Hanoi (VNS/VNA) - Corporate earnings were forecast to slow in 2020as the economy became more vulnerable to external factors, data firmsand securities businesses forecast.

A number of companies have set lower earnings targets for 2020 compared to theprevious year as the economy suffers from volatility in internationalmarkets.

Rising tensions between economic powers such as China, the European Union andUS, changes of political-economic policies, and epidemics are threatening toslow global economic growth.

PetroVietnam Ca Mau Fertiliser JSC (HoSE: DCM) has forecast itspre-tax profit may fall 83 percent year-on year to 52 billion VND (2.24million USD), stopping the company from paying a cash dividend for2020.

Binh Son Refining and Petrochemicals Corp (UPCoM: BSR) announced itspost-tax profit in 2020 may fall 41.4 percent on-year to 1.3 trillion VND.

In a corporate earnings report released by data analysts FiinPro,revenue and profit growth among non-financial companies was slowing.

Revenue posted by these grew modestly by 4.2 percent on-year in2019, while post-tax profit growth rose 9.3 percent on-year, according tothe report.

In the fourth quarter alone, net revenue among those companies edged up only1.2 percent while post-tax profit gained 18.8 percent on-year. 

Earnings before interest and tax (EBIT) and earnings before interest, tax,depreciation and amortisation (EBITDA) grew only 1.5 percent and 1.1 percent in2019, which was a deceleration compared to the previous year.

“Profit growth was mostly contributed by financial income from transfersof contributed/divested capital or gains in other incomes,” FiinProanalysts pointed out.

VNDirect Securities Corp (VNDS) and Vietinbank Securities Co(VietinbankSC) forecast profit growth for listed companies would be 15-18percent on-year in 2020.

But if profits made by banks and “Vin” companies were excluded, profit growthfor the remaining listed firms may be only 3 percent.

The forecasts made by FiinPro, VNDS and VietinbankSC have not counted theeffects of the coronavirus, known as SARS-CoV-2, which has spread acrossAsia and Europe and dampened expectations for the recovery of the globaleconomy.

If affected countries were unable to take control of the situation quickly, theepidemic would have severe impacts on global economic growth, andVietnamese firms would be badly affected.

Global markets were underestimating the impacts of COVID-19 onthe global economy, showing signs that global stocks would continueto fall and safe assets such as bonds and gold would continuetheir uptrend, Ngo Quoc Hung, senior analyst at MB Securities Co, said.

As of 3pm on February 24, gold prices on the Vietnamese market reached 49.4million VND (2,128.66 USD) per tael (1,766.4 USD per ounce). On global markets,spot gold gained 2.63 percent to trade at 1,686.64 USD per ounce.

According to Nguyen Anh Khoa, head of analysis and investment at AgribankSecurities Co, the forecasts had not priced in the impact ofCOVID-19 on the economy, so the final results would besignificantly different./.