PV Gas’ (GAS) Q2 financial report showed that the company in the oil and gas industry had VND44 trillion ($1.7 billion) in cash, an increase of 8 percent over the beginning of the year. It is listed among the enterprises with the largest amounts of cash in the stock market, much higher than the capitalization of some enterprises leading in their fields.

GAS had revenue of VND30 trillion in the second quarter, up 25 percent over the same period last year. Though the cost price increased by VND4.6 trillion, its gross profit still reached VND5.7 trillion, up 32 percent.

By the end of the second quarter, its post-tax profit had reached VND3.416 trillion, an increase of VND220 billion compared with the post-tax profit of the same period last year (VND3.196 trillion), or 6.8 percent.

Though its business results in the second quarter 2024 were better, its post-tax profit in the first second quarters was just VND6 trillion, a decrease of 9 percent compared with the same period last year, and its total assets were VND95 trillion. As such, GAS cash volume accounted for 46.3 percent.

Another ‘big player’ in the oil and gas sector, Binh Son Petrochemical Refinery (BSR), also had a large amount of cash, VND40 trillion ($1.57 billion) in the second quarter. Of this, cash and cash equivalents were VND26.142 trillion, while matured investments were VND13.822 trillion.

Hoa Phat Group (HPG) owned by billionaire Tran Dinh Long reported a volume of cash decreased sharply in the second quarter, but the cash and cash equivalents, plus investment value still reached VND28.3 trillion ($1.1 billion), a sharp fall from VND34 trillion earlier this year.

Hoa Phat’s business results were good in the second quarter, with revenue reaching VND39.555 trillion, up 34 percent over the same period last year, gross profit VND5.247 trillion, up 64 percent.

So, its accumulated revenue reached VND71 trillion in the first half of the year, up 25.3 percent, and post-tax profit VND6.188 trillion, up 238 percent.

Some enterprises have also reported big cash, including Duc Giang Chemicals (VND10.2 trillion in the second quarter), and Bao Viet Insurance (VND97.255 trillion in H1 2024).

Vietnamese billionaires’ ambitions

With tens of trillions of dong in cash, enterprises have opportunities to expand their business and implement ambitious projects worth billions of dollars.

Having a large scale of operation, Hoa Phat continues to expand its operation scale. Its VND85 trillion ($3.5 billion) Dung Quat 2 project in Quang Ngai, covering an area of 280 hectares, has designed capacity of 5.6 million tons of steel a year, including 4.6 million HRC and 1 million tons of specialized steel.

Dung Quat 2, described as the ‘iron fist’ of Hoa Phat, shows the great ambition of billionaire Tran Dinh Long. Once operational, the project will help increase the revenue of the group by VND80-100 trillion a year.

Long said Hoa Phat would pour billions of dollars more into other mega projects in Phu Yen, including Bai Goc Port (VND24 trillion), HoaTam IZ (VND13.3 trillion), Hoa Phat Iron Cast and Steel complex in Hoa Tam Industrial Zone (IZ) (VND86 trillion).

Meanwhile, Duc Giang Chemicals (DGC) which has VND10 trillion in cash, is also planning to expand its enterprise by billions of dollars.

One of the projects that helped Duc Giang is the development of 2 Aluminium and Amlumin Complex in Dak Nong, capitalized at VND57 trillion ($2.3 billion). It plans to churn out 2 million tons of Alumin and 300,000 aluminum ingots each.

Duc Giang Chemicals managers said at the shareholders’ meeting in March that the project could bring turnover of tens of trillions a year. Its president Dao Huu Tuyen said the big volume of cash it has would give great advantages to propose project development in provinces.

Duc Giang Chemicals shares (DGC) were traded at VND114,000 per share on July 22, a decrease of 13 percent compared with mid-June.

According to Tien Phong Securities, Duc Giang has great potential for strong recovery in 2024.

The business is believed to get benefits from global technology investment thanks to its leading position in Yellow Phosphorus (P4). The P4 exports are predicted to rise sharply in late 2024, when new electric vehicle battery and chip factories in East Asia and North America diversify yellow phosphorus suppliers in a China+1 strategy to reduce dependence on Chinese P4 sources.

Manh Ha