Mobile World Investment (MWG), one of the largest mobile phone and electronics distribution chains in Vietnam’s Ho Chi Minh City, has opened its first overseas store in Cambodia.
For in depth analysis of Cambodian Business, visit Capital Cambodia
The outlet, which is called BigPhone, hopes to tap into the fast development of technology and huge potential of young Cambodian consumers.
According to Nikkei Asian Review, the Phnom Penh store opened last week and will showcase the company’s own brand Gioi Di Dong, alongside Samsung tablets and smartphones plus products from Camfone, Huawei, LG, and Oppo. Apple and Nokia products will arrive next month.
Ho Viet Dong, MWG’s chief executive in Cambodia, was quoted as saying the Cambodia store is a pilot project before the company moves into Laos and Myanmar.
The company’s next move will be decided after three months of the Cambodia debut.
“MWG originally planned to enter Myanmar first, but Cambodia permits 100 percent foreign ownership,” he said.
The 400 square metre Phnom Penh outlet is aiming for monthly revenue of $100,000.
MWG is targeting annual revenue of 230 trillion dong ($10 billion) in five years, and 63 trillion dong this year. In the past three years, the company has seen growth of more than 60 percent in revenue and more than 45 percent in net profit.
In 2016, mobile phone penetration was more than 125 percent of total population and internet penetration was 47 percent, according to a report from the Ministry of Post and Telecoms.
This marked a big rise from 2008, when mobile phone penetration was only 25 percent and internet penetration was 0.13 percent.
By the end of last year, there were six mobile phone companies in Cambodia with almost 20 million subscribers, of which 7.4 million were internet subscribers.
Eight landline phone companies had 229,962 subscribers and 33 internet service providers had 97,386 subscribers, according to the report.