Multiple companies have released their January-May business results, gradually putting together a picture of revenue and profit growth in the first half of the year. The sectors expected to achieve positive business results in the first two quarters are banking, oil and gas, retail, seafood and industrial real estate.

The remarkable post-Covid recovery of the economy (GDP growth of 7.72% in the second quarter, the highest in a decade), significant credit growth, and the rise in non-interest income have helped banks achieve higher-than-expected profit growth. Vietcombank’s profit picked up an estimated 30% in the first five months of the year. The spectacular growth of credit and the further increase in Current Account Savings Accounts (CASA) fueled impressive profit growth at the bank. Vietcombank is one of the few banks that have not yet revised up their savings and lending rates.

Leaders of many joint stock banks expect their profits in the first half of 2022 to grow by 20-40%, or even at a three-digit rate. A senior source from the Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) said the bank’s January-June pre-tax profit is projected at some VND1.8 trillion, 2.7 times higher than the yearago figure. Its profit before tax in the second quarter alone is reportedly three times higher than the same period last year.

The Truong Thanh Investment and Construction Joint Stock Company (Truong Thanh Group, coded TTA) said the total electricity output of the hydropower plants under the company this May increased by 315% year-on-year. Overall, in the first five months of the year, the total output of the hydropower plants under TTA was 97.64 million KWh, the highest in five years. Due to changes in weather, the volume of water flowing into TTA’s hydroelectric reservoirs during this year’s dry season is not lower than that during the rainy season. It is estimated that TTA’s second-quarter revenue is VND200-205 billion, up 13-16%, with profit expected to soar to an all-time high.

Binh Son Refining and Petrochemical Joint Stock Company (BSR) has unveiled its positive five-month business forecasts. This year, BSR targets VND91.6 trillion in consolidated revenue, with VND1.29 trillion in aftertax profit. In the first five months alone, the company already made VND65.84 trillion in revenue, 72% of the full-year plan, and over VND6.76 trillion in after-tax profit, 5.2 times above the year’s target.

The demand for fuels has been rising sharply as the economy has returned to its high-growth path following its reopening. This, together with the strong surge in fuel prices, has created strong growth momentum for BSR.

The PetroVietnam Gas Joint Stock Corporation (GAS) has estimated its revenue and after-tax profit in the first half at VND54.56 trillion and VND6.92 trillion, respectively. They represent an increase of 34% and 59% over the same period in 2021. Compared to its targets of VND80 trillion in revenue and some VND7.03 trillion in profit after tax for 2022, GAS has accomplished 68% and more than 98%, respectively.

Although PetroVietnam Drilling and Well Services Corporation made losses in the first quarter of 2022, its profit is expected to gradually improve from the second quarter as its rigs can now keep itself busy until the end of the year. The steep rise in

oil prices may lead to higher rents for jack-up rigs.

FPT Retail (FRT) hopes that its profit in the second quarter will be higher than in the same period last year, with Long Chau Pharmacy seen as the main growth driver. It is expected that FRT will open 300 more outlets of the Long Chau Pharmacy this year, expanding its retail system to 700-800 stores by the end of the year.

Mobile World Joint Stock Company has published their business results for the first four months of the year with over VND47.9 trillion in revenue and nearly VND1.82 trillion in aftertax profit, meeting 34% and 29% of the yearly targets, respectively. Online sales registered growth of a staggering 145% over the same period last year, and made up 16% of MWG’s total revenue.

For seafood businesses, after-tax profit in 2022 is expected to shoot up by 123%. The industry in the first quarter posted a year-on-year profit growth rate of 264%, backed by good revenue and profit as a result of higher export prices and recovered demand for aquatic products, especially tra fish, in several key markets such as the U.S. and the EU. Leading enterprises such as Vinh Hoan Joint Stock Company are likely to record significant profit growth in the second quarter of 2022.

Deo Ca Traffic Infrastructure Investment Joint Stock Company is expected to book more than VND900 billion in revenue in the first six months of the year, and over VND139 billion in profit after tax, up 17% year-on-year. For 2022, Deo Ca looks to make some VND2.51 trillion in revenue and VND396 billion in aftertax profit, a respective rise of 35% and 36%. As analyzed by Fiinpro, the growth plan of the construction industry this year may be hindered by rising material prices, but businesses in the industry may still see a 50.8% increase in after-tax profit. Disbursement of public investment will be the driving force for the industry’s growth in the second half of 2022.

For real estate firms specializing in the development of industrial parks, a new wave of foreign direct investment into Vietnam and the prospect of the availability of land for lease has given new momentum to the industrial land development sector.

Specifically, Kinh Bac City Development Holding Corporation will likely complete the handover of about 80 hectares of commercial land and post over VND2.5 trillion in revenue from Nam Son Hap Linh Industrial Park (Bac Ninh), largely from the investment needs of Oppo Electronics. Trang Cat Urban Area (Hai Phong) will fuel growth of KBC this year. Rents at industrial parks, which are forecast to pick up 8-10% over the same period last year, together with buoyant rental demand and the prospect of more available land, will also create room for growth for some businesses such as Becamex (BCM), IDC and SZC.

All in all, investors are looking at the internal strength of each business to choose which stocks to invest in. Those with improved business results in the first five months of the year expected profit growth in the second quarter, and a positive outlook from now until the end of the year will soon become a magnet for cash flows.