveness amid intensifying competition.

A Fierce Battle in the Electronics Retail Arena

Vietnam’s electronics retail landscape currently features major players such as Dien May Xanh, MediaMart, Dien May Cho Lon, FPT Shop, HC Electronics, Nguyen Kim, and PICO.

Between 2000 and 2015, the market was largely dominated by two names: Nguyen Kim and Dien May Cho Lon. Nguyen Kim, a pioneer that opened its first store in 1996, held the number-one position for many years. Dien May Cho Lon, meanwhile, rose rapidly, particularly in southern Vietnam.

The competitive landscape began to shift significantly around 2013 with the emergence of Mobile World Group (MWG) through its Dien May Xanh chain. In 2013, Nguyen Kim recorded revenues of approximately VND 8.4 trillion, while MWG’s electronics segment generated VND 9.5 trillion—surpassing the long-standing market leader for the first time.

The real turning point came during 2015–2017. In 2015, Nguyen Kim still led the organized electronics retail market with roughly 12% market share, while Dien May Xanh held around 8%. Just two years later, Dien May Xanh had surged to nearly 30% market share, firmly establishing its dominance.

At the core of this shift was an aggressive store expansion race. Between 2016 and 2019, store rollout speed became the decisive competitive advantage. MWG stunned the market by announcing plans to open up to 400 Dien May Xanh stores in 2017 alone—an expansion pace most rivals were unable to match.

Conversely, chains lacking sufficient financial resources or slow to adapt their business models began to falter. Tran Anh, once a major electronics retailer in northern Vietnam, was forced to merge into Dien May Xanh in 2018 after prolonged losses, marking the end of a once-familiar brand.

Following the Covid-19 period, market growth moderated, but polarization became increasingly evident. Dien May Xanh maintained its position as the largest chain, operating more than 2,000 stores nationwide as of the end of November 2025.

Dien May Xanh’s key differentiator lies in its “market saturation” strategy rather than a focus on hypermarket formats. Instead of opening large-scale stores spanning several thousand square meters in city centers, the chain emphasizes compact outlets (600–1,000 sqm) that penetrate suburban and provincial areas—markets with untapped demand and higher growth potential.

MediaMart is another notable player. Founded in 2008, the chain expanded rapidly and owned nearly 400 stores by 2024. However, under intensifying competitive pressure, MediaMart has begun closing underperforming locations, optimizing its network to approximately 350 stores in 2025.

Established in 2001, Dien May Cho Lon currently operates 96 branches, primarily concentrated in southern and central Vietnam. Supported by a loyal customer base and long-standing market experience, the chain has retained a stable position, though a breakthrough comparable to its earlier growth phase appears unlikely.

FPT Shop has also emerged as a noteworthy entrant. In mid-2024, FPT Shop officially entered the electronics retail segment by simultaneously launching 10 electronics centers across multiple provinces. By the end of 2024, it had converted 54 stores into the FPT Shop Electronics format, each averaging around 200 sqm. Despite being a latecomer, the chain’s rapid expansion reflects strong ambitions, underpinned by FPT Retail’s financial backing and existing customer base.

HC Electronics, operated by VHC Trading Co., Ltd., pursues a large-format supermarket model, with stores ranging from 1,000 to 4,000 sqm, integrated with proprietary warehousing and logistics systems. HC currently operates more than 43 branches and is considered the electronics chain with the largest display area in Vietnam.

PICO, a long-established brand in northern Vietnam, was among the first to introduce the modern electronics supermarket model to Hanoi in 2007. After more than 15 years of development, the chain operates around eight stores in Hanoi and Ho Chi Minh City. The acquisition of Nguyen Kim in late 2025 expands PICO’s footprint but also presents significant challenges related to operational efficiency, large-floor-space management, and price competition.

How Efficient Are the Major electronics retail Chains?

Vietnam’s electronics retail market is estimated to be worth approximately USD 5 billion. However, revenue disparities among chains have become increasingly pronounced. In the first nine months of 2025, Dien May Xanh generated over VND 50 trillion in revenue. Previously, the chain reported around VND 60 trillion for the full year 2024, accounting for nearly 50% of the market and far outpacing competitors.

In contrast, Nguyen Kim’s electronics revenue reached only around VND 3.32 trillion in the first nine months of 2025, down more than 18% year-on-year. During its peak years, annual revenue ranged from VND 9–10 trillion.

Over the same period, FPT Retail recorded revenue of approximately VND 36 trillion, with FPT Shop contributing around VND 11.5 trillion.

Financial disclosures from other chains are less transparent. According to Vietdata estimates, during 2021–2022, Dien May Cho Lon generated VND 15–16 trillion in revenue, MediaMart around VND 9 trillion, and HC approximately VND 6–7 trillion.

Who Will Dominate Going Forward?

Over the medium term, MWG and Dien May Xanh are likely to retain their dominant position in Vietnam’s electronics retail market over the next three to five years, supported by superior scale, financial strength, and an integrated retail–logistics ecosystem.

Central Retail’s divestment of Nguyen Kim to PICO highlights that Vietnam’s electronics retail sector is no longer as attractive to foreign investors as it once was. Nguyen Kim’s future will largely depend on the new owner’s restructuring strategy, though a return to its former glory appears highly unlikely.

Meanwhile, MediaMart and Dien May Cho Lon are expected to remain viable due to their stable customer bases. FPT Shop, with its rapid expansion and strong backing, is widely seen as a potential formidable challenger in the years ahead.

According to Kien thuc dau tu

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