Vietnam businesses report huge profit for H1 2017

Businesses in the finance and banking sector continued to prosper in the first six months of the year.

Listed companies have released their financial reports for the first half of the year. About 50 percent of businesses have reported growth in net profit, 40 percent have reported decreases in profit, and less than 10 percent took losses. Some conglomerates made profits of trillions of dong in H1.

Vinamilk continued showing its ranking as the nation’s leading dairy producer, reporting profit of VND5.857 trillion.

According to Nielsen, Vinamilk’s fresh milk products has been leading in both output and sales since 2015.

Vinamilk is at the No 1 position on the Forbes’ list of 40 most valuable brands in Vietnam, with the brand valued at $1.7 billion.

With profit of VND4.222 trillion, Vietcombank has become the most profitable in the banking sector. Vietcombank offers the best salaries to workers. It allocated VND2.409 trillion to the wage fund in the first half of the year, an increase of 23 percent over the same period last year.

Hoa Phat, a big player in the steel manufacturing sector, reported net profit of VND3.47 trillion, or 14 percent higher. However, though revenue increased by 4 percent, its net profit fell by 24 percent.

Vingroup, the real estate giant, got VND3.135 trillion in pretax profits and post tax profits of VND2.054 trillion for its holding company, which represents a 33 percent growth rate.

In the second quarter of 2017, Vinpearl Land opened seven hotels, one golf course and two amusement parks, raising its total number of hotel rooms to 11,000, three golf courses, and five amusement parks throughout the country.

With the move, Vinpearl is present in five tourism cities: Hai Phong, Nghe An, Ha Tinh, Hoi An in Quang Nam province and Cam Ranh in Khanh Hoa.

Though Sabeco, the largest brewer in Vietnam, spent big money (VND790 billion) on advertisements, or 73 percent higher than the same period last year, its profit increased only slightly to VND2.425 trillion in the first half of the year. Meanwhile, the post-tax profit in the second quarter was VND1.237 trillion, down by 12 percent from the second quarter of 2016.

Analysts noted the strong rise of the finance and banking sector in the first half of the year, with six out of 15 enterprises listing among ones which made trillions of dong in profit.

These include large banks such as Vietcombank (VCB), Vietinbank (CTG), BIDV (BID), VPbank (VPB) and MBBank (MBB).

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