Stronger domestic consumption puts retail stocks back in focus

Stronger domestic consumption puts retail stocks back in focus

With some retail shares already recording substantial gains, earnings growth and valuation levels are among the factors expected to influence the sector's attractiveness during the remainder of the year.

Customers at a Mobile World Investment Corporation store in HCM City. — Photo thegioididong.com

Vietnamese retail stocks are drawing renewed investor attention as domestic consumption maintains double-digit growth and leading companies report stronger earnings ahead of the peak year-end shopping season.

Total retail sales of goods and consumer service revenue exceeded VNĐ5.23 quadrillion (US$202 billion) in the first eight months of 2026, up 13.3 per cent year-on-year, accelerating from growth of 9.5 per cent in the same period of 2025 and 9.3 per cent in 2024. All four major segments recorded double-digit growth. 

The recovery in purchasing power is expected to provide favourable conditions for retailers during the final months of the year, when consumer demand typically increases around holidays, Tết and the peak shopping season.

Favourable lending rates are another supportive factor, given retailers' substantial working-capital requirements. Improved banking system liquidity and more favourable credit conditions also provide additional room for consumption.

As a result, several listed retailers have reported strong earnings growth.

FPT Digital Retail JSC (FPT Retail) has attracted particular attention following its second-quarter results. Its shares rose about 34 per cent from VNĐ105,000 on July 22 to VNĐ140,900 on September 10, having reached VNĐ148,000 on August 12.

Second-quarter net revenue surged 37 per cent year-on-year to VNĐ15.6 trillion, while profit after tax jumped 187 per cent to VNĐ451 billion, which the company described as a record high.

First-half consolidated revenue reached VNĐ30.7 trillion, up 33 per cent and completing 52 per cent of its full-year target. Profit before tax stood at VNĐ1 trillion, equivalent to 67 per cent of the 2026 plan.

The company said both of its chains contributed to growth, with Long Châu remaining the main driver.

BIDV Securities Company (BSC) forecasts FPT Retail's 2026 net revenue at VNĐ63.2 trillion, up 17 per cent, while profit before tax could rise 75 per cent to VNĐ2.1 trillion, equivalent to 138 per cent of the company's target.

BSC's higher forecast is mainly based on expectations of continued improvement at Long Châu. The pharmacy chain is projected to add around 387 stores this year, bringing its network to 2,804.

Mobile World Investment Corporation (MWG) also recorded positive first-half performance, with revenue increasing 29.1 per cent and profit rising 88.4 per cent year-on-year, supported by improvements in both its electronics and home appliance operations and Bach Hoa Xanh.

Mirae Asset expects MWG to maintain annual growth of more than 15 per cent over the medium term as it improves the efficiency of existing chains and expands Bach Hoa Xanh.

The securities firm forecasts MWG's profit after tax at VNĐ9.5 trillion in 2026, up 35.5 per cent, before rising another 23.9 per cent to VNĐ11.8 trillion in 2027. Bach Hoa Xanh is expected to contribute around 14 per cent and 16 per cent of MWG's profit before tax in 2026 and 2027, respectively.

Customers at a Mobile World Investment Corporation store in HCM City. — Photo thegioididong.com

Digiworld Corporation also posted stronger second-quarter earnings. Net revenue rose 26.9 per cent to VNĐ7.3 trillion, while net profit surged 160.6 per cent to VNĐ309 billion, its second-highest quarterly profit on record.

For the first half, Digiworld's net revenue increased 40.2 per cent to VNĐ15.77 trillion and net profit climbed 127.1 per cent to VNĐ511 billion, completing 50 per cent and 77 per cent of its respective annual targets.

Its second-quarter gross margin expanded to 13 per cent from 8.5 per cent a year earlier and 9.5 per cent in the first quarter. The improvement reflected DGW's ability to pass part of higher component costs, particularly RAM, through to selling prices for laptops and office equipment.

Office equipment revenue jumped 72.6 per cent to VNĐ4.5 trillion in the first half, while information technology product revenue rose 71.3 per cent to VNĐ5.4 trillion.

With some retail shares already recording substantial gains, earnings growth and valuation levels are among the factors expected to influence the sector's attractiveness during the remainder of the year. 

Bizhub