In particular, the growth rate in the non-financial business sector was higher than that of the banking and securities groups...

The second quarter 2024 business results of nearly 1,000 listed enterprises, accounting for 96% of the total capitalization value of the entire Vietnamese stock market, showed positive signals with significant profit growth.

Many businesses turn from loss to profit

According to data from Fiingroup, the total market profit increased by nearly 26% compared to the same period last year and increased by nearly 13% compared to the first quarter of the year. A major contributor to the overall picture was the impressive growth of non-financial enterprises with an increase of nearly 31%. Meanwhile, the financial group (banking, insurance, securities) recorded a lower increase of 21%.

This data shows that the profits of listed companies, especially in the production and business sector, are on track to recover strongly after hitting bottom in the third quarter of 2023.

Wigroup, a data solutions provider, also recorded a spectacular comeback of many businesses that had recorded large losses in the same period last year. Typically, Vietnam Airlines, Vietnam Steel Corporation, Hoa Binh Construction Group, Viettel Global... In addition, many other businesses such as Hoa Phat Group, Mobile World, Vietjet Air, Masan... also witnessed profits recovering or increasing dramatically thanks to the low base comparison of the same period.

Statistics from the financial reports of the VN30 group show that most enterprises have grown well, with some even growing many times faster than the same period last year. Although there are still more than 10 enterprises reporting losses of over 100 billion VND, the second quarter of 2024 no longer has trillion-VND losses like previous quarters.

Speaking to Tuoi Tre, Mr. Truong Dac Nguyen - Head of Analysis Department of Wigroup Data Solutions Company - said that the second quarter business results recorded a profit figure much higher than the 2023 level and there were signs of recovery in total profit compared to before.

Another important indicator that has just been released is the purchasing managers index (PMI), which recorded 54.7 points and improved orders. "In 2022, there was a shock that accompanied a sharp decline in profits across the market in the last quarter of the year, and the PMI also reflected it quite accurately when it was below 50 points for many months. Thereby, we can see that the PMI is reflecting quite well the ability of businesses to generate profits," Mr. Nguyen commented.

Mr. Le Hoai An - founder of Integrated Financial Solutions Joint Stock Company - also said that the recent period has seen record low interest rates. "Last year, banks pumped credit to solve difficulties, this year they pumped more into production activities. Private investment growth reached more than 8% last quarter, while in the same period it was only 2.3%. This shows that private investment activities have made significant improvements," Mr. An acknowledged.

Lack of sustainable business growth

Mr. Tran Quoc Thao, Deputy General Director of Thanh Thanh Cong - Bien Hoa Joint Stock Company, said that the scale of business operations has been expanded and revenue has increased sharply. "Along with the impact of market interest rates, the decrease in interest expenses is also the reason for the increase in profits," said Mr. Thao.

Besides positive signals, many businesses still face difficulties. Data from financial reports show that for the real estate group, the industry's total revenue is still negative compared to the same period last year, but profits have increased thanks to project transfers or the sale of subsidiaries (Novaland, Dat Xanh, DIG)...

In addition, profits in some industries continued to decrease compared to the same period last year, including electricity, oil and gas production, chemicals or oil and gas services, industrial real estate and livestock unexpectedly reversing from growth in the first quarter to decline in the second quarter.

For example, Kinh Bac Urban Development Corporation, in the second quarter of last year, made a profit of more than VND1,000 billion, but in the same period this year, it dropped to more than VND260 billion. Another company, TMT Motors (TMT), also turned from profit to heavy loss in this quarter.

Or like cement, which is among the few industries with "regressive" business results, a series of "big guys" in the industry reported losses despite the industrial production index (IIP) recording an impressive growth of 7.7% in the first six months of this year. Not to mention that the above figures all come from listed enterprises, while the number of non-public enterprises and household businesses accounts for a larger number.

Analyst Truong Dac Nguyen believes that the main contributors to growth are the steel, aviation and telecommunications industries... However, the sudden growth comes from the comparison of last year's low base and there is not much contribution from sustainable growth enterprises.

"Thus, with the difficult business results from 2023, the last two quarters of 2024 may continue to be growth from businesses recovering and reducing losses. However, the pressure will be from 2025 when it is no longer in the recovery phase, so market profits will hardly grow highly, so it will be necessary to closely monitor the business results of the last two quarters of the year to see the potential for long-term growth," Mr. Nguyen analyzed.

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