2021 Outlook ENG Official

BÁO CÁO TRIỂN VỌNG 2020
OUTLOOK 2021
VCBS RESEARCH DEPARTMENT
Nov.2020
MACROECONOMY
FIXED INCOME MARKET
EQUITY MARKET
INDUSTRY AND STOCK PICKS

ECONOMIC GROWTH
Monetary base in some countries

8% GDP growth
6000 700
7% 6,50%-7%
600
5000
5006%
4000
4005%
3000
3004%
2000 2,8%-3,1%
2003%
1000
1002%
0 0 1%
01/04/10
01/12/01
01/10/02
01/08/03
01/06/04
01/04/05
01/02/06
01/12/06
01/10/07
01/08/08
01/06/09
01/02/11
01/12/11
01/10/12
01/08/13
01/06/14
01/04/15
01/02/16
01/12/16
01/10/17
01/08/18
01/06/19
01/04/20 0%
2013 2014 2015 2016 2017 2018 2019 E2020 E2021
US, $bn (LHS) Europe, €bn (LHS) Japan, ¥ tril (RHS)
2020 Source: Bloomberg, VCBS Research

Some Asian countries, notably Vietnam, sucessfully contain the pandemic while manage to achieve positive growth.
2021: GDP growth for 2021 expects to be 6.5%-7%
Government spending shall create positive impact in either public sector and private sector
3
MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS
ECONOMIC STABILITY
CPI Exchange rate USD/VND

1,5% 8%
24.400
24.000
6% 23.600
1,0%
23.200
4%
22.800
22.400
0,5%
22.000
2% 21.600
21.200
0,0%
0% 20.800
20.400
20.000
-0,5% -2%
03/15 08/15 01/16 06/16 11/16 04/17 09/17 02/18 07/18 12/18 05/19 10/19 03/20 08/20
01/15
04/15
07/15
10/15
01/16
04/16
07/16
10/16
01/17
04/17
07/17
10/17
01/18
04/18
07/18
10/18
01/19
04/19
07/19
10/19
01/20
04/20
07/20
10/20
01/21
04/21
07/21
10/21
Reference exchange rate Ceiling exchange rate
CPI (mom) CPI (yoy) Floor exchange rate VCB spot bid exchange rate
VCB spot offer exchange rate
Average deposit rates (Unit: %) 34% Credit growth
8,00
7,50
29%
7,00
6,50 24%
6,00
5,50 19%
5,00
14%
4,50
4,00 9%
3,50
1/2018 4/2018 8/2018 11/2018 1/2019 4/2019 7/2019 10/201912/2019 3/2020 6/2020 4%
D.R (1 month) D.R (3 months) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 E2020 E2021
D.R (6 months) D.R (above 12 months) Source: GSO, CEIC, VCBS Research
4
2021 OUTLOOK
Summary of macroeconomic forecast 2021

GDP
Potential output
decrease due to
CPI shock from both
sides
GDP Inflation
6.5% - 7% 3.0% - 3.5%
Deposit rates
Exchange rates Decrease 50bps $ %
Stability based
Less than 2% and settle low on available Flexible
resources and monetary
weaker USD policy
Stability of the economy
Trade balance Credit growth

USD 8-12 bn 11% -12%
CPI
Key drivers:
Food and
Transport
Source: VCBS Research

5
MACROECONOMY
FIXED INCOME MARKET

EQUITY MARKET

BOND MARKET –2020
DIVERSIFICATION INTO CORPORATE BONDS
Issued bond
Outstanding bond/GDP
600.000 50%
45%
500.000
40%
14,40%
35% 11,30%
400.000 97.413
5,27% 6,19% 7,86%
303.800
296.713 30%
42.769 115.416
300.000 48.047 25%

3,40%
34.412 146.039 20% 2,50%
2,73%
28.707
200.000 15% 3,30% 1,95%
25.000 10%
100.000
5%
0%
0
Gov Bond Gov-Backed Bond Muni Bond Corp Bond Gov Bond Gov-Backed Bond Muni Bond Corp Bond
Source: HNX, VCBS
MACROECONOMY FIXED INCOME EQUITY MARKET NGÀNH VÀ DOANH NGHIỆP TRIỂN VỌNG 7
BOND MARKET – Primary market
Wininng rates GB Auction results Vol (VND bn)
Government bond‟s holders
7,00% 20000
Average issued tenors
18000 15
6,00% 13,45 13,67
16000 13,03
5,00% 12,41
14000 13
12000
4,00%
10000 11
3,00%
8000 8,7
9 Other Banks
2,00% 6000
financial
4000 institutions
1,00%
2000 7 5,75
0,00% 0 5,05
Oct 07 - Oct 11
Oct 21 - Oct 25
Mar 09 - Mar 13
Mar 23 - Mar 27
Apr 06 - Apr 10
Apr 20 - Apr 24
Sep 07 - Sep 11
Sep 21 - Sep 25
Oct 28 - Nov 01
Jan 06 - Jan 10
Jan 20 - Jan 24
Nov 11 - Nov 15
Nov 25 - Nov 29
Aug 10 - Aug 14
Aug 24 - Aug 28
Nov 02 - Nov 06
Dec 09 - Dec 13
Feb 10 - Feb 14
Feb 24 - Feb 28
May 04 - May 08
May 18 - May 22
Jun 01 - Jun 05
Jun 15 - Jun 19
Jun 29 - Jul 03
Jul 13 - Jul 17
Jul 27 - Jul 31
Oct 05 - Oct 09
Oct 19 - Oct 23
5
Volume 5Y 7Y 10Y
15Y 20Y 30Y
70.000
Primary market Goverment bond issuance 10M.2020
60.000 160000,0 100%
140000,0 90%
50.000
80%
120000,0
40.000 70%
100000,0 60%
30.000 80000,0 50%
60000,0 40%
20.000
30%
40000,0
10.000 20%
20000,0 10%
0 - 0%
Jun 20
Jan 19
Apr 19
Jun 19
Jul 19
Jan 20
Apr 20
Jul 20
Feb 19
Aug 19
Aug 20
Mar 19
Sep 19
Nov 19
Feb 20
Mar 20
Sep 20
May 19
Oct 19
Dec 19
May 20
Oct 20
5Y 7Y 10Y 15Y 20Y 30Y
Offering volume Winning volume

ST VBSP VDB
Winning-to-offering ratio Issuing plan
Source: HNX, VCBS
MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 8

BOND MARKET – Secondary market
DOWANWARD FORCE IS EXPECTED TO DOMINATE BOND MARKET
8.962 Outright Foreign investors in the secondary market
2.400 10.000
8.756 100%
2.100 7.977 7.861 9.000 1.681 2.933 2.870
90%
x1,000 VND bn
6.354
8.000 2.121 2.240 2.269
1.800 80% 1.768
1.721
7.000 70% 1.209 1.445 1.254 1.177
963 48 907 938
1.500 6.000 60% 789270422 624 720
VND bn
50% 43 255
1.429
1.200 3.655 5.000 40%
3.642
4.000 30% -222 -275
900 -465 -655 37 -485
20% -553
-672
3.000
600 1.668 10%
2.000 0% -1.712
-1.880
Net position (Unit: bn.VND)
300 1.000
0 0
01/18
04/18
07/18
10/18
01/19
04/19
07/19
10/19
01/20
04/20
07/20
10/20
<3 3-5 5-7 7-10 > 10Y
Total volume (left side) Average daily volume (right side)
6,0% Yield Curve

Interbank rates 8,0% Bond Yields 4,0
7,0%
6,0% 3,0
4,0%
5,0%
4,0% 2,0
2,0% 3,0%
1,0
2,0%
1,0%
0,0% 0,0
0,0% 1Y 2Y 3Y 5Y 7Y 10Y 15Y
01/16
03/16
05/16
07/16
09/16
11/16
01/17
03/17
05/17
07/17
09/17
11/17
01/18
03/18
05/18
07/18
09/18
11/18
01/19
03/19
05/19
07/19
09/19
11/19
01/20
03/20
05/20
07/20
09/20
11/20
01/16
04/16
07/16
10/16
01/17
04/17
07/17
10/17
01/18
04/18
07/18
10/18
01/19
04/19
07/19
10/19
01/20
04/20
07/20
10/20
6/30/2020 9/30/2020
10/30/2020
ON 1W 2W 1M 2Y 3Y 5Y 7Y 10Y 15Y
Source: HNX, Bloomberg, VCBS

GOVERNMENT BOND MARKET – 2021 OUTLOOK
Volume of bond issuance is forecasted about VND 300-

KEY FACTORS 330 trillion (+8%-10% yoy).
Liquidity on interbank market. The investment demand for Government bonds can
SBV’s regulating policy completely balance the amount of forecasted bond
Disbursement for infrastructure speed up issuance.
Trend of higher asset prices in the world. Liquidity of the banking system, if seasonal effects are
Sentiment over macro-economics foundation. excluded, is likely to be abundant.
Bond yields have room to decrease, however, the
VND Billion Matured Bonds in 2021 volatility may appear more in 2021.
40.000
The highest liquidity based on tenors should be 7-10Y
35.000
tenors (and >10Y tenor).
30.000
25.000 Risks: An unexpected factor appeared in the market,

