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VinFast – Vietnamese first automaker debuts new cars and motorbike

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VinFast officially launched its Sedan LUX A2.0 and SUV LUX SA2.0 in Hanoi on Tuesday and be ready to take orders for new vehicles, offering special incentives for the first customers.

Meanwhile, there is another launching ceremony in Saigon, includes a number of special activities in the upcoming days. The two vehicles were awarded “A Star is Born” from the AUTOBEST organization, which recognizes automobiles available in the European market, at the Paris Motor Show 2018.

According to a report on VNS, the two models were developed based on designs selected by Vietnamese consumers, bringing the beauty of pride and luxury with graceful details reminiscent of the Vietnamese spirit.

VinFast also introduced its hatchback Fadil, which was developed by Karl Rocks of Opel – one of the oldest German car brands under a technology contract from General Motors (GM), and smart electric motorcycle Klara.

The Lux, Fadil and Klara vehicles are designed, customized for Vietnamese people as well as the climate and traffic in the country.

In Hanoi, the VinFast showroom at Thong Nhat Park, opened from 5pm-9pm on Monday and will be opened from 9am to 9pm on Tuesday. Meanwhile, in Saigon, a similar event will take place at Vinhomes Central Park from 4pm-10pm on November 25 and from 9am to 10pm on November 26.

Hundreds of children suffer food poisoning

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According to Dtinews, Health officers have revealed on November 19 that over 200 children tested positive with the Salmonella virus type 2 after they ate buffet and fell ill at Xuan Non Nursery School in Hanoi.

On November 15, many children at Xuan Non Nursery School developed diarrhoea, fever and abdominal cramps. Over the next 12 hours, 140 more children were admitted to hospital with similar symptoms. Two teachers were also poisoned.

Nguyen Thi Nga, head of Xuan Non Nursery School, said the children attended a buffet at school with sausage, beef, sticky rice, vegetables, orange juice, lemonade and cakes. The food was prepared by Bao Tan Company in Dong Anh Town.

Dong Anh District General Hospital received 96 children and Bac Thang Long Hospital received 46 children. Hanoi Department of Health asked Dong Da General Hospital to provide support. Two serious cases were transferred to the National Hospital of Tropical Diseases.

According to Tran Ngoc Tu, director of the Hanoi Food Safety and Hygiene Department, samples tested at the National Hospital of Tropical Diseases show that the children were suffering from the Salmonella virus type 2. This virus can cause intestinal infections and patients often have abdominal pains or diarrhoea. The patients are mostly infected through contaminated water or food.

“After three days, over 100 children are still being treated and monitored at Dong Anh District General Hospital, Bắc Thăng Long Hospital, Vietnam National Children’s Hospital and National Hospital of Tropical Diseases,” Tử said.

Source: Dtinews

Bad road conditions in Sapa still ignored

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The tourist town of Sapa’s image has been damaged by the poor quality of its roads.

For many years, people in Sapa have been living with badly maintained roads which are covered by dust on a sunny day, and slippery on rainy days.

Dien Bien Phu Street which is one of the main routes into the town is full of potholes, severely affecting traffic and sometimes causing traffic jams.

Ham Rong Street is a particular issue because of the potholes flooded with water after rains.

The road deterioration has been attributed to a large number of vehicles, including overloaded trucks going to the construction sites every day. It is estimated that 5,000 to 8,000 cars arrive in Sapa daily.

Bad roads have been seen in Sapa for years

It is easy to see construction sites spill on the streets, hindering traffic. Meanwhile, many sections of pavements have been dug for water and electricity repairs.

Thach Tu, a local resident, said that the issue has existed for a long time, but nothing has been done to improve it.

Sapa welcomed around 2.5 million visitors in 2017, surpassing the set target of 2 million by 2020. With this growth rate, the locality is expected to serve 4 million tourists in 2020 and e million in 2030.

However, the town needs to take measures to deal with challenges, including road quality, if the town is to benefit from sustainable tourism development in the long term.

Source: Dtinews

Hanoi hospital gives patients free haircuts, hair washing

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Nearly 300 in-patients at Bach Mai Hospital had their hair cut or washed free right on Saturday, as part of a patient-welfare activity that takes place every three months at the major infirmary in Hanoi.

The gratis service was given right in a meeting hall of Bach Mai, which averagely has 5,000-7,000 in-patients every day.

Many people who received the care looked quite happy as it was difficult for their hair to be trimmed or shampooed in the hospital and their disease prevented them from walking to a nearby salon.

Some had not washed their hair for around a month.

The hospital’s service started six months ago, when local barbers and hairdressers offered a chance for patient hair care.

The activity is to help patients feel happier so that they can recover more rapidly from illness, said Pham Thi Bich Man, head of the infirmary’s social welfare arm.

The service, provided every quarter, also was expected to draw the patients’ attention to personal hygiene because a dirty body increased the risk of bacterial infection, she added.

