Fifteen of 30 blue chip companies in Vietnam posted a declining profits in the first quarter this year, a ratio that has doubled since the Covid-19 pandemic.
The slower profit growth was spread among major sectors: property, retail, consumer goods, banking-finance and manufacturing.
Novaland was Vietnam’s only blue-chip company to post a loss in the first quarter, leaking over VND400 billion ($17.04 million).
Its auditor PwC Vietnam said in last year’s annual financial report that there was considerable doubt about the ability of the company to stay alive.
But Novaland has affirmed that it has enough capital to keep operations going and fulfill its debt obligations for 12 months beginning from April this year.
Chairman Bui Thanh Nhon said the company was going through short-term financial difficulties but would recover in the third quarter.
PDR of Phat Dat Real Estate Development, another major property developer on the blue-chip list, saw profits decline by over 90% to some VND22 billion, after posting a VND200 billion loss in the last quarter of 2022.
Investment in property projects proved unfavorable due to market difficulties, the company reported.
In the retail sector, Mobile World saw profits drop 99% year-on-year to over VND21 billion.
Although the company has often sold its products 5-10% higher than its competitors, it has been lowering prices since March to increase competition.
Masan Group saw profit drop nearly 80% to VND430 billion.
VPBank posted the biggest decline in the banking sector at over 81% to VND1.65 trillion.
Steelmaker Hoa Phat Group saw profit decreasing by 95% to less than VND400 billion amid low demand in the manufacturing and construction sectors.