- VEA announced its Q1 2023 results, including revenue of VND1.0tn (USD43mn; -11% YoY) and NPAT-MI of VND1.5tn (USD58mn; -7% YoY), completing 23% and 20% of our full-year forecasts, respectively. As these results trailed our expectations, we see potential downside risk to our forecasts, pending a fuller review.

- VEA’s decline in profitability in Q1 2023 was mainly led by an 11% YoY decrease in shared profits from associates and was partly offset by a 35% YoY increase in nonoperating profits that were mainly derived from short-term bank deposits. We attribute the decrease in associate profits to earnings from Honda Vietnam (74% of VEA’s Q1 2023 NPAT-MI) and Toyota Vietnam decreasing 12% YoY and 25% YoY, respectively. Meanwhile, profit from Ford and others jumped 36% YoY in Q1 2023 as a result of increased sales volume for Ford’s key models.