According to a report on Tuoi Tre

Composing songs and producing music videos to support Vietnam’s football team

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Viet Nam’s football team really is the pride of the nation and now supporters have an opportunity to really feel part of their success.

A competition has been launched to compose songs and produce music videos especially for the teams.

Organised by the Labourer newspaper and VSET Company, the contest has a total prize fund of VNĐ1.2 billion (US$52,170). Of which, the winner of the best song will get VNĐ300 million ($13,000), while the best video will be awarded VNĐ100 million ($4,350).

The competition will last until October next year. It aims to encourage Vietnamese team in the international events such as AFF Cup, Asian Cup and Southeast Asian Games.

The organising board will announce top songs and best videos each month and there are three live shows to perform them

According to a report on VNS

Pharmaceutical retail market heats up with big players

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That large retailers with strong financial strength and good governance joining the Vietnamese drugs distribution market is expected to drive the domestic pharmaceutical retail market forward in the coming time.

Conglomerate Vingroup last weekend officially entered the pharmaceutical retail segment, with a launch of its VinFa Pharmacy chain in Hanoi. VinFa’s first eleven stores have been opened at Vingroup’s VinMart + convenience stores in urban areas or apartment buildings.

With a series of locations in trade centers and large-scale urban areas, VinFa promises to become a heavy-weight competitor of other big retailers, such as Mobile World Group, FPT Retail, Nguyen Kim Group and Digiworld JSC (DGW), which have entered in the pharmaceutical retail market over the past year.

Mobile World Group late last year showed ambitions to break into the pharmaceuticals segment, acquiring Ho Chi Minh City-based Phuc An Khang pharmacy at a cost of VND1.2 trillion (US$110 million).

Meanwhile, FPT Retail also announced a resolution to establish FPT Long Chau Pharmaceutical JSC after buying the biggest drugstore chain in Ho Chi Minh City. This company has concentrated on pharmaceutical retail, medical equipment, cosmetics, and toiletry in specialized stores.

Besides domestic companies, the market also witnessed many mergers and acquisitions (M&A) deals of foreign investors in the pharmaceutical market. Adamed Group – a pharmaceutical and biotechnology company from Poland – spent US$50 million to acquire a 70 percent stake of Dat Vi Phu Pharmaceutical Co., Ltd., Taisho pharmaceutical from Japan spent US$97 million buying 24.4 percent of the shares in DHG Pharma, whereas Domesco Medical Import-Export JSC sold 51.69 percent of its shares to Abbott Laboratories (America).

Major changes ahead

The demand for pharmaceutical products in Vietnam has rapidly expanded, given by high economic growth, rising per capita income, and rising population.

Per capita spending on drugs in the market increased from US$9.85 in 2005 to US$22.25 in 2010 and nearly doubled to US$37.97 in 2015. The average annual growth of drug expenses was 14.6 percent in the 2010-2015 period and maintained an annual growth of at least 14 percent until 2025. Drug expense per capita is forecast to double to US$85 in 2020 and US$163 in 2025.

According to Business Monitor International (BMI) data, revenue of the Vietnamese pharmaceutical market was US$5.2 billion last year and which is forecast to reach US$7.7 billion in 2021.

The local pharmaceutical retail market is large but has yet to saw the emergence of a dominant player. The sector’s distribution is still in the hands of private pharmacies with no one seizing a market share of up to 20 percent. According to experts, this therefore inspired the retail giants to break in the market.

However, experts said that actual changes in the local drug distribution market are expected to take place over the next 5-10 years as this year is still a period of exploration and evaluating market approach for new players.

According to Phan Van Hieu, chairman of CVI Pharmaceutical and Cosmetics JSC, the pharmaceutical retail market is not an easy sector for even big distributors, explaining that the drug market has a lot of barriers and is different from other markets.

Sharing the same view, Mai Hai Ninh from thuocvasuckhoe.com drugstore chain, said the biggest risk for drug retailers is the lack of medical expertise as drug sales depend on prescriptions or just a patients’ declaration on their health status.

The pharmaceutical industry is a specific industry, so from managers and salespeople need to have strong medical knowledge, Ninh said, adding that training of medical staff requires 2-3 years.

According to a report on Hanoitimes

Da Nang considers a multi-billion dollar port

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By 2050, the 120-year-old Tien Sa Port, the largest deep-water port in Da Nang city, will serve merely as a service and tourism port, while Lien Chieu port, which is still on paper, would become an international port with a capacity of 46 million tons per annum.

Lien Chieu Port project, with total investment capital of VND32,861 billion, is scheduled to be implemented in three phases.

By 2022, the investment capital would be VND7.37 trillion, while the port would have a capacity of 5 million tons per annum. The figures would be 17 million tons per annum and VND7.8 trillion by 2030.

The port would be built with 30 percent of total capital from the state budget, while the remaining 70 percent would be sourced from Vietnamese and private foreign enterprises.

