PYN Elite outperformed the VN-Index, up +3.4% in September, thanks to the strong performance of our banks. Meanwhile, VN-Index only increased +0.3%. The State Bank of Vietnam has targeted this year’s credit growth of 15%. As of September 17th, the credit growth had reached 7.4% with private banks having reached 8.6% growth. The stock market’s prefunding requirement for foreign institutional investors has been removed. This is an important criterion for FTSE to consider upgrading Vietnam to Emerging Market status.
The Party Chief, Mr. To Lam attended the 79th Session of the United Nations General Assembly in New York, securing many deals from U.S. companies, such as SpaceX, KBR, Supermicro, etc. Nokia has recently announced a new deal to deploy 5G equipment for the first time in Vietnam.
Macro: August CPI at about 3.5% YoY, well below the Government’s target of 4.5%. The IIP is +9.5% YoY, showing strong growth in industrial production activities. 8M Exports +15.8% YoY and imports +17.7% YoY, trade surplus was at $19.1b. International visitors increased +45.8% YoY and surpassed the pre-COVID level. Total retail sales of goods and services +8.5% YoY with tourism leading at +26.2% YoY. FDI continued to increase. At 8M, the FDI disbursement was $14.2b (+8% YoY).
PYN Elite Stock of the Month: SCS
Saigon Cargo Service Corporation (SCSC) operates a cargo terminal at Saigon International Airport (Tan Son Nhat). This year SCS has made a strong recovery, landing a new customer, Qatar Airways. With the new client, SCS’s international cargo volume has increased by over 50% for the past 8 months, resulting in strong growth in both revenue and profit. The PBT margin continued to be very impressive, at 75%. For long-term prospects, SCS is a strong candidate for another cargo terminal at the second Saigon International Airport (Long Thanh). When finished in 2026-2027, this terminal will add 500.000 tons of capacity to southern Vietnam’s air logistics.