Vietnam economic growth

Workers process octopuses for export at a factory in the Mekong Delta province of Kien Giang (Photo: VNA)

Hanoi (VNA) – Vietnam has recorded continual growth in squid and octopus exports to China over the last three years, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Shipments of these commodities to China last year rose by nearly 61 percent from 2019 and by 21 percent year on year in the first four months of 2021 to more than 9.7 million USD.

Thanks to the COVID-19 pandemic partly contained in China, this country has gradually eased restrictions, helping to recover demand for mollusc imports, VASEP said, noting that squid and octopus products remain one of Vietnam’s key aquatic exports to the neighbouring market.

Vietnam shipped almost 3.3 billion USD worth of aquatic products abroad in the first five months of 2021, up 14 percent year on year.

Up to 60 percent, or nearly 2 billion USD, of the revenue was contributed by the 13 Mekong Delta localities while six others in the southeastern region made up 18 percent, 602 million USD, VASEP reported.

Between January and May, overall agricultural exports to China posted impressive growth with shipments of some produce even matching or surpassing the corresponding figures for the entire 2020, according to the Plant Protection Department under the Ministry of Agriculture and Rural Development.

In particular, Vietnam shipped over 468,000 tonnes of mango to this market, equivalent to 112 percent of last year’s figure; 348,000 tonnes of banana, 87 percent; 301,000 tonnes of jackfruit, 92 percent; and 1.1 million tonnes of dragon fruit, 63 percent.

Hoang Trung, Director of the Plant Protection Department, said China has long been the main importer of farm produce from Vietnam, and it will remain the largest buyer of Vietnamese agro-forestry-fishery products in the time to come./.

A real estate project constructed by Hoa Binh Construction Group. (Photo: VNA)

Hanoi (VNS/VNA) – Several construction firms have reported a drop in profits in the first quarter of this year due to the COVID-19 pandemic and rising material prices .

Since the beginning of this year, the prices of construction materials on the market have increased sharply amid worries over shortages of materials and rising demand for economic recovery after COVID-19 .

Local brands have increased steel prices by 30-40 percent compared to the fourth quarter of 2020, putting great pressure on the construction industry, as steel currently accounts for 20 percent of inputs for construction work .

Not only steel, the price of cement has also skyrocketed. Since mid-April, many cement manufacturers have adjusted the price of products sold with an increase of 40,000 VND per tonne.

The prices of some other key materials such as sand and gravel are also increasing dramatically.

Facing the double pressure from the COVID-19 pandemic and rises in material prices, a series of contractors have decided to suspend construction progress to wait for market stabilisation.

Coteccons Construction Corporation (CTD)’s revenue fell from 3.5 trillion VND (151.5 million USD) in Q1 last year to 2.56 trillion VND in Q1 this year, down by nearly 28 percent.

Gross profit was 120 billion VND, down by more than 38 percent compared to 2020. The gross profit margin was 4.67 percent, significantly lower than 5.46 percent of the same period last year.

Its pre-tax profit dropped 55 percent to touch 69 billion VND. On the stock market, CTD prices have dropped and are currently being traded at 58,600 VND per share, down more than 27 percent since the beginning of the year.

The pre-tax profit of Hoa Binh Construction and Real Estate Corporation (HBC) in Q1 decreased by 12 billion VND, down 37 percent. In contrast, the gross profit margin improved from 7.7 percent in Q1, 2020 to 8.7 percent in Q1 this year.

This year, in addition to civil real estate construction, HBC has stepped up contracting for energy, industrial and infrastructure projects to increase market share.

Ricons Construction Investment JSC reported its Q1 profit decreased 28 percent to VNĐ31 billion.

Hung Thinh Incons Joint Stock Company (HTN) saw revenue in Q1 increased to 1.16 trillion VND but gross profit fell sharply to 103 billion VND.

In a new report, the Vietnam Steel Association (VSA) indicated that steel prices may continue to rise until the end of the third quarter.

On its side, the Vietnam Association of Construction Contractors (VACC) has issued a petition to the Government to soon direct ministries and branches to examine the cause of the sudden increase in steel prices./.

The Dung Quat refinery in Quang Ngai province is operated by Binh Son Refining and Petrochemical Company Limited (Photo: bsr.com.vn)

Hanoi (VNS/VNA) – Surging international crude oil price on improving demand has helped many oil and gas companies record big profits in the first quarter of this year, after losing in 2020.

In the first quarter financial result, Vietnam National Petroleum Group (Petrolimex, PLX) posted a slight fall of 0.6 percent in net revenue to nearly 38.2 trillion VND (1.6 million USD). However, it was still profitable thanks to a cut in expenses in financial activities and others, and gains in other incomes.

Of which, the company’s profit after tax was nearly 736.2 billion VND in the first quarter after reporting a loss of 2.3 trillion VND in the same period last year.

During the period, Petrolimex’s domestic output rose 4.7 percent year-on-year to 2.27 million m3. Retail sales accounted for 55 – 60 percent of its total sales but contributed around 80 percent of its profit.

SSI Securities Corporation (SSI) said that the company’s production growth will continue until the first half of the second quarter, boosted by the Government’s restriction on illicit petrol, especially in the south.

Similarly, Binh Son Refining and Petrochemical Company Limited (BSR) witnessed its revenue reach 21 trillion VND in the first quarter with a profit of over 1.8 trillion VND, while it reported a loss of 2.33 trillion VND in the same period last year.

The main driving force for the recovery in profit was higher crude prices in the international market and crack spread of gasoline products.

Crack spread is the spread created in commodity markets by purchasing oil futures and offsetting the position by selling petrol and heating oil futures.

PetroVietnam Oil Corporation (PVOIL)’s profit after tax was 190.6 billion VND, after losing 537.7 billion VND in the same period last year.

Notably, Thu Duc Trading & Import Export JSC (TMC) even reported net profit of more than 4 billion VND, nine times higher than that of last year.

Another company witnessing profit rise sharply was Nam Song Hau Trading Investing Petroleum JSC (PSH). The company’s revenue was up 10 percent over last year to more than 1.7 trillion VND, resulting in a profit of 44 billion VND, 2.1 times higher than that of the same period in 2020.

Even though there were still some companies recording declines in profit or even losses during the first quarter, in general, oil and gas companies’ results were quite positive.

With positive oil demand outlook, the oil price is expected to continue to rally. Therefore, there is still more room for oil and gas firms to recover.

SSI forecasted that Brent crude price will trade at an average of 68 USD per barrel in 2021, up 62.6 percent year-on-year, and can even go up to 70 USD in 2022.

According to SSI, developed economies are gradually opening again as they have pushed the vaccination rollout. Businesses activities will also recover quickly when countries continue to ease measures to contain COVID-19.

Brent crude was traded at 74.23 USD per barrel on June 17, and on track to head toward 75 USD./.