In late July, the project on expanding and upgrading Tien Sa Port in the second phase, capitalized at VND1.069 trillion, was completed. Prior to that, Da Nang Port JSC implemented the port expansion in the first phase, which cost VND2 trillion.

Tien Sa is capable of receiving general cargo ships with tonnage of up to 70,000 tons, container ships of up to 4,000 TEUs, and large passenger ships of up to 150,000 GT. It can handle 12 million tons of goods every year, serving as the largest port in the central region of Vietnam.

However, Da Nang authorities think that Tien Sa’s capacity is not high enough. With the current growth rate of 20 percent per annum, the volume of goods in Da Nang would rise to 10 million tons by 2020 and 30 million tons by 2030, which is beyond Tien Sa’s capacity.

Some analysts commented that it would be unreasonable to use Tien Sa for both cargo and tourism purposes. Cruise tourists are high-income earners who need high-quality services and will not accept to go underneath containers hung over their heads.

Building a new port for cargo transportation and turning the existing Tien Sa into a tourism port are being considered.

Ho Duy Diem, former head of the Da Nang Development Planning Committee, said that natural conditions and transportation characteristics are unfavorable for Lien Chieu port development.

The port is projected to be built at the foot of Hai Van Mountain. This is an area of shallow sea, big waves and strong winds, making it dangerous for vessels to bypass or stop.

The construction of the port would need huge capital of VND33 trillion for three phases of implementation. The State would have to spend VND3 trillion to build breakwaters and passages.

According to a report on Vietnamnet

KKFund makes Vietnam debut, backs HR-tech startup JobHop

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Vietnamese recruitment platform JobHop has raised funding of $710,000 in a round co-led by Singapore-based KK Fund and Japanese HR services company Mynavi Corporation.

This is the first investment KK Fund has made in Vietnam. Tokyo-based Mynavi Corporation earlier funded Vietnamese property tech firm Homedy.

Proceeds from the investment will be used to grow the team and evolve JobHop’s platform to support increasing client and product demand, the company said in a statement.

Founded in 2016, JobHop has served over 500,000 job seekers and 2,000 companies, from small and medium businesses to large enterprises in Vietnam. With the investment from institutional investors including KK Fund and Mynavi Corporation, the company aims to become an omni-channel recruitment platform for companies and job seekers across Southeast Asia.

Traditionally, job seekers post their CVs on various HR sites without regard to effectiveness. Recruiters, on the other hand, spend immeasurable amount of time sourcing candidate profiles across many channels. JobHop leverages data science and blockchain technology to tackle the timing-and-fit problems.

“We don’t help you apply just a job, but one that suits you the most, and we’ll do so in the shortest amount of time,” said JobHop CEO Kevin Nguyen.

“We believe in JobHop’s ability to lead the wave in modernising and automating the recruitment process for recruiters and job seekers alike,” said Koichi Saito, general partner of KK Fund.

According to a report on Dealstreetasia

At least 12 dead, 6 missing as tropical depression hits Nha Trang and central provinces

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Torrential downpour caused by a tropical depression hit the coastal city of Nha Trang on Sunday, which killed 12, injured 11 and left 6 others missing.

According to a report by VNA, state-owned media, search and rescue workers in the city said that the tropical depression – remnants of the weakened Typhoon Toraji –had produced total rainfall of 380mm in less than 12 hours.

With the city’s sewage system unable to handle the prolonged downpour, many parts of the city were flooded.

Heavy rainfall also hindered traffic between Nha Trang and Cam Ranh International Airport.

1,400 people living in high-risk mountainous areas were moved to safer ground after four persons – including a 14-year-old child – were buried in a landslide.

In the morning, 400 soldiers and officials from various military universities based in the city were mobilized to support search and rescue agencies.

In the early morning, an international flight destined for Nha Trang was forced to land at HCM City instead due to the weather.

Flash floods and landslides killed at least 12 people in central Vietnam, officials said Sunday

The Deputy director of the South Central Meteorology Hydrography Station, Mr.Vo Anh Kiet, who based in Nha Trang said the rainfall had exceeded forecasts.

Another tropical depression was currently forming off the coast of the Philippines and was likely to become the ninth typhoon to enter Vietnam’s East Sea (internationally known as South China Sea) this year, Kiet said, adding that there was a strong possibility that the typhoon would make landfall in the south-central and southern provinces in a week.

“The landslide-hit locations were in areas difficult to access, so victims were at risk of being isolated despite ramped up efforts by search and rescue forces. People’s Committee had directed local governments to expedite support and aid for the victims” said Mr. Dao Cong Thien, vice chairman of Khanh Hoa’s People’s Committee.

Multiple deaths and damage to infrastructure.

Leaders would be held accountable before the provincial People’s Committee and Party Committee if support was delayed.

Schools would be closed today, Nha Trang’s education department said, with HCM City likely following suit depending on developments as the tropical depression had been forecast to move towards the southern city.

Widespread inundation

In Ninh Thuan, a south-central province of Vietnam also reported rampant flooding from the depression, with Thuan Nam District being the hardest hit.

