Firms stand firm amid storm

Businesses in the consumer goods sector fared fairly well in 2011 despite continuing economic difficulties. Economists forecasted that  milk, confectionery, and vegetable oil production would retain growth momentum in 2012 thanks to steady consumption.

For instance, 2011 was a bonanza year for Vinamilk when the company reaped VND22.070 trillion ($1.05 billion) revenue and more than VND4.218 trillion ($200.8 million) after-tax profits, surging 40 per cent and 30 per cent on-year.

Vinamilk is one of few listed firms posting over $1 billion revenue in 2011.

Other giants in confectionary production sector like Kinh Do Corporation (KDC), Hai Ha Confectionary Joint Stock Company (HHC) or Bibica (BBC) also reported upbeat business figures in 2011.

In 2011, KDC posted VND4.23 trillion ($201.5 million) in net revenue, jumping 120 per cent and VND1.670 trillion ($79.5 million) in aggregate profits surging 144 per cent on-year. This year, the corporation will strive for 40 per cent growth in revenue against 2011, according to the firm executives.

In respect to the sugar industry, according to a Ha Thanh Securities Company analytical report, the price of sugar in the domestic market would trend upward since world sugar prices were forecast to surge 6 per cent this year. Besides, existing 40 sugar factories can just meet 70 per cent of local demand.

Six listed firms in the sugar sector including Lam Son (LSS), Bien Hoa (BHS), Kon Tum (KTS), Ninh Hoa (NHS), Bourbon Tay Ninh (SBT) and Gia Lai (SEC) recorded buoyant business figures exceeding projections in 2011.
For instance, in 2011 Lam Son Sugar Company raked in VND2.038 trillion ($970 million) net revenue, surging 52.3 per cent and VND414.8 billion ($19.7 million) net profits, up 38.5 per cent on-year.

Information technology was one of hottest industries of Vietnam economy in the past years with an annual growth averaging 20-25 per cent which was double or triple gross domestic product (GDP) growth. Growth was even more impressive in software and digital content areas.

The country is forecast to be one of world’s top 70 countries in information technology development within the next three years. By 2015, 20-30 per cent of Vietnamese families will have computers and connect to the internet.

Vietnam’s stock markets currently houses around 20 businesses operating in the field. Among them are big names like FPT, CMC and HIPT with fairly good business results in 2011. For instance, FPT reaped around VND26 trillion ($1.23 billion) in revenue and over VND2.088 trillion ($99.4 million) in after-tax profits in 2011, surging 27 per cent and 23.4 per cent respectively against 2010.