After several consecutive years of taking losses, Vinachem, for the first time in its 50-year history, obtained revenue of roughly VND50 trillion and VND4 trillion profit in 2021. This year’s achievements have been even higher.

By mid-December, Vinachem’s industrial production value and revenue exceeded VND60 trillion, 20 percent up over last year. Its pre-tax profit in 2022 is estimated at VND6 trillion.

PetroVietnam also has had a good year. 

According to PetroVietnam CEO Nguyen Manh Hung, 2020 was the toughest year in the group’s 45-year history. At that time, oil prices plummeted, and the Covid-19 pandemic affected business. 

But this year, PetroVietnam fulfilled its yearly plan four months ahead of schedule. By the end of November, its revenue set a new record of VND854 trillion. Its crude oil output reached 9.91 million tons, 13 percent over the yearly plan. The output of gas, electricity, fertilizer and other products was also higher than the same period in 2021.

The Binh Son Refining and Petrochemical JSC (BSR), a subsidiary of PetroVietnam, fulfilled the plan for 2022 23 days in advance. The company plans to exceed the yearly plan by 8 percent.

Private enterprises have also reported encouraging business results. Hoang Anh Gia Lai Group, after years of restructuring, has reduced debts. It reported a profit of VND1.115 trillion in January-November 2022, fulfilling 99 percent of its yearly plan.

The recovery of sea shipping has benefited the maritime industry. Hai An Transport and Stevedoring (HAH) has experienced two booming years thanks to freight increases. Other shipping firms such as MVN, Vosco, Vinaship and Gemadept are also said to have had high profits in 2022.

Strong foreign capital flow into Vietnam has benefited industrial real estate developers, such as Idico, Viglacera, Becamex and Sonadezi.

Foreign-invested enterprises have earned high profits. For example, four Samsung’s factories in Vietnam made a profit of $4 billion in January-September 2022. Intel and Apple have announced new business plans in Vietnam.

Driving force for growth

The impressive business results of large corporations are the driving force for Vietnam’s growth rate in 2022, estimated at 8 percent, the highest since 2007.

Andrew Jeffries, Vietnam Country Director of the Asian Development Bank (ADB), said the bank maintains its predicted GDP growth rate for Vietnam for 2022, while reducing that of other countries. 

In addition to traditional driving forces such as industrial production, services and trade, a firm macroeconomic foundation has helped Vietnam’s economy recover quickly and sustainably. This is the difference between Vietnam and other Asian countries.

Bill Winters from Standard Chartered said that Vietnam is maintaining a trade balance and continuing a trade surplus thanks to export growth in quantity and value. Vietnam’s forex reserves are plentiful, so it has enough power to support exchange rate stability.

“In general, we appreciate the government’s efforts to keep goods supply and goods prices stable. The abundant supply allows us to avoid reliance on imports. Vietnam’s priority tasks are keeping interest rates and the capital market stable, creating surplus in production and business, and stimulating domestic consumption,” he said.

A representative of Auscham emphasized the reasonable fiscal and monetary policies applied by Vietnam. The National Assembly has set macroeconomic stability as the key view in policy making.

“I think that what Vietnam should do in the immediate future is set goals and policies to control the unemployment rate and curb inflation to ensure GDP growth,” he said.

Luong Bang - Manh Ha