The inter-commune road was under half a meter of floodwater, effectively cutting off access while schools, markets, medical stations and several houses inundated.

Canoes were deployed to transport 73 households in the flooded areas to safer locations.

No casualties had been reported, however.

Early morning on Sunday, a tornado occurred in The Cliff of Stone Plates area, a popular sightseeing site in Phu Yen Province, injuring 19 tourists from HCM City and four locals, while damaging several houses in the area.

Another tornado was also reported in Hoa Tam Commune in Phu Yen Province that took down power lines and damaged many houses.

Water levels in rivers from Nha Trang of Khanh Hoa Province to Ninh Thuan Province are on the rise, leaving more areas in the south central region at risk of flooding and landslides even when the rains have stopped.

The aftermath of the landslide in Phuoc Dong Commune as heavy rainfall caused by a tropical depression wreaked havoc across the south-central region over the weekend. — VNA/VNS Photo Phan Sau

Many trains were cancelled because of the flood | Photo: VNExpress

Read full report on VNS

Singles Day Sales updates: Vietnam’s participation grew by 240% this year

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Singles Day which occurs annually on 11th of November is now the biggest online promotion period in the world. In China, where the tradition originated, Alibaba announced a new record of $30.8 billion in terms of gross merchandise value, a growth of 27% compared to last year. In Vietnam this year, early reports also showed great enthusiasm from shoppers across the country, but does it translate to actual participation?

To answer this question and gain a better understanding of the size of Singles Day Sales in Vietnam, online price aggregator iPrice has recently published a report analyzing e-commerce traffic data on the big day.

A massive 240% growth

Based on traffic data from iPrice’s own website, there is a huge surge of 240 percent in terms of Vietnamese shoppers participating in Singles Day Sales 2018 compared to the same time last year.

Interestingly, while big cities like Ho Chi Minh City, Danang and Hanoi have always been active during this period, 2018 witnessed an especially higher turnout on Singles Day from some smaller Northern provinces, such as Bac Ninh, whose number of participating shoppers increased by 405%, and Vinh Phuc, whose number increased by 378%. These figures show how widespread Singles Day is getting across the country.

Additionally, the report noticed that traffic from Vietnam on 11/11 was at its peak during 8 to 9 o’clock in the evening then dropped by 10 p.m. This comes as a surprise since data also shows that on most other days, online shopping traffic from Vietnam peaks around 10 p.m. iPrice’s analysts speculate that this means Vietnamese shoppers were excited for the sales, so they got online and started shopping earlier than usual.

Mobile usage increased exponentially

Another important data point from the report is that the percentage of Vietnamese using mobile devices to shop on Singles Day has increased from 67.9% in 2017 to an even higher 82.74% this year.

This trend was well anticipated by e-commerce merchants in Vietnam as Shopee, Lazada and Tiki had all been focusing on mobile-based promotion activities this year, especially by introducing interactive games on their apps.

Shopee even incorporated their mobile app with a live TV show featuring some of the biggest pop stars in Vietnam. During the show, Shopee customers were encouraged to log in to the Shopee app and play games to earn discount points from the merchant.

It seems that as Singles Day is getting more popular in the country, the occasion is now not only an opportunity for merchants to increase sales but also a time for them to test out more innovative ideas, be more interactive, and leave a better impression on consumers’ minds.

Source: iPrice Insights

VDSC Weekly Market Recap: DGW, HDG, VGC, FPT, NVL, LTG, MPC, MWG

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The VNIndex down 1.76% to 898.19 points. Liquidity on HOSE remained relatively unchanged compared to the previous week, with an average VND2,501bn (USD108.7mn) of daily trading. Foreigners participated more in the trading activity, representing 14.4% of total trading. However, the turned net sellers divesting VND799.21bn (USD34.7mn).

Despite the investors’ risk-off stance most of the week, Friday’s rebound could help support a short-term uptrend. We expect to see higher liquidity next week and the VNIndex would reach 930-940.

As the trade disputes with the U.S. continues to impact China’s economic outlook, I wanted to take a look at how it may impact Vietnam’s exports to China. China’s growth report in October shows that Industrial Production held up pretty well, as it grew 5.9% YoY up from 5.8% in September. However, this is mostly due to front loading of exports before the US tariffs on USD200 billion goods rise from 10% to 25%.

China’s October consumption numbers came out earlier last week, and retail sales seem to be slowing. They reached their lowest point in 5 months.

Retail sales reflects consumers’ appetite for spending. Consumers may have started worrying that the trade war will impact on wage growth and job security. However, this might only be temporary as there seems to be progress in US-China negotiations. It might also be partly due to the delayed consumption demand fueled for the Singles’ Day sales festival on November 11, which a reached record numbers this year.

The slowdown in China’s retail sales doesn’t seem to have had an impact on consumers’ appetite for Vietnamese products. In the first 10 months of the year, the export to China increased 26.8% compare to last year, and represent 16.6% of total Vietnam’s export.

