Sales of mobile devices are decreasing in Vietnam. According to GfK, fewer than 2.5 million products were sold in the first two months of the year, down by 30 percent compared with the 3.5 million sold in the same period last year.

In general, the sales of mobile devices are usually slow in mid-March and then maintain gradual decreases throughout Q2. However, in 2023, the market has been gloomy ever since the Tet holiday as people have cut spending amid inflation.

An expert who declined to be named told VietNamNet that some large mobile phone retail chains took a loss in the first two months of the year and the business is predicted to face difficulties until the end of Q3.

The sharp fall in sales forced retail chains to launch sale promotion programs even in the high sale season in pre-Tet days. Some retail chains offered discount rates of 50 percent compared with the initially quoted prices.

A media executive of a large retail chain said that sales of some products at the chain dropped by 40 percent compared with the last months of the last year. 

Revenue has fallen to below the breakeven point and it had to sell products at prices that bring minus profits as the chain had to take back capital.

He said that the chain had incurred a loss which is even larger than the figure in the months it closed because of Covid-19.

As for the laptop market, in Q4, revenue dropped by 50 percent. The same thing is predicted to occur in Q1/2023.

Nguyen Lac Huy from CellphoneS said that because of high optimism, Vietnam’s tech retail market is now in high inventories. “Pressure from high bank loan interest rates, high inventories and weak cash flow have forced retailers to slash retail prices,” Huy said.

Amidst the difficulties of the tech retail market, retailers have temporarily postponed the expansion of stores. Besides, the measures to cut down costs have been applied to maintain the existence of the chains.

Mobile World is also facing difficulties. It has liquidated goods and shut down the Bluetronics chain in Cambodia, which was once the largest retail chain in the country with 55 stores.

Trong Dat