MWG's Bach Hoa Xanh Opens 4 Stores Daily, Profit Surges to 910B VND

Overview

Mobile World Group (MWG) subsidiary Bach Hoa Xanh has accelerated its store expansion, opening 875 new locations since the start of 2025—an average of four per day. The fresh food retail chain now operates 3,434 stores and reported first-half profit of approximately 910 billion VND, surpassing its full-year 2024 profit, signaling a successful turnaround and aggressive push into northern Vietnam.

Key Facts

• Bach Hoa Xanh opened 875 stores from January to August 2025, averaging 4 new stores per day.
• Total store count reached 3,434, up 243 from the end of June 2025.
• About half of new stores are in northern and central Vietnam, with the rest in the south.
• The chain reported a profit of ~910 billion VND in H1 2025, exceeding its full-year 2024 profit.
• Accumulated losses narrowed to ~7,000 billion VND after the profitable period.
• MWG CEO Vu Dang Linh stated that new stores achieved positive operating profit at the store level in H1, including after warehouse cost allocation.
• Expansion pace suggests full-year new store openings could exceed 1,000.

What Happened

According to updates on bachhoaxanh.com, Bach Hoa Xanh, the fresh food retail chain under Mobile World Group (MWG), has expanded its network to 3,434 stores, adding 243 stores since the end of June. From the start of the year, the chain has opened 875 stores, translating to an average of four new stores per day. Management indicated that roughly half of the new stores are in the north and central regions, with the remainder in the south, maintaining a 50/50 split strategy.

The rapid expansion into northern Vietnam—considered the home turf of Masan’s WinCommerce (operator of WinMart/WinMart+)—intensifies competition in the fast-moving consumer goods retail sector. In a May investor meeting, Masan CEO Danny Le acknowledged Bach Hoa Xanh’s competitive fresh food strategy, stating that WinMart has response plans but will not directly confront Bach Hoa Xanh’s approach. He cited global examples like Alfamart and Indomaret in Indonesia and Walmart and Costco in the US, suggesting the market can accommodate both players.

Market Context

MWG shares closed at 73,000 VND on August 10, 2025, on the HOSE. The retail sector has seen renewed investor interest as Bach Hoa Xanh’s profitability improves, contrasting with earlier years of losses. The chain’s expansion into the north challenges WinCommerce’s dominance, potentially reshaping market dynamics. MWG’s overall performance benefits from this growth engine as its ICT/CE segment matures.

Strategic Significance

Bach Hoa Xanh’s turnaround and aggressive expansion mark a strategic shift for MWG, positioning the chain as a major growth driver. The ability to achieve store-level profitability quickly supports scalable growth, while the northern push directly challenges Masan’s stronghold. For long-term investors, this signals MWG’s commitment to capturing market share in fresh food retail, a segment with high growth potential. The competitive landscape may evolve into a duopoly, as suggested by Masan’s CEO, potentially stabilizing margins over time.

What to Watch

• Monthly store opening updates on bachhoaxanh.com to confirm pace of expansion.
• Q3 2025 earnings report for MWG, expected in October, to verify sustained profitability.
• Any response from Masan’s WinCommerce, such as new store formats or pricing strategies.
• Progress in reducing accumulated losses, currently around 7,000 billion VND.
• Management guidance on full-year store openings and profit targets in upcoming investor meetings.