Big companies swell amid Covid-19 resurgence
Big companies swell amid Covid-19 resurgence
While Covid-19 caused most small- and medium-sized businesses to suffer, big companies have reported surging growth despite mounting challenges.
Steel products are manufactured in a factory of Hoa Phat Group. Photo courtesy of Hoa Phat Group.
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The biggest 30 listed firms saw their combined post-tax profit surging 57 percent year-on-year to over VND118 trillion in the first six months.
Steelmaker Hoa Phat Group continues to post exceptional growth with post-tax profit tripling to VND16.7 trillion, surpassing real estate developer Vinhomes to become the most profitable company on the stock market.
The surging price of steel and rising sales contributed to the growth.
Vinhomes, a unit of Vietnam's biggest private company Vingroup, saw post-tax profit surging 43 percent to VND15.78 trillion, a record-high, as the company used livestreaming events to boost sales amid social distancing.
Banks continue to post positive figures as in previous years, with the top six most profitable lenders all reporting growth.
Vietcombank retained its top place with a VND13.5 trillion profit, up nearly 23 percent, followed by Techcombank and VietinBank.
Financial earnings data also show a differentiation between sectors amid outbreaks.
Fishery producers suffered due to supply chains being disrupted. But logistics companies benefited from the mounting costs.
Nam Viet Corporation, for example, saw post-tax profit in the second quarter down 26 percent year-on-year, with sales costs surging 137 percent, mostly because of logistics fees.
In the same period, Thuan Phuoc Seafoods and Trading Corp saw profit falling 50 percent also due to surging cost.
Logistics companies like Vietnam National Shipping Lines reveal a contrasting story. It saw profit surging nearly eight times year-on-year in the second quarter.
Gemadept Corp posted 33 percent profit growth, while Hai An Transport and Stevedoring posted 50 percent.
In the first seven months, nearly 80,000 companies suspended business, up 25.5 percent year-on-year, showing small- and medium-sized companies (which account for 97 percent of the total number of businesses) have become the biggest victims of the pandemic.
