Ho Chi Minh City, April 25th, 2019, Digiworld Corporation (DGW) held the Annual General Meeting of Shareholder 2019.
In 2018, Digiworld’s performance far surpassed the plan with revenue reached VND 5,943 billion, increasing 56% and profit after-tax reached VND 109.2 billion, soaring 39% year on year. With this growth momentum, Digiworld has planned for VND 7,150 billion revenue and VND 137 billion profit after-tax, advancing 20% and 25% respecively compared to 2018.
Revenue in the first quarter of 2019 reached VND 1,371 billion, up 8% and profit after-tax reached VND 24,5 billion, up 26% year on year. Therefore, DGW has completed 19% of the 2019 revenue plan and 18% of the 2019 profit after-tax plan. Especially, in office equipment segment, revenue reached VND 267 billion, increasing 19% year on year, equivalent to 19% of the annual plan; in consumer goods segment, revenue reached VND 53 billion, increasing 141% year on year, equivalent to 15% of the annual plan.
Digiworld pinpoints Consumer goods and office equipment to be its growth engines in which office equipment would take advantage of the trend of digital transformation in the coming time.
The draft of “National Digital Transformation” project, of which the Ministry of Information and Communications is seeking comments, has set out a general goal that Vietnam will be ranked among top 4 ASEAN in national digital rating by 2025. According to the draft, the Digital Transformation project is divided into three phases including:
-1st phase (2019-2020): Digitizing socio-economic fields
-2nd phase (2021-2025): Digitalization as domestic and global competitive advantage.
-3rd phase (2026-2030): Comprehensive digital economy-society.
The growth of the office equipment sector over the years
The specific goal of the project by 2025 is that the national competitiveness index to rank among top 40 on World Competitiveness Scoreboard according to the WEF (by the year 2020 it will rank among the top 50); 50% of SMEs to shift to digital platforms (reach 10% by 2020); the digital industry to achieve at least 25% of GDP (reach 15% by 2020); at least 80,000 digital technology enterprises are developed in Vietnam (35,000 digital enterprises by 2020).
In addition, according to IDC Spending Guide, the global digital transformation spending would be approximately USD 2,000 billion by 2022 and digital transformation investment would increase in all three areas: hardware, software, and service. In particular, investment costs for hardware and services are accounted for more than 75% of the cost of digital transformation in 2019.
This trend will promote growth in the office equipment sector of Digiworld including:
-Servers and clients.
Previously, in 2018, revenue from office equipment sector of Digiwrorld surpassed VND 1,000 billion for the first time to reach VND 1,106 billion, remarkably advance 48% compared to 2017. Last year, Digiworld also signed up with EATON-the world’s leading energy management group-who provide effective energy management solutions for organizations and enterprises. Besides, Digiworld signed up with Synopsys-a Software company.
In early 2019, Digiworld has officially become a master distributor for Nestlé’s Nutrition products.
The growth of the consumer goods sector over the years
Mr. Doan Hong Viet, CEO of Digiworld said: “In 2019, Digiworld’s growth is almost guaranteed by two new contracts signed at the end of 2018 and early 2019 with Nokia in the Mobile phones and Nestlé in consumer goods. With the vision of becoming a billion-dollar company, the bigger challenge for the Executive Board is to make the office equipment sector become a growth pillar in ICT as well as to make sure the sustainable development of consumer goods business. I believe that, with the irreversible trend of Digital Transformation, office equipment segment will achieve a compunded average growth rate of 25% and will even exceed the laptop segment in the next 3 years. Besides, consumer goods business, with determination and enthusiasm of people of Digiworld, will gain further breakthroughs in the future.”