FPT reported that its revenue was up by 14.6% against the third-quarter target and pre-tax profit was up by 3%. Since the start of this year, revenue of FPT has reached nearly 12.450 trillion dong, achieving 83.3% of the year's target. The corporation expects to post revenue of US$1 billion by the end of this year.

Some companies achieved full-year target sooner than expected. Namely, Hapaco coded HAP posted revenues of 373 billion dong, surpassing by 16.6% the yearly target. The Hoa Phat Group exceeded 46% of its yearly target.

Most of the businesses reached 70% of the yearly target. For example, the Vietnam Dairy Product Co (Vinamilk) coded VNM achieved 74.5% of this year's revenue target and 84.8% of the full-year target for after-tax profit. The Thien Nam Co coded TNA reached 75.86% of the full-year revenue target and 83.19% of the year's pre-tax profit target. The Tay Ninh Rubber expects to reach 98.3% of this year's revenue target.

There is only less than half the month left for companies to report their business results, only 10 out of 164 businesses listed at Hose released their reports. However, what has been released has helped investors feel partly secure amidst the difficult global economy and wide-spread financial crisis.

According to the financial specialist, MA.Dinh The Hien, by the end of the third quarter, only if businesses achieve 70%-75% of their yearly targets, they would be able to reach their yearly targets. If they post 60% of this year's target by the end of the third quarter, they would find it hard to achieve this year's targets.

That is because only by the third and fourth quarters, companies will really be impacted by the government's policies on monetary tightening and inflation when they have to access bank loans at an interest rate of 21% a year or maybe not borrow loans. Thus, businesses will have to cut down on production and reduce expenses as people will also restrict their consumption. Currently, although the macro-economy is stable, the government has delayed implementing management policies and measures. Thus, not until the first quarter of next year, will businesses feel more at ease.

"Those companies which mainly rely on loan capital will find it hard to make profits," said Le Dat Chi, securities specialist. Macro-economic conditions do not support business activities of companies, particularly high lending interest rates have reduced their production and business capacity. Thus, it will not be a surprise if some companies fail to achieve their profit targets.

It is reported that some listed companies including Tan Dai Hung Plastics, Dien Quang Lamp, Sa Giang Import and Export will find it difficult to achieve their business targets, approved in shareholders meetings, and now have decided to reduce their profit and revenue targets.

Thoi Bao Kinh Te Vietnam - October 18, 2008