20.000 causing the operator to tighten the liquidity of the
15.000
banking system.
10.000
5.000
0
Feb-21
Sep-21
Mar-21
May-21
Oct-21
Dec-21
Apr-21
Jun-21
Jul-21
Aug-21
Nov-21
Jan-21
ST VDB VBSP Other
Source: HNX, VCBS Research

MACROECONOMY
FIXED INCOME MARKET
EQUITY MARKET
STOCK MARKET HIGHLIGHTS IN 2020
VN Index -4,6% HNX Index +31,4%
1.150
The US - China
1.100 signed trade EVFTA is in
SBV lowered the effect 144
agreement
1.050 China imposed Vietnam airlines are executive interest
Phase 1 The Chinese
lockdown 3 cities in allowed to increase rate for the second National Assembly
Hubei province their domestic flight time this year
1.000 passed the National 136
frequency by 2.5 times Security Law in
950 Hong Kong
GDP Q1.2020 128
900 +3,82% yoy
850
SBV lowered the 120
800 executive interest rate
for the third time this
750 year
112
700
FED announced new
New developments inflation approach 104
650 appeared in the US-
China trade war
600 Oil prices WTI crude oil prices
plummeted delivered in May closed GDP Q3.2020 96
550 because Russia
at negative prices +2,62% yoy
and OPEC did not
500 reach an
GDP Q2.2020
agreement 88
The WHO declares Covid- +0,36% yoy
450 19 as a global pandemic
400 80
VN Index HNX Index Source: Bloomberg, VCBS

STOCK MARKET HIGHLIGHTS IN 2020
 Q1.2020 witnessed the largest drop of VN Index since
Volume VN Index
August 2001 as Covid-19 became a pandemic. Due to the
1.100 800
decrease of the majority of sectors, the benchmark index
1.000 700
declined by 24.9%, with the most affected sectors
900 600
including aviation, travel & entertainment. However, 500
800
thanks to the success in disease control and the timely 400
700
social distancing period, the uptrend dominated during Q2 300
600
and Q3. Bullish index along with improving liquidity 200
500 100
indicated the optimism of investors about the long-term
400 0
economic outlook. As most of the world has not been able
to effectively contain the pandemic, many developed
countries have to face shutdowns, Vietnam’s market
occupied the spotlight as an outperforming economy. 1,5%
Top contribution to VN Index in 2020
 In the last quarter, VN Index suddenly surpassed 970 1,0%
points, erasing the decline in first half of 2020 during the
0,5%
announcement of listed companies’ Q3 business results in
October 2020. The gain was led by the banking sector and 0,0%
several other large-cap stocks such as VNM, HPG, MSN,
-0,5%
etc. However, at the beginning of November, the lack of
supportive information and profit-realizing pressure -1,0%
caused VN Index to fluctuate around 940 points.
-1,5%
MSN HPG CTG VNM GVR SAB BID VHM VIC GAS
Source: Fiinpro, Bloomberg, VCBS

RELATIVE VALUATIONS OF VIETNAM’S STOCK MARKET IN 2020
45 Sectors‟ P/E in Vietnam Sectors' P/B in Vietnam

40 3,5
35 3,0
30
2,5
25
2,0
20
15 1,5
10 1,0 2019
5 0,5 2020
0 0,0
Average P/E & P/B in ASEAN markets

35
28,88
30
25 23,05
20,71
20
15,95
15 P/E
11,07
10 P/B
5 2,05 1,74 1,39 1,43 1,43

0
VN Index IDX Composite Index FTSE Bursa Malaysia PSE All shares Index SET Index
EMAS Index
Vietnam Indonesia Malaysia Phillipines Thailand

FOREIGN INVESTORS’ HIGHLIGHTS IN 2020
Due to the impact of economic distress from the Foreign sector net buy/(sell) (VND million)
Covid-19 pandemic, foreign investors net sold 18.000.000
since February 2020, among which the most 16.000.000
aggressive selling periods were Q1, August and
14.000.000
October. Up until Nov 10th, net selling value of
foreign investors was VND 11,554 billion in all 12.000.000
three exchanges (namely HSX, HNX and 10.000.000

UpCom). 8.000.000
6.000.000
The most noticeable put-through transaction in
2020 belongs to the deal of VHM’s shares in 4.000.000
June with total value reaching VND 15,000 2.000.000
billion. On the other hand, VRE, VIC, MSN and 0

VHM PLX PGD MWG PHR VJC VRE VIC HPG MSN
HPG were the most net-sold shares. -2.000.000
-4.000.000
Foreign sector transaction volume (HSX, HNX & Upcom) (VND thousand billion)
40.000 Giá trị mua
30.000
20.000
10.000 Giá trị bán
0
-10.000 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20
-20.000 Giá trị ròng
-30.000
-40.000
Source: Fiinpro

BRENT CRUDE OIL
• In 2020, Brent crude oil’s price fell below USD 20 per
Oil prices 2020 barrel at times.
80,00
• The movement of global oil prices in 2020 is relatively
70,00
unstable, and we have seen many factors affecting oil
60,00 prices, from geopolitical fluctuations, advances in
50,00
science and technology or policy shifting of countries in
USD/barrel
the world, especially crude oil producing countries. But

40,00 the strongest impact on oil price movements is still the
30,00 Covid-19 epidemic.
20,00 • Prestigious financial institutions in the world have

released many different forecasts for oil prices.
10,00
Specifically, International Monetary Fund predicts that
0,00 global oil price in 2021 will be in the range of USD 40-
50 per barrel, equivalent to half of the USD 80 per
barrel price that Saudi Arabia needs to achieve the
Price changes (as at November 06th, 2020) balance of its state budget.
• Meanwhile, the bank of Morgan Stanley forecasts that

Daily Weekly Monthly Quaterly Yearly YTD
Brent oil price will reach USD 50.00 per barrel in
-1.29% 7.85% -3.79% -4.60% -35.14% -38.79% 1H.2021 thanks to a weak dollar and accelerating
inflation, while WTI oil prices will reach USD 47.50
Source: Bloomberg, VCBS
per barrel in Q3.2021.
16
NATURAL RUBBER
• In 2020, natural rubber price witnessed a new record:
Rubber prices 2020
Price reached the highest level in years on October 29th,
200,00
2020 after a Reuters poll showed that China's economy
180,00 in 2021 would recover strongly from the recession
160,00 caused by the Covid-19 pandemic.
140,00
• According to the Association of Natural Rubber
120,00 Producing Countries (ANRPC), in 2020, natural rubber
USD/kg
100,00 production will face difficulties due to epidemics,

which will limit labor force in the industry and make
80,00
transportation more difficult. The world’s natural rubber
60,00 production has decreased by 8.70% in the first 8 months
40,00 of 2020, reaching 7.778 million tons, and is expected to
decrease by 3.00% more in the remaining 4 months of
20,00
2020 and Q1.2021.
0,00
• However, ANRPC forecasts that the trend of rising
rubber prices will continue to exist in the coming
Price changes (as at November 06th, 2020) months, mainly due to the recovery of China's
manufacturing sector, amid an increase in car sales in
India and the prospect of a new economic stimulus
Daily Weekly Monthly Quaterly Yearly YTD program in the U.S.. September was the first month the
automobile industry recovered almost globally, after a
-2.29% -2.17% 10.11% 29.65% 13.12% 5.79% long period of decline caused by the Covid-19
epidemic.
17
STEEL
• China’s spot steel prices have recovered towards the
Chinese steel spot price 2020 end of 2020. In 2020, steel prices have fallen below
600,00 CNY 520.00 per ton at times due to the impact of trade
war tensions as well as signals of China’s decelerating
580,00 economic growth due to the effects of Covid-19
pandemic.
560,00 • Sales volume recovered in Q2.2020, due to higher
demand from real estate sector. Compared with the 14%
CNY/Ton
540,00 decrease over the same period in Q1.2020, 1 percentage

