Central Retail Corporation, Thailand's largest retail conglomerate, has agreed to divest its entire stake in Vietnamese electronics chain Nguyen Kim, marking a strategic retreat from a sector hampered by fierce competition and changing consumer habits.

The Bangkok-listed company says it has signed a share purchase agreement with Vietnam’s Pico Holdings Joint Stock Company to sell its 100% interest in NKT New Solution and Technology Development Investment JSC – the holding entity for the Nguyen Kim brand.

The transaction gives the business an enterprise value of US$36 million, approximately 1.14 billion Thai baht. However, the exit comes at a steep accounting cost: Central Retail will record a one-time, non-cash impairment charge of 5.9 billion baht ( US$187 million ) in the fourth quarter of 2025.

Strategic realignment

The divestment signals a sharp pivot for Central Retail in Vietnam, which remains its most important overseas market. The Thai group says the move is part of a broader plan to "optimize its business portfolio" and reallocate capital towards its two highest-growth pillars in Vietnam: food and property.

"The company’s financial statements remain strong, and this impairment will not have any material adverse effect on business operations, assets, or dividend payments," Panet Mahankanurak, chief financial officer of Central Retail, says in a regulatory filing.

Analysts from Yuanta Securities and Finansia Syrus Securities suggest the impairment will be largely neutralized on the balance sheet by a roughly 6 billion baht gain from the sale of the group’s Italian luxury operations, Rinascente, which was also finalized this quarter. This "strategic wash" allows the retailer to exit a loss-making legacy asset without impacting its 2025 net profit or dividend capacity.

Competitive headwinds

Nguyen Kim, headquartered in Ho Chi Minh City, was once the undisputed king of Vietnamese electronics retail. Central Retail first entered the company with a 49% stake in late 2015 before taking full control in 2019 in a deal then valued at over US$110 million.

Despite its heritage, Nguyen Kim struggled to defend its market share against the aggressive expansion of major Vietnamese retailer Mobile World Group ( MWG ), also headquartered in Ho Chi Minh City, and the rapid rise of e-commerce platforms nationwide. Nguyen Kim’s store count has slipped from over 70 to 59 locations, according to its sale announcement this December, as Central Retail attempted to streamline the loss-making unit.

By offloading the chain to Pico Holdings, a veteran Vietnamese retailer with a strong presence in the north, Central Retail hands over the keys to a local competitor better positioned to integrate the brand into a domestic ecosystem.

The deal is expected to close once standard regulatory approvals in Vietnam are met.