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Hoa Phat market cap halves in last 9 months

Steel giant Hoa Phat Group has lost VND130 trillion ($5.6 billion) from its market capitalization since last October due to a bearish market, rising costs and falling demand in China.

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Its HPG share has been one of the biggest losers in Vietnam’s current bearish market, closing Tuesday with a 3.7 percent drop to VND20,800, an 18-month low.

It has fallen by over 50 percent since October, with the market cap declining to VND121 trillion.

Vietnam’s benchmark VN-Index fell by 18 percent in the period.

HPG has seen a sell-off in recent times, with foreign investors selling a total of VND5.5 trillion worth of the shares since January.

Other stocks in the industry like HSG of Hoa Sen Group and NKG of Nam Kim Steel have also slumped by 60-70 percent since the final quarter of last year.

“The steel industry is facing adversities,” Hoa Phat chairman Tran Dinh Long told shareholders at the company’s annual general meeting in April.

Coking coal, which accounts for 40-45 per cent of steel production costs, has seen prices quadruple since Russia launched its military operation against Ukraine.

The conflict has also driven up logistical costs and disrupted transportation, further hitting steelmakers’ profits.

KIS Vietnam Securities has lowered Hoa Phat’s profit margin by 4.4 percentage points to 23 percent for this year.

Meanwhile, global steel prices are falling following China’s lockdown of major cities.

China consumes around 60 percent of global steel output, and the lockdown resulted in a 5 percent drop in demand in the first quarter, Xinhua reported.

On Tuesday Chinese Steel Rebar futures fell below the CNY4,500-per-ton mark, a level not seen since last December and down roughly 15 percent from their early May peak.

Vietnamese steel prices have fallen six times in the last five weeks after April sales declined by 16 percent year-on-year, according to the Vietnam Steel Association.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/hoa-phat-market-cap-halves-in-last-9-months-3346259/

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Vietnam’s 2022 economic growth projected at 7%

Vietnam’s GDP is likely to expand by around 7 percent in 2022, much higher than 2.58 percent growth of 2021.

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Minister of Planning and Investment Nguyen Chi Dung made the above statement at the Cabinet meeting in Hanoi on July 4.

With this scenario, the economy needs to expand 9 percent in the third quarter and 6.3 percent in the last quarter this year, the minister said.

In the first half, the Southeast Asian country’s GDP accelerated to 6.42 percent growth compared to the optimistic scenario of 5,1-5,7 percent as figured out in the Government’s Resolution No. 01/NQ-CP, dated January 01, 2021 on major tasks and solutions for implementation of socio – economic development plan and state budget estimate for 2022. 

Especially, the GDP grew 7.72 percent in the second quarter, which is the fastest growth pace for April-June period since 2011.

Earlier, the World Bank predicted Vietnam’s 2022 GDP growth at 5.5 percent if the COVID-19 pandemic is controlled.

The projection is lower than the Vietnamese Government’s predictions at 6.5-7 percent, HSBC at 6.5 percent and Standard Chartered at 6.7 percent.

Source: https://e.nhipcaudautu.vn/economy/vietnams-2022-economic-growth-projected-at-7-3346528/

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Dragon Capital buys 2.1 million shares of Sacombank

Asset management company Dragon Capital has bought 2.1 million shares of HCMC-based Sacombank, increasing its stake in the bank to 6.09 percent.

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On June 29, two affiliated funds, CTBC Vietnam Equity Fund and Norges Bank, bought 2.3 million shares of the lender while a third, Samsung Vietnam Securities Master Investment Trust, sold 200,000 shares.

The value of the deal is estimated at VND47.5 billion (US$2.03 million) based on the share’s closing price last Wednesday.

Funds under Dragon Capital own 114.8 million shares or a 6.09 percent stake in the bank.

In March, Dragon Capital had raised its stake from 4.98 percent to 5.05 percent, after its largest fund, Vietnam Enterprise Investment Limited, bought 1.25 million shares.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/dragon-capital-buys-21-million-shares-of-sacombank-3346515/

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Vietnam targets 7% GDP growth this year: minister

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HANOI — Vietnam is aiming for economic growth of 7% this year, the country’s planning and investment minister said on Monday, higher than an official target of 6.0%-6.5% set previously.

To achieve this, year-on-year economic growth in the third quarter needs to be 9.0% and in the fourth quarter 6.3%, minister Nguyen Chi Dung also said during a government meeting.

Dung said Vietnam’s budget was in surplus, giving scope for fiscal policy to be used to support businesses and residents.

“Credit institutions will need to further cut their lending interest rates to reduce input cost pressure for businesses and for the economy,” he said.

Vietnam, a regional manufacturing hub, started lifting its coronavirus curbs late last year, allowing factories to resume full operations.

The economy is recovering after growing only 2.58% last year, the slowest pace in decades.

The Southeast Asian country reported GDP growth of 7.72% in the second quarter, backed by strong export growth, but warned of upward inflation pressure for the rest of the year. 

Source: https://tuoitrenews.vn/news/business/20220704/vietnam-targets-7-gdp-growth-this-year-minister/67932.html

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