Stock profits rising in certain industries

A report from the AgriBank Securities Joint Stock Corporation (Agriseco) shows that stocks in certain industries have been more profitable as Vietnam’s economy reopens.

Chemical industry stocks lead the way. This is mostly due to the industry benefiting from global supply chain disruptions and growing demand in the international market for commodities such as yellow phosphorus and fertilizer, helping domestic companies benefit from exports.

Metal industry stocks followed, which have benefited from a sharp increase in steel prices compared to the average in 2020. Besides a positive export outlook as China cuts its domestic output, a wave of investment is going to infrastructure to boost the economy on a global scale.

Then came retail stocks, with profits rising from increasing sales and changing consumer behavior during and after the pandemic. The latter has facilitated growth in sales via e-commerce channels.

Finally, oil and gas stocks have headed upwards, with the Organization of Petroleum Exporting Countries (OPEC) cutting production and Hurricane Ida in the US pushing up oil prices compared to 2020. As the economy recovers, demand for fuel will also increase.

Meanwhile, stocks in industries such as aviation and services are not so profitable, as many enterprises in these industries, especially in aviation, have been severely affected by outbreaks of Covid-19 and may take years to recover.