Top 'creditor' of Mobile World, FPT Shop

Outside the TopZone store specializing in selling Apple of The Gioi Di Dong .

Financial reports of electronics trading enterprises in Vietnam all include Apple. In addition to a large market share in mobile and computer segments in Vietnam, the high average product price makes this company the leading short-term “creditor” of domestic partners.

According to an Apple sales specialist at a major distributor in Vietnam, this debt is not a financial problem for the company. The large number also shows the strength of the business, which can import goods first, pay later, and is not under pressure from debt.

Currently, Apple is at the top of the list that Mobile World,FPT Shop and Digiworld have to pay.

Trillions of short-term debt

In the second quarter financial report of Mobile World Joint Stock Company (MWG), Apple Vietnam Company Limited (Apple Vietnam) topped the list of “short-term payables to suppliers”. The largest retailer in Vietnam owes its partners VND933 billion , a sharp increase compared to the VND288 billion recorded at the end of last year.

List of MWG's short-term creditors. Photo: MWG.

Right after Apple is Vinh Khang Company, the official distributor of Oppo in Vietnam. Mobile World owes the phone company 758 billion VND . The list also includes Digital World (Digiworld) and FPT Synnex. These are the two leading distributors of technology and electronic products in Vietnam today. They supply Xiaomi phones, Asus computers..., accounting for a large proportion on the shelves of retail agents.

Similarly, in FPT Retail's financial report, Apple is also among the top creditors with 434 billion VND . However, in recent years, this enterprise has expanded into the pharmaceutical sector with the Long Chau chain. Therefore, they owe the most to Sang Pharmaceutical and Trading Company Limited, with more than 600 billion VND in the second quarter.

With Digiworld, this distributor also owes Apple more than 470 billion VND in short-term. In addition, this enterprise also recorded Asus, Xiaomi, their major partners in the mobile and laptop segment.

Top Partner

In Vietnam, Apple used to be present only through distributors. They did not sell directly but used partners to bring products to dealers. Before 2019, Mobile World and FPT Shop still had to import iPhones at "full price". This meant that distributors got goods from the company at the listed price in the US. Adding taxes and sales profits, the price of genuine Apple phones when they reached users was significantly more expensive.

However, since the iPhone 12 generation, Apple has begun to change. The company has worked with many domestic partners to grant AAR certification. This means that the stores are on the official distribution list. In addition, they have to remove Apple hand-carried products from the shelves.

A few Vietnamese agents are allowed to buy goods and owe money directly to Apple. Photo: Phuong Lam.

With top partners, still called “tier 1” by retailers, they import goods directly from Apple Vietnam Company Limited.

According to Tri Thuc - Znews , this list in Vietnam includes The Gioi Di Dong, FPT Shop, Viettel Store and Digibox. In addition to the familiar names, Digibox is a monostore chain that appears mainly in shopping malls, operated by MAP, a retail giant from Indonesia. By 2024, CellphoneS will also be admitted to this group.

This is the reason why Apple Vietnam appears on the list of “creditors” of MWG or FPT Retail. Meanwhile, most of the authorized dealers in Vietnam share their goods sources through Digiworld, FPT Synnex or PHTD.

In fact, the total amount of more than 1,000 billion VND that Mobile World, FPT Shop and Digiworld owe Apple is not the largest. In the period of 2023, there was a time when the financial report recorded that the two largest smartphone retailers in Vietnam owed Apple more than 2,400 billion VND .

Source: https://znews.vn/chu-no-hang-dau-cua-the-gioi-di-dong-fpt-shop-post1580153.html