Vietnamese retailers win big in H1, embrace recovery through 2025

Major Vietnamese retailers have achieved significant business performances in the first half of this year, driven by market recovery.

Mobile World Investment Corporation, listed on the Ho Chi Minh Stock Exchange as MWG, posted a net profit of VND2.07 trillion ($82.54 million) on revenue of VND65.62 trillion ($2.6 billion) in H1, up 53-fold and 16% year-on-year, respectively.

With such results, the firm has fulfilled 52% and 86.4% of its revenue and profit targets for 2024, respectively.

MWG’s mobile and electronics chains The Gioi Di Dong (Mobile World) and Dien May Xanh remain its key profit earners.

Meanwhile, the firm’s grocery chain Bach Hoa Xanh incurred a loss of VND98.4 billion ($3.9 million) and pharmacy chain An Khang experienced a loss of VND172 billion ($6.8 million). In addition, its joint venture PT Era Blu Elektronik (Era Blue) in Indonesia posted a loss of VND47 billion ($1.9 million) during H1.

However, Bach Hoa Xanh chain started to record a profit of VND7 billion ($278,440) in Q2/2024. The chain earned VND19.4 trillion ($771 million) in revenue in H1, up 42% year-on-year. In June, it achieved an average revenue of VND2.1 billion ($83,530) per store, surpassing the break-even point of VND1.8 billion.

Regarding FPT Retail (HoSE: FRT), the company recorded consolidated revenue of VND18.28 trillion ($727.2 million) in H1, up 22% over the year. It reported a net profit of VND109 billion ($4.34 million), a significant turnaround from the loss of VND213 billion ($8.47 million) in the same period of last year.

Its main growth driver was the pharmacy chain FPT Long Chau, which generated VND11.5 trillion ($458.27 million) in revenue, up 67% year-on-year.

Phu Nhuan Jewelry JSC (HoSE: PNJ) posted a net profit of VND1.16 trillion ($46.38 million) on revenue of VND22.1 trillion ($879.5 million) during the six-month period, up 7% and 34% year-on-year, respectively.

Masan Group (HoSE: MSN)-run WinCommerce, the operator of WinMart and WinMart+ store chain, saw its H1 revenue rise 8.8% year-on-year to VND15.8 trillion ($628.5 million) and earnings before interest, taxes, depreciation, and amortization surge 88% to VND421 billion ($16.75 million).

Some retailers, such as Digiworld (HoSE: DGW) and Petrosetco (HoSE: PET), have announced double-digit growth in both revenue and profit during H1/2024.

Assessing the retail market’s H2 outlook, Hanoi-based KB Vietnam Securities predicted that the sector will continue to bounce back moderately until 2025, supported by positive macroeconomic indicators.

According to the General Statistics Office, revenue from retail sales of goods in Vietnam reached nearly VND3,099 trillion ($123.3 billion) in H1, up 8.6% year-on-year.

The increase in the base salary for state employees and the extension of VAT cut through the end of this year are expected to boost consumer confidence and encourage spending, it noted.

However, persistent inflation may hinder interest rate cuts, likely resulting in a slower-than-expected recovery in consumer purchasing power.

KB Vietnam Securities forecast that the ICT retail segment would grow for the rest of this year, with MWG, FRT, and DGW projected to be major beneficiaries. Given the intense competition, some ICT retailers aim for a single-digit growth this year.