Vietnam's corporate profits soar in Q1, led by banking sector

A total of 685 listed companies, representing 40% of market capitalization across Vietnam’s three stock exchanges, had released their Q1 financial results as of April 28 which show a broad-based surge in profits.

According to statistics from broker Yuanta Vietnam, market-wide revenue and post-tax profit rose by approximately 20.1% and 50.8% year-on-year, respectively, buoyed by the low comparative base of 2024.

The banking sector remained the main driver of market growth, with post-tax profits of 13 out of 27 listed banks rising by an average of 21%, despite the low interest rate environment early this year.

Some banks reported exceptional growth, including SSB (190.7%), MBB (44.3%), STB (37.2%), HDB (35.6%), and VPB (25.2%).

The securities sector exhibited a clear divergence in performance. Despite the VN-Index gaining 3.2% year-to-date as of March 31 and margin lending across the market reaching VND257.5 trillion ($9.9 billion), up 36.3% year-on-year, the sector’s post-tax profits fell by 4.2%.

Large brokerages, such as MBS, VCI, VIX, CTS, and FTS, continued to record solid results, supported by proprietary trading and margin lending, while many smaller firms struggled.

The information technology sector posted a 19.8% increase in post-tax profits, largely driven by FPT, which reported a 20.1% rise. However, many other IT firms saw less positive outcomes.

Meanwhile, the media sector delivered a remarkable surprise, with post-tax profits skyrocketing by 12,364%, thanks to VEF’s extraordinary contribution from the transfer of the Vinhomes Global Gate project and increased financial incomes.

While concerns over tariffs may impact business activities directly or indirectly throughout 2025, the majority of companies remain optimistic, setting high revenue and profit growth targets.

Sectors such as securities are projected to grow profits by 20.9%, automotive parts by 77.8%, retail by 30.8%, and banking by 17.6% this year.

Previously, MBS Securities had forecast that overall market profits in Q1/2025 could increase by 17% year-on-year, supported by low interest rates and a strong rebound in consumer spending.

The banking sector was expected to achieve 15% profit growth, driven by accelerating credit growth from the start of the year. Several other sectors also reported impressive profit increases, such as real estate (up 719%), industrial parks (up 61%), and energy (up 41%).

Nonetheless, some industries saw declines. Aviation profits fell by 46% due to the absence of exceptional gains recorded last year, while oil and gas profits dropped by 27% as global oil prices cooled.

The first-quarter earnings season indicates that the market is steadily recovering from a volatile 2024, laying a solid foundation for strong growth expectations throughout 2025.