Numerous enterprises have reported rising profits in the first half of the year, with several firms seeing a twofold surge in profits after tax compared to last year. This indicates an economic recovery despite both domestic and international challenges.

 

Big oil players triumph

 

Petrolimex has recently provided a written explanation of its impressive business performance in the first six months, with its profits doubling compared to the previous year.

 

Specifically, the parent company's profit after tax surged to over VNĐ1.53 trillion (US$61.5 million), a significant increase from the over VNĐ649 billion recorded in the corresponding period last year — a rise of almost VNĐ881.6 billion.

 

Petrolimex attributes this substantial profit growth to the stable and effective nature of its oil business operations, with sales volumes showing an increase compared to 2023.

 

The global energy supply and oil prices have also remained relatively stable without drastic fluctuations, as witnessed in previous years.

 

 

A PVOIL petrol station. — Photo pvoil.com.vn

 

In the fuel industry, the business performance of Vietnam Oil and Gas Group (PVN) has been notable during this same period.

 

The group's total revenue is estimated to be around VNĐ567.4 trillion, surpassing initial goals by 31 per cent.

 

PVN's consolidated profit also reached VNĐ29.6 trillion in the first half of 2024, exceeding goals by 75 per cent.

 

According to PVN, this year, the group has successfully operationalised three LPG tanks at the PV GAS Vũng Tàu Terminal, while the Thái Bình 2 Thermal Power Plant has officially entered the electricity market.

 

As a result, most of the firm's production and financial targets have been met or exceeded.

 

Previously, PetroVietnam Oil Corporation (PVOil) disclosed its consolidated profit before tax for the first two quarters at VNĐ390 billion, exceeding goals by 6 per cent.

 

The company's consolidated revenue stood at VNĐ64 trillion, surpassing goals by 54 per cent for the first six months.

 

An important development in the first half of the year was PVOil's expansion with an additional 60 retail fuel stations, raising the total number of the company's stations to 807.

 

Retail businesses, both local and international, are also thriving.

 

Central Retail, which owns various retail chains like Tops Market and Go!, reported a 5 per cent revenue increase in Việt Nam to about VNĐ96.9 trillion in the first half of the year.

 

Aeon, a successful Japanese retail chain, also saw a 13.8 per cent revenue growth year-on-year in Việt Nam.

 

Similarly, domestic companies like WinCommerce and Mobile World Investment Corporation have shown outstanding results. WinCommerce reported its first net profit in the first six months and Mobile World's revenue increased by 15 per cent.

 

 

A Vincom Centre building in Hanoi. — VNS Photo Ly Ly Cao

 

Some companies are also expanding geographically.

 

Saigon Trading Group (SATRA) is finalising the opening of its Centre Mall in HCM City, while Vincom recently opened new shopping centres in HCM City and Bắc Giang Province.

 

Vincom Retail now operates 87 shopping centres across 47 provinces and cities, offering unique shopping, dining and entertainment experiences.

 

Positive economic background

 

Several industry leaders in construction, agriculture and energy that had previously struggled are now back on the profitability track with encouraging figures.

 

For instance, Hoàng Anh Gia Lai JSC recently disclosed a profit after tax surpassing VNĐ500 billion in the first half of the year. Meanwhile, Hòa Bình Construction Group unveiled its biannual financial report for 2024, showcasing a profit after tax of nearly VNĐ830 billion.

 

Bamboo Capital Group JSC also posted a remarkable second-quarter business performance this year, with gross revenues over VNĐ1.1 trillion and a profit after tax exceeding VNĐ318 billion -- an impressive growth rate of over 98 per cent from last year.

 

The company's profit after tax for the first six months reached an exceptional VNĐ416.8 billion, marking a remarkable increase of over 137 per cent from the previous year.

 

Apart from revenue growth, the substantial surge in profit is mainly attributed to the pivotal energy sector. Bamboo Capital’s energy subsidiary achieved a gross revenue of nearly VNĐ690 billion in the first half of the year, up 22 per cent year-on-year.

 

Economic and financial analyst Associate Professor Dr Đinh Trọng Thịnh said that the rise in retail revenue signals effective demand stimulus programmes, signifying a recovery for enterprises from past economic challenges.

 

Previously, when salaries increased from the beginning of July, many were concerned about rising inflation affecting growth.

 

However, given the current developments, Dr. Thịnh confidently projects that Vietnam’s GDP in 2024 will be higher, ranging from 6.8 to 7.3 per cent.

 

He added that favourable factors such as low fuel prices, falling material costs and strong consumer incentives are expected to sustain this growth momentum. — VNS

 

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