point lower than the same period in Q2.2020 can be
520,00 considered an impressive sign of recovery.
• Meanwhile, iron ore prices in 2020 and the following
500,00 years are forecast to decline due to more abundant
supply but lower demand.
480,00
• The World Steel Association (Worldsteel) forecasts that
global steel demand will decrease by 6.40% in 2020 due
to the negative impact of the Covid-19 epidemic, but
will gradually recover in 2021.
Price changes (as at November 06th, 2020)
• According to Worldsteel’s experts, there is a possibility
that the decline in steel demand in most countries will
Daily Weekly Monthly Quaterly Yearly YTD not be as serious as the situation of the global economy,
as Covid-19 has more serious effects on industries with
0.00% 3.33% 7.86% 10.49% 2.97% 4.42% less usage steel, like consumption and services.
However, in many developed economies, steel demand
has not fully recovered since the 2008 financial crisis
and still remained low.
18
MSCI FRONTIER MARKET 100 INDEX RAISING VIETNAMESE
STOCKS’ WEIGHT
As Kuwait has been upgraded to Emerging Market since Current Expected
Expected
Value post-
Expected Net Expected Net Buy
Ticker Weight Weight post- Buy post-phase 1 post-phase 1
November 2020, MSCI also announced the new weight of the (%) phase 1 (%)
phase 1
(USD) (VND)
(USD)
constituents in MSCI Frontier Market 100. In particular, MSCI 1 VRE 0.47 0.58 2,274,680 421,272 9,794,567,424
Frontier Market 100 index will be restructured in 5 stages to 2 VNM 2.06 2.55 10,033,295 1,911,947 44,452,758,336
exclude Kuwait’s stocks from the index, from November 2020 to 3 VJC 0.45 0.55 2,177,885 403,107 9,372,230,266
4 VIC 2.1 2.55 10,033,295 1,777,391 41,324,345,751
November 2021.
5 VHM 1.45 1.78 7,017,630 1,312,620 30,518,421,498
After the first restructuring phase in November 2020, the weight of
6 VHC 0.1 0.12 483,974 76,353 1,775,206,904
Vietnamese stocks in MSCI Frontier Market 100 Index will 7 VGC 0.16 0.20 774,359 154,201 3,585,173,534
increase to 15.76% from the current 12.65%. We estimates that the 8 VCB 0.83 1.02 4,016,988 736,366 17,120,502,517
ETF Ishare MSCI Frontier Market 100 ETF will net buy about 9 TCH 0.1 0.12 483,974 102,596 2,385,367,814
VND 280 billion after the restructuring phase in November 2020 10 STB 0.17 0.21 822,757 165,881 3,856,738,638
11 SSI 0.18 0.22 871,154 178,665 4,153,950,119
allocated to 28 Vietnamese stocks, with PDR and KDC being
12 SHB 0.19 0.23 919,552 172,643 4,013,955,580
newly added stocks.
13 SBT 0.11 0.15 590,194 163,805 3,808,473,533
14 SAB 0.31 0.38 1,500,321 273,226 6,352,502,290
15 PVS 0.09 0.11 435,577 80,261 1,866,077,681
16 POW 0.12 0.15 580,769 100,996 2,348,156,167
17 PLX 0.14 0.17 677,564 120,467 2,800,867,124
18 NVL 0.39 0.48 1,887,501 371,421 8,635,533,392
19 MSN 1.07 1.32 5,178,527 984,823 22,897,132,843
20 KBC 0.08 0.10 387,180 62,804 1,460,188,957
21 HPG 1.29 1.59 6,243,271 1,165,985 27,109,151,419
22 HDB 0.26 0.32 1,258,334 217,097 5,047,507,979
23 GEX 0.15 0.18 725,962 154,940 3,602,362,968
24 GAS 0.13 0.16 629,167 115,805 2,692,457,036
25 BVH 0.08 0.10 387,180 72,216 1,679,015,865
26 BID 0.17 0.21 822,757 143,946 3,346,735,240
27 PDR 0 0.10 393,463 393,463 9,148,004,415
28 KDC 0 0.10 393,463 393,463 9,148,004,415
Source: MSCI Source: Bloomberg, VCBS

DERIVATIVE MARKET HIGHLIGHTS IN 2020
400.000 1.000,00
350.000
900,00
300.000
800,00
250.000
200.000 700,00
150.000
600,00
100.000
500,00
50.000
400,00
01/08/2020 02/08/2020 03/08/2020 04/08/2020 05/08/2020 06/08/2020 07/08/2020 08/08/2020 09/08/2020 10/08/2020
Khối lượng GD Vị thế mở VN30 VN30F1M
• After the sell-off in March, VN30 Index had an impressive recovery momentum, by the end of October 2020, the index had
increased by 54.00% compared to the lowest point of 600. During the highly volatile period in Q2 and Q3, the derivative
market was driven by speculators. However, from the end of Q3 until now, VN30 recovered strongly to 900 points with
positive cash flow returning to the underlying stock market and liquidity in the derivative market shrinking.
• As of now, the underlying index has increased 1.80% YTD while VN30F1M has increased by 2.50%. Market liquidity also
improved significantly compared to 2019’s, namely the average total trading volume per session reached more than 161,600
contracts (up by 90% compared to that in 2019) and the total average transaction by session reached VND12,700 billion
(67% higher than that in 2019). The average number of open interests (OI) per session also reached more than 23,500
contracts, which was an increase of 17.50% compared to that in 2019.
• Besides VN30 futures, Covered Warrants (CW) market also recorded many impressive milestones. The total number of CWs
on the market currently is 107, based on 21 underlying stocks. However, CW market is still one-way long market, only
allowing call options to be listed.

VIETNAM‟S
STOCK MARKET
OUTLOOK IN 2021
STOCK MARKET’S OUTLOOK IN 2021
PROJECTIONS OF BENCHMARK INDICES
In 2021, we expect the Vietnam’s stock market outlook and market
size to achieve a certain growth compared to 2020’s but the growth
rate will somewhat be limited, due to the fact that most supportive
factors in 2020 are forecast to not improve but even weaken in
2021. Some key takeaways are as follows:
The peaks of benchmark indices in 2021 are projected to
increase by about 8-15% compared to those at the end of
2020, and will be greatly affected by the recovery rate of the
Vietnam’s economy in the context of the "new normal” in
Vietnam and the development of the Covid-19 pandemic
globally.
Source: Fireant, VCBS
VN Index tends to move around a higher "base", but the
fluctuation range (the difference between the year's highest
and lowest) will be around 120-150 points and not as large as
in 2020, while HNX Index is projected to fluctuate in a
range of ~ 20 points.
Average trading volume in 2021 continued to improve
compared to that in 2020, reaching an average of 400-410
million shares per session on all three exchanges,
equivalent to an increase of about 5% yoy.
Trading value is expected to increase by about 8.00%
corresponding to an average trading value per session of
about VND 6,900-7,000 billion on all three exchanges.

PUBLIC INVESTMENT PLAN AND DISBURSEMENT IN 2021
Investing in new projects in 2021 will not be easy
 Limited resources: Public investment in 2021 will slightly increase compared to the disbursement plan in 2020, at VND
477,300 billion (+ 1.4% yoy). However, according to the statistics of the Ministry of Planning and Investment, the capital
demands from ministries and provinces are 682,000 billion VND.
 The gap time between submitting and approving mid-term public investment plans for the period 2021-2025 is
interpolated with 2021’s investment plan. 2021 is the first year of the five-year socio-economic development plan as well
as the first year of the mid-term public investment plan for the period of 2021-2025, but it is only until July 2021 that the
mid-term plan is officially approved.
 With (1) limited funding and (2) late approval of the investment plan, highly prioritized investments for 2021 will be
transitional projects and those completing in 2021, focusing on projects that have been approved between 2016 and 2020,
major infrastructure projects, etc. Newly submitted projects will be delayed in the context of unapproved 2021-2025
public investment plan and the negative effects of Covid-19 on the economy.
Transitional projects to be implemented in 2021* Key project 2021*
Total Investment
No. Project Contractors Long Thanh Airport Phase 1
(bil VND)
1 Nha Trang - Cam Lam 7,615 Bidding in progress. Total Investment (bil VND) 109,200
2 Cam Lam - Vinh Hao 13,600 Bidding in progress. Expected completion 2025
3 Mai Son – Route 45 12,111 Bidding in progress. Clearance: 18.500

Cost structure (bil VND)
4 Vinh Hao – Phan Thiet 11,183 Bidding in progress. Construction: 90.700
5 Phan Thiet – Dau Giay 14,356 Bidding in progress. Progress Clearance: 2,500 ha
*Source: VCBS

EVFTA – TARIFF CUT COMMITMENTS BETWEEN EU & VN
EU TARIFF CUT COMMITMENTS (Source: VCCI, VCBS) VIETNAM TARIFF CUT COMMITMENTS
Product Instant Effect Guideline Product Instant Effect Guideline
42.5% of tariff remove to Machinery and
Texiles 3 - 7 years 61% of tariff remove to 0% Remaining tariff remove to
0% equipment
Some tariff is remove to - Cars (over 2500 cm3 running diesel,
Shoe 4 – 8 years over 3000 cm3 running in cylinders)
0%
will reduce tax to 0% after 9 years
Some industrial and
Car and - Other types of cars are subject to a 10-
Yarn garment yarn remove to Remove to 0% within 4 years
year tax reduction commitment
0% Automobile
- Auto spare parts are removed tax
Tariff on seafood reduce to Catfish tariff reduce from 9% to 0% equipment import after 7 years
Catfish/Seafood
0% in 3 years - Regular computers and computers
Drugs and over 150 cm3 have import tax of 0%
Medical All Tariff remove to 0% after 10 years and 7 years
- Wine and spirits will be exempt from
Equipment
import tax after 7 years
Electronic device Other tariff reduce to 0% within 6 Alcohol beverage
74% of tariff remove to 0% - The schedule for tax elimination for
and equipment years beer is 10 years
- Import tax on frozen pork will be 0%
Raw agriculture product
Agriculture Processed product tariff is reduce to after 7 years; Import duties on other
tariff remove to 0%, apply types of pork will be 0% after 9 years
product 0% within 4 to 8 years Fresh/Frozen
quota on rice export - Chicken will be exempt from import
Meat
tax after 10 years
Processed food Poultry fillet, exotic organs remove - Beef will be exempted from import tax
Most tariff remove to 0% after 3 years
and Frozen meat to 0% in 8 years
The rest will be eliminated from tariffs
Industrial, Specialized Tariff remove from 10% to 0% Medical drugs 71% of tariff remove to 0%
on a 5 to 7 year schedule
Car vehicles tariff remove to within 4 – 8 years, depend on engine The rest will be eliminated tariffs on a
Chemical 70% of tariff remove to 0%
0% capacity maximum 7-year schedule
Tariff on motorbike >250 cm3, Texile and shoe The rest will be eliminated tariffs on a 3
Tariff on motorbike < 250 80% of tariff remove to 0%
Motorbike electrical bike remove to 0% within material to 5 year schedule
cm3 remove to 0%
4 to 6 years 44% of tariff is remove to
Milk and milk The rest will be eliminated tariffs on a
Chemical and Most tariff is remove to Remaining tariff remove 0% to 4 0%, some would take up to
product 5-year schedule
material 0% years 3 years
Woods and Remaining tariff remove to 0% after Import duties will be cleared after 10
74% of tariff remove to 0% Oil and Gasoline
Wooden product 4 years years

