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FIDES(VIETNAM) Market Statistics 15/08 – 19/08/2022

FIDES(VIETNAM) Market Statistics 15/08 – 19/08/2022

Market Summary
ChangeTrading VolumeTrading ValueForeign net buy/sell
(%)Average daily trading volume (mil.shares)Average daily trading value (mil.USD)Net trading value (mil.USD)
HSX0.54%603.31665.0524.12
VN301.12%168.97250.8940.23
HNX-1.81%83.9768.742.03
Upcom-0.08%53.4440.20(3.82)

Source: Fiinpro

Sector Performance (HOSE + HNX, %)

Source: Fiinpro

Foreign Top buy/sell (HOSE + HNX, mil.USD)

Source: Fiinpro

News

Economy- Society

Vietnam’s public debt drops in 2021

  • The Ministry of Finance ’s statistics showed that the ratio of public debt to GDP decreased from 61.4% of GDP to 43.1% of GDP in the 2017-2021 period. Specifically, the ratio of public debt over GDP in 2017 was 61.4%, which consequently fell to 58.3% in 2018 and 55% in 2019 and underwent a slight rise to 55.9% in 2020 before plunged to 43.1% in 2021. The country offshore borrowing has fallen to 38.4% GDP in 2021 from the level of 49% GDP in 2017.

Public Investment: Vietnam considers $58.7 bn North -South high-speed railway

  • In Sep 2022, The Ministry of Transportation (MoT) will submit a proposal to the Politburo to build a 1,545 km North -South high-speed railway with a total capital expenditure of more than $58.7 bn.
  • In the first phase, the two rail sections, namely Hanoi-Vinh and Nha Trang-HCMC, with a total length of 665 km and investment of $24.72 bn, will be open to traffic by 2032. The second phase, the Vinh-Nha Trang section (890 km) will be built at an investment of $33.99 bn and completed by 2050.

Infrastructure: Ring Road 3 in HCMC to start works on 30 June 2023

  • The Nation Assembly approved the investment policy of Ring Road 3, which is divided into 8 component projects and implemented in the form of public investment, going through three provinces of Dong Nai, Binh Duong, Long An and Ho Chi Minh City. Total investment of $3.3bn.
  • The construction progress is highlighted as follows: (1) Land clearance:10 Oct 2022 to 30 Mar 2024 and (2) Approval of technical designs, cost estimation, selection of contractors & consultants: 30 Nov 2022 to 30 Jun 2023.

Vietnam Trade Balance in first half of Aug 2022

  • In the first half of Aug, total exports of $15.11 bn (+32.8% yoy) and imports of $15.24 bn (+18.8% yoy) resulted in a trade deficit of $130 mn.
  • Accumulated from the beginning of the year: exports of $232.76 bn (+17.7% yoy) and imports of $231.37 bn (+14.2% yoy) resulted in a trade surplus of $1.39 bn. (Source: Custom)

Company- Sector

Oil & Gas

$5.1 bn Long Son Petrochemical Complex nears completion

  • The end of July 2022, the construction of Long Son Petrochemical Complex Project has been nearly completed (96.2% of the workload). The petrochemical complex locates in Ba Ria – Vung Tau, 100km from Ho Chi Minh City, with an investment capital scale of $5.1 bn.
  • Long Son Petrochemical Complex was first launched in 2008 with featuring initial investment capital of $3.7 bn. As of June 2018, the complex became a fully invested company of SCG Group (Thailand), which had completed the purchase of a 29% stake from PetroVietnam to raise its holding in the complex from 71% to 100%. This integrated petrochemical complex is expected to operate in 2023 with capacity of 1.35 million tonnes of olefins and 1.4 million tonnes of polyolefins in a year.

