VietNamNet Bridge – Sources say that FPT Shop, which has announced that it is seeking investors, has met foreign partners who are well-known in the business world.
FPT Shop, one of the two fastest-growing hi-tech product distribution chains in Vietnam, is looking for suitable investors to expand its business.
Nguyen Viet Anh, deputy CEO of FPT Shop, once said half-joking that the distribution chain may target partners like Alibaba. Meanwhile, retailers believe that FPT’s retail chain may fall into Thai or Japanese hands.
A source said FPT Shop has found a buyer and the deal was made prior to August.
The rumor is convincing because Thai and Japanese have shown special interest in the Vietnamese market. Thai businesses have been taking over a series of conglomerates in important business fields in Vietnam.
Nguyen Bach Diep, CEO of FPT Shop, when meeting the local press on August 10 on the occasion of launching Samsung Galaxy Note 7 on the market, affirmed that there has been no final decision about the partner.
She went on to say that it is FPT Group, the holding company, which undertakes the job of seeking partners for FPT Shop, while FPT Shop’s job is just providing documents and necessary information.
“We have prepared documents on FPT Shop’s capability and provided documents to potential clients,” she said. “Maybe the group is meeting some important partners.“
When asked if FPT Shop would sell stakes to Alibaba, the largest Chinese e-commerce conglomerate, Diep said Alibaba was just an example of potential partners with powerful financial capability and experience in e-commerce.
Ngo Quoc Bao, business director of FPT Shop, said FPT Shop has been developing rapidly and now needs investments to expand the business, but it does not intend to ‘sell itself completely’ as people think.
The Gioi Di Dong, the other large hi-tech product distribution chain, has received money from investment funds to expand its business.
Meanwhile, Vien Thong A has received a capital contribution from Japan and Nguyen Kim has sold stakes to Thai investors.
In mid-March 2016, Nikkei Asia quoted Le Hong Lien from Maybank Kim Eng Vietnam as saying that the FPT Shop deal may be worth VND2.3-2.7 trillion, or $103-121 million.
FPT Shop is now the second largest technology product distribution chain in Vietnam in terms of the market share.
The chain had turnover of VND2.448 trillion by the end of the first quarter of 2016.