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Freight and logistics stocks on the rise despite pandemic

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Quy Nhơn Port in south central province of Bình Định. — VNA Photo

HÀ NỘI — Freight and logistics stocks have seen major gains since the beginning of 2020 even as the COVID-19 pandemic has wreaked havoc on the economy. 

According to the General Statistics Office, the country’s exports topped US$254 billion during the first 11 months of the year, making for an increase of 5.3 per cent over the previous year, while imports were estimated at $234.5 billion. 

Increased trade activities coupled with a number of international trade deals which were recently signed or came into effects such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP) have significantly boosted investors’ confidence in logistics stocks.

A number of stocks such as VSC, GMD, DVP, DXP, SFI and HAH have seen double-digit growth in recent months and some of them set all-time high records on the trading floor. 

Experts, however, pointed out the recent rise in stock value did not necessarily come from better business performance but rather investors’ optimism in the sector’s future. For example, despite the increased trading value, Gemadept has reported a 32 per cent drop in profit in the first three quarters, Tân Cảng Logistic (TCL) a 15 per cent drop and Hải An Logistics a 9 per cent drop. 

A container shortage, typically experienced by logistics firms during the end of the year when import/export activities are at the highest level, especially for an export-oriented economy such as Việt Nam, contributed to an increase in logistics costs.

A report from the Vietnam Logistics Business Association (VLA) showed more than 40 per cent of firms had difficulty finding containers for their cargo with up to 17 per cent unable to rent them. This has created a large backlog of cargo at port and storage facilities across the country, which generated additional revenue for logistics firms. 

Meanwhile, freight charges have skyrocketed in recent months. According to Freightos, a Hong Kong-based shipping company, the freight charges for a 40-feet container from China to the US west coast has almost tripled to near $4,000. 

Investors also seem to be betting on an increase in port charges as Việt Nam’s current prices were comparatively low in the region. A statement from the VLA said the sector has set an objective to bring charges to 60-70 per cent of the region’s price level by 2025, which they have planned to start bringing up at the beginning of next year. —

Source: https://vietnamnews.vn/economy/816951/freight-and-logistics-stocks-on-the-rise-despite-pandemic.html

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Foxconn unit receives business license for $270 mln Vietnam plant

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Foxconn unit receives business license for $270 mln Vietnam plant

A motorcyclist rides past the logo of Foxconn, the trading name of Hon Hai Precision Industry, in Taipei, Taiwan March 30, 2018. Photo by Reuters/Tyrone Siu.


The FuKang Technology Company, a Foxconn unit, received a business license Monday to build a plant to produce laptops and tablets in northern Vietnam.

The plant will be located in the Quang Chau Industrial Park in the northern province of Bac Giang and will annually produce eight million units, the government said in a statement on its website.

The Taiwanese electronics contract manufacturer has so far invested $1.5 billion in Vietnam and created jobs for more than 35,000 workers and the company, formally known as the Hon Hai Precision Industry Co., plans to raise its investment by $700 million and recruit 10,000 more local workers this year, the government said.

Last week Foxconn was also looking into investing $1.3 billion in Thanh Hoa Province, 160 km south of Hanoi.

Last year, the company produced the first batch of display screens at its $26-million factory in the northern Quang Ninh Province.

Foxconn, a major assembler of Apple products, including the iPhone, and the world’s largest contract manufacturer, came to Vietnam in 2007, and has been operating mainly in the northern provinces of Bac Ninh, Bac Giang and Vinh Phuc, making computers and other electronic products and car parts.

It has said that Vietnam is its largest manufacturing hub in Southeast Asia.

Source: https://e.vnexpress.net/news/business/companies/foxconn-unit-receives-business-license-for-270-mln-vietnam-plant-4222816.html

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VN-Index inches down in week’s opening session

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VN-Index inches down in week’s opening session

An investor points at stock prices on a laptop at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.


