Tech-product distributors, retailers see strong rebound in July
Mobile phone and laptop distributors and retailers reported good revenue and profit in July, showing that business activity of companies operating in this field are on the rebound from the COVID-19 pandemic.
According to surveys by Bao Viet Securities JSC (BVSC) with Digital World JSC (DGW) and PetroVietnam General Services JSC Corporation (PET) - the two big laptop and mobile phone distributors in Vietnam, leaders of these firms said that they all saw signs of recovery in the demand for laptops and mobile phones in July.
The revenue from laptop sales of DGW in the month increased by 5% over the same period last year, and is forecast to continue recovering in August and September. Meanwhile, mobile phone revenue surged 105% year on year as consumption last year was heavily affected by pandemic-induced restrictions.
PET also confirmed the same trend although it has not yet released its preliminary business data for July.
According to BVSC's estimates, mobile phone revenue in the second quarter of 2022 in Vietnam increased by 15.2% year-on-year, reaching VND26.8 trillion (US$1.145 billion), but was down VND4.2 trillion compared to that reported in the first quarter.
Vietnam’s mobile phone revenue is estimated to grow 13.4% year-on-year in the first half of 2022 to VND57.9 trillion.
However, according to SSI Securities JSC (SSI), inflation has affected purchasing power, forcing consumers to cut spending on non-essential items from the second quarter of 2022.
SSI forecasts that big companies will gain more market share thanks to their strong bargaining power with suppliers, allowing them to mitigate the impact of higher cost of goods and thereby offer more discounts to customers in the context of inflationary pressure.