Retailers contribute over $450 million to state budget in 2023
Notable among this group were several of Việt Nam's prominent retailers, including Masan Group, DOJI, Phú Nhuận Jewelry (PNJ) and Mobile World Investment Corporation.
In 2023, nine of the largest taxpayers in the domestic distribution and retail industry contributed more than VNĐ10.6 trillion (US$450 million) to the country's State budget, according to a report by cafef.vn.
Notable among this group were several of Việt Nam's prominent retailers, including Masan Group, DOJI, Phú Nhuận Jewelry (PNJ) and Mobile World Investment Corporation. Each of these major retail conglomerates individually contributed over VNĐ1 trillion to the Government last year.
Distribution and retail companies in the country span across a wide variety of business lines and product categories.
For example, Masan Group and Mobile World operate extensive supermarket chains, while FPT Retail runs a nationwide pharmacy network.
Mobile World , Điện Máy Xanh, FPT Shop, Digiworld and Petrosetco focus on consumer electronics and home appliances, while PNJ and DOJI are prominent jewellery retailers.
In 2023, the total retail sales of goods and consumer services revenue at current prices are estimated to reach over VNĐ6.2 trillion, a 9.6 per cent increase compared to 2022 when it grew 20 per cent.
Excluding the impact of price changes, the real growth rate was at 7.1 per cent.
The retail industry confronted significant challenges in 2023. Enterprises grappled with external factors like slowing economic growth and tightened consumer spending.
The consumer electronics segment was hit the hardest. Fierce price competition, high inventory liquidation costs and weak demand eroded profit margins across major retailers in this category. Companies were forced to close underperforming physical stores to optimise costs.
While the broader retail sector faced headwinds in 2023, some segments managed to buck the trend.
The pharmaceutical retail segment saw a bright spot, with the Long Châu pharmacy chain continuing its impressive growth trajectory, while Tasco in automotive retail consolidated its position as the market leader by acquiring SVC Holdings.
This year, the retail industry outlook has been assessed more positively, buoyed by the expected economic recovery. — VNS
