Research Center

Although the absolute result of the pharmaceutical industry showed a positive signal about the recovery of the pharmaceutical industry, it was not very impressive as the revenue growth only inched 4.6% qoq in 2Q22 and the NPAT posted a fall of 4.7% qoq.

Based on our estimate, 2Q22 aggregated revenue of 26 listed fertilizer producers rose 46.0% yoy (VND31.9tn), while aggregated NPAT climbed 211.0% yoy (VND5.5tn). However, compared to the first quarter, it could be said that the fertilizer sector had the lag business results with a 1.3%/20.4% qoq decrease in revenue and net profit.

In Jul 2022, Vietnam’s prelim seafood export recorded USD1,047mn, up 14% yoy but down 7% mom. Shrimp and pangasius export increased 3% yoy and 68% yoy in Jul. Yet, shrimp export fell 15% mom and pangasius export declined 10% mom since the demand import in the key market as US and China drop significantly.

In Jul, the export of agricultural products was sluggish when most of the items decreased in both value and volume. Total agricultural plant export was USD1,671mn (-10% mom and +5% yoy). Surprisingly, rubber export value topped in total export turnover with 21% share, followed by rice (20%), coffee (17%), cashew (16%), vegetables (16%), and cassava (5%).

This monthly report on Vietnam steel production is intended to track the developments in the steel market. During June 22, we observed the weak demand in both domestic and export markets. We expect the trend to continue in next 3 months.

Total insurance premium accumulated in 5M22 was pegged VND94,681bn (+14.4% yoy). In which, life insurance premium increased by 14.8% to VND66,714bn; non-life insurance premium also surged by 13.3% to VND27,967bn. Top 5 players in non-life insurance reached double-digit growth rates in first five months, except Bao Viet. MIC insurance premium increased 33.4% yoy, the most impressive in top five, and took the fourth place from Bao Minh.

Congress passed the new Insurance law 2022 on June 16th 2022. The draft of this new law was first introduced around February 2021 (refer here). After receiving feedback from experts at many meetings, the Law was approved with the rate of 94.18%. The effective date will be January 1st, 2023. In general, the new law retains the same ideas and spirit as the proposed draft, adding some clarifications and changes which are positive for sustainable development and long-term industry outlook.

Total electricity production in Jun was 24.52bn kWh (+5.1% mom, +2.6% yoy) and the 6M22 aggregate output volume went up to 133.1bn kWh (+3.6% yoy). The unexpectedly high level of rainfall in May and Jun, especially in the North amid the extremely hot season made the hydropower output surge to 11bn kWh in Jun (+33% mom, +71.3% yoy), which made the average free market price (FMP) in May dropped to VND1,136/kWh. It is predicted that there will be 10-12 typhoons and tropical depressions till the end of the year, thus the heavy rainfall is expected to occur in the 2H22F.

The prelim export turnover of Vietnam’s textile and garment remained optimistic with 16.5% yoy and 13.1% mom, to USD3.6bn in June. The US persisted as the largest textile and garment importer with a USD1.8bn, +13.1% yoy/+11.2% mom, accounting for 50.2% of Vietnam's total textile and garment export value. Overall, in 1H22, Vietnam’s textile and garment export turnover soared 21.4% yoy to USD18.6bn.