Vietnam’s FPT Retail curbs ICT expansion, shifts to private-label products, expands pharmacies

Speaking at the company's annual general meeting of shareholders on Friday, chairwoman Nguyen Bach Diep said macroeconomic and industry headwinds, including geopolitical tensions, tariff changes, and rising input costs, are weighing on consumer spending and margins.

She said inflation and income pressures have led consumers to cut discretionary spending and prioritize essential goods over technology products.

The company said it has adopted a 'proactive defensive' approach, tracking daily changes in supply conditions, component prices such as RAM, logistics costs, interest rates, and demand.

Executive vice-president Nguyen Viet Anh said laptop prices began rising in the fourth quarter of 2025 and could increase about two percent per month for at least the next two quarters, while mobile phone prices have risen around 10-20 percent.

To respond, FPT Retail said it is increasing the inventory of lower-priced products and securing additional supply in the VND15-20 million (US$570-760) segment.

The company is also developing E-Power branded assembled computers to offset shortages of affordable laptops, and expanding financing options including 12- to 24-month installment plans and trade-in programs to support demand.

In its pharmaceutical business, deputy general director Nguyen Do Quyen said maintaining stable drug prices while ensuring profit growth is a key concern, adding the company is securing longer-term supply to ensure inventory for the next four to six months.

FPT Retail plans to open 450 more Long Chau pharmacies and vaccination centers nationwide, while expanding services such as in-store health monitoring and free delivery for small orders.

The company is also accelerating the use of artificial intelligence in operations, aiming to raise labor productivity by about 20 percent without increasing headcount.

For 2026, FPT Retail targets revenue of VND59.5 trillion ($2.26 billion), up 16 percent from a year earlier, and a pre-tax profit of VND1.55 trillion ($58.86 million), up 27 percent and a record high.