Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

Macroeconomics

The investment landscape of Vietnam has changed considerably since early 2016.  The country’s economic resilience is resulting in the country’s valuations topping its frontier peers in Asia and even trading on par with some of its emerging peers in Asia.  Thus, the prior 30-40% discount to emerging Asia case is slowly fading away as a result of the rise of the country’s stock market valuation in the past year.  It is imperative to note this fact, given that the "30-40% discount to emerging Asia"…

The investment landscape of Vietnam has changed considerably since early 2016.  The country’s economic resilience is resulting in the country’s valuations topping its frontier peers in Asia and even trading on par with some of its emerging peers in Asia.  Thus, the prior 30-40% discount to emerging Asia case is slowly fading away as a result of the rise of the country’s stock market valuation in the past year.  It is imperative to note this fact, given that the "30-40% discount to emerging Asia"…

Navigating Vietnam's New Investment Landscape

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

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<li>SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.</li>
<li>
Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…</li>
</ul>


SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.

Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…


Average 19% YTD Gain in Key Mining Stocks

Viet Capital Securities Joint Stock Company

Luan Nguyen

Independent Insight Provider

Rubber prices have grown positively from early 2016, not yet showing signs of cooling down, arguably the most important factor that helped rubber exploitation businesses record such a period of victory. Accordingly, the two major rubber suppliers, Phuoc Hoa Rubber (PHR) and Dong Phu Rubber (DPR), generated such impressive results.

Rubber prices have grown positively from early 2016, not yet showing signs of cooling down, arguably the most important factor that helped rubber exploitation businesses record such a period of victory. Accordingly, the two major rubber suppliers, Phuoc Hoa Rubber (PHR) and Dong Phu Rubber (DPR), generated such impressive results.

Steel Industry UpdatesVietnam's steel industry is still delivering rapid growth and experienced a <a href="http://vietnamnews.vn/economy/273001/domestic-steel-consumption-up.html#Ix6S1SdprrtPVHxt.97" target="_blank">24.4% increase</a> in the purchase of building steel products and a 34.7% increase in consumption of steel pipes during the first half of this year.  Several factors to note moving forward include the following:<ul><li>The current consumption per capita is currently<a href="http://www.seaisi.org/News/5712/Vietnams+steel+industry+makes+a+case+for+more+production+amid+distrust" target="_blank"> 200 kg.</a>, below the global average of 240 kg, and the average of 500-600 kgs. for industrialized nations.  The industry still has ample potential…</li></ul>

Steel Industry UpdatesVietnam's steel industry is still delivering rapid growth and experienced a 24.4% increase in the purchase of building steel products and a 34.7% increase in consumption of steel pipes during the first half of this year.  Several factors to note moving forward include the following:The current consumption per capita is currently 200 kg., below the global average of 240 kg, and the average of 500-600 kgs. for industrialized nations.  The industry still has ample potential…

In my previous insight, I covered how Hoa Phat Group and Hoa Sen Group were strong value investment picks, and were not financially impacted from the plunging price of steel.  This insight will take a further look at how Vietnam stands out as a positive outlier compared to the global steel industry, as a significant number of major steel companies are currently not profitable.  Vietnam can also be considered a positive outlier when compared to frontier and emerging asia, as many stocks in Vietnam are discounted to other frontier and emerging markets in Asia.  Vietnam’s steel industry is therefore a significant area for investment when compared to larger companies in developed markets, as well as frontier and emerging Asia.  The struggle in Vietnam has mainly been for small and mid cap companies in this industry, although some of these companies are exceptions.

In my previous insight, I covered how Hoa Phat Group and Hoa Sen Group were strong value investment picks, and were not financially impacted from the plunging price of steel.  This insight will take a further look at how Vietnam stands out as a positive outlier compared to the global steel industry, as a significant number of major steel companies are currently not profitable.  Vietnam can also be considered a positive outlier when compared to frontier and emerging asia, as many stocks in Vietnam are discounted to other frontier and emerging markets in Asia.  Vietnam’s steel industry is therefore a significant area for investment when compared to larger companies in developed markets, as well as frontier and emerging Asia.  The struggle in Vietnam has mainly been for small and mid cap companies in this industry, although some of these companies are exceptions.

Vietnam's Steel Industry Is a Global Outlier

Vietnam

Hoa Phat Group JSC is a multi-disciplinary manufacturing company. The Company manufactures a wide range of products, including steel, steel pipe, furniture, and refrigeration equipment.

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Hoa Phat Group Jsc (HPG VN)

Navigating Vietnam's New Investment Landscape

The investment landscape of Vietnam has changed considerably since early 2016. The country’s economic resilience is resulting in the country’s...

Nomadic Equity

Average 19% YTD Gain in Key Mining Stocks

SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold...

Singapore Exchange Ltd (SGX)

Natural Rubber Industry as of Q3 2016

Rubber prices have grown positively from early 2016, not yet showing signs of cooling down, arguably the most important factor that helped rubber...

Luan Nguyen

Updates for Vietnam's Steel Industry

Steel Industry UpdatesVietnam's steel industry is still delivering rapid growth and experienced a 24.4% increase in the purchase of building steel...

Nomadic Equity

Vietnam's Steel Industry Is a Global Outlier

In my previous insight, I covered how Hoa Phat Group and Hoa Sen Group were strong value investment picks, and were not financially impacted from...

Nomadic Equity

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