Over 60-year-old ‘legend’ faces difficulties from the ‘flood of foreign goods’: Profit evaporation of nearly 50%, stock price plummeting

RAL’s stock of Rạng Đông Electric Light Company has sharply decreased to 104,200 VND/share on May 5, down over 12% since the beginning of the year, affecting its market capitalization of nearly 2.45 trillion VND. The company, founded in 1961 and well-known for its consumer products, reported poor business results in Q1 2025, with revenues down 46% and net profits down 48% year-on-year. The difficulties stem from fierce competition from foreign goods, particularly from China, alongside a rising number of domestic businesses exiting the market, with 67,000 businesses leaving in just the first two months of 2025. Moreover, the presence of foreign conglomerates and the rapid transformation due to Industry 4.0 have challenged Rạng Đông’s customer retention. As a result, the company has postponed its Annual General Meeting until June 7.