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A Haxaco technician carries out maintenance for a car engine. The automobile market showed signs of recovery recently as the Government issued Decree 41/2023/ND-CP, reducing the registration fee by 50 percent in the last 6 months of 2023 for domestically manufactured and assembled cars (Photo haxaco.com.vn) |
Tran Truong Manh Hieu, Head of the Strategy Analysis Department of KIS Securities Vietnam noted that the stock market has moved in a sideways fashion over the first half of 2023 due to the economic downturn and the VN-Index fluctuated in the range of 1,000 - 1,120 points. In the second half of 2023, VN-Index may form an uptrend thanks to the prospects of economic recovery.
GDP growth in the second quarter of 2023 reached 4.14 percent, higher than the rate of 3.32 percent in the first quarter. The recovery of the tourism industry is also a bright spot, with the number of international tourists arriving in Vietnam in the first six months reaching nearly 5.6 million people, more than 13 times the same period last year, Hieu said.
It is expected that the reopening of China will make the number of Chinese visitors to Vietnam increase sharply in the second half of this year. According to the General Statistics Office, by the end of June 2023, investment capital sourced from the state budget increased by 20 percent compared to the same period last year. It is forecast that public investment disbursement will accelerate, creating a great driving force for economic growth.
According to Nguyen Thi Hang Nga, Deputy General Director of Vietcombank Fund Management Company (VCBF), favorable macroeconomic conditions will broadly persist as monetary and fiscal policies such as reducing interest rates and VAT will support consumption and investment demand, both of which have been severely affected by declining exports and high rates.
Public investment and tourism will be important drivers of economic growth this year.
In the stock market, lower deposit interest rates help increase the attractiveness of the stock investment channel. However, investors should not underestimate the risks such as declining exports and corporate profits and unstable investor sentiment.
“We are consistent with our investment strategy in construction stocks, information technology, and pharmaceuticals, specifically in companies that can maintain revenue and profit growth even in economic headwinds,” she said.
“We also see opportunities in companies with poor results, but whose share prices have fallen sharply and thus become attractive, such as some in the real estate sector and in consumer goods.”
“Many bank stocks are attractively priced but the risk of asset quality deterioration is not high thanks to the positive signs in the macro-economy, falling interest rates and the government's efforts to remove regulatory obstacles for real estate projects,” she said.
The auto business market in the first half of this year was affected by many unfavourable factors such as inflation, high interest rates, and reduced consumer demand, according to Do Tien Dung, Chairman of the Board of Directors of the Hang Xanh Auto Service Joint Stock Company (Haxaco).
Haxaco recorded a decline in business results, with profits of just VND10.4 billion in the first quarter and just VND10 billion in the second quarter, a sharp decrease compared to the same periods last year.
The automobile market showed signs of recovery recently as the Government issued Decree 41/2023/ND-CP, reducing registration fees on new cars by 50 percent in the last six months of 2023 for domestically manufactured and assembled vehicles.
Haxaco has seen more customers since the beginning of July thanks to this stimulus.
However, in the last six months of 2023, the distribution of imported cars is expected to be more difficult than domestically manufactured and assembled cars. Completing this year's business plan would be a challenge for Haxaco, he said.
GDP growth at a low rate in the second half of 2023 poses many challenges for the year-end period, according to Tran Le Nguyen, General Director of Kido Group Joint Stock Company.
In the next five years, Kido will change the proportion of business segments based on consumer needs and trends.
The company is focusing on spices, fish sauce, seasoning powder and some other items, combined with the existing channel of the oil industry to expand its business.
The spice industry is expected to make a larger contribution to the total revenue, making it easier to develop more channels and reach wider consumers. Besides, Kido is planning to launch some dry cakes too.
Recently, Kido acquired 25 percent of the Tho Phat dumpling brand, aiming to increase the ownership rate to 51 percent and soon to 70 percent. In the near future, the company will accelerate the expansion of the dumpling and moon cake industry
“We are working hard to fulfil our 2023 target of VND15 trillion in revenue and VND900 billion in pre-tax profit, an increase of nearly 20 percent and more than 76 percent respectively compared to 2022,” Nguyen said.
Based on a Euromonitor report, with a population of 100 million, of which 70 percent are under the age of 35 and tech-savvy, Vietnam will see higher demand in a wide range of products, from consumer electronics to home appliances, according to Nguyen Viet Anh, Deputy General Director of JSC FPT Digital Retail.
According to the Ministry of Industry and Trade, the value of the retail market in Vietnam is expected to reach US$350 billion by 2025.
