Several business sectors are expected to leverage favourable market conditions and achieve high growth in the third quarter.
In contrast to the stalled travel spotted one year ago, resort venues have often been overcrowded during the peak tourism season in this year’s third quarter, particularly at weekends and on holidays.
Aviation is one of the sectors benefiting from this change.
According to statistics from the Civil Aviation Administration of Vietnam, nearly 12 million passengers called on Vietnam’s airports in July. The number of local passengers is expected to reach 89 million this year, climbing by 200 per cent on-year and showing a 20 per cent jump compared to 2019.
Deputy CEO at new-generation airline Vietjet (VJC) Ho Ngoc Yen Phuong said that the company’s business has become more stable in July and August.
In the third quarter, VJC is expected to serve about 6.5 million passengers, generating more than $400 million in revenue even though the company only has exploited 10 per cent of its international routes.
VJC also aims to count over $226 million in the last four months from its aircraft business and reach its full-year profit target as registered with the shareholders.
|Seafood is one of the sectors that is anticipating a strong rebound in the remainder of 2022 |
Along with aviation, businesses that are active in seafood, textiles, and apparel exports also anticipate a strong rebound in the third quarter.
Particularly, basa fish exporters have reported robust growth in most export markets.
Vinh Hoan Corporation – Vietnam’s top pangasius exporter – reaped $52.1 million in revenue in July, showing a 48 per cent jump on-year and nearly 13 per cent over the previous month.
The company’s cumulative revenue in the first seven months reached $378 million, equal to an 82.7 per cent jump on-year. Its revenue in August is also anticipated a reach double-digit growth on-year.
According to VHC CEO Nguyen Ngo Vi Tam, a spike in the demand for basa in many markets has brought impressive export growth.
The United States continues to be VHC’s largest export market, followed by the EU and China.
China’s proposed removal of the ban on frozen food imports is expected to revive Vietnam’s frozen basa shipments to this market in the coming months.
Viet Dragon Securities believes that basa fish exports might slow down in the third quarter compared to the second. However, a revival is expected in Q4 and they could still manage a double-digit growth on-year.
Companies’ profits should not witness an abrupt decline as seen in the 2018-2019 period thanks to high demand and the fact that still high inflation and material supply issues are supportive factors for high export prices.
| ||Racing to top Vietnam's stock market |
Recent investigations, the tightening of capital market regulations by the government, and global economic uncertainty have led to a significant correction in Vietnam’s stock market. However, Maybank Investment Bank contends that the robust fundamentals underpinning Vietnam’s capital markets and its economy remain intact.
| ||Interest rate support package has little effect on stock market |
As securities and real estate sectors are not on the list to receive support, the 2 percent interest rate support package's positive effects on the stock market are not strong.
After September, the demand for shrimp imports from the US market is expected to slightly increase serving the year-end festive season, helping shrimp exporters like Minh Phu Corporation and Sao Ta Foods to achieve high profits from the third quarter and particularly in the fourth.
In addition, businesses in several other fields including wholesale, retail (particularly non-essential goods such as jewels and electronic items), and construction are expected to see upbeat growth in this year’s third quarter, leveraging the low developments in the same period last year when they faced stalled operations due to the social distancing measures.