SOME NOTEWORTHY INVESTMENT HINTS IN 2021
“A BIRD IN THE HAND IS WORTH TWO IN THE BUSH”
So far, 2020 has witnessed many ups and downs of the global economy as well as major
stock markets in the world due to the impacts of Covid-19 pandemic. We believe that
what happened in the world in 2020 still potentially leaves over many negative
consequences and risks in 2021.
On the other hand, Vietnam's macro-economy remained stable, highlighted by
optimistic economic growth and inflation and exchange rates under control. Moreover,
low interest rates globally, with Vietnam being no exception, open up many
investment opportunities in industry-leading companies which are also the main
driving force behind the growth of Vietnam's stock market in the long run.
In the context of similar level of risk vs. opportunity, we believe that investment opportunities in 2021 will lean to basic industries
serving as essential inputs for the economic growth in Vietnam ("back to basics") for the time to come:
The shift of global supply chains, the industrialization (and digitization) of the domestic economy and the urbanization process in
Vietnam will all require essential inputs such as Electricity (both electricity transmitting and producing); Basic construction
materials (cement, steel, wood, stone); and Agricultural products. These sectors also benefit from the government's public
investment in building new infrastructure projects and upgrading existent infrastructures, as well as the overall recovery of the
domestic demand.
Another noteworthy group is companies that support the increase of trade between Vietnam and other partners thanks to the free
trade agreements signed recently and in the near future, typically seaport & logistics sectors. These companies also supports the
shift of manufacturing chains from China to other countries with more competitive labor costs, which includes Vietnam.
Although it seems contrary to the investment opinion that we outline above, we also want to emphasize on companies which
introduce and apply new technologies to its day-to-day business operations. The application of advanced technologies in
business, including the "digitization" of Vietnam’s economy, is inevitable and irreversible. Therefore, even though changes from
old to new always bring about risks, the potential positive outcomes, which are the improvements of productivity, business
performance and resource usage efficiency, still outweigh the risks caused by the transition process.
And lastly, we also want to include companies with their “specific catalysts“, i.e. seeking foreign strategic partners,
conducting M&A, IPOs, listing new shares and moving listed shares to other stock exchanges, etc.

MACROECONOMY
FIXED INCOME MARKET
EQUITY MARKET

STOCK PICKS
BANKS • ACB CTG MBB TPB
REAL ESTATE • VHM

AVIATION -
• ACV GMD
SEAPORTS
CONSTRUCTION MATERIALS • HPG PTB
ENERGY • PC1
RETAIL • MWG PNJ
FERTILIZERS • DCM
TEXTILES • STK
OTHERS • DGC PLC FPT
27
BANKING
SECTOR
BANKING SECTOR – UPDATE
Credit growth is slower than previous years but showing signs of 9M.2020 Credit growth
speeding again: TPB
- Expected to be less than 10% for the whole of 2020. SHB
VPB
- 9M.2020: credit growth from corporate bonds contributed 25% of HDB
growth and credit growth from large corporate customers contributed VIB
LPB
about 60% of the growth. MBB
ACB
TCB
SBV has loosened “room” for credit growth for many banks: VCB
- With the purpose of stimulating credit growth to support economic STB
BID
growth, SBV has loosened the credit growth room for banks that meet CTG
2 factors: (1) financial health, (2) capability of growth. EIB
- Banks are given higher rooms: TCB, HDB, VPB, TPB, VIB, MBB -11% -1% 9% 19%
Customer loans Corporate bonds
Credit growth is expected to recover and reach about 11-12% in Credit growth ytd
20,0%
2021.
15,0%
10,0%
5,0% 6,09%
0,0%
T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12
2015 2016 2017
2018 2019 2020
Source: SBV, Banks, VCBS sumary
MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 29 Back
Retail credit was slower in 9M.2020, however, it is still the segment many banks prioritize:
‐ Retail loans has low Weighted Risk when calculating CAR (depending on collateral or 80% if no real estate collateral)
‐ Retail loans improve loan yield and reduce concentration risk.
‐ Potential to increase retail credit proportion remains as Vietnam's proportion of retail loans is still lower than that of developed countries
and people's lifestyles are changing towards more debt acceptance. However, this segment will face a higher level of competition as more
and more banks switch focus to retail.
Propotion of Retail credit Proportion of retail banking loans in 2019

45,0% 50%
39,7% 48%
40,0% 48%
34,7%
35,0% 46%
44%
30,0% 44%
25,7%
25,0% 22,8% 42%
40% 40%
20,0% 40%
15,0% 38%
36%
Viet Nam ASEAN-3 China US
Source: SBV, Banks, Bloomberg, VCBS sumary
MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 30Back
Deposit from customers increased by 6.1% in 8M.2020. The average listed Average deposit rates (Unit: %)
deposit rate has decreased by 100 - 120 bps from the beginning of 2019 8,00
depending on the term. 7,00
Banks' cost of funds recorded a rapid decline in Q3.2020. 6,00
There has not been enough pressure to make deposit rates rise again: 5,00
- There has been no liquidity risk coming from bad debt. 4,00
3,00
- Less pressure on indicators: (1) credit growth partly based on corporate bonds
reduces the pressure on LDR as the numerator only takes into account loans to
customers; (2) not paying cash dividend according to SBV’s directive causing D.R (1 month) D.R (3 months)
CAR to increase; (3) pressure on the ratio of short-term capital for medium and D.R (6 months) D.R (above 12 months)
long-term loans was reduced slightly when SBV delayed the deadline of lowering
the ceiling rate. CASA ratio and Cost of funds
- Liquidity pressure from credit growth is not expected to appear in 2020 and may 40,0%
8,0%
35,0%
not appear until the end of 2021.
30,0% 7,0%
Lending rate is adjusted to decrease but at a slower pace than listed deposit 25,0% 6,0%
interest rate: 20,0% 5,0%
15,0%
4,0%
- Banks balance the impact of lowering deposit rates and lending rates on NIM. 10,0%
5,0% 3,0%
- Corporate customers enjoy more preferences on lending rate reduction and debt 0,0% 2,0%
CTG
MBB
EIB
VPB
SGB
SHB
VCB
TCB
ACB
VBB
KLB
BVB
BAB
TPB
VIB
LPB
STB
HDB
NAB
NVB
BID
structure than individuals. In addition, new loans will have lower interest rates
than current outstanding loans.
CASA 2019 CASA Q3.2020 Cost of fund Q3.2020
NIM is expected to remain at 2020 level in 2021.
NPLs and risk assets ratio increased from above 3% at the end of 2019 to 4.5% in Q3.2020 according to SBV data.
Many banks recorded recovery of restructured loans:
- Many banks recorded no increase in restructured loans in Q3.2020. In addition, yields recorded on customer loans recovered strongly in
some banks with good asset quality. The main reason comes from the fact that part of the restructured customers now has cash flows to
pay interests and even principals.
- With many customers recovering their production and business activities, the expected amount of restructured loans turning into bad
debts when Circular 01 expires is low.
Restructured loans
NPL ratio NPL ratio
Under Cir.01/ Update time
Loans to customers's yield recorded on financial 2019 Q3.2020
Customer loans
statement
ACB 0,54% 0,83% 3,20% 2020 Sep
11,00% CTG 1,16% 1,87% 0,90% 2020 Sep
10,50% EIB 1,17% 2,46% 6,00% 2020 May
10,00% HDB 1,36% 1,83% 4,50% 2020 Sep
9,50% MBB 1,16% 1,50% 3,20% 2020 Sep
9,00% TCB 1,33% 0,60% 3,07% 2020 Sep
8,50% TPB 1,29% 1,79% 7,40% 2020 Sep
8,00% VCB 0,79% 1,01% 1,34% 2020 Sep
7,50% VIB 1,96% 2,14% 0,40% 2020 June
VPB 3,42% 3,65% 10,50% 2020 Sep
Banking system 2,00% T7.2020
Banking system Banks listed on HOSE and HNX
Banking system 3,90% 2020 Sep
Group of dynamic banks*
Note: banks can use different methods of statistic when announcing the amount
of restructured loans
*: ACB, MBB, HDB, TCB, TPB, VIB, VPB
Free transfers have gradually become the trend among the group of Number of money transfer transaction
dynamic banks: Increasing transaction fees can help banks increase their 1.400 200%
Non interest income, however the fee exemption combined with other
Million transactions
1.200
forms of customer experience enhancement helps banks attract regular 1.000 150%
customers, thus reducing capital costs as CASA increases and gaining 800
100%
deposits. In addition, attracting individual customers is also helpful for 600
400 50%
increasing credit when this is the target customer group of many banks.
200
0 0%
Decree 81/2020/ND-CP affects the bond retail-distribution activities of 2016 2017 2018 2019 6T.2020
some banks:
Number of transaction yoy growth
- Private placement: bond is locked for 1 year and now requires at least 6
months between 2 consecutive bond issuances. In addition, open-ended
Money transfer transaction value
bond investment funds are not allowed to buy bonds issued from private
120.000 100%
placement.
100.000 80%
VND trillion
- Public offering: higher requirement on issuers and the underwriter 80.000
60%
cannot control demand. 60.000
40%
40.000
20.000 20%
0 0%
2016 2017 2018 2019 6T.2020
Transaction value yoy growth
BANKING SECTOR – 2021 FORECAST
Bank groups:
- Large banks (AGR, VCB, BID, CTG): continue to be under pressure to reduce lending rates when SBV doesn’t changed their monetary
policy.
- Dynamic banks (ACB, MBB, TCB, VPB, VIB, TPB): has higher credit growth due to better sources of capital (higher equity source from
retain earning) and smaller scale. In addition, the pressure to lower deposit rate is lower than the large banks, leading to a positive growth
in total income.
Circular 01 expected to expire in 2021, when Covid-19 pandemic ends since many countries can mass produce preventive vaccines.
- With good signs of recovery in restructured loans, an increase in bad debt coming from restructured customers is expected to account for
0.5 - 1% of total loan balance and there will be a strong variation between banks depending on asset quality.
- Impact on provision expense will spread gradually in 2021 and 2022 because outstanding loan still has a 360-day deferred payment process
from the new repayment term to switch from group 1 debt to group 5 debt.
CAR ratio of the group of banks that applies Capital adequacy ratio - CAR 2019
Circular 41 (Basel II) 16%
12,0% 15%
10,6% 10,8% 10,8% 14%