Smartphones export to China in the first 10 months soared 83.2% compared to the same period last year. China buys 17.4% of Vietnam’s total smartphones exports and only behind the EU’s USD11.3bn of smartphones import from Vietnam. However, China may very well overtake the EU as the largest importer of Vietnamese smartphones, as smartphone exports to the EU only grew 9.5% this year.

China imports 28.25% of Vietnam’s exports of electronics which includes hardware and components for manufacturing. Electronics export to China in the first 10 months increased 28.1% compared to the same period last year.

Top Stock Idea

Digiworld Corporation (HSX: DGW)

Market cap: USD41.82mn
Price : VND24,000
52w High : VND29,700
52w Low : VND18,450
Avg 30day Volume : 563,016
P/E : 9.6x
P/B : 1.3x

Catalyst:

· The stock is down by 19% from its June 2018 high of VND29,700.

· Strong sales growth in handsets distribution, mostly from sales of Xiaomi phones, resulted in 3Q18 revenue for this segment increasing 200% YoY. Xiaomi targets to grow its market share in Vietnam from 5% to 10% in 2019. In our view, this is doable as Xiaomi offers low-price, mass-market products and the company gives a lot of promotions to grow market share.

· 3Q18 office equipment’s revenue reached VND313bn, up 63% YoY thanks to new contracts with LG and Eaton.

· DGW is focusing on market expansion services (MES) for FMCG and healthcare products which have around 40% GPM. We think this is a good strategy because these segments require a lot of market knowledge, money and time to attract customers, therefore, manufacturer will need companies like DGW to conduct research market, marketing, sales and after sale services. In our view, FMCG and healthcare segments will become increasingly significant for DGW.

Valuation:

· Due to the recent market correction, and considering the company’s growth prospects, we feel the stock is now within BUY territory.

· Consensus EPS for 2019 is about VND4,270, which means the stock is trading at a forward PE of 5.7x vs. its average historic PE of 9.5x.

Risks:

· The contract with Xiaomi is a one-year contract and has to renew every March. However, the probability of Xiaomi not renewing the contract is very low.

Rong Viet Securities Equity Research Summary

Company Report

Ha Do Group (HSX: HDG) – (Initiation, ACCUMULATE, VND38,500, UPSIDE 20%)

· 3Q18 revenue was mainly driven by the handover of two real estate projects: Centrosa Garden in District 10 (VND400bn) and Hado Riverside in District 12 (VND250bn).

· The hydropower segment’s results hit by seasonality.

· The revenue and gross profit were VND187bn and VND93bn, respectively.

· 4Q18 is expected to be peak season for both residential and hydropower businesses, while the office and hotel segments should be stable. In term of revenue booking, HDG will finish the handover of the two-block Orchid in the fourth quarter, bringing revenue and net profit of VND2tn and VND330bn. Further, in 2018, HDG aims to generate 15% more of electricity output compared to 2017.

· The stock is trading at 33.x current EPS of VND2,349. Furthermore, at its current price, it is trading at ~1.3x P/B. Cash dividend is expected at VND500.

VIGLACERA CORPORATION – JSC (HNX: VGC) – (Update, BUY, VND21,000, UPSIDE 36%)

· 9M18 – Real estate stayed positive while building materials could be revamping

· Revenue and NPAT-MI came at VND6.374tn (-6% YoY) and VND461bn (-14% YoY), respectively. The combined gross profit thus decreased 9% YoY

· Residential property contributed 11% of profits. Industrial park recorded about 40 ha leased in 9M as a result of a high FDI level in the northern region.

· The MoC plans to withdraw the entire 54% stake in 2019.

· FY2019 outlook – Industrial park is a key driver, while VGC is expecting building materials to improve in view of restructuring.

· The stock is trading at 15.x current EPS of VND1,585. Furthermore, at its current price, it is trading at ~1.x P/B.

Analyst Pinboard

Review on 3Q18 Business Results of Listed Banks

The diversification of credit growth

· By the end of September, credit growth of the 14 listed banks was 11% YTD, implying that total credit growth of those banks in 3Q18 was approximately two percentage points.

· Due to the fact that its lending mostly depends on leading companies in the manufacturing, consumer, and aviation sectors, TCB’s credit growth sharply increased in 3Q18.

· Listed banks for which we collected data account for more than 50% of the lending market.

High growth in profit-before-tax

· PBT of these banks grew more than 28% YoY in 9M 2018. Excluding VPB, most banks fulfilled more than 75% of their PBT target for the year.

Regarding MBB and VPB, we believe that their provision expenses sharply increased due to their strategy to expand unsecured loans: MCredit to MBB and CommCredit to VPB, in 2018.
· Considering the average PBR, we find that the relative valuation of Vietnamese banks is not cheap compared to other banks in the region.

· The positive point is that when considering the movement of the ratio of market cap to deposit, we found that this rate dropped to a very low level compared to the average of the past 3 years.

