HnamMobile Shutters Operations Today, October 1st: Tech Retail Faces Survival Challenges

HnamMobile, a leading retailer of genuine technology products and a repair center in Ho Chi Minh City, announced its closure from October 1st. The company stated, “This was an incredibly difficult decision, but given the unfavorable market conditions, we had no choice but to end this journey.”

Entering a New Cycle

HnamMobile is not alone in its struggles. Since the COVID-19 pandemic, consumer spending on technology has declined as people prioritize savings and extend the use of their devices. This reduced demand for new gadgets has forced many retailers to downsize or exit the market entirely.

Observations in Ho Chi Minh City’s tech retail hubs, such as Vo Van Ngan, Quang Trung, Hoang Van Thu, and Tran Quang Khai streets, reveal a significant decrease in the number of stores. Many surviving businesses have diversified into other product categories to sustain revenue due to weak sales.

Huynh Van Dat, a former phone retailer in Hiep Binh Ward, recently closed his store due to poor sales, intense competition from major chains, and the rise of online shopping. He noted, “High-value phones depreciate by millions of dong within just 1-2 months of inventory. With limited capital, maintaining a store becomes unsustainable. I’ve shifted to device repairs and leasing my space for stable income.”

Large retailers like The Gioi Di Dong (Mobile World) and FPT Retail also face challenges in a saturated market. From January 1, 2023, to June 30, 2024, The Gioi Di Dong closed 335 underperforming stores, including 144 Mobile World and 191 Dien May Xanh locations. FPT Retail has expanded into home appliances and mobile SIM cards to diversify revenue streams.

Some retailers are transitioning to mono-brand stores, partnering directly with giants like Apple and Samsung to enhance customer service.

At an investor meeting, Nguyen Duc Tai, Chairman of Mobile World Investment Corporation, revealed that between 2022 and 2023, the company underwent significant restructuring, reducing its workforce by tens of thousands and closing numerous stores to focus on quality. By June 2025, the company’s headcount had dropped to 61,779, a decrease of over 18,450 from its peak in Q3 2022.

These developments highlight the evolving tech retail landscape, where only well-capitalized and adaptable businesses can thrive. Smaller brands with limited resources face significant challenges, while larger chains must continuously innovate to stay competitive.

Continued Market Consolidation

Phuong Quang Tung, a sales director at a Ho Chi Minh City tech retailer, attributes the intensifying competition to Apple’s expanded distribution network and attractive online store policies. Major chains like FPT Shop, CellphoneS, Viettel Store, ShopDunk, and The Gioi Di Dong continuously enhance after-sales services and trade-in programs, making it difficult for smaller stores to compete, especially with slim profit margins on iPhones.

This year, Vietnam’s early access to iPhone launches, comparable to top global markets, has concentrated sales in large chains. Smaller retailers, lacking direct supply channels, face higher costs and struggle to compete, while the gray market is losing relevance.

Huynh Van Dat observes that the long queues for iPhone launches only reflect the market’s surface. Retailers face strict brand policies, fierce competition, and rapidly changing sales methods. “HnamMobile, not being an authorized Apple reseller, lacked competitive advantages in inventory, pricing, and reputation compared to rivals. Smaller brands also struggle to offer compelling promotions and after-sales services,” he explained.

Authorized resellers, with policies like 7-30 day returns and robust customer support, create a significant gap that smaller stores cannot bridge.

A tech influencer notes that the retail tech market has transformed dramatically in recent years. Survival now requires a clear strategy and long-term vision, leaving no room for outdated business models.

“The exit of another tech retailer serves as a reminder for others to focus on enhancing service quality,” the influencer added.

Analysts predict continued market consolidation, favoring large, financially stable, and brand-authorized retailers as consumers increasingly shift to online shopping.