Domestic retail demand backed up by policies

Retailers are expected to maintain growth momentum as a combination of stimulus measures, rising incomes, and resilient consumer spending continues to support domestic demand.

- By Thy Nguyet

According to data released by the National Statistics Office (NSO) under the Ministry of Finance on June 6, total goods retail and consumer service revenue increased 12.1 per cent on-year in April and a further 11.8 per cent in May, highlighting the resilience of domestic consumption.

Several listed retailers delivered strong first-quarter results, particularly in the ICT and consumer electronics segments, which benefited from a replacement cycle for digital devices and growing demand for AI-enabled products.

In its second-quarter retail sector outlook released in June, ABS Securities expects the retail sector to remain on a positive trajectory in the second quarter, supported by policy stimulus and improving consumer demand. According to the brokerage, the ICT and consumer electronics segment has been benefiting from an ongoing device replacement cycle, as consumers continue to upgrade devices purchased during the pandemic period. Demand has also been boosted by the transition to Windows 11 and the increasing integration of AI features into consumer devices.

Dien May Xanh Investment JSC reported revenue of $1.24 billion in the first quarter, up 34 per cent on-year. Growth was recorded across all major product categories, with Apple smartphones rising 65 per cent, Android handsets up 15 per cent, laptops and accessories increasing 30-35 per cent, televisions climbing 30 per cent, and household appliances such as air conditioners, washing machines, and refrigerators expanding by 20-45 per cent.

FPT Shop, operated by FPT Retail, also delivered a strong performance. Revenue rose 31 per cent on-year to $184.5 million, while net profit reached $632,000, reversing a loss of $709,000 recorded a year earlier.