FPT Corporation (HoSE: FPT): 9M Result Update – Growth on the back of the technology segment

· In 9M18, FPT posted a revenue of VND16.261tn (+21% YoY) and PBT of VND2.738tn (+33% Yoy). FPT has fulfilled 74% of revenue and 95% of PBT targets.

Technology

· Software exports: IT outsourcing remained the main revenue contributor and will still contribute the most for FPT’s technology revenues.

· On the other hand, the digital transformation segment is stepping up with a growth of 40% in revenue and more high-value customers.

Telecom

· This segment grew its revenues by 19% yoy and PBT by 35% yoy. For the upcoming years, the broadband industry will to grow at high a pace, so will this segment of FPT.

· Regarding the television service, IPTV is not yet near to the breakeven point.

Education

· This business generates VND941bn in revenue and VND296bn in PBT. Generally, FPT’s student increased by 50% to 36,300 at the moment.

Update on the construction and materials industry

· Construction and material is the sixth biggest industry in terms of market cap, worth VND146.21Tn.

3Q2018 Results Update: Lowest 3Q’s NPAT of the 2016-2018 period

· In 9M18, total revenue experienced a slight increase of 6.7% to VND154.272Tn, while net profit after tax (NPAT) was VND8.108tn, a sharp decrease of 24.1% compared to 9M17.

· In 3Q18, the construction and materials sector achieved a NPAT of VND2.869tn, dwindling by 8% QoQ and 17.5% YoY. NPAT went down to a low of VND 2,869bn in 3Q18.

· Among 19 industries, construction and materials is the one that saw NPAT decreased significantly in 9M18 (fell by 24.1% YoY).

Profitability ratios: ROE and ROA all through a tough period

· EPS fell by 8.6% YoY to VND1,535. Meanwhile, ROE finished 3Q2018 at 6.4%. Similarly, ROA dropped by nearly 1% to finish 3Q18 at 2.3%.

· The ROE of the construction and materials sectors recorded the second most substantial decrease of 2.6% following the fall of 5% in ROE of Telecommunications.

Update on Novaland

This year, NVL will only deliver 6,000 units to customers, compared with its plan of 6,700 units.
Project: NVL will only launch one project in late-2018.
NVL’s strategic plans is to expand its scale in the hospitality segment.
Debt increased by 25% during the year, of which short-term debt accounts for 44% of total debt.
In 9M18, revenues and net profits were VND6.7tn (+17% YoY)) and VND1.4tn (+4% YoY).
Residential – launching only one project in late-2018

· In 9M18, there was only one project launched, namely Victoria Village, resulting in total cumulative sales units of more than 25,000.

· Besides completed projects, there are 13 projects in total, which are expected to be launched soon.

Hospitality – New strategic segment

· Novaland continued to share its plans for this segment during the meeting.

· There are more than 3,000 condotel and villa units to be launched in early-2019.

Analyst’s view:

· The surge in debt over the last few years has put pressure on the company’s cash flow, as residential projects are delayed. The recent delay of two residential projects is not a positive signal. Novaland needs more aggressive ‘moves’ to prove its capabilities.

LTG – Results Update 3Q2018

· Revenue increased 12% YoY but profit declined 47% YoY in 3Q2018 due to G&A and interest expenses.

· General and administrative expenses increased significantly 50% YoY to VND75bn.

· Interest expense increased noticeably 60% YoY to VND45.8bn due to seasonal reason and a rising tide of short-term borrowing.

· We maintain our view that LTG depends on short-term debt to finance working capital, mainly for receivables and inventories.

· We remain concerned about the possibility of LTG completing its 2018 target: net revenue of VND9.876tn and PAT of VND589bn.

· We expect 4Q18, which usually has the best business results, helping LTG reach our net revenue forecast of VND9,147bn. We maintain an ACCUMULATE recommendation for LTG.

Minh Phu Seafood Corporation (UPCoM: MPC) – Extraordinary Shareholder Meeting: Getting Ready for a 25% World Market Share

· The extraordinary shareholder meeting of MPC on 10 Nov 2018 approved the following statements:

o Removing some inactive or non-core business lines

o Private placement of 75.72 million shares to increase charter capital from VND1.4tn to VND2.157tn.

o Project on a breaded shrimp factory with capacity of 40,000 tons/year in Hau Giang

o Cold storage project in the US

o Electing a member of the Board of Directors

o Establishing a R&D department for shrimp farming

o Annual ESOP program with maximum of 500,000 shares/year

o Allowing some shareholders who are the Chairman’s family to buy shares from other current shareholders without public bidding

· Ownership of strategic investors after the issuance would be 35.1%.

· We estimate the debt-to-equity ratio will fall from the current level of 67% to 51%.

· From shrimp farming, shrimp processing to exporting, the biggest problem of the company lies in the distribution.

· For the breaded shrimp factory project, the company will bring automation technology to reduce the cost of production compared to the traditional breaded shrimp products.

