After two campaigns of corrections with the share price falling from the peak of VND140,000 per share in the first week of July to VND118,000 in early August, FPT shares bounced back to VND130,000 per share when August 12 trading session closed.

As of August 12, FPT had a capitalization value of VND190 trillion ($7.5 billion), continuing to be a private listed enterprise with the largest capitalization, higher than the VND165 trillion of Hoa Phat Group (HPG) and VND155 trillion of Vingroup (VIC).

FPT capitalization value is slightly smaller than the economic groups of which the state holds a controlling stake, such as Vietcombank (VCB), Airports Corporation of Vietnam (ACV), and BIDV (BID) all listed on the HCM City Stock Exchange (HOSE), and Viettel Investment International shares (VGI)now traded on UpCom.

The stock market saw a strong rise of technology stocks in the first half of 2024. FPT shares continued to climb to new historic peaks, while real estate shares decreased sharply.

Analysts said the strong rise of technology shares is expected amid the AI boom. In the international market, Nvidia, Super Micro Computer, Amazon, Microsoft and Google shares have been prospering. Some tech giants have promoted cooperation with Vietnamese technology firms.

In the domestic market, the Viettel-family share prices have also soared over the last seven months and their capitalization has increased rapidly. From VND25,000 per share earlier this year, VGI share of Viettel Global reached VND110,000 per share, while Viettel Construction (CTR) went from below VND90,000 to VND160,000 per share in late June.

However, recently, except for FPT which is nearly hitting an historic peak, other technology shares have stopped the upward trend and begun decreasing. 

VGI price has fallen to VND63,000 per share threshold, and CTR from VND160,000 to VND123,000. After reaching its peak of VND70,000 per share in mid-June, CMC share price dropped to VND48,000-52,000.

The most noteworthy event was the price decrease of VNZ shares of VNG Corporation owned by Le Hong Minh. VNZ entered the UpCom market on January 5, 2023 with the reference price of VND240,000 per share. 

The price in the next 11 trading sessions, reaching a peak of VND1.56 million per share on February 16, 2023. After that, VNZ dropped to below VND740,000 per share in July 2023 before bouncing back to VND1.24 million one month later.

VNZ prices decreased in eight out of the last 10 trading sessions, and the share had only two sessions of recovery on August 9 and August 12, now traded at VND520,000 per share.

VNZ price fell amid the technology unicorn’s reported net loss of VND489 billion in the second quarter of 2024 (it took a loss of VND507 billion in the second quarter last year).

Analysts said VNZ (formerly named VinaGame) has returned to the familiar path of loss as it has spent a lot on advertising for its new products and flagships. 

Its financial report showed that in the first six months of 2024, VNZ poured big money into software games which were under completion. Meanwhile, many investment items in its subsidiaries and affiliates are unsatisfactory, especially with the complete loss of VND510 billion of investment in Tiki Global.

VNZ also has many long-term projects. It invested VND1.777 trillion in Zion JSC (which owns Zalo Pay) in the first half of the year, raising its total investment in the company to VND5.142 trillion, raising its ownership ratio from 72.6 percent to 99.999 percent. By the end of the first quarter 2024, investment capital in Zion had reached VND 3.55 trillion.

The current VNZ capitalization value is VND15 trillion ($590 million), much lower than the $2.3 billion peak in the golden days.

However, investors still believe that VNZ will make a breakthrough in the long term. High hopes are put on its large projects, including ZaloPay, VNG Data Center and a plan to list shares on the US bourse.

According to Agriseco, the information technology industry in Vietnam is expected to  retain high growth rates thanks to high spending by enterprises, agencies and local authorities on digital transformation. 

AI has begun bringing revenue to VNZ from foreign markets, and VNZ is believed to gather its strength on the field.

Meanwhile, FPT is expected to continue to make profits from software exports and cooperation with the world’s largest tech giants such as Nvidia. CMC Group has made investment in fields with a bright future, including data centers.

Manh Ha