11,0% 10,4%
13%
10,0% 9,8% 9,7%
9,2% 9,2% 12%
9,0% 11%
8,0% 10%
9%
8%
TCB EIB HDB VPB ACB TPB MBB VIB VCB CTG BID LPB
State owned banks Joint stock commerical banks
2020 BANKING STOCKS RECOMENDATION
9T.2020
Total Asset Total Equity EBT NIM ROE NPL LLCR Asset quality Earning outlook Recommendation
indicators
Unit VND billion VND billion VND billion % % % %
ACB 418,748 32,919 6,411 3.54% 22.11% 0.83% 117% High Increasing Buy
BAB 112,042 8,194 522.087 1.95% 8.14% 0.81% 124% No rating No forecast No recommendation
BID 1,467,806 81,441 7,062 2.45% 10.68% 1.97% 87% Average Increasing Outperform
BVB 54,561 3,840 138 2.10% 4.46% 2.98% 48% No rating No forecast No recommendation
CTG 1,261,204 83,322 10,364 2.84% 13.70% 1.87% 84% Average Stable Outperform
EIB 151,274 16,597 1103.612 2.20% 5.29% 2.46% 50% Low Stable No recommendation
HDB 273,290 23,885 4,381 5.10% 19.52% 1.83% 64% Average Increasing Outperform
KLB 55,592 3,907 144.573 1.82% -0.12% 6.63% 17% No rating No forecast No recommendation
LPB 211,978 13,765 1741.441 3.18% 12.81% 1.64% 73% No rating Stable Hold
MBB 427,175 48,254 8,134 4.93% 18.44% 1.50% 119% Average Increasing Buy
NAB 119,474 6,113 388 2.46% 11.04% 2.28% 38% No rating No forecast No recommendation
NVB 74,335 4,283 29 2.14% 1.05% 1.80% 65% Low No forecast Underperform
SGB 22,700 3,672 177 3.28% 2.55% 2.14% 40% No rating Stable No recommendation
SHB 401,926 23,876 2607.122 2.64% 12.93% 2.47% 57% Low Increasing Hold
STB 485,213 28,205 2325.693 2.47% 8.65% 2.14% 74% No rating No forecast No recommendation
TCB 401,462 70,608 10,711 4.85% 17.23% 0.60% 148% Average Increasing Outperform
TPB 193,461 15,438 3,024 4.02% 25.26% 1.79% 92% Average Increasing Buy
VBB 82,270 5,303 374 0.99% 7.98% 2.03% 54% No rating No forecast No recommendation
VCB 1,188,572 93,576 15,965 2.99% 19.41% 1.01% 215% High Increasing Outperform
VIB 213,086 16,552 4,025 3.95% 27.93% 2.14% 48% High Increasing Hold
VPB 413,892 49,726 9,398 8.57% 21.81% 3.65% 48% Low Stable Hold
ASIA COMMERCIAL BANK (ACB) – OVERVIEW
Main business activities:
ACB is a joint stock commercial bank with a dynamic business model and Share holder structure
high risk management capabilities. The bank focuses most of its business Dragon Financial Holdings Limited
activities in the retail customer segment, with real estate collateral for
loans mainly. ACB's asset quality is well controlled with low NPLs ratio. Vietnam Enterprise Investments Limited
7%
6%
Shareholder structure: First Burns Investments Limited
4%
Including 30% owned by foreign funds, 7% owned by Tran Hung Huy 5% Sather Gate Investments Limited
(Chairman of the Board of Directors) and family members, the rest are 5%
Whistler Investments Limited
other shareholders. 3%
63%
7% Asia Reach Investments Limited
Business results:
Tran Hung Huy and familiy members
In 9M.2020, ACB recorded EBT of VND 6,411 billion (+15.3% yoy).
Positive growth rate was achieved thanks to good growth in net interest Others
income as well as non-interest income.
TOI and EBT

18.000 16.097
16.000 14.033
14.000 12.966
VND billion
Charter capital 2019 EBT 11.439
Subsidiary Sector Ownership 12.000
(VND billion) (VND billion) 10.000
7.563 7.516
8.000 6.389 6.411
ACBS Securities 1500 100% Na 6.000
ACBA Asset management 340 100% 7 4.000 2.656
1.667
2.000
ACBL Finance lease 300 100% 12 0
ACBC Fund management 50 100% 1 2016 2017 2018 2019 Q3.2020
TOI EBT
Source: SBV, ACB, VCBS sumary
ASIA COMMERCIAL BANK (ACB)
INVESTMENT CATALYSTS
Credit growth of 10.7% after 9M.2020: in 2019 ACB has CAR of 11.7%, belonging to the group with optimal capital adequacy ratio to keep
balance between credit growth and target profit. We expect ACB will continue to be assigned a higher credit growth target than the industry
average in the coming years.
Potential for good growth in non-interest income:
⁃ ACB owns a portfolio of government bonds of VND 61,632 billion, bond yield recorded at 5.0% in Q3.2020. The recorded yield was much
higher than the government bond interest rate in the market at 1-2%. Thus, ACB can record an abnormal profit from investment securities if the
bank sells some of these government bonds.
⁃ According to the bank's expectation, ACB could sign an exclusive Bancassurance contract in 2020. With its position as one of the banks with the
highest insurance sales in the system and the negotiation process took place very thoroughly, we expect that ACB could get a higher upfront fee
than peer average.
Loans and deposit NIM ACB's government bond outstanding

400 10,00% 70.000 7,0%
350 60.000
8,00% 6,0%
300
VND trillion
50.000
VND billion
250 6,00% 40.000 5,0%
200 4,00% 30.000 4,0%
150 3,6% 3,6% 3,6% 3,8% 3,7% 3,7%
2,00% 3,3% 20.000
100 3,0%
10.000
50 0,00%
0 2,0%
0 Q1.2019 Q3.2019 Q1.2020 Q3.2020
2017 2018 2019 Q3.2020
Government bond outstanding
Net loan Customer deposit & valuable paper NIM Int earning asset yield Cost of fund Yield recorded
Good asset quality with high quality assets: Total income structure
⁃ ACB focuses on lending to high-income individual customers. The bank recorded the 9T.2020 49,4%
lowest Credit cost / Outstanding balance ratio in the industry.
2019 46,7%
⁃ The collaterals for ACB's loans are mainly real estate with clear legal status and stable
market value in the long term. In case customers cannot pay their debts, the debt 2018 45,5%
recovery process of ACB is relatively favorable with recovery rate among the highest in
the industry. 2017 23,2%
Stable profitability helps BVPS continue to grow at an expected rate of 25% in 2020 0% 20% 40% 60% 80% 100%
and 26% in 2021. Operating expense Provision expense EBT
High possibility of entering the VN-30 index basket in the restructuring period of
July 2021 after listing in HOSE.
NPL Recovery of loans previously

written-off Provision expense
1,3% 3000 202%
2.000 1.765
1,1% 2500
VND billion
1.428 152%
1.500
VND billion
0,9% 2000
0,7% 0,8% 1.000 1500 102%
0,7% 0,7% 0,7%
0,5% 0,7% 0,7% 369 1000
0,5% 500
52 148 79 52%
0,3% 500
0
2014 2015 2016 2017 2018 2019 0 2%
2016 2017 2018 2019 9T.2020
Bad debt write off
Net NPL ratio Overdue loan ratio Provision expense LLCR
Recovery of loans previously written-off
VALUATION TARGET PRICE
P/B Multiple 29,393 30,718 VND
Residual Income 32,043 UPSIDE +18%
FORECAST
STOCK PRICE
VND Billion 2019 2020F 2021F
28.000
26.000
24.000 Total operating income 16,097 18,207 21,805
22.000
20.000
18.000 +/- yoy (%) 14.7% 13.1% 19.8%
16.000
14.000
12.000 Earning before tax 7,516 8,817 11,173
10.000
+/- % 17.6% 17.3% 26.7%
BVPS (VND/share) 16,699 16,043 19,595

