From June 19-23, the stock market saw growth from shares with high capitalization value such as Hoa Phat Group – HPG (+ 8.3 percent), Vinamilk – VNM (+ 4.5 percent) and GVR (+ 6.7 percent). However, not all blue chips saw prices increase.

Analysts note that steel shares, including HPG shares of billionaire Tran Dinh Long, saw prices increasing after the Vietnam Steel Association (VSA) announced a recovery in steel output in May and the bounce back of hot rolled coin (HRC) prices.

HPG share prices increased in four out of five trading sessions last week, and eight out of 10 sessions since June 12. This was a positive performance of the leading enterprise in the steel industry which holds 50 percent of the structural steel market share.

In the last six months, HPG share prices have increased by 40 percent, and compared with the lowest price seen in November 2022, prices have increased by 130 percent.

With the steady price increases of HPG shares, the stock assets of the president of Hoa Phat Group Tran Dinh Long have soared. As of June 24, 2023, he had VND38.514 trillion with 1.516 billion of shares held.

Long’s assets are even higher than that of Pham Nhat Vuong, who was formerly in the No1 position on the list of the richest stock billionaires. VIC shares which Vuong holds are now priced at VND52,000 per share, and with VND691 million shares, he now has stock assets worth VND35.9 trillion.

Analysts said the stock assets owned by Vuong have decreased not only because of VIC share price decreases, but also because the VIC’s president used shares to contribute capital to set up business.

In March 2023, Vuong transferred over 49 million VIC shares to contribute capital to the Green and Smart Mobility Joint Stock Company (GSM), a taxi firm using VinFast’s electric cars.

Other steel manufacturers have prospered recently. Pomina (POM), for example, has seen prices increase by 40 percent in the last three weeks, Nam Kim Steel (NKG) by 17 percent and Hoa Sen Group (HSG) 13 percent.

Analysts said after one year of stagnation because of sharp steel price falls, the sector has begun receiving good news.

According to the Vietnam Steel Association, the steel output in May reached 2 million tons, up 3.1 percent over April. The total output increased significantly by another 13.3 percent to 2.14 million tons, while exports increased by 30 percent to 822,657 tons, or 50 percent higher than the same period last year.

As for Hoa Phat, the situation has improved with sales in May up by 16 percent over April to 530,000 tons.

In the second half of 2022, steel mills fell into a difficult situation because input material prices unexpectedly soared, and the dong depreciated, while demand dropped in both domestic and international markets. Meanwhile, the selling prices went down. In such conditions, most steel manufacturers reported losses. 

Since 2023, some manufacturers have stopped taking a loss and begun to make profit. 

Though the real estate market remains quiet, some large real estate firms have re-activated their projects. Novaland president Bui Thanh Nhon recently told shareholders that the enterprise’s most difficult period was over, and in the second quarter, Novaland would resume its projects in HCM City’s hub and NovaWorld Phan Thiet, NovaWorld Hoa Tram, and Aqua City projects.

Manh Ha