MAIN CONTENT

The retail industry faced many obstacles in the first half of the year due to the decline in people’s disposable income outlook.

The unfavorable economic conditions affect domestic consumption in 1H. Accordingly, sales of essential goods such as food maintained the increasing trend well while sales of non-essential items increased only slightly.

The business of retail chains is gloomy:

– Departmental and pharmaceutical chains: continue to expand the number of stores.

– ICT retail chain: faced difficulties in the first half of the year due to a decrease in demand for ICT products due to falling income pressure and demand for personal computers was not as high as 2 years of lockdown ago.

BUSINESS EXPECTATION

We believe that the retail market will continue to face difficulties in the second half of the year. However, there will be a recovery compared to the first 2 quarters. ICT chains can improve business results as back-to-school season approaches. The launch of new products lines from Apple, Samsung is the driving force to boost sales.

In 2023, most retail businesses such as MWG and PNJ have come up with prudent business plans with low growth targets in terms of revenue and profit.

In the long term, Vietnam’s retail market remains a fertile ground for businesses thanks to its young population structure, rising incomes and good macroeconomic prospects.

Watch-list: MWG, PNJ, FRT, PET, DGW.