VietNamNet Bridge - Many companies have reported profit increases in the first half of 2016, a sign that the national economy is warming up, according to economists.

Hoa Phat Group (HPG) said it will reserve VND1.1 trillion to pay 2015 dividends (15 percent in cash and 15 percent in shares). This is a high dividend level compared with other businesses, but it is nothing compared with the potential of the enterprise.

HPG, the conglomerate owned by the Vietnamese second richest stock millionaire Tran Dinh Long, has reported a sharp increase in profit in the first half of the year.

In the second quarter, HPG made a profit of VND2 trillion, twice as much as the highest profit it once made in the past. The group estimated revenue of VND15.4 trillion in the first half of 2016 and the post-tax profit of VND3 trillion.

Many companies have reported profit increases in the first half of 2016, a sign that the national economy is warming up, according to economists.

Hung Vuong Seafood (HVG) owned by the ‘Seafood King’ Duong Ngoc Minh has reposted the post-tax profit of VND226 billion for the third quarter of 2016 (the fiscal year from October 1 to September 30), which represents the sharp increase of 16 times in comparison with the same period last year. 

The Phu Nhuan Jewelry Company earned profit of VND120 billion in the second quarter, the highest in the last six years. 

Other companies have also reported high profits which are much higher than that of the same period of the last year. Rang Dong Light Source and Vacuum Flask JSC (RAL) saw ac5-fold increase in profit, Sonadezi Long Thanh saw profit increasing by 2.7 times, while Tin Nghia Industrial Zone Development JSC 5 times.

An analyst noted that most of the listed companies which have released finance reports  show satisfactory business results. Many of them have fulfilled yearly business plans in the first six months of the year. 

Only a modest number of companies have reported loss or profit decreases, and they are mostly businesses in the finance and oil & gas sector which incurred losses because of exchange rate fluctuations.

Huynh Minh Tuan from VnDirect Securities Company commented that the satisfactory business results of listed companies was good news for the stock market.

Many shares have seen prices increasing in recent months, helping business owners pocket billions of dong.

Encouraged by the impressive business results, big companies plan to expand their production. The high gross profit margin of 25 percent in the first six months of the year is expected to continue in the upcoming months.

The VN Index on July 13 soared to a 9-year peak of 671.14 points.

M. Ha