Prof. Dr. Tran Ngoc Tho, Member, National Financial & Monetary Policy Advisory Council, University of Economics, Ho Chi Minh City
Bustle at ho thi ky flower market
By Dinh Ly – Translated by Kim Khanh
As the market benchmark VN-Index broke the psychological level of 1,200 points, along with many positive outlooks about the market, securities firms set big growth targets for 2021. Of which, many companies expected their profits to reach trillions of dong.
At the General Meeting of Shareholders held at the end of April, Viet Capital Securities JSC (VCSC) approved a business plan with a profit before tax target of VND1.25 trillion, up 31.4 per cent year-on-year.
In 2021, VCSC will restart large-scale M&A consulting deals, strengthening its position in investment banking (IB).
VCSC’s existing contracts worth around VND40 trillion are in consumer finance, consumer goods and logistics. Revenue from these contracts is estimated to reach VND2.05 trillion, up 18.5 per cent over last year.
The growth scenario is based on expectations that the VN-Index will hover around the 1,250 point-level this year.
If the plan is completed, VCSC will be in the list of securities firms with profit before tax reaching over VND1 trillion after two years of absence.
With the bullish market, Ho Chi Minh City Securities Corporation (HSC) also set a target of VND1 trillion in profit before tax in 2021.
This year, HSC aims to achieve total revenue of over VND2.6 trillion, up 68 per cent year-on-year. Its profit before tax is expected to reach over VND1.2 trillion, up 82 per cent.
The company’s return on average equity (ROAE) in 2021 is predicted to climb 17.1 per cent. Of which, brokerage, margin lending and proprietary trading are still the main businesses that create HSC’s profit.
According to HSC, the business plan is built on the average daily market transaction value in 2020, the first quarter result and the market trend for this whole year.
In the first quarter of 2021, HSC posted an increase of 218.7 per cent in profit after tax to VND321.8 billion.
Similarly, at the General Meeting of Shareholders this year, VNDirect Securities Corporation also achieved a consensus on the parent company’s revenue target of over VND2.5 trillion, up 20 per cent against last year and expected profit before tax of VND1.1 trillion, up 29 per cent.
This profit plan is built according to a scenario that forecasted the VN-Index to fluctuate in the range of 1,180 – 1,230 points in 2021.
This is also the first time VNDirect has set an ambitious profit target of up to trillions of dong.
At the end of the first quarter of 2021, VNDirect’s total revenue climbed 132.7 per cent year-on-year to top VND1.06 trillion, resulting in an increase of nearly 725 per cent to VND482.5 billion in profit after tax.
Techcom Securities JSC (TCBS) and SSI Securities Corporation (SSI) are other securities companies with targets of over VND1 trillion in profit this year.
These two companies also posted profit before tax of over VND1 trillion last year.
In 2021, TCBS estimated its profit before tax to reach over VND3.3 trillion, up 23 per cent over last year.
In the first quarter of 2021, TCBS recorded total revenue of over VND1.02 trillion with profit before tax of VND843 billion, up 61 per cent and 65 per cent over same period of last year, respectively. Pre-tax profit margin reached 82 per cent.
TCBS occupies the largest market share in profit among securities companies in Viet Nam, accounting for 21.8 per cent of the market share.
SSI, which is the second largest securities firm in profit, also expected an optimistic result this year, even though it hasn’t held the General Meeting in Shareholders this year, according to report prepared for the meeting.
In 2021, SSI aims to achieve consolidated revenue of over VND5.3 trillion and consolidated profit before tax of VND1.87 trillion, which is up 20 per cent year-on-year.
The Board of Directors of SSI will make accommodative adjustment if the VN-Index and the market’s liquidity do not reach the assumed levels. — VNS
Vietnam’s stock market inched higher on Thursday morning on the gains of large-cap stocks.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index rose 8.18 points, or 0.47 per cent, to 1,237.73 points. The market breadth stayed positive with 226 stocks climbing while 135 stocks slid.
The market’s liquidity was also higher than yesterday as domestic investors poured over VND9.9 trillion into the market, equivalent to a trading volume of over 339.7 million shares.
The market’s rally was mainly due to gains of many large-cap stocks. The VN30-Index, tracking 30 biggest stocks in market capitalisation on HoSE, jumped 1.1 per cent to 1,208.28 points. Of the VN30 basket, twenty-two stocks increased while only five declined.
Materials and bank stocks were leading the trend this morning, with Hoa Phat Group (HPG) posting the biggest gain in market capitalisation. The company shares edged 3.75 per cent higher to VND58,100.
The HNX-Index on the Ha Noi Stock Exchange (HNX) also rose 0.02 per cent this morning as the HNX30-Index gained 0.42 per cent. VNS
Important aviation gateway
Director of the Civil Aviation Authority of Vietnam (CAAV) Dinh Viet Thang said that in the near future, the aviation market of Vietnam and ASEAN will become bustling and full of competition. The deregulation of fare regulations and charter flight restrictions have had a strong impact on the structure of air transport prices. Airlines can be flexible in setting rates, offering competitive rates, suitable for passenger segments, thereby improving operational capacity and boosting air transport growth in the region in general and in Vietnam in particular.With a market and a population of nearly 100 million with increasingly improved incomes, Vietnam continues to be a destination for investment, business and tourism for both foreign investors and tourists. Along with the deep integration of the Vietnamese economy with the regional and international economies, the Vietnamese aviation industry has seen many opportunities for growth and development.
