Shock RAM price surge weighs on Vietnam’s tech device distributors

The sharp rise in RAM (Random Access Memory) prices in the second half of 2025 created clear pressure on the profit margins of companies operating in the technology device business in Vietnam, including Mobile World, FPT Retail, and Digiworld.

In just six months, the price of a 16GB DDR5 RAM module at major retail chains such as Phong Vu jumped from around VND1.7 million to more than VND5.4 million (nearly $206) by early 2026. This increase even outpaced the rise in gold prices over the same period, forcing consumers to think more carefully before purchasing technology products.

For retailers and distributors, this input cost shock has quickly translated into pressure on gross margins.

Demand from “virtual” technology

RAM, together with CPUs and GPUs, is one of the three core components that determine the performance of computers and smart devices. The market witnessed a similar shock nearly a decade ago, when graphics card prices (with GPUs as the main component) surged due to the global cryptocurrency mining boom. When the crypto market cooled, the supply of new graphics cards was gradually released.

The year 2025 marked a new cycle. The explosion of AI, including “virtual assistant” software such as ChatGPT, Gemini and Grok, has driven enormous demand for data centers, high-bandwidth memory, and server RAM. Meanwhile, RAM manufacturing capacity has not expanded quickly enough, pushing the market into a supply shortage.

All electronic devices use RAM to varying degrees, but usage is particularly high in computers (laptops and desktops) and smartphones. This component typically accounts for about 10-15% of the total production cost of a laptop or smartphone, forcing manufacturers to choose between raising selling prices or maintaining prices while reducing RAM capacity, depending on customer segments.

Although both options negatively affect demand, the domestic market has shown a relatively positive trend.

Revenue continues to grow, but margins narrow

Companies operating large retail chains have reported positive Q3 business results, indicating that market demand has not weakened but is actually growing at a healthy pace.

FPT Digital Retail JSC, or FPT Retail for short (HoSE: FRT), which owns the FPT Shop chain, reported that revenue from IT equipment, phones, components, and accessories reached VND11.55 trillion ($439.73 million) in the first nine months of 2025, up 6% year-on-year.

The company said growth was driven by home appliances, services, and laptops, especially gaming and AI laptops during the back-to-school season. Pre-orders for the iPhone 17 also increased sharply compared to 2024.

However, gross margin declined slightly from 13.6% to 12.3%. In Q3 alone, when RAM prices began to fluctuate strongly, gross margin fell to 11.9%. Of course, the decline in FRT Retail’s gross margin also stems from FPT Shop being in the early stages of entering the home appliance market, requiring heavy promotions and discounts to gain market share.

At the same time, the main profit driver of FPT Retail has shifted to Long Chau pharmacy chain for many years. As a result, while the parent company earned only VND2.5 billion ($95,180), consolidated profit reached VND636 billion ($24.2 million), 2.3 times higher than the same period last year.

Mobile World Investment Corp. (HoSE: MWG), owner of Thegioididong (Mobile World) and Dien May Xanh chains, also announced positive results. Its Q3/2025 financial statements show that its subsidiary Thegioididong JSC planned to pay nearly VND4 trillion ($152.29 million) in dividends to the parent company, sharply up from VND1.25 trillion a year earlier.

In the first nine months of 2025, MWG’s mobile phones, computers, and electronic devices segment recorded revenue of VND77.76 trillion ($2.96 billion), equivalent to 85% of total revenue for all of 2024, reflecting a clear market recovery.

Despite stable operations in home appliances, this segment still could not avoid margin pressure, with gross margin declining from 18.2% to 17.3%. On revenue of VND77.76 trillion, a 1.1 percentage point drop equates to about VND684 billion ($26 million) in profit erosion.

Nevertheless, mobile phones, computers, and electronic devices remain MWG’s most profitable segment. Combined with the increasingly strong performance of the consumer goods chain (Bach Hoa Xanh), MWG posted impressive results for the first nine months of 2025, with after-tax profit of VND4.99 trillion ($189.98 million), up 73% year-on-year.

Digiworld Corporation (HoSE: DGW), a distributor of many technology products, computers, and components, reported that major customers such as MWG, FPT Retail, and Phong Vu recorded receivables of hundreds of billions of VND (VND100 billion = $38 million).

On the other hand, DGW purchased goods from major brands such as Apple, Xiaomi, Lenovo, and ASUS. Short-term payables to suppliers reached VND1.44 trillion ($54.82 million) out of total liabilities of VND1.72 trillion, showing that technology products remain the core of the company’s business structure.

In the first nine months of 2025, DGW achieved revenue of VND18.64 trillion ($709.66 million), up 13.5% year-on-year. Computers and mobile phones contributed 66%, or more than VND12.4 trillion.

Computer and laptop revenue surged as consumers and enterprises upgraded devices to meet AI requirements and Windows 11 compatibility, giving this segment renewed growth momentum after a long saturation period following the 2021 peak during Covid-19. In contrast, mobile phone revenue declined due to weaker smartphone demand.

Digiworld’s gross margin for the nine-month period only slipped slightly from 8.93% to 8.68%, so gross profit still rose 11.8% year-on-year to VND1.62 trillion ($61.68 million). After expenses, its net profit reached VND393 billion ($14.96 million), up 30%.

Overall, the business results of companies operating in RAM-related sectors such as phones, computers, and electronic devices continued to show solid growth. This is understandable, as RAM prices only began rising sharply from Q3/2025 and have not yet fully impacted domestic companies due to existing inventories, in-transit goods, and previously signed contracts. However, profits are expected to be eroded more deeply if the RAM supply shortage persists.