· MPC said that after deploying sensor technology successfully in its own farms, the technology will transfer to its associated farmers.

Analyst’s view

· Minh Phu’s farming and processing problems have been solved with the application of advanced technologies. Management expects the strategic partnership can help the company solve the final distribution problems. Business is increasingly focused on its shrimp farming and processing. Improving the financial structure will help the company grow both revenues and profits.

Mobile World Investment Corporation (HoSE: MWG ) – Optimizing Bach Hoa Xanh and seeking to compete with low-price electronics products

· In 9M18, MWG posted a revenue of VND 65,478 bn (+37% yoy) and net profit of VND 2.187 bn (+34% yoy).

· The company witnessed a slowdown in 3Q18 considering its revenue and net profit were only upped by 27% and 15% respectively YoY.

· Bach Hoa Xanh: In 3Q and especially September, MWG pushed up the upgrading process closed down a number of inefficient stores. We expect Bach Hoa Xanh to break even in 4Q18. However, the target of 500 stores in 2018 will not likely to be fulfilled.

· Dien May Xanh: The electronic device market (excluding phones) is still organically growing at a 20% pace YoY.

o Store expansion: MWG plans to have more than 900 Dien May Xanh stores from the current total of 737.

o Adjusting business model: MWG is planning to put online a ‘dual-price model’. There will be two different prices for the same product: one comes with full options while the other comes with cheaper price but no services.

· To sum up, we still have a positive view on MWG We keep a BUY recommendation with a target price of VND160,000 per share.

International media praises Vietnam’s crushing victory over Malaysia

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Vietnam’s national football team has grabbed the headlines of international media following its 2-0 triumph over Malaysia on November 16.

“Vietnam maintained their perfect start to the 2018 ASEAN Football Federation Championship on Friday as Park Hang-seo’s side beat Malaysia 2-0 at Hanoi’s My Dinh Stadium”, Reuters wrote.

In its article “Vietnam maintain perfect start with win over Malaysia”, Reuters highlighted contributions made Nguyen Cong Phuong and Nguyen Anh Duc. It said Phuong gave Vietnam a “flying start” when he clipped the ball home after Anh Duc’s miss-kick in the penalty area with 11 minutes on the clock. In the second half, Anh Duc scored one more goal to double Vietnam’s advantage.

Meanwhile, Malaysia’s New Strait Times described the Vietnamese team as “golden dragons”, who is now at World No.102, 67 steps higher than Malaysia’s position.

The newspaper’s article, titled “Harimau fall at Golden Dragons’ lair in Hanoi”, mentioned the vibrant atmosphere roared on by a 40,000 capacity crowd at the My Dinh Stadium.

The article said Malaysian goal-keeper Khairul Fahmi, who previously shut out Vietnam twice in the AFF Cup semi-finals in 2010 and 2014, could not protect his net from devilish shots of Phuong and Duc.

In its ratings given to players in the match, Fox Sports gave nine points to Nguyen Anh Duc thanks to his art of moving without the ball, and ability to look for opportunities. It said “On a day when his team really needed him, Nguyen Anh Duc delivered”. Meanwhile, Quang Hai who did a good job in midfield, and Cong Phuong, who opened the scoring in the 11th minute, were all marked 8.

In the Malaysian team, Shrel Fikri received lowest points. Despite 69 percent of ball possession, Fikri and his teammates could not shot a single goal. Fikri must have done better in his ability, Fox Sport said.

On November 8, Vietnam beat Laos 3-0 in its first match of Group A, with goals by Cong Phuong, Anh Duc and Nguyen Quang Hai. Meanwhile, Malaysia previously defeated Laos and Cambodia.

The AFF Suzuki Cup 2018 is taking place from November 8 to December 15 with 26 matches among 10 teams. Vietnam’s national football team is in Group A together with fellow South East Asian teams, Malaysia, Myanmar, Cambodia and Laos.

This year, the AFF Suzuki Cup will feature a new playing format, with both home and away ties. Vietnam will play Myanmar on November 20 and face Cambodia four days later.

Source: VNA

Meet the Vietnamese Families Living on Hanoi’s Train Street

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In the Old Quarter of Hanoi, a short walk from the landmark Hoan Kiem Lake, there is a street unlike any other you will ever see. Most people refer to it simply as Train Street. For the Hanoians who live along this slice of track, it is their home. It’s where kids play, laundry hangs, men shout and moms gossip as they hover over pots of steaming broth. It’s a normal Vietnamese community—well, almost.

A Day in the Vietnamese life

If you ignore the two steel tracks weaving a parallel arch through this neighborhood, you’d have a hard time distinguishing it from any of the dozens of other narrow alleys cutting jagged paths through the cement landscape of old Hanoi. Lush trees dangle over head, while uneven stones leave you staggering every couple of steps. Delicious aromas waft from kitchen windows, while smog hangs in the air and leaves a faint taste of exhaust on your tongue. Train street is just like many other similar streets throughout Vietnam.

