What will drive FRT's business performance?

FRT operates in retail with two main pillars: information and communications technology (ICT) under FPT Shop, and healthcare through Long Châu Pharmacy Investment JSC. The healthcare segment has shown remarkable progress—from plans to issue new shares and expand its chain, to branching into niche markets with broader potential.

Favorable Macroeconomic and Policy Conditions

Resolution No. 72-NQ/TW on breakthrough measures to strengthen the protection, care, and improvement of public health defines people’s health as a top priority. Protecting, caring for, and improving public health is not only a goal and driving force but also a foremost political task and a shared responsibility across the entire political system and society.

The resolution aims to reduce the burden of healthcare costs—out-of-pocket spending accounted for around 46 percent in 2022—thereby freeing up household resources, improving living standards, and enhancing community health and labor quality. This will yield long-term benefits for the economy.

Alongside balanced state budget allocations for universal healthcare spending, major opportunities are opening for large-scale, modern pharmaceutical retailers—especially those with a combined advantage of pharmacies and vaccination centers, such as FPT Long Châu—to contribute to implementing the objectives and action strategies set by Resolution 72-NQ/TW.

At the same time, rising healthcare expenditure driven by higher per-capita income presents another growth avenue. BMI forecasts that Vietnamese household healthcare spending, which lagged behind other countries in 2021, will rise steadily through 2025 and beyond. Competition among modern pharmacy chains is intensifying, yet consolidation is also under way: some chains, such as Pharmacity, are showing signs of slowdown, while FPT Long Châu has rapidly emerged as a market leader.

Competitive Edge in the Vaccination Market

As of the end of Q1 2025, FRT held 80.74 percent of Long Châu Pharmacy Investment JSC. Its strategic partner in pharmaceuticals, Malaysia-based Creador, aims to acquire 13 percent of FPT Long Châu within one year. By mid-2025, FRT’s stake had decreased to 78.59 percent, likely following a share sale to the partner, as the company recorded VND 887 billion in proceeds from a new share issuance and capital contribution at the end of Q2 2025.

The planned share issuance to a “financially capable and experienced” partner will help FPT Long Châu strengthen partnerships, broaden cooperation, and combine both strategic value and fresh capital for future expansion.

By the end of Q2 2025, FPT Long Châu remained FRT’s “golden goose,” contributing 70 percent of consolidated revenue—VND 16.078 trillion, up 40 percent year-on-year. By June 2025, the chain had added 300 new pharmacies and vaccination centers, bringing the total to 2,191 pharmacies and 178 centers—70 percent of its annual target. Operational efficiency remained stable, with average monthly revenue of VND 1.2 billion per pharmacy.

Although average revenue per pharmacy is lower than FPT Shop’s (625 stores, VND 1.9 billion per store per month), ICT revenue growth still trails the industry’s sales value growth of 19 percent for phones and 12 percent for laptops (GfK). Moreover, FPT Shop continued to post a net loss of VND 45 billion in H1 2025, compared with a VND 113 billion loss in H1 2024, showing that recovery in the ICT segment will take time. In contrast, demand for medicine and healthcare services remains essential and non-deferrable. Despite operating in a fragmented market alongside Pharmacity and An Khang, FPT Long Châu still enjoys substantial room for growth.

FPT Long Châu is expected to sustain robust growth in pharmaceuticals while capitalizing on strong prospects in the vaccination segment. Particularly in the under-served private sector (where VNVC is the only major player), Long Châu benefits from the shortage of vaccination facilities nationwide and rising awareness of preventive healthcare, according to Vietcap. In the coming years, Long Châu is expected to continue expanding its network, driving a compound annual revenue growth rate (CAGR) of 20 percent for 2024–2029. Profitability is also forecast to improve, with post-minority net profit CAGR reaching 44 percent thanks to operational efficiency. As such, this segment will remain FRT’s main growth driver in the long term.

However, attention should be paid to the pace of new-store expansion and profit margins from newly opened outlets, particularly in saturated urban markets. Furthermore, with the ongoing share sales to strategic investors and ESOP issuances, maintaining FRT’s controlling stake above 70 percent in Long Châu will be essential.