Vietnamese conglomerate Vingroup announced on Wednesday (Dec. 18) it will be exiting from its retail business to focus on becoming a technology and industrial company.
The company has decided to completely withdraw from consumer retail, according to published reports.
Vingroup will shut down its eCommerce website adayroi.com by the end of the month, merging its ePayment business unit VinID with Adayroi in efforts to better position its electronics retail business, VinPro. Adayroi was founded in 2014 to compete in the e-commerce space and for the company to remain competitive in retail.
“Merging Adayroi with VinID not only helps store data about customer behavior but also create a new platform where customer needs are better predicted,” Vingroup said, according to Deal Street Asia.
VinID acquired local eWallet platform MonPay, earlier this year.
The retail giant’s move comes just after selling off its retail component Vincommerce to Masan Group. Only two weeks ago, the Hanoi-based firm announced merger plans of its retail and agriculture business units with Masan Consumer Holdings — a subsidiary of Masan Group Corporation, in efforts to develop a retail enterprise in Vietnam.
The agreement will allow Masan “to quickly achieve our goal of becoming the leading domestic retail and consumer group,” Truong Cong Thang, chairman of Masan Consumer, said in a separate statement, according to Bloomberg.
“The withdrawal from retail reaffirms Vingroup’s determination to become a leading industrial and technology services corporation,” the company stated.
Vingroup is among Vietnam’s largest retail and real estate organizations, encompassing a wide range of businesses, from hospitality to healthcare. The firm is currently working to strengthen and change its core strategy by focusing on VinSmart electronic devices, VinFast cars, and other technology products. Additionally, it is also expanding into the aviation and education sectors.