Hoa Phat Group owned by president Tran Dinh Long has released a financial report, showing that it sold 600,000 tons of steel last September, or up 7 percent over August, the highest sale revenue over the last year. This included 352,000 tons of structural steel, the highest level so far this year, up 15 percent compared with August.

The steel manufacturer explained that sales have increased in the last few months thanks to a series of transport mega projects, including the North-South Expressway, Long Thanh International Airport and some new airport projects. 

After a long period full of hardships and big losses (it once took a loss of VND1.8 trillion within one month), Hoa Phat is recovering rapidly. HPG share prices have increased by twofold compared to the low in November 2022. 

As the share prices have increased, Long’s stock assets surged again to $2.1 billion on October 12, according to Forbes.

In its report released October 11, SSI Research estimated that many large businesses saw their profits increase significantly in the third quarter. Meanwhile, profit of Binh Son Refinery increased by six times.

Hoa Phat reported profit of VND2.1 trillion after it took a loss of VND1.8 trillion the same period last year. Viglacera’s pre-tax profit surged by 83 percent to VND565 billion, while Petrolimex’s profit increased by five times to VND1.7 trillion.

The profits of the majority of businesses analyzed by SSI Research all have increased. The number of businesses with profit decreases in the third quarter was lower than the number with increased profits.

The figures show that the national economy is better off.

Regarding macroeconomic indicators, a government report showed that the disbursement of public investment in the first nine months of 2023 for the first time exceeded 50 percent, reaching VND363.3 trillion. Other economic indicators are getting better with the domestic market serving as the launching pad for businesses.

Foreign investors are optimistic about Vietnam’s economic performance. According to EuroCham, Vietnam has been added to the list of top 10 destinations of foreign direct investment (FDI).

Sixty three percent of businesses surveyed by EuroCham placed Vietnam among top 10, while 31 percent placed Vietnam among the top 3. American, South Korean and Japanese enterprises continue to flock to Vietnam.

On October 11, Amkor inaugurated Amko Technology Vietnam, the group’s largest semiconductor factory in the world, in the northern province of Bac Ninh. The foreign corporation has committed to invest $1.6 billion by 2035.

Toughest days over

In its report released October 12, HSBC commented that Vietnam’s economy has overcome the most difficult period, while the foundation for slight recovery with stronger-than-expected growth, 5.3 percent in the third quarter, has been set.

Prior to that, in September, the Asian Development Bank (ADB) also commented that Vietnam’s economy was standing firmly amid upheavals in the world’s economy, and will recover rapidly in the near future after growing slowly in the first half 2023 caused by the world’s low demand.

According to HSBC, after a difficult period, Vietnam’s economy has seen the light at the end of the tunnel with positive signs from the production, trade and service sectors, as well as growth in the technology field, expected to come following US President Joe Biden’s visit to Vietnam last September.

In terms of trade, after the first challenging half a year, Vietnam’s economy has recovered more strongly than expected, with a GDP growth rate of 5.3 percent in the third quarter. September was the first month Vietnam’s exports saw growth compared with the same period last year.

Analysts said the strong demand from China for farm produce has helped Vietnam maintain export growth. The tourism industry is booming, serving as the foundation for the service sector and promoting the government to raise the business target for the tourism industry.

According to HSBC, service remains the foundation for Vietnam’s growth. In general, the business fields with growth rates of near 10 percent all relate to tourism, which has witnessed a recovery rate of 70 percent. 

By September, Vietnam had received 8.9 million foreign travelers, which prompted state agencies to lift the yearly target to 13 million from the initially planned 8 million.

Vietnam is expected to continue witnessing the tourism boom amid winter in the northern hemisphere and the new visa regulations. 

Manh Ha