Q1 2018 Business Results of Listed Banks

Total operating income (TOI) and PBT of 14 listed banks (HSX, HNX, and Upcom) were VND 56,340 Bn and VND 20,126 Bn, up by 35% and 52% YoY respectively.

GAS – Core Business to See Growth In 2018

Under the restructuring plan, PetroVietnam (PVN) plans to reduce its ownership in GAS from 95% to 65% during 2018-2019. However, the 2018 AGM confirmed that the divestment cannot be completed this year. The market immediately reacted negatively to the information. GAS share price dropped sharply in the last sessions of April from VND135,000 to VND96,500. However, the core business of GAS is still growing well so far in 2018 and the company is expanding its gas pipeline capacity.

Lach Huyen Port’s operation and long-term impact on Cam River ports

The first deep water port in Northern Vietnam, Lach Huyen Port, will be operational on May 13^th. The first two berths of the port have been developed by a Joint venture with Hai Phong International Container Terminal (HICT). When the first phase is completed, it will handle up to 300k TEUs this year.

Update on real estate companies’ AGM

In recent annual general shareholders’ meeting, many real estate companies have announced their business plans for the whole year. Generally, companies set high targets for earning, which is around 50% higher than the previous year on average. We suppose that the plans can be completely feasible and achievable, because many projects are approaching their handover phases, creating a driving force for revenues and profits.

Updates on Industrial Properties

The potential for industrial real estate is becoming enormous given the increasing flows of FDI and the expansion of domestic production. However, Vietnamese developers have to face intense competition with other industrial park operators in ASEAN countries, especially Indonesia who has been offering great incentives to industrial investors.

Opinion- NAFTA and the Sierra Club

NAFTA (the North American Free Trade Agreement between Canada, the US and Mexico) has been on the news since before President Trump was elected. The agreement went into effect in early 1994 and was preceded by the Canada-US Free Trade Agreement, signed in 1989. This author worked on the latter as a graduate student. 

Q1 Earning Season Recap

We took a quick look at the earnings of 478/765 companies annoucing their results.

Opinion: The Dollar, US Treasuries and ASEAN Currencies

Backtrack about a year ago when the market started speculating that the FED might be a bit ‘behind the curve’ in its handling of monetary policy, the Dollar (as measured by DXY) was at around 99 – see Figure 1). It fell by 10% to a low of 89 by the first quarter of 2018 then rebounded in April.

Vietnam's Retail Trend in 2018

In the context of the slowing down in the mobile phone and electronic markets, big retailers such as MWG, FRT and DGW are seeking for opportunities in another markets. These are the markets that have high growth potential and above all, there are no major competitors in the industry. While MWG is betting on retailing food with Bach Hoa Xanh, DGW and FRT aims to a less risky markets which is pharmaceutical products. This trend also promotes the development of modern retail and Omni-channel in Vietnam.