Retail, service revenues enjoy good growth in Q1

Retail and consumer service revenues enjoyed good growth in the first quarter of 2022, rising 4.4 percent from the same period last year to 1,318 trillion VND (57.55 billion USD), according to the General Statistics Office (GSO).

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Retail revenue alone picked up 5.8 percent year on year, with many domestic retailers posting positive signs in their business.

Mobile World Investment Corporation (MWG) reported that in the first two months of this year, the firm earned after-tax profit of 1 trillion VND (43.6 million USD), up 8 percent year on year.

Meanwhile, revenue generated from retail activities of Phu Nhuan Jewelry JSC (PNJ) rose 53.3 percent year on year in the first two months with earnings from online sales surging 115 percent.

Experts from KB Securities Vietnam JCC (KBSV) attributed the recovery in retailers’ revenue to the reopening of the economy and the resumption of entertainment activities.

To maintain this development trend, businesses are expanding their operations and distribution network to bring their products closer to customers.

The FPT Digital Retail Joint Stock Company (FPT Retail) plans to open additional 70 new laptop shops to maintain its position as the leading laptop retailer in the country. It will also launch about 100 new FPT Shops across the country.

Meanwhile, it will expand the coverage of its Long Chau pharmacy chain to all 63 localities across Vietnam, increasing the number of the pharmacies to about 700-800 this year.

In 2022, FPT Retail targets revenue of 27 trillion VND and after-tax profit of 720 billion VN, up 20 percent and 30 percent over the previous year, respectively.

MWG has also announced its plan to shake hands with Erajaya Group to form PT Era Blue Elektronik (Era Blue) joint venture to develop the largest electronics retail chain in Indonesia.

KBSV experts held that a young population and the high GDP growth rate of Vietnam will help boost the retail sector’s growth in the future. However, they predicted that inflation will be among factors that prompt consumers to tighten their spending, which may slow down the sector’s expansion./.

VNA