In mid-December, the Centre for Asia Pacific Aviation (CAPA) gathered a range of statistics, the results showing that the Hanoi-HCMC route is the world’s second busiest in November after the Republic of Korea’s Jeju-Seoul. In the VNA flight network, the route was exploited right from the start of the airline, playing a particularly important role in the business of the VNA Group (including VNA and Pacific Airlines) as well as in serving the political, economic, cultural and tourist duties of Vietnam. With the strategic role and great demand for the Hanoi – Ho Chi Minh route, the VNA has constantly improved and continuously launched products and services on this route to increase its attractions and offer the best guest experience to passengers.
The airline has invested in developing a fleet of wide-body aircraft Asia-Pacific, the second largest in Southeast Asia with its two main aircraft lines Airbus A350 and Boeing 787. Of which, there are 14 Airbus A350s-900, 11 Boeing 787-9, three Boeing 787-10 ,serving the Hanoi – Ho Chi Minh city route and international routes to Europe and Australia. In addition, the airline also operates this route according to the strategy of developing a “dual-brand” to meet the diverse demands of customers with a wide range of diversified products, flexible flight schedules and types of services suitable to the requirements of all types of passengers. “This combination has contributed to consolidating the market share of the VNA Group, which has always beenmaintained at more than 50% onthis route as well as in the domestic market”, according to the VNA representative.
Raising service levels
By 2020, VNA’s passenger volume on the Hanoi – Ho Chi Minh city route accounted for 25% of the total number of domestic passengers (on average, one out of every four VNA passengers took the Hanoi – Ho Chi Minh route). In April, 2020, when the Covid-19 pandemic became very complicated, the number of passengers flying between Hanoi and Ho Chi Minh City decreased by only 15% over the same period; but in May, when the pandemic was brought under control, the number of passengers was restored to 100%. Currently, the VNA Group provides about 104,000 seats per week, transporting 92,000 passengers between Hanoi and Ho Chi Minh City, equivalent to 98% of the same period last year and accounting for a 57% share of the total market.
In order to elevate the route to a core product in the domestic market, from July this year, VNA launched the identifier and the name “VNAXPRESS – Ho Chi Minh route” creating outstanding advantages. Accordingly, on average, VNA and Pacific Airlines make nearly 40 flights per day between Hanoi and Ho Chi Minh City route with a frequency of 30 minutes to one hour, meeting the travel demands of passengers at all times. The departure times of the flights are arranged inround time frames (5 o’clock, 6 o’clock, 7 o’clock, etc.) spreadfrom 6 to 21 hours daily, making it easy for passengers to to plan their tickets.
The flights are enhanced with wide body aircraft with a journey time of 2 hours per flight, giving passengers the opportunity to regularly experience the most modern aircraft in the world. In the event of an early arrival at the airport, passengers may be invited to fly at an earlier departure time, if the flight has room, within 120 minutes of departure, even after passing the security screening area. Passengers are allowed to use the passenger boarding bridge, with their own check-in counters and boarding gates. The check-in counters are located near the security entrance to help passengers save time and enhancel convenience.
In addition, passengers also enjoy the full range of VNA’sservices at a 4-star international standard from ground to air. For the first time on this route, Economy Class passengers can enjoy a variety of new dishes, while Business Class passengers can choose from a variety of dishes from traditional to European flavors in three time frames: Breakfast, noon and evening. Passengers also experience the reading space of E-reader covering various topics in both the Vietnamese and English language.
Publications are regularly updated and supplemented to bring the latest information to passengers. “Putting into operation the electronic publication is part of VNA’s overall strategy to keep pace with global trends and become a digital airline while improving the quality of in-flight reading services, ensuring the health of passengers by limiting their exposure and contributing to reducing the amount of paper to protect the environment”, said the VNA’s leader.
This is the first time a city in Vietnam has entered the top 10 preferred destinations in the Asia-Pacific. With the diversification of supply chains encouraging more manufacturing investment, industrial and logistics assets are keenly sought after, according to the survey.
CBRE’s Asia Pacific Investor Intentions Survey 2021 was conducted between November 9 and December 14 last year.
Ho Chi Minh City ranked after only Tokyo, Singapore, Seoul, and Shanghai in a poll of 492 Asia Pacific-based investors that answered a range of questions regarding their buying appetite and preferred strategies, sectors and markets for 2021.
According to Desmond Sim, Head of Research at CBRE Singapore and South East Asia, Ho Chi Minh City has already been on the radar of investors in recent years, especially those who are looking to invest in Southeast Asia, as the city is viewed as possessing the potential for greater appreciation in property values and higher yields.