ACB Relative VN-Index Estimated profit in 2021 includes VND 2,000 billion Upfront fee from exclusive Bancassurance
contract
Source: VCBS forecast
VN COMMERCIAL BANK FOR INDUSTRY & TRADE (CTG)
Main business activities: Shareholder structure

CTG, which is a large-sized state-owned commercial bank, is in restructuring process
under the proposal of SBV. During the restructuring process, provision expense is State Bank of
increasing and the bank's profit is expected to increase at a later stage. 6,4% Vietnam
6,1%
Shareholder structure: 3,4% MUFG Bank
Including 64% owned by SBV, 20% by MUFG Bank, the rest are other shareholders. IFC (world bank)
19,7%
Bussiness results:
64,5% Other foreign
In 9M.2020, CTG recorded EBT of VND 10,364 billion (+ 22.6% yoy). Such good shareholders
profit growth was contributed by the positive growth of non-interest income while
Other domestic
operating and provision expenses were well controlled. shareholders
Charter capital 2019 EBT

Subsidiaries Sector Ownership TOI and EBT
(VND bn) (VND bn)
VBI Insurance 500 97.83% 130 45.000

40.000
Vietinbank Capital Fund management 950 100% 12
35.000
VND billion
Vietinbank Securities Securities 1064 75.61% 140 30.000
25.000
Vietinbank Leasing Leasing company 1,000 100% 122
20.000
Vietinbank Gold and Jewellry Gold and Jewellry 300 100% 11 15.000
10.000
Vietinbank AMC Asset management 120 100% 8
5.000
Vietinbank Money Transfer Money transfer 50 100% 45 0
2017 2018 2019 9T.2020
Vietinbank Laos Bank 1,166 100% 140
TOI EBT
IVB Bank 193 mil USD 50% 1014
Source: SBV, CTG, VCBS sumary
Potential for expanding the proportion of retail credit over total outstanding loans:
‐ CTG wants to increase the proportion of retail credit to improve the profitability of assets. Proportion of individual customers and small and
medium enterprises accounts for nearly 55% of total outstanding loans. CTG has the resources to be good enough for the bank to increase its
market share in these segments.
Operating expense is well control:
‐ CIR is falling to a low level compared to the industry average thanks to tight control of costs related to staff and management activities.
Loans and deposit NIM Provision expense

1.200
8,00% 14000 142%
1.000 7,00% 12000 122%
6,00%
VND trillion
10000 102%
VND billion
800 5,00%
4,00% 8000 82%
600
3,00% 6000 62%
2,00% 2,9% 3,0% 2,9% 3,0% 2,9% 2,7%
3,0%
400 4000 42%
1,00%
0,00% 2000 22%
200
0 2%
0 2016 2018 9T.2020
2017 2018 2019 Q3.2020
NIM Provision expense LLCR
Net loan Customer deposit & valuable paper Int generating asset yield
Cost of fund
Total operating income structure
Speeding up NPLs handing and write off helps increase asset quality:
‐ CTG is in the process of speeding up credit risk provision expense and has completed 9T.2020 32,2% 35,6% 32,2%
writing off VAMC bonds in 2020. CTG's drastic move is helping to improve its asset
quality compared to previous years. 2019 38,8% 32,1% 29,1%
‐ CTG is given priority over other major banks in devoting resources to support customers
2018 49,5% 27,4% 23,1%
affected by the pandemic due to high capital demand.
‐ CTG's earnings are forecast to grow after the restructured phase. 2017 46,2% 25,6% 28,2%
CTG plans to pay stock dividends at the rate of approximately 29% from 2017 -
0% 20% 40% 60% 80% 100%
2018 retain earning resource:
Operating expense Provision expense EBT
- The bank will comply with Circular 41 on capital adequacy ratio right after
implementing stock dividends.
NPL Provision expense

ROE trailing
3,50% 14000 142%
15,0% 12000 122%
3,00%
14,0%
10000 102%
VND billion
13,0% 2,50%
12,0% 2,00% 8000 82%
11,0% 1,50% 6000 62%
10,0% 1,00% 4000 42%
9,0%
8,0%
0,50% 2000 22%
7,0% 0,00% 0 2%
6,0%
5,0%
Gross NPL ratio Overdue loan ratio Provision expense LLCR
P/B Valuation 35,282 35,282 VND
UPSIDE 10.4%
STOCK PRICE FORECAST

35.000
30.000 VND Billion 2019 2020F 2021F
25.000
15.000
10.000 +/- yoy (%) 42.4% 6.2% 5.6%
5.000
Earning before tax 11,781 13,597 16,343
+/- % 79.6% 15.4% 20.2%
CTG Relative VN-Index BVPS (VND/share) 20,625 22,735 25,474
MILITARY COMMERCIAL JOINT STOCK BANK (MBB)
Main business activities Share holder structure

MBB is a joint stock commercial bank with a dynamic business
model, including many subsidiaries operating in the banking and Viettel
finance sector. MBB has special advantages thanks to standing in
14% SCIC
the Army group.
Shareholder structure 9% Vietnam Helicopter
Corporation
Including 14% owned by Viettel, 9% owned by SCIC, 23% foreign Saigon New Port
54% 7%
owned, the rest are other shareholders.
Vietcombank
7%
Business results
4% Maritime Bank
3%
In 9M.2020, MBB recorded EBT of VND 8,134 billion (+ 6.8%
yoy). The Bank recorded positive growth in total income and has Others
made a conservative provision for outstanding loans affected by
Covid-19 since Q1.2020.
TOI and EBT Share holder structure

30.000
25.000 M-Credit
VND billion
4%
20.000
Individual
15.000
36%
10.000 48% State owned
companies
5.000
Other companies and
0 institution
2017 2018 2019 Q3.2020 11%
TOI EBT
Source: SBV, MBB, VCBS sumary
Credit growth of 11.8% in 9M.2020: CAR in 2019 reached 10.68%, belonging to the group of banks with optimal capital adequacy ratio to
balance the target of credit growth. We expect MBB will continue to be assigned a higher credit growth target than the industry average in the
coming years.
CASA is more sustainable thanks to the individual customer base: after the decline in Q1.2020 due to the group of corporate customers
affected by Covid-19, in Q3.2020 CASA grew again to 33.5% thanks to individual customer groups. The proportion of deposits of individual
customers increased to about 30% as the bank applied free money transfer program and launched many programs to attract customers.
Loans and deposit NIM

350 Operating expense
10,0% 12.000 47,0%
300
8,0% 42,0%
10.000
VND trillion
250 37,0%
5,1% 5,2%
6,0% 4,7% 4,8% 4,9% 4,9% 4,8%
200 8.000 32,0%
4,0% 27,0%
150 6.000
22,0%
2,0%
100 4.000 17,0%
0,0% 12,0%
50 2.000
7,0%
0 0 2,0%
2017 2018 2019 Q3.2020 2017 2018 2019 9T.2020
NIM
Net loan Customer deposit & valuable paper Int generating asset yield Operating expense CIR
Cost of fund
Total operating expense structure
Good asset quality: MBB's NPL ratio increased from 1.16% to 1.50%
in Q3.2020 and the bank made high provisions from Q1.2020 for NPL 9T.2020
which may rise due to Covid-19. Therefore, we expect MBB to incur 2019
less increased provisioning expenses in the post-pandemic phase.
2018
Maintaining a good profitability index helps book value continue to 2017

grow: MBB's ROE is forecast to reach 22.5% for 2020 and 19% for
0% 20% 40% 60% 80% 100%
2021, BVPS forward 2021 at VND 19,884/share and P/B forward is at
0.97 times. Operating expense Provision expense EBT
Provision expense
NPL
6000 142%
4,00% 122%
5000
3,50%
3,00% 102%
VND billion
4000
2,50% 82%
2,00% 3000
1,50% 62%
1,00% 2000
42%
0,50%
0,00% 1000 22%
0 2%
2016 2017 2018 2019 9T.2020
Net NPL ratio Overdue loan ratio Provision expense LLCR
FORECAST
STOCK PRICE
22.000 VND Billion 2019 2020F 2021F
20.000
16.000
14.000 +/- yoy (%) 26.2% 8.0% 10.1%
12.000
Earning before tax 10,036 10,702 11,339
10.000
+/- % 29.2% 6.6% 6.0%
BVPS (VND/share) 16,014 16,989 19,884

MBB Relative VN-Index
TIENPHONG COMMERCIAL JOINT STOCK BANK (TPB)
Main business activities: Share holder structure

TPB is a bank with rapid growth in asset size and profitability on a
smaller scale. The bank also focuses on digital development to
Do Minh Phu, Families
increase customer experience. and Related copanies
Shareholder‟s structure: 18% FPT
Including 18% owned by Do Minh Phu, family and related entities; 37%
6% Le Quang Tien
10% belongs to FPT and former FPT's Vice Chairman Le Quang
Tien; 4% of the national reinsurance corporation, 30% foreign 4%
Vinare
ownership, the rest are other domestic shareholders. 5%
Business results: Foreign ownership