PVN proposes to build a refinery and petrochemical complex with a reserve of $18.5 bn

  • Petrovietnam (PVN) has proposed the government to invest in $18.5 bn oil refinery and national crude oil, petroleum reserve in Long Son (Ba Ria Vung Tau province).
  • The complex would comprise of two projects for oil refining and reserve. In phase one, the refinery project would annually provide 7-9 million tons of petroleum products and 2-3 million tons of petrochemical products. For phase two, the capacity will be upgraded by 3-5 million tons of petroleum products and 5.5-7.5 million tons of petrochemical products. As for storage, the reserve project’s annual capacity would be 1 million tons of crude oil and 500,000 m3 of petroleum products. The complex would use domestic supply of crude oil, gas, and condensate, and import more crude oil from the U.S. and the Middle East, depending on demand.
  • PVN estimates phase one would cost $12.5 – 13.5 bn, and that would to $4.5 – 4.8 bn for phase two.
  • PVN expects to complete all dossiers necessary for the complex and hand over to the government in Jan 2023, followed by a feasibility study in the second half of 2023, and government approval in the first quarter of 2024. Selection of EPC contractors and construction would last until the end of 2027.
  • At present, SCG Group is nearing the completion of its $5.1 bn Long Son Petrochemicals Complex in the same province, expecting a full start-up in 2023. It will be Vietnam’s third operational oil refinery.

Steel sector: Steel material prices continue to fall sharply

  • According to Vietnam Steel Association (VSA), after consecutive growth in the first 5 months of the year, in early June 2022, the price of steel production materials dropped simultaneously. According to VSA, because flat steel makers (CRC, galvanized steel, steel pipes, etc.) use HRC as a raw material for their production, the world hot-rolled steel (HRC) market fluctuates wildly, challenging the domestic HRC market.

Industrial Parks – Vietnam to make Apple Watch and MacBook for first time ever

  • Apple suppliers Luxshare Precision Industry and Foxconn have tested production of Apple Watch in northern Vietnam.
  • Apple has also continued to shift its iPad production to Vietnam after the COVID-related lockdowns in Shanghai caused massive supply chain disruptions. Apple is also in talks with suppliers to build test production lines for its HomePod smart speakers in Vietnam.
  • On the MacBook front, Apple has asked suppliers to set up a test production line in Vietnam. However, progress in moving mass production to the country has been slow, partly due to pandemic-related disruptions but also because notebook computer production involves a larger supply chain. (Source: Nikkei)
  • 15 Aug 2022, Foxconn and Sai Gon – Bac Giang IP JSC., subsidiary of KBC (Kinh Bac City Development Holding), signed an MOU of leasing additional 50.5 hectares at Quang Chau IP (Bac Giang province) to invest in a new project with capex of $300 mn. Currently, Foxconn is the most significant investor at Quang Chau IP with total leasing of 69.82 hectares and total registered FDI of $773mn.

TNG (TNG Investment and Trading JSC)

  • In July 2022, revenue of $33.26 mn (+28.6% yoy) and PAT of $1.79 mn (+39% yoy). 7M2022: revenue of $174.26 mn (+36% yoy, completed 67% target year 2022) and PAT of $7.23 mn (+47% yoy, completed 59.6% target year 2022).
  • TNG plans to issue 5 million ESOP shares (8% OS). These shares will be restricted from trading in 3 years. (Source: TNG)

DGW (Digiworld Corp.)

  • In Q3/2022, DGW plans to achieve revenue of $282.6 mn (+70% yoy) and PAT of $8.7 mn (+87% yoy). This growth expectation was based on the ‘back-to-school’ season with annual peak cycle for laptops and tablets. The mobile phone segment continues to grow thanks to new models and the increase in market share of Xiaomi, along with rise in sales of iPhone products. (Source: DGW)

PVS (PetroVietnam Technical Services Corp.)  

  • PVS joined the joint venture of EPC general contractor for Hai Long wind power project in the Taiwan Strait. The project includes Hai Long 2 and Hai Long 3 component projects, co-invested by Northland Power, Yushan Energy and Mitsui companies with a total installed capacity of 1,044 MW. The project will be deployed and installed offshore in 2024 and completed test run, handed over to the investor in 2026.
  • PVS just added offshore wind power investment to its core business earlier this year.

