Research Center

On Aug 31st 2021, Ministry of Planning and Investment (MPI) offically updated “detailed requirement for market access” towards industries with conditional market access to foreign investors, including insurance industry. With new update from MPI, Requirement clearly stated that “Not limited” for Foreign ownership at insurance companies. It will untie knots for foreign capital flowing more into domestic foreign industry.

This monthly report on Vietnam steel production is intended to track the developments in the steel market. Aug 2021 Vietnam steel production declined 1.9% mom (2.3mn tonnes), bringing 8M21 growth to 28.8% yoy (20.7mn tonnes). During Aug 21, we observe that only export saw positive sale volume growth of 2.8% mom. The local demand was sluggish (-16.3% mom).

Total August steel sales volume posted 90,879 tonnes, increasing by 9.9% mom and 29.1% yoy. The domestic market continued to contribute minor impact to total sales volume.

The August sales volume remained unchanged comparing on mom basis but went up by 85% yoy to 10,167 tonnes. - The domestic sale market contributed a major impact to total coated steel sales volume (98.5%) with 9,683 tonnes ( +101% yoy).

On Sep 14, VSC acquired a 36.0% stake in VIMC Dinh Vu Port JSC, pending the information of the total deal value and the sellers. Vinalines Dinh Vu port was developed on a 21-hectare land plot in Dinh Vu – Cat Hai economic zone. For 8M21, VSC announced its earnings results with revenue of VND1,254bn and PBT of VND319bn, complete 74.0% and 95.0% of the 2021 business plan, respectively.

The Jul sales volume slowed down comparing mom basis but went up on yoy. In detail, total Jul steel sales volume posted 82,665 tonnes, increased by 22.6% yoy but plunged 18.9% mom. Steel coat volume made up most of the July sale (91.3%) at 75,483 tonnes, +46.8% yoy but -15.6% mom. The exported steel coat volume (61,950 tonnes) performed splendidly +75.1% yoy even experienced a slight decrease of 2.4% mom in July.

Draft Insurance law adjustment was announced in February 2021 and open to receive comments from experts and insurance companies. It will be 5 years until adjusted insurance law going into effect. Draft law aims to improving existing shortcomings in the current Law and drive significantly the Vietnam insurance development. Insurers will invest more in internal processes, human resources as well as capital to be able to fully meet the requirements under the Law.

In Jul 2021, HSG recorded a VND302bn net profit, +124% yoy thanks to double revenue growth of 97% yoy to VND4,921bn. The results in 10 months were far exceeding with revenue and NPAT were VND37.8tn (+75% yoy) and VND3.6tn (+339% yoy), completing 115%/245% of the company’s guidance.

Vingroup reported its stunning 2Q21 revenue at VND38.4tn, 64.6% yoy driven by two engines 1) property revenue grew by 62.1% yoy to VND26.8tn, 2) service contractor revenue skyrocketed by 413% yoy to VND3.8tn. In addition to a 12.5%p gross margin expansion, gross profit surged by 205.3% to VND10.4tn. Hence, operating profit bounced to a positive VND2.7tn in 2Q21 even the SG&A spiked by 103.8% due to more aggressive industrial sales.