30%
In 9M.2020, TPB recorded EBT of VND 3,024 billion (+ 25.8% Other
yoy). Positive growth comes from both net interest income and
non-interest income.
Loan structure
TOI and EBT

9.000 Big Corp
8.000 9%
14%
7.000
VND billion
6.000 SME
5.000
4.000 18%
Individual - Mortgage
3.000 37%
2.000
1.000 Individual - Car loan
0 22%
2016 2017 2018 2019 9T.2020
Individual - Other
TOI EBT
Source: SBV, TPB, VCBS sumary
Gradually improving cost of fund: The customer base increases rapidly as TPB is one of the pioneering banks that apply technology to
improve customer experience and launch marketing campaign including reducing service fee. In 9M.2020, TPB's CASA increased by 21% and
the ratio reach 16%. In addition, TPB maintains a high rate of mobilization from the interbank market with net borrowing equivalent to 22.5%
of customer deposits. With current abundant liquidity environment, raising more from the interbank market is less risky and helps TPB reduce
cost of fund.
Credit growth reached 23% after 9M.2020 and high growth rates can be maintained in the future: with the advantage of small-sized
bank, good data source and rapidly increasing individual customer base thanks to effective marketing campaign, TPB has the highest credit
growth in the industry. We expect TPB will be given higher credit room than the industry average in the coming years when the bank has
abundant capital from retained earnings
Car loans: although car loans incur more NPLs than home loans, the profit earned is still high when the bank requires higher lending rates to
offset incurred provision expense. Cars as collaterals are also easily to recall and sell when customers need the bank's confirmation for annual
registration.
Loans to customers NIM Operating expense

120.000 11,5%
10,00% 3.500 62%
100.000 11,0% 3.000
8,00% 52%
80.000 2.500
10,5% 6,00% 42%
60.000 2.000
4,00% 32%
10,0% 4,1% 4,2% 4,4% 4,3% 1.500
40.000 4,3% 4,2% 3,9%
2,00% 22%
9,5% 1.000
20.000
0,00% 500 12%
0 9,0%
0 2%
2016 2017 2018 2019 9T.2020
NIM Int earning asset yield
Operating expenses CIR
Cost of fund
Loans to customers Yield on customer loans
The rebound in recorded yield of customer loan portfolio is a sign showing Total income structure
that restructured customers are recovering well:
9T.2020
- TPB has VND 8,000 billion restructured loans (7.4% of customer loans), of which
2019
about VND 5,000 billion have principal repayment extended and 3,000 VND
billion have both interest and principal repayment extended. 2018
- The yield recorded on customer loan portfolio was 10.9% in Q3.2020, going up 2017
from Q2 and not much lower than the yield of 11.0% in Q1.2020 as a large
0% 20% 40% 60% 80% 100%
portion of restructuring customers returned to pay interest as normal.
Operating expense Provision expense EBT
High growth rate of interest earning assets coupled with efficient

operations help sustain growth in profits and equity in the long run. Provision expense
1400 142%
NPL
1200 122%
4,00%
1000 102%
VND billion
3,00% 800 82%
2,00% 600 62%

400 42%
1,00%
200 22%
0,00% 0 2%
2016 2017 2018 2019 9T.2020
Provision expense LLCR
Gross NPL ratio Overdue loan ratio
FORCAST
STOCK PRICE
28.000 VND Billion 2019 2020F 2021F
26.000
24.000
20.000
18.000
+/- yoy (%) 50.5% 12.5% 14.0%
16.000
14.000
12.000 Earning before tax 3,868 4,056 4,688
10.000
+/- % 71.3% 4.8% 15.6%
BVPS (VND/share) 15,264 18,881 23,062

TPB Relative VN-Index
REAL ESTATE
OVERVIEW
Overview
Thị trường BĐS 9T.2020
• Despite experiencing two waves of Covid-19, the real estate market is Real estate market 9M.2020 (units)
300.000
300000
gradually recovering thanks to Vietnam's good disease control and 250.000
250000
applications of new market support policies & legal documents. 200.000
200000
150.000
• Demand for houses, production facilities is still very large, the price level
150000
100.000
remains high. Public spending has been strongly disbursed into 100000
50.000
infrastructure development, making real estate near big cities become more 50000
-
appealing. 0 Căn hộ được Căn hộ đang xây Căn hộ hoàn Căn hộ đủ điều Giao dịch BĐS
cấp phép dựng thành kiện bán nhà ở thành công
Licensed Under construction Completed Successful
hình thành trong
Sharp increase in commercial real estate & investment credit apartments apartments apartments
tương lai transactions
• Outstanding debt for the real estate sector is currently VND 1.6 million Q1.2020
Q1.2020 Q2.2020 Q3.2020
Q2.2020 Q3.2020
billion, accounting for more than 19% of the total credit balance of the
Outstanding debt in the real estate sector (VND trn)
whole economy.
2000 50%
46%
• While demand for housing credit decreased slightly, commercial real estate
40%
1500 35% 38%
& investment returned to a strong growth, estimated at +17.5% compared to 33%
30%
the beginning of 2020. 1000
18% 19% 19% 20%
17%
Outstanding new policies impacting the market: 500
10%
Construction Law (amendment) 2020 Investment Law (amendment) 2020 0 0%
2017 2018 2019 Q3.2020E
Public Investment Law 2019 PPP Investment Law 2020
Outstanding debt for the real estate sector (trillion VND)
Directive No. 11/CT-TTg Decree No. 41/2020/ND-CP
Outstanding debt for the real estate sector / whole economy (%)
Decree No. 81/2020/ND-CP Real estate investment & business credit / real estate sector (%)
Sources: Ministry of Construction, VCBS
CONDOMINIUM
HANOI Sold units, Hanoi Condominium

14000
• The limited number of new apartments for sale in the first 3
12000
quarters of 2020 helps maintain price level. However, the selling
10000
price is still significantly lower than Ho Chi Minh City, big real 8000
estate companies in the South are expected to develop new projects 6000
in the North in the future. 4000
2000
• The Covid-19 pandemic makes real estate companies restructure
0
their products. Newly launched projects are mainly in mid- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020
end/affordable segments and located in the area outside the ring
Affordable Mid-end High-end Luxury
road 3.
HCMC Sold units, HCMC Condominium

14000
• Projects in the “East City” area (especially with contributions from
12000
Vinhomes Grand Park) led in both supply and sales, accounting for 10000
97% and 89% of the total market, respectively. 8000
6000
• The absorption rate is maintained positively due to the limited
4000
supply. The selling price in all segments is 3% -5% higher than 2000
2019. Completion of legal procedures is expected to improve from 0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
the beginning of 2021. 2018 2019 2020
Affordable Mid-end High-end Luxury

Sources: Ministry of Construction, CBRE, VCBS
LANDED PROPERTIES
HANOI Sold units, Hanoi Villa and Townhouse

• Similar to the condominium market, the number of newly launched 5000
landed houses in 9M.2020 plummeted to only 326 units (-92% 4000
yoy). Sales results remained positive, nearly 30% higher than new 3000
launches.
2000
• Demand for housing in the CBD area has not decreased, causing
1000
prices in the secondary market to increase in some inner districts.
0
Vinhomes' mega projects will lead the development of the housing 2018 2019 9M.2020
market in new areas such as Hoai Duc, Dan Phuong, Dong Anh, New launch Sold units
Van Giang (Hung Yen).
HCMC
Sold units, HCMC Villa and Townhouse
• New projects are mainly located in District 2, 9, Thu Duc, Go Vap, 5000
Nha Be with high absorption rate. High selling price is the main 4000
barrier for the majority of buyers, particularly the townhouse 3000
segment has increased by 5% -10% over the same period. 2000
• The system of highways, airports and seaports in the South has 1000
been improved by the Government in recent years, enhancing sales 0

2018 2019 9M.2020
potential for real estate projects in areas near Ho Chi Minh City
New launch Sold units
such as Long An, Dong Nai, Binh Duong.
Sources: Ministry of Construction, CBRE, VCBS
OFFICE/RETAIL
Office: Hanoi (A class) Hanoi (B class) HCM (A class) HCM (B class)
530,000 m2 ~940,930 m2 445,313 m2 925,501 m2

Supply NLA (m2)
(21 projects) (70 projects) (17 projects) (67 projects)
Rate (USD/m2/month) 26.7 (▲1,3%) 13.8 (▼3,0%) 44.3 (▼5,0%) 25.3 (▲3,0%)
Vacancy (%) 24.1% (▲16,2%) 11.5% (▲2,4%) 11.5% (▲3,3%) 6.1% (▲1,3%)
• Capital Place (~93.000 m2 NLA A-class) – The • Manufacturer, ICT, and e-commerce enterprises
largest office building in Hanoi was put into prefer the non-CBD area, especially the east of the
operation in Q3.2020. city. There will be more new projects in this area
and attract more tenants.
• In 2021, high vacancy rate can cause rents to move • A-class rents are expected to decline slightly and
sideways or slightly decrease in both segments. B-class will remain stable in 2021.
Retail: Hanoi Hanoi HCM HCM