DXG (Dat Xanh Group JSC)

  • DXG approved the issuance of $300 mn international bonds. Proceeds will be used to invest in additional 800 million shares of Ha An Real Estate JSC (99.9% OS). The implementation will take place in 2022, right after the company receives the money from the bond issuance.
  • Luong Tri Thin (Chairman) registered to buy 5 million DXG shares from 23 Aug to 21 Sep 2022, increasing his holding from 18.04% to 18.86% (114,890,948 shares). (Souce: HSX)

BAF (BAF Viet Nam Agriculture JSC)

  • BAF approved to issue $26.1mn private bonds to the International Finance Corporation (IFC – a member of the World Bank) in Q3-Q4/2022.
  • These are unsecured, convertible bonds without warrants. The maximum tenor is 7 years with a nominal interest rate of 5.25%/year. If not converted, IFC will receive an additional interest of 5.25% a year and this interest is compounded at 10.5% a year.
  • BAF expects to use the proceed to increase charter capital of its subsidiaries. (Source: BAF)

GEG (Gia Lai Electricity JSC)

  • JERA Co. (Japan) has signed a SPA with IFC and Armstrong to acquire all their equity interest in GEG. After the acquisition, JERA will indirectly hold 35.1% of GEG. The acquisition is expected to be completed after the necessary regulatory approvals.
  • JERA is Japan’s largest power generator with a total capacity of 80 GW. JERA will provide technology and expertise as TTC Group and GEG plan to spend $1bn to boost their renewable energy capacity to more than 2,000 MW.
  • In Vietnam JERA has invested in Phu My 2.2 gas turbine power plant in 2025. (Source: JERA)

VPB (Vietnam Prosperity Joint Stock Commercial Bank)

  • SBV (The State Bank of Vietnam) has just approved the capital raising plan of VPB to issue additional 2.23 billion bonus shares to exisiting shareholder, ratio 50%, raising its charter capital from $1.9 bn to $2.9 bn. Implementation time: Q2 and/or Q3/2022. In addition, VPB still has a pending private placement plan of issuing 1.19 billion shares to foreign shareholder (15% OS post money), equivalent to a lift of charter capital to $3.4 bn.

BSI (Bank for Investment & Development of Vietnam Securities Company)

  • SSC (State Securities Commission of Vietnam) announced to receive the proper dossiers of the private placement to strategic shareholder to raise charter capital. Accordingly, BSI will issue 65.7 mn shares (54.07% OS) to Hana Financial Investment at price of 41,000 VND/share, raising its charter capital to $81.7mn. Post transaction, Hana Financial Investment’s holding in BSI will be 35% OS. (Source: BSI)

HBC (Hoa Binh Construction Group JSC)

  • HBC plan to issue 5 million shares (2.04% OS) to Sanei Architecture Planning Co. Ltd (Japan) via private placement at price of 32,500 VND/share (48% higher than market price). Following the private placement, Sanei will hold 1.99% of HBC’s capital. Expected time: Q3 or Q4/2022, after the approval of the State Securities Commission (SSC). Lock-up: 1 year.
  • Total proceeds of $7.07 mn will be used to pay for the purchase of construction materials for construction activities (iron, steel, aluminum, cement …) in October 2022. (Source: HBC)

VSC (Vietnam Container Shipping JSC)

  • Private placement: plan to issue 40 million shares to 2 strategic investors (TTD Seaport Service & Investment JSC and Thai Bao Import Export Service & Investment JSC) at price of 20,000 VND/share (47% lower than market price). Lock-up: 3 years.
  • Proceeds will be allocated as follows: $26.08 mn for M&A activities, $4.35 mn for raising ownership in subsidiaries, associates and $4.35 mn for capital expenditure. (Source: VSC)

IMP (Imexpharm Corp.)

  • SK Investment Vina III (SK Group) plan to offer 733,759 IMP shares (1.1% OS) at price of 66.000 VND/share, increasing its holding from 53.94% to 55.04% (36,715,675 shares). (Souce: HSX)

DBC (Dabaco Group)

  • Ms. Nguyen Thu Hien (chairman’s daughter) registered to sell 3 million DBC shares via order matching or put through from 22 Aug to 20 Sep 2022, decreasing her ownership from 2.39% to 1.15% (2.778.173 shares). (Source: HSX)

HT1 (Vicem Ha Tien Cement JSC)

  • Ms. Nguyen Thi Hong Nhung (related person to board member) registered to sell all 1.5 million HT1 shares (0.405% OS) via order matching or put through from 23 Aug to 20 Sep 2022. (Source: HSX)

SSB (Southeast Asia Commercial Joint Stock Bank)

  • Mr Vu Dinh Khoan (Deputy CEO) sold 2.97 million SSB shares from 28 Jul to 12 Aug 2022, decreasing his ownership from 0.34% to 0.19% (3,778,100 shares). (Source: HSX)