RAL reports 2025 audited net profit down 39%

According to RAL’s audited financial statements for 2025, net revenue declined 24% year-on-year from VND 8,356 billion to VND 6,359 billion. Net profit after tax fell 39% from more than VND 593 billion to more than VND 361 billion.

Three major risks cited by the company

In its explanation of the results, RAL said rapid changes in the competitive environment have created three extremely challenging risks that threaten its existence.

First: a “flood” of foreign goods, especially Chinese overcapacity, alongside foreign companies shifting investment into Vietnam to compete more aggressively with RAL.

Second: digital technology and AI are establishing new production methods. RAL warned that being slow to apply technology, undergo digital transformation, implement dual transformation, and deploy digital technology and AI across all operations could cause the company to fall behind and lose market leadership.

Third: foreign groups with extensive experience in organizing new business models—particularly online platforms and O2O—are entering Vietnam, attracting RAL’s customers and increasing competitive pressure.

Export impact and tariff-related pressure

RAL said exports were heavily affected by abrupt US tariff policies. LED product exports to the US market accounted for 53%.

Tax policy changes and operational disruptions

The company noted that new tax policies have pushed customers and small businesses to demand discounts to lower selling prices, contributing to an estimated 10% revenue decline.

RAL also said some companies and customers temporarily closed to cope with counterfeit and smuggling inspection measures. In addition, the plan to move from a tax-per-claim system to corporate status caused disruptions in inventory and electronic invoicing from June 1, 2025.

Storm damage affecting regional operations

RAL reported that in Q4 2025, Vietnam faced successive storms that caused significant damage to lives and property. The company said affected regional economies were nearly paralyzed when disasters struck.

For RAL, the Nha Trang branch warehouse was flooded due to floods arriving too quickly, leading to severe goods damage and impacting the company’s results.

Management response

To respond, RAL said it is focusing on strengthening growth quality, risk prevention, and asset preservation. The company plans to reduce customer receivables, citing risks that arise as cheap Chinese goods flood the market and customers may switch to Chinese products, increasing the likelihood of bad debts and capital loss.

RAL also said it will emphasize science and technology through dual transformation—digital and green—to build advanced, modern production methods and support sustainable growth.