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Short-term liquidity pressure in the money market has eased this week with a lower overnight interbank rate. It seems that the turbulence in the previous week resolved as the central bank was firmly forming a new interest rate corridor of around the 4% level. However, we could see some development as a front-run to Fed's rate decision next week. Vietnam's money market could be highly volatile with a high possibility of a more elevated short-lived interest rate after the release of the FOMC’s decision.

FPT released August business results with VND3.8tn revenue (+35% yoy), and VND739bn PBT (+28% yoy). For 8M22, the company recorded revenue of VND27,1tn (+24% yoy) and PBT of VND5,0tn (+23.6% yoy), fulfilling 64% and 65% of its 2022 guidance, respectively. Particularly, the technology segment still strengthens its position with revenue of VND15.5tn (+24.1% yoy) and PBT of VND 2.3tn (+25% yoy).

The bearish trend is dominant in the short term because the breakdown occurs last week. In this case, investors should reduce long positions and wait for the next signals.

TNG posted August revenue of VND697bn (+21% yoy) and NPAT of VND37.6bn (+31% yoy) thanks to increased orders from key export markets, including the US and EU. Overall, in 8M22, the company recorded revenue of VND4,705bn (+33% yoy) and NPAT of VND204bn (+44% yoy), fulfilling 78% and 73% of its 2022F guidance, respectively.

Short positions on VN30F2210 should be held and stop the loss when there is the closing price above 1,260 pts level. (Hourly chart)

Based on the strong loss, the downtrend of the VNIndex is still intact in the short term. Besides, the VNIndex closes below significant moving averages. Therefore, traders should reduce long positions and wait for the next signals.

Vinh Hoan posted total revenue of VND1,270bn (+73% yoy) in August, mainly driven by the increase in export to US (+72% yoy), EU (+5% yoy), and China (+20% yoy). Specifically, revenue increased strongly by 179% in domestic market. VHC total revenue slightly increased 6% mom, assisted by +17% mom and +75% mom revenue of US export and domestic. Of note, exporting to EU and China market decreased by 40.5% mom and 12.9% mom, respectively.

Hydropower output surged to 10.7 kWh in Aug (+30% yoy) thanks to favorable weather conditions. In 1H22, the mixed coal price supplied to domestic power plants had increased 30-35% yoy. We predict the coal price will keep its rising trend. As La Nina is expected to wane since early 2023, coupled with shrinking gas input price, we believe EVN will mobilize thermal power, especially gas-fired power in 2023F.

The August performance witnessed impressive domestic sales volume, especially, construction steel with the growth of 70.6% yoy, 29.5% mom to 386,990 tonnes. The total August domestic sales volume increased by 23.5% yoy, 34.5% mom to 601,649 tonnes.

This monthly report on Vietnam steel production is intended to track the developments in the steel market. During August 22, we observed an improvement in domestic sales volume while export sales volume was still weak.