Electricity production operations at Nhon Trach 2 PVPower Company, a subsidiary of PV Power (Photo: VNA)
Vietnam’s equity market witnessed a robust earnings rebound in the first quarter of 2025, as nearly a thousand listed companies disclosed financial results showing widespread improvement across sectors.
Market net profit rose nearly 23% year-on-year, marking the sixth consecutive quarter of growth, according to a report from VNDirect Securities. The rally was fuelled by a low comparison base and accommodative interest rate policies, which helped stimulate business activity and consumer demand.
The electricity sector stood out as the best performer, with net profit skyrocketing by 224%, compared to the same period last year.
This sharp recovery was driven primarily by increased output from gas-fired power plants and improved hydropower production. Hydrological conditions normalised after the prolonged El Niño-induced drought in 2023, allowing hydroelectric operators to ramp up capacity.
Real estate firms posted a dramatic 134% increase in aggregate net profit year-on-year, bolstered by easing monetary conditions and more flexible credit and sales policies.
The recovery was especially notable among large developers. Vinhomes reported a 204% surge in net profits, while Khang Dien and Dat Xanh Group posted gains of 92% and 55%, respectively. The turnaround indicates a stabilisation in the residential market after months of stagnation.
The personal and household goods segment recorded a 62% jump in profits, buoyed by a pickup in export orders, especially in anticipation of potential new tariffs from the US. The chemicals industry benefitted from a decline in raw material prices, helping raise sector-wide profits by 45%.
Retailers also performed well, with sector net profit rising 44%. Mobile World Investment Corporation, one of Vietnam’s top consumer electronics retailers, led the gains with a 71% rise in net profit. The improvement was largely attributed to restructuring efforts, which helped eliminate non-recurring costs and streamline operations.
In contrast, the oil and gas sector saw earnings slump by 64% year-on-year. A nearly 9% decline in the average Brent crude price during the quarter weighed heavily on upstream and downstream firms alike.
Petrolimex, the country’s largest petroleum distributor, saw net profit plunge 88%, reflecting the impact of weaker global oil prices and demand volatility.
Across most sectors, profitability metrics improved.
The average earnings before interest, taxes, depreciation and amortisation (EBITDA) margin rose from 15.4% in Q1 2024 to 17.9% in Q1 2025, suggesting more efficient operations and better cost controls.
Many businesses also reported lower debt-to-equity ratios and reduced interest expenses, signalling healthier corporate balance sheets following recent financial restructuring./.