The VN-Index edged down 0.19 percent to 1,191.94 points after struggling to stay in the green throughout the trading day.

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, was predominantly green despite closing in the red, with 273 stocks gaining and 201 losing. Total trading volume fell slightly over the previous session to VND17.76 trillion ($767.14 million).

Blue chips were the main drag this session, with the VN30-Index for the stock market’s largest caps plunging 0.75 percent.

Private banks did not do well this session. EIB of Eximbank shed 2.5 percent, STB of Sacombank 2.4 percent, HDB of HDBank 2.3 percent, VPB of VPBank 2.1 percent, and TCB of Techcombank, 1.8 percent.

State-owned banks did slightly better. Among Vietnam’s three biggest lenders by assets, CTG of VietinBank dropped 2.3 percent and BID of BIDV went down 0.4 percent while VCB of Vietcombank edged up 0.1 percent. MBB of mid-sized Military Bank fell 2.1 percent.

All real estate stocks ended in the red. NVL of Novaland shed 1.1 percent, KDH of Khang Dien House, 1 percent, TCH of Hoang Huy Group, 0.9 percent and VHM of giant Vinhomes 0.5 percent.

Other major losing tickers this session included SSI of top brokerage SSI Securities Corporation, down 1.8 percent, GAS of energy giant PetroVietnam Gas and MWG of electronics retailer Mobile World, both down 1.1 percent, and VIC of private conglomerate Vingroup, 0.8 percent.

Topping gains for the sixth session was ROS of construction firm FLC Faros, up 6.9 percent, hitting its ceiling price again. Despite this, ROS closed at VND3,740, far below its VND12,600 IPO in 2016 and a high of VND178,000 in late 2017.

The ticker has been plummeting since early 2018 as a result of increasingly poor business performance, and is now the smallest capped ticker on the VN30.

It was followed by SBT of agricultural exporter TTC-Sugar, up 5 percent, POW of electricity generator PetroVietnam Power, 2.8 percent, MSN of food conglomerate Masan Group, 2.3 percent, and VRE of mall operator Vincom Retail, up 1.8 percent.

The HNX-Index for the Hanoi Stock Exchange, home to mid-and small-caps, surged 2.23 percent, while the UPCoM-Index for the Unlisted Companies Market slipped 0.11 percent.

Foreign investors were net sellers to the tune of around VND620 billion on all three bourses, with the net selling focused mostly on HPG of steelmaker Hoa Phat Group (up 0.2 percent), SSI of SSI Securities Corporation and VHM of Vinhomes.

Source: https://e.vnexpress.net/news/business/economy/vn-index-inches-down-in-week-s-opening-session-4221149.html

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Winners of HCMC Brand Award to be announced Thursday

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A poster of the HCMC Brand Awards, which will be held on January 21 – PHOTO: COURTESY OF ORGANIZER

HCMC – The HCMC Department of Industry and Trade and The Saigon Times Group will co-organize the HCMC Brand Award at the GEM Center in District 1 on Thursday, January 21, aimed at honoring enterprises in the city for their efforts in building their brands.

Since the launch of the HCMC Brand Award on December 1 last year, as many as 64 firms have registered to participate in the awards.

These applicants were required not to violate ownership rights nor show acts of trade fraud, while working on building their brands for at least two years.

The winners will be evaluated and selected by experts in brand building and customers based on the following criteria: efficiency in brand building, innovation, creativity, the quality and safety of products and corporate social responsibility.

Earlier at the launch ceremony, Bui Ta Hoang Vu, director of the HCMC Department of Industry and Trade, said the HCMC Brand Award would help raise the awareness of businesses operating in the city over the importance of building their brands and encourage them to accelerate innovation, creativity and sustainable development.

Besides, the awards are expected to help them reach out to the global market.

Source: https://english.thesaigontimes.vn/80240/winners-of-hcmc-brand-award-to-be-announced-thursday.html

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