Vietnam listed firms report dismal H1 results

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Seafood processors reported losses or lower profits in the first half of 2013. Photo courtesy of Tuoi Tre

Listed companies have been announcing first-half results and more than half of them have either reported losses or seen their profits shrink.

Tuoi Tre newspaper reported Thursday that of 613 firms 115 made losses while 212 said their profits were down year-on-year.

Construction-materials, export, insurance, real estate, and finance firms did poorly, with only a few blue chip companies making profits.

The report, citing figures from Hanoi-based financial and media data provider StoxPlus, showed that two-thirds of the VND39.3 trillion (US$1.86 billion) net profit earned by listed companies were by just 10 of them including Hanoi property group Vingroup (VIC), dairy giant Vinamilk (VNM), and Vietnam Gas Corporation (GAS) belonging to state-owned oil behemoth PetroVietnam.

The director of a securities company said the figures showed a clear split, with well-established businesses doing better and weak ones doing worse compared to the same period last year.

The 55 property firms listed on the Ho Chi Minh Stock Exchange doubled profits to VND4.55 trillion ($216 million), but Vingroup accounted for nearly 90 percent of it, with almost half of the companies reporting lower profits or losses.

Seafood processors saw profits fall by 30-90 percent.

Viet Nhat Seafood Corporation reported losses for a third consecutive quarter, and was VND8.18 billion ($388,140) in the red in the first half.

Banks' profits were hit by slow credit growth and unresolved bad debts, which increased from 2.5 percent at the end of 2012 to 3 percent in June, forcing banks to increase provisions.

Banking profits went down by 22.5 percent year-on-year. Private lender Asia Commercial Bank saw earnings fall by half.

The Ho Chi Minh City office of the State Bank of Vietnam said bad debts at city branches alone totaled more than VND52.3 trillion, or 5.85 percent of all loans, up 11 percent from the end of last year.

It said risk provision by banks in the city has increased to more than VND8 trillion.

Profits fell by 27 percent for the insurance sector, 10 percent for retail, and 18 percent for tourism and entertainment.

Fuel, power, gas, and chemicals on the other hand enjoyed higher profits of 7-58 percent.

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