FPT reportedly selling distribution business
Comments Off 0

FPT reportedly selling distribution business

Economy, Vietnam, Vietnam Finance News
A store of FPT Corporation. (Photo: trangcongnghe.com)

Hanoi (VNA) – FPT Corporation has reportedly sold its distribution business
FPT Trading to US-headquartered Synnex Corp, retail sources told zing.vn.

The
news website reported that the US company is finalising the acquisition of FPT
Trading, but provided no other details on its stockholding.

FPT
Corp’s representative neither confirmed nor denied the information when
contacted by Viet Nam News, saying it would announce the information at a
proper time.

On its
website, Synnex announced the acquisition of some companies in the North
American and Latin American markets in June.

Synnex
is a Fortune 500 corporation and a leading business process services company,
providing a range of distribution, logistics and integration services for the
technology industry.

FPT
Trading contributed about 30-45 percent of total revenues of FPT Corporation in
the past. The company is one of the top three biggest distributors of mobile
phones, computers, tablets and accessories in Vietnam, together with Digiworld
and Petrosetco. They import products and distribute to retailers such as FPT
Shop, Mobile World, Tran Anh, Nguyen Kim across the country.

In its
2015 annual report, FPT Trading said it accounted for 21.4 percent of the mobile
phone market share and 27.4 percent of the market share of other devices.

However,
the big Vietnamese distributors have faced difficulties in recent years as
giant foreign mobile producers, such as Apple and Samsung, have appointed their
own distributors.

FPT
Trading revenues declined 28 percent to 12.5 trillion VND (551 million USD) in
2016, and its profit was down 48 percent year-on-year to 284 billion VND,
accounting for just 9 percent of total profits of FPT Corporation in 2016.

Its
2017 first-quarter profit also plummeted 40 percent to just 56 billion VND.
However, some securities companies have forecast the company’s business would
recover towards the end of this year as the segment of technology devices has
experienced a slight uptick.

At the
FPT Corp’s annual shareholders’ meeting in March last year, shareholders urged
the company to divest from retail and focus on technology and
telecommunications strengths.-VNA 

QBCA

Back to Top