Research Center

On Aug 16th, The Insurance Association of Viet Nam (IAV) announced 1H22 market figures. Total insurance premium in 1H22 was VND118,252bn (+15.2% yoy). In which, life insurance premium increased by 15.7% to VND84,467bn; non-life insurance premium also surged by 14.1% to VND33,785bn. Non-life insurance growth slightly increased to 14.1% in 1H22, still on the rise with double-digit figures. Whilst, life insurance market recorded a 15.7% growth in insurance premium which is lower than the growth over 20% of last year.

In 2Q22, 24 listed seafood exporters recorded a VND18,728bn revenue (+33.3% yoy) and VND1,770bn NPAT (+138.3% yoy). 2Q22 GPM expanded to 19.6%, +6.8%p yoy and net margin widened to 9.5%, +4.2%p yoy, while SG&A/revenue ratio edged up 2.0%p yoy to 8.3%. Chiefly, large pangasius exporters reached new peaks or revenue and NPAT this quarter.

The total revenue growth momentum of listed garment companies was sustained in 2Q22. However, 2Q22 revenue growth came in at 25.8% yoy, lower than 1Q21 of 32.6% yoy. The earnings growth pace also slid from 71.7% yoy in 1Q22 to 22.6% yoy in 2Q22. The total revenue growth momentum of listed garment companies was sustained in 2Q22. However, 2Q22 revenue growth came in at 25.8% yoy, lower than 1Q21 of 32.6% yoy. The earnings growth pace also slid from 71.7% yoy in 1Q22 to 22.6% yoy in 2Q22.

In general, food and beverage consumption recovered differently in 2Q22. The 2Q22 total revenue momentum growth of the 4 listed milk companies decelerated in 2Q22. On the other hand, the total revenue and earnings growth of 14 listed brewery companies continued to recover in 2Q22. We expect the F&B consumption will remain resilient in 3Q22F but it will face the challenge of inflation pressure. We expect gross margins of dairy and brewing listed companies will expand strongly in 3Q22F due to a full benefit from cooling raw material prices and higher selling prices.

Total electricity production in Jul was 24.6bn kWh (+3% yoy). In which, coal-fired power and gas thermal power volume plummeted to 8.2bn kWh (-20% yoy) and 2.2bn kWh (-5% yoy), respectively in the context of rising input material prices. The unexpectedly high level of rainfall in the extremely hot season made the hydropower output surge to 11bn kWh (+40% yoy). The probability of La Nina effect will wane in Jul and will rebound during Aug – Oct 2022 with moderate probability (68%), thus we believe hydropower makers will shine in 3Q22.

This quarterly earnings report on Vietnam steel production is intended to track the earning growth trend in the steel market. In 2Q22, we saw the revenue growth pace in 2Q22 just slightly declined by 2.4% yoy thanks to the good selling price while NPATMI growth dropped significantly by 67.4% yoy. Net profit growth pace in last 2 quarters was significantly hit by heavier material costs. We also see the high material costs still partly affect the margin in 3Q22 due to inventories cycle. In 3Q22, we expect the total consumption volume (finished steel products and HRC) will positively grow at 2.6% yoy thanks to the low base in 3Q21 caused by the COVID-19 lockdown.

The prelim export turnover of Vietnam’s textile and garment remained optimistic with 16.9% yoy and 2.7% mom, to USD3.68bn in July. The US persisted as the largest textile and garment importer with a USD1.8bn, +13.1% yoy/-0.1% mom, accounting for 48.8% of Vietnam's total textile and garment export value. Overall, in 7M22, Vietnam’s textile and garment export turnover soared 20.6% yoy to USD22.3bn.

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.