Many banks and businesses saw a decline in revenue and profit in the second quarter and this may continue and become more serious in the third quarter. However, large corporations recorded positive business results overall in the first half of the year.

The Masan Group of billionaire Nguyen Dang Quang has announced its consolidated financial statements for the second quarter of 2021 with net revenue of more than VND21.2 trillion, up 19% over the same period last year. Profit also reached over VND1,000 billion.

In the first half of 2021, Masan recorded revenue of nearly VND41.2 trillion dong, equivalent to 44.8% of the yearly target. The group earned VND979 billion in net profit distributed to the company's shareholders, completing 39.1% of its 2021 target.

Mobile World (MWG) recorded a 26% increase in after-tax profit in the first half of 2021, with over VND 2.55 trillion. However, thousands of its stores have temporarily closed since late July because of strict social distancing imposed in many provinces and cities.

Vingroup of billionaire Pham Nhat Vuong reported its consolidated profit after tax in the second quarter of 2021 decreasing by nearly 37% to VND 565 billion. Cumulative profit of the first half of 2021 reached VND1,433 billion, a slight increase compared to the same period in 2020.

Vingroup reported many loss-making activities such as manufacturing, tourism and healthcare amid the negative impact of the epidemic. Besides real estate, Vingroup is focusing on automobile manufacturing and technology and devoting a lot of resources to fighting the epidemic.

This group is building a covid-19 vaccine factory in Hoa Lac high-tech park in Hanoi, after receiving the exclusive transfer of technology to produce mRNA vaccines against Covid-19 from Acturus (USA).

According to the Ministry of Health, it is expected that in August 2021 the vaccine can start clinical trials in Vietnam. The plant has a yearly capacity of 100 to 200 million doses.

In the banking segment, the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) and the Bank for Foreign Trade of Vietnam (Vietcombank) announced a sharp drop in profits. VietinBank reported pre-tax profit in the second quarter of 2021 to stand at VND 2,790 billion, down 38% year on year. Meanwhile, Vietcombank recorded a 14% drop in profit.

The profit of banks in the second quarter was not as high as expected because the cost of provision for credit risks increased sharply. Banks have supported customers affected by Covid-19 through preferential programs that reduce loan interest rates and service fees, maintain lending interest rates among the lowest in the market, and create conditions for businesses and people to access credit capital and financial and banking products and services.

In the third quarter, many businesses are forecasted to continue facing difficulties. To complete the annual plan, they will have to make a lot more effort. Many factors can negatively affect businesses, such as: Increased costs due to the implementation of epidemic prevention measures, including the implementation of "3-on-the-spot" production. The risk of failure to keep pace with increased consumer demand could affect financial results.

V. Ha

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