Consumer goods retail 'boss' says traditional retailers are struggling

Masan Group, the leading consumer goods retail group in Vietnam, said that its traditional retail channel is temporarily disrupted due to pressure from new tax regulations on retailers. The group is looking to boost sales through other channels.

Masan is promoting modern sales channels, in addition to traditional stores. In the photo, shareholders are experiencing a sales model that meets the requirements of digital transformation - Photo: BONG MAI

Masan Group Corporation (stock code MSN) has just organized a program to update business results, via online form today, July 28. Business leaders frankly and directly shared many hot issues that shareholders are interested in.

At the close of today's stock trading session, the total capitalization of MSN and MCH (Masan Consumer) alone was approximately VND238,900 billion, equivalent to USD9.56 billion. The business performance of the leading group in the retail - consumer sector greatly reflects the changes in the domestic market.

Overcoming the short-term challenge of disrupting traditional sales chains

Masan said the consumer goods industry is under pressure due to a weaker-than-expected recovery and the impact of new tax regulations applied to traditional retail channels, affecting about 30,000 individual business households.

Revenue in the second quarter of 2025 of Masan Consumer chain (MCH - the unit that produces and distributes Omachi noodles, Chin-su spices, Nam Ngu fish sauce, cereals...) decreased due to the traditional sales channel, which accounts for a large proportion, being disrupted by new tax regulations.

Many large and small retailers simultaneously cut inventory, causing the MCH chain's revenue last quarter to decrease by about 600 - 800 billion VND.

The Group assesses this as a short-term structural challenge in the Vietnamese retail industry.

"A broken distribution channel does not mean no other channel can develop," Mr. Danny Le - General Director of Masan Group - emphasized.

Business activities are expected to recover from the second half of 2025, shifting faster to modern retail channels, taking advantage of the growth momentum of distribution channels in restaurants, customers, cafes...

Meanwhile, WinCommerce (operating Winmart, Winmart supermarkets...) recorded strong growth in revenue and profit last quarter, expanding in both rural and urban areas.

Mr. Philippe Jean Broianigo - Deputy General Director of The CrownX (integrated consumer - retail platform Masan Consumer, WinCommerce...) - said that the company is promoting investment in artificial intelligence (AI), recruiting talented domestic and foreign personnel to apply information technology to sales and operations. At the same time, improving the quality of the business consulting team to support small traders to sell more effectively in response to digital transformation requirements.

Thousands of billions in revenue from selling pork, chicken, milk tea, cakes...

For livestock and poultry farming and meat sales, Masan MEATLife chain recorded revenue of more than VND 2,300 billion in the middle quarter of 2025, an increase of nearly 31% over the same period last year. Net profit after tax (before distribution to minority shareholders) reached VND 249 billion, profit margin increased.

The company explained that the meat revenue increased thanks to the increase in pork prices and the expansion of the common sales network. The processed meat and chicken farming segments also grew with profits reaching hundreds of billions of VND.

Phuc Long tea and coffee chain achieved revenue of 434 billion VND and net profit of 43 billion VND in the last quarter.

In the first six months of the year, revenue reached VND858 billion (+10%), net profit after tax was VND86 billion (+64%) thanks to strong growth in delivery channels and increased food revenue.

Regarding the 2025 plan, the group run by billionaire Nguyen Dang Quang said that depending on internal approval, macroeconomic developments and consumer market recovery, consolidated net revenue is expected to reach VND80,000 - 85,500 billion, up 7 - 14% over the same period (after adjusting the separation of HCS - a subsidiary specializing in the production of high-grade tungsten materials).

Consolidated net profit after tax is about 4,875 - 6,500 billion VND, up 14 - 52% over the previous year.

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Source: https://tuoitre.vn/ong-trum-ban-le-hang-tieu-dung-cho-biet-tieu-thuong-truyen-thong-dang-kho-khan-2025072819074507.htm