Street life | © Scott Pocock/Culture Trip

Preparing food | © Scott Pocock/Culture Trip

Doing the washing up | © Scott Pocock/Culture Trip

Family time | © Scott Pocock/Culture Trip

A normal day | © Scott Pocock/Culture Trip

Weighing in | © Scott Pocock/Culture Trip

When the trains come

The trains come rumbling through twice a day, at 3:30pm and 7:30pm. There’s no warning siren, and certainly no wild panic as residents flee the oncoming behemoth. Rather, the community seems to operate on an internal clock of routines. As the time approaches, everything crowding the tracks just disappears into the tall homes and businesses lining the way. By the time the train actually arrives, there’s usually just a few curious foreigners left outside to brush noses with the iron beast.

the tracks are clear | © Scott Pocock/Culture Trip

Life goes on

Even during the hours when there’s a risk a train could fly around the corner any second, life still happens. The people living along Train Street still have errands and jobs to do. The tracks stay cleared, but the sides are tiny lanes for motorbikes and bicycles. They’re also an overflow area for when the kitchen runs out of space.

Motorbike track | © Scott Pocock/Culture Trip

Outdoor kitchen | © Scott Pocock/Culture Trip

Life must go on | © Scott Pocock/Culture Trip

And then comes the train

You can feel the tracks vibrating long before you see the train. It approaches in a low roar of screeching metal and blaring horns to shoo away the last few stragglers who’ve grown accustomed to the train and no longer fear it, or those moronic touristswho play chicken with the train for a bit of adrenaline. The train itself is long, painted blue and red. When it goes by, the train leaves gusts of smoke and dust. It’s a wild sensation to be on a tiny street next to a rumbling giant.

Here comes the train | © Scott Pocock/Culture Trip

Back to normal

And then, like water behind a boat, life spills back onto the tracks. The kids are let outside to play again, and watchful grandmas perch on their stools to keep an eye on the comings and goings of daily life. The people who live on Train Street have developed a harmonious coexistence with the dangers inherent to their community. Resilience is synonymous with Vietnamese, and this unique street is one of the best showcases.

Train Street, Ngõ 224 Lê Duẩn, Hanoi

The train disappears and street life returns | © Scott Pocock/Culture Trip

By Matthew Pike , The Culture Trip

November 16: VN-Index closes higher

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All main indexes gain ground on last day of week.

Investor sentiment was quite positive in the afternoon session on November 16, with banking stocks such as BID, CTG, VCB, ACB, MBB, VPB, HDB and TCB increasing strongly.

Securities and real estate and construction stocks also rose and petroleum, seafood, and textiles and garments attracted good cash flows.

After a strong period in the early afternoon, profit-taking pressure suddenly took hold from 2pm, which resulted in the index losing some of its gains. Garment stocks saw major profit-taking pressure.

Bluechips such as VHM, VRE, VIC, BHN, SAB and VCB lost ground and curbed momentum gained.

However, the efforts of ACB, CTG, BID, MBB, VPB, HDB, TCB and TPB gave much-needed support.

In oil and gas, GAS, PVS, PVD, PVB, BSR, OIL and POW had positive days, with GAS rising VND4,600 ($0.19) to VND95,000 ($4.07). Large caps such as MSN, BVH, FPT, HPG, VJC and MWG also rose.

At the close of trade, the VN-Index had increased 1.04 points (0.12 per cent) to 898.19 points, the HNX-Index 2 points (1.98 per cent) to 103.01 points, and the UPCoM-Index 0.72 points (1.41 per cent) to 51.97 points. Market liquidity improved significantly, with a matching order value of VND3.7 trillion ($158.7 million).

Foreigners continued to net sell overall, by more than VND120 billion ($5.1 million), but net sold on HSX and net bought HNX and UPCoM.

My Van report on Vneconomictimes

Metal-carrying motorbikes threaten traffic safety

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The traffic in Hanoi is being seriously threatened by motorbikes and home-made vehicles that carry long metal poles often used in construction.

Motorbikes carrying five to six metres long metal are not uncommon in Hanoi and can be seen anywhere since hiring a motorbike or transporting the metal bars individually is much cheaper than hiring a truck. Three-wheel vehicles are also used.

A transporter on La Thanh Street said mostly motorbikes were hired. Only when there is a larger number of products would they hire a truck.

Several accidents have occurred. In 2016, a primary pupil died after a collision with a three-wheel vehicle that was carrying several metal sheets.

A woman also died in 2016 after a similar accident in Hanoi. The motorbike driver used an additional cart to carry the sheets but the cart suddenly detached from the motorbike and killed the woman who was driving next to it.

Motorbikes are banned from carrying such long metal sheets and bars. They may face fines from VND200,000 (USD8) to VND400,000, however, in reality, many still flout the law. After the deadly accidents in 2016, the police in Hanoi had cracked down, but the drivers were willing to use alleyways to avoid police and metal store owners have continued to hire motorbikes.

Source: Dtinews