Vietnam financial portal StoxPlus says more than a tenth of Vietnam’s publicly traded companies (60 of 500 reporting so far) announced losses in the first quarter of this year.
At this stage in Vietnam’s slow recovery, the losses are no surprise to investors, most of whom appear to be anticipating better results later this year. Vietnam’s leading stock index is up nearly 18% so far this year.
Small banks and securities companies have been hit hardest because of bad loans and less trading in the stock markets. Brokerage revenues for most securities firms shrank — Sacombank Securities (SBS) reporting losses of $700,000, Dong A Securities (DAS) $310,000), Vina Securities $250,000 and Maritime Bank Securities $250,000.
Vietnam’s fragile economy also has been hard on the construction industry, especially building material firms. For example, six of the seven businesses under the umbrella of the Viet Nam Glass and Ceramics Corp (Viglacera) reported losses.
Shipping has been another weak sector, with Viet Nam Ocean Shipping (VOS) reporting the worst results, a $4.6 million loss, but the tide will turn.