Earlier this month at Vietnam Access Days (VAD) 2026, we met with the management of Dien May Xanh (DMX), the ICT and consumer electronics (CE) retail arm of our portfolio company Mobile World Corporation (MWG).
This article is the second in our short series summarizing our observations from the event, following up on our previous write-up about Vietnam’s macro outlook. Below, we highlight the latest updates on DMX’s planned initial public offering (IPO) in 2026 and its role in MWG’s growth strategy over the next five years.
MWG operates some of the fastest-growing modern retail chains in Vietnam, including Thegioididong (mobile and ICT), Dien May Xanh (CE), and Banh Hoa Xanh (grocery). It is among our largest holdings and is also expected to be one of the leading players in the next upcycle of Vietnam’s consumer sector.
DMX, which includes both ICT and CE retail categories, accounted for approximately 67% of MWG’s revenue and over 90% of its profit in 2025. Set to complete its IPO in 2026, management emphasized that DMX remains the key business line that will enable additional earnings drivers for the group.
Following a period of aggressive store rollout in prior years, DMX has shifted its focus toward quality-driven growth. Rather than further expanding its physical footprint, management is optimizing its existing store network to improve productivity and profitability. Stores in prime locations have adopted experiential retail concepts and integrated technology into selected customer touchpoints, specifically targeting a younger audience, including millennials and Gen Z.
We have already seen this strategy deliver positive results in 2025. Despite operating with a smaller store network, DMX grew revenue 18%, compared to overall market growth of 13%. Average same-store sales grew over 20%, with growth surging to 60-70% at certain stores. At the same time, net profit increased nearly 60%, supported by tighter cost control and lower depreciation expenses.
DMX’s management outlined a five-pillar strategy targeting compound annual growth rates (CAGR) of 11% in revenue and 16% in net profit over the next five years:
Quality-driven optimization of the existing store network instead of rapid store expansion
Development of a comprehensive financial and consumer services ecosystem
Expansion of after-sales services in cooperation with manufacturers
Transformation of the loyalty app into a multi-service platform competing directly with e-commerce marketplaces
Acceleration of the overseas CE chain in Indonesia
Apart from the first optimization pillar that we have covered above, the latter four are designed to introduce new income streams beyond traditional product sales. Notably, the expansion into services and ecosystem integration is expected to generate recurring revenue and improve profit margins for DMX.
DMX plans to raise around USD 500 million by issuing new shares in its IPO in 2026, which would represent about 13% of its post-money shares after the listing, and imply a total value of USD 3.8 billion for the company. At this valuation, DMX would be priced at about 16–17 times its expected 2025 net profit (16–17x 2025 P/E) and roughly equal to its projected 2025 revenue (1x 2025 P/S).
We believe the transaction could serve as a value-unlocking catalyst for MWG shareholders. A separate listing for DMX will allow investors to better assess its standalone profitability and growth profile, which is currently embedded within the consolidated group valuation.
From a market standpoint, MWG and DMX’s strategy aligns closely with the broader consumer retail theme discussed during the recent VAD conference. A key highlight is stricter tax enforcement and e-invoicing requirements, which put more financial and operational pressure on informal retailers. This creates new opportunities for large, compliant players like MWG to gain market share. DMX’s strong governance, established store network, and manufacturer partnerships provide structural advantages in this environment.
Looking at the company level, we view DMX’s IPO as a positive move that helps unlock a more mature growth phase for MWG rather than relying mainly on store expansion. The listing should increase transparency around DMX’s operations and attract further capital into the group company MWG. This transaction also comes at a timely moment as we look forward to Vietnam’s stock market upgrade this year, which is expected to be a major catalyst for foreign investment flows into liquid, large-cap stocks.