BID VN: will offer VND2,500 bn of 7-year bonds, VND1,000 bn of 8-year bonds and VND500 bn of 10-year bonds. Expected release time is from December 2022 to January 2023.

Comment: First q, at what coupon rate?

CTG VN: issued a resolution approving and officially announcing the financial plan targets for 2022. In which, individual PBT is expected to reach VND19,451 bn (+15% YoY).

DXG VN: Dragon Capital bought another 4.3 mn shares of DXG. After the transaction, the total holdings of DXG fund group Dragon Capital increased to nearly 123.9 mn shares, increasing the holding ratio from 19.6% to 20.3%.

DXG VN: approved a loan of VND1,080 bn from Ha An Real Estate Business Investment Joint Stock Company with an interest rate of 8%/year. The purpose of the loan is to supplement business capital or invest in a project.

FMC VN: recorded, in 2022, revenue of $226 mn (equivalent to VND5,336 bn) and consolidated profit of VND340 bn (+3% and +18% respectively YoY), exceeding 1% of revenue target and 6% of profit target. In December 2022, the company’s revenue was about $11 mn (lower than $3 mn MoM).

HVN VN: estimated, in 2022, revenue of VND72,359 bn, equivalent to 121% of the plan, of which the parent company recorded VND50,617 bn, equivalent to 112% of the plan.

KBC VN: approved the plan to purchase 50 mn treasury shares in advance to reduce charter capital. The implementation time is expected in 1Q23 and 2Q23.

KBC VN: will receive a dividend rate of 330%/share, equivalent to VND330,000 /share from Saigon Industrial Park JSC. – Hai Phong (SHP). With 3.6 mn shares owned, through this dividend, the total amount received by KBC is VND1,188 bn.

KBC VN: approved the transfer of 45 mn shares (25% of charter capital) of Hung Yen Development Investment Group JSC from Saigon Telecommunications Technology Joint Stock Company ( Saigontel – Code: SGT). The purpose is to increase KBC’s ownership rate in this company.

Comment: Overpriced, land bank amount and values are unclear. But they are still benefiting from the Korean companies expanding into Vietnam.

HPG VN: continued to test and successfully produce rebar for coils (DBIC – Debar in Coil), meeting British standards BS4449. This is a type of construction steel used as concrete reinforcement for super works, made in rolls for convenient transportation.

GMD VN: wants to divest all capital (84.66%) in Nam Hai Dinh Vu.

Comment: More curious about their planned equity increase via share issuance….

MBB VN: announced the implementation of banking operations with 100% capital in Cambodia on the basis of converting MB Cambodia branch.

MWG VN: Dragon Capital fund group sold 6.65 mn MWG shares in December 26th, 2022, reducing from 148.1 mn shares to 141.45 mn shares and the ownership ratio also decreased respectively from 10.12% to 9.66%.

Comment: This was a name commanding a 40% premium for foreign shares for several years. Amusing to see this gone. The management team of MWG have clearly said that they expect for the economy and their numbers to remain weak for 1H23 with the hope that by 3Q23 things recover.

NLG VN: completed the procedure to transfer 25% of the charter capital of Paragon Dai Phuoc Co., Ltd.

Comment: Its a decent size project for them. And this is perhaps one of the few prop co’s in VN with an effectively debt free balance sheet.

Country News

  • Deputy Prime Minister Le Minh Khai signed a decision approving the deposit insurance development strategy to 2025, with orientation to 2030, in which it was proposed to increase the charter capital for the deposit insurance organization to VND10,000 bn in 2025 and up to VND15,000 bn in 2030.
  • Vietnam’s rice exports reached, in 2022, over 6.8 mn tons, bringing in more than $3.3 bn (+15.2% in volume and +6.5% in value YoY). Rice exported, in 2023, will reach over 7 mn tons, revenue is estimated at $3.5-$3.6 bn.
  • The export of wood and wood products, in 4Q2022, reached $3.6 bn (-3.4% YoY). In which, the export of wood products was estimated at $2.5 bn (-5.3% YoY). In general, in 2022, the export value of wood and wood products is estimated at $15.8 bn (+7% YoY). In which, the export value of wood products is estimated at $10.9 bn (-1.3% YoY).
  • Vietnam’s rubber exports, in 2022, will reach about 2.1 mn tons, worth $3.3 bn (+9.6% in volume and +1% in value YoY). The average export price reached $1,547/ton (-7.8% YoY). For 11M2022, Vietnam’s rubber exports reached 1.87 mn tons, worth nearly $2.95 bn (+9.8% in volume and +3.5% in value YoY).
  • Vietnam GDP in 2022 is forecast to reach about US$413.81 bn, thereby ranking 37th in the world, according to the latest projection on the GDP scale for countries globally made by IMF.
  • Credit in 2022 is estimated to increase by 14.5% YoY. In the last 10 days of December, credit increased by more than 1.5% points, but this growth rate is still lower than the limit allowed by SBV in 2022 of 16%.
  • S&P Global’s Purchasing Managers’ Index (PMI) for Vietnam’s manufacturing industry fell to 46.4 in December from 47.4 in November, showing that the index fell below the average for the second time in a row of 50 points, reflecting the continued deterioration of business conditions in the manufacturing industry.
  • Despite huge challenges, the seafood sector in 2022 posted a new record in export value of 11 billion USD, up 24% year-on-year and 22% higher than the year’s target of 9 billion USD.
  • In December 2022, Vietnam’s seafood exports reached $785 mn (-13% YoY). However, thanks to continuous growth in the first 10M22, the whole year 2022, the seafood export industry production reached $11 bn (+24% YoY).
  • Bank loans, in 2022, exceeded deposits for the first time in 10 years, causing a liquidity crunch and a deposit interest rate race. The banking system pumped more than VND1,500 tn ($6.38 bn) into the economy in 2022, also the largest ever credit amount in a year.
  1. What is happening with Vietnam? Their market has gone bonkers downward…Can’t all be because of a crackdown on corruption is it?

    • That was the spark.

      As a result of this – they killed the corp bond market and cost of capital 3x in a week. interbank lending rates went from 4 to 14%. now its settled around 9%. 1 yr deposit rates have gone from sub 4 to 9%. So combine this and the resultant demand destruction in real estate followed by brokers tightening margin requirements across the board so that every overleveraged business owner that speculated on their own shares using multiple dummy accounts being forced to sell. Perfect situation for the dump in the mkt we saw last year.

      Perhaps eventually over the next 6-12 months under new bond regulations then capital will flow more freely throughout the economy and I wouldn’t be surprised to see rates return to 7% which is where they were in 2018.

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