The VN-Index gained 3.2% in February, driven by a broad-based rally, particularly in banks, brokerages, and basic materials. PYN Elite rose 0.2% as the Dong weakened 1.9% against dollar and ACV’s shares faced a sudden setback due to confusion over the Ministry of Public Security’s plans to take over airport security services. This move has a minimal impact on ACV’s bottom line. In 2M2025, international tourist arrivals hit a new record high of 4 million, marking a 30% increase year-on-year.
Macro: Vietnam continues to benefit amidst trade war uncertainty, with registered FDI reaching its highest level in 2 months since 2019, at $6.9 billion (+36% YoY), with the majority directed toward the manufacturing sector. FDI disbursement also reached $3 billion (+5.4% YoY). Last week, we met with many top-listed companies and the tone was positive: banks reported encouraging credit growth and improving lending spreads, driven by the ongoing disbursement of infrastructure projects and a gradual recovery in business and consumer activity.
PYN Elite Stock of the Month: VIB
VIB Bank holds a leading market share in Vietnam’s retail lending, bancassurance, and credit cards and is a pioneer in Basel III adoption and digital transformation. It achieved the highest ROE, 28%, from 2019 to 2023 among its peers. In 2024, its ROE dipped to 18% due to aggressive provisioning on mortgage loans, which have a nearly 100% recovery rate in subsequent years. The business is set for a strong recovery this year, thanks to economic growth and loan collections. We recently acquired 54 million shares (1.8% ownership) by taking advantage of Commonwealth Bank of Australia’s (CBA) divestment, making VIB one of our top holdings with a 5-6% weighting. CBA, a strategic shareholder in VIB since 2010, was required to divest its investments in Indonesia, China, and Vietnam due to the Australian central bank’s directive to exit from overseas businesses. We closely tracked their moves and acquired 42% of the total offering.