Retail and services revenues progress well in Q1 | Business

Illustrative image (Source: VNA)

Hanoi (VNA)Retail and consumer service revenue saw good growth in the first quarter of 2022, increasing by 4.4% compared to the same period last year to reach 1,318 trillion VND (57.55 billion USD), according to the General Bureau of Statistics ( GSO).

Retail revenue alone grew 5.8% year-on-year, with many retailers showing positive signs in their business.

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

Meanwhile, revenue generated from Phu Nhuan Jewelry JSC’s (PNJ) retail business increased 53.3% year-on-year in the first two months, with online sales revenue jumping 115%. .

Experts at KB Securities Vietnam JCC (KBSV) attributed the recovery in retail revenues to the reopening of the economy and the resumption of entertainment activities.

To maintain this development trend, companies 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 an additional 70 new laptop stores to maintain its position as the top laptop retailer in the country. It will also launch approximately 100 new FPT stores across the country.

Meanwhile, it will expand the coverage of its Long Chau pharmacy chain to all of Vietnam’s 63 localities, raising the number of pharmacies to around 700-800 this year.

In 2022, FPT Retail is targeting a turnover of VND 27 trillion and a profit after tax of VN 720 billion, up 20% and 30% from the previous year, respectively.

MWG also announced plans to shake hands with Erajaya Group to form joint venture PT Era Blue Elektronik (Era Blue) to develop Indonesia’s largest electronics retail chain.

KBSV experts believe that a young population and Vietnam’s high GDP growth rate will help drive the growth of the retail sector in the future. However, they predict that inflation will be among the factors prompting consumers to tighten spending, which could slow the sector’s expansion./.



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