(CBD) (Non-CBD) (CBD) (Non-CBD)
~52,000 m2 ~950,000 m2 103,453 m2 942,575 m2
Supply NLA (m2)
(12 projects) (41 projects) (11 projects) (47 projects)
Rate (USD/m2/month) 98.6 (▲0,5%) 24.5 (▼1,5%) 135.4 (►0,0%) 35.8 (▲0,2%)
Vacancy (%) 11,1% (▲9,7%) 11,2% (▲2,9%) 1,65% (▼0,6%) 13,1% (▲4,3%)
• The vacancy rate increased sharply despite no new • Limited supply makes vacancy rate recover
supply. slowly.
• New projects are being developed in the non-CBD • Development towards the Eastern part of the city
areas. and the impact of the Metro Line.
Sources: CBRE, VCBS
INDUSTRIAL PARK
Increasing scale of industrial parks Improve the quality & efficiency of investment attraction
By the end of 10/2020, 280/369 industrial parks are in operation The logistics, manufacturing and electronic technology industries
with a total industrial land area of ~ 56.6 thousand ha, occupancy continue to expand their operations vigorously.
rate is 70.1%. Industrial leasing enquiry by industry,

Number of Industrial Parks Q3.2020
500 76%
400 19,2% Logistic
74%
300 Electronic
72% 6,8%
200 Automotive
100 70% 5,5% Plastic
0 68% Trading
2018 2019 2020F 2021F Garment
Established Operating Occupancy rate (%)
Land rental rates have risen sharply in areas with high demand and good infrastructure
Operating industrial parks in Hai Phong, Bac Ninh, Hai Duong, Ho Chi Minh City, Dong Nai, and Long An increased their rents by 20-30%.
Northern Industrial Region Southern Industrial Region

100% 300 USD/m2/term 100% 300
80% 80%
USD/m2/term
200 200
60% 60%
40% 40%
100 100
20% 20%
0% 0 0% 0
Hanoi Hai Phong Bac Ninh Hai Duong Hung Yen HCMC Long An Binh Duong Dong Nai BR-VT
Occupancy rate (%) Minimum asking rent Maximum asking rent Occupancy rate (%) Minimum asking rent Maximum asking rent
Sources: Ministry of Planning and Investment, Ministry of Construction, CBRE, VCBS
2021 DEVELOPMENT TRENDS
Improve infrastructure investment Industrial real estate continues to be the catalyst to attract FDI
Enhance real estate potential in the suburbs
Investment
2021 Projects
(VND bn)
5 component projects (under the North-South Expressway) 49,353
My Thuan – Can Tho Express Way 4,827
Long Thành Airport – Phase 1 109,112
Development trend toward the East

North of Vietnam: Improve connections between the three largest cities:
Hanoi - Hai Phong - Quang Ninh.
South of Vietnam: New project in Ho Chi Minh City developed along metro
line 1 & 2, towards the "Eastern City"; housing market in neighboring
provinces grew according to the construction progress of Long Thanh airport.
Source: VCBS
2021 POTENTIAL REAL ESTATE COMPANIES
MK Cap Total Asset Equity Gross Profit
Company ROA (%) ROE (%) P/E P/B
(VND bn) (VND bn) (VND bn) Margin (%)
Residential
VHM 258,227 220,509 78,778 44.8% 10.6% 30.6% 11.6 3.4

NVL 60,744 129,389 31,200 35.6% 5.5% 21.5% 10.5 2.4
KDH 14,780 14,718 7,775 44.9% 8.4% 15.2% 12.7 1.9
NLG 7,832 11,803 6,224 35.8% 6.7% 12.1% 10.1 1.5
DXG 7,386 22,227 9,083 59.3% -0.4% -0.9% -94.4 1.1
DIG 6,487 7,980 4,094 27.8% 5.8% 11.7% 14.0 1.6
HDC 1,713 2,568 1,018 35.0% 7.4% 16.8% 9.0 1.7
CKG 570 4,878 715 25.2% 2.2% 15.9% 5.4 0.9
Industrial Parks
IDC 8,250 14,283 4,341 17.6% 2.1% 7.1% 27.2 2.3

KBC 7,281 19,361 10,430 65.4% 1.9% 3.3% 17.3 0.8
SZC 2,820 3,831 1,240 58.0% 5.4% 15.3% 15.4 2.3
LHG 1,440 2,419 1,219 35.7% 7.0% 14.0% 8.5 1.2
SZL 946 1,656 518 33.3% 6.2% 16.7% 9.2 1.8
TIP 824 843 573 64.0% 10.9% 16.4% 9.2 1.5
Retail
VRE 62,830 40,079 28,361 46.4% 6.0% 8.3% 27.6 2.2
Brokerage
CRE 2,328 2,968 2,071 32.2% 11.1% 15.5% 7.6 1.2

Source: VCBS
VINHOMES JSC (VHM)
OVERVIEW
• Vinhomes is the largest developer of residential real estate in Vietnam residential market share 2016 – 2019
Vietnam with a huge land bank of 164 million square meters,
outstanding quality and the ability to develop large-scale and 22%
Vinhomes
highly efficient projects.
Hung Thinh
• VHM also owns 29 million m2 of industrial real estate and 4% Dat Xanh
operates 120,000 m2 of office space for lease. 2% Ecopark

2%
68% 2% Novaland
• As a subsidiary of Vingroup, VHM has great advantages from Others
the Group ecosystem in the long term.
9M.2020 PERFORMANCE
Financial Results 2016 - 9M.2020 (VND bn)
60.000 60%
• Net revenue grew strongly +31.2% yoy to VND 49,378 billion,
50.000 50%
mainly came from 3 major projects Vinhomes Ocean Park,
40.000 40%
Grand Park and Smart City.
30.000 30%
• Financial revenue reached VND 10,543 billion (+37.7%) with
20.000 20%
about VND 7.6 trillion coming from the transfer of 80% stake 10.000 10%
in Grand Park phase 2 to Mitsubishi and Nomura. 0 0%

2016 2017 2018 2019 9T.2020
• Profit after tax reached VND 17,208 billion (-0.8%, 55.5% of Net Revenue Gross profit NPAT GPM (%) NPM (%)
annual target).
Sources: VHM, VCBS
VINHOMES JSC (VHM) – OUTLOOK
Outstanding land bank, strategic location and Enhance wholesale strategy, sales progress and handover remain
continuous expansion: Vinhomes dominates the real positive: At the end of Q3.2020, VHM has handed over ~20,000 apartments,
estate market with a land bank of 164 million m2 sales that have yet been recorded remains positive, reaching VND 82 trillion
GFA (146 million m2 NSA). In Q2.2020, VHM (+1% yoy). The company plans to continue handing over ~11,000 apartments
bought Dai An project (~300 ha) at the cost of ~ and recording a large number of wholesale transactions in Q4.2020.
VND 3.4 trillion. Legal procedures for Green Ha Expanding industrial real estate investment: In the period of 2020 - 2021,
Long (~4,110 ha) and Long Beach Can Gio (2,870 VHM plans to invest ~VND 3 trillion in industrial projects. Accordingly, 2
ha) are also being actively completed. new industrial parks in Hai Phong with total NLA of 348 ha will contribute
Total Gross Development Value to the revenue from 2022.

(up to 2025)
Ongoing housing projects by the end of 30/09/2020
14%
Projects Ocean Park Smart City Grand Park Others
32%
Floor area for sale („000 m2) 3,500 2,601 3,241 4,160
19% USD 48.2 bn Total products 47,300 47,000 45,500 30,300
Number of products sold and
19,400 (41%) 13,900 (30%) 17,600 (39%) 27,400 (90%)
delivered
8% Number of products sold and 1,500
10,700 (23%) 10,800 (23%) 21,100 (46%)
26% not-delivered (5%)
Un-earned revenue (VND bn) 23,040 16,810 36,470 6,440

Hanoi HCMC Quang Ninh Hung Yen Others
Construction progress (%) 51% 37% 50%
Sources: VHM, VCBS
VINHOMES JSC (VHM) – PRICING
RNAV method 94,586 94,390 VND
P/E method 93,605

UPSIDE +21.3%
HISTORICAL PRICE FORECAST
120.000 (VND bn) 2019 2020F 2021F

100.000
Revenue 51,627 72,813 88,307
80.000
VND
60.000 +/- yoy (%) +33.5% +41.0% +21.3%

40.000
NPAT 24,319 29,738 22,149
20.000
0 +/- % +64.6% +22.3% -25.5%
EPS (VND/share) 6,502 7,939 5,913

VHM Relative VN Index
AVIATION -
SEAPORTS
AVIATION: THE PRESSURE FROM COVID-19 REMAINS
Growth of flight number compared to the same period
1H.2020: After the period of social distancing, the number of of Vietnamese airlines in 2020
domestic passengers recorded a positive recovery due to :
 Well-controlled pandemic situation in Vietnam. 0%

Feb Mar Apr May Jun Jul Aug Sep Oct
 Policies to stimulate domestic tourism demand. -20%

-10% -39%
-18%
 Domestic airlines opened new flight routes and decreased ticket
-40%
price. -34%
-38%
-46%
-60%
2H.2020: the second wave of Covid had impact on the recovery

-80% -70% -71%
trend of domestic passengers traffic in H2.2020, in particular :
-100% -92%
 Flight ban order in Da Nang and increasing disease control
measures in many tourism destinations. Sản lượng khách du lịch quốc tế đến Việt Nam (đv: lượt
khách)
 Domestic tourism market lost the final month of peak summer
2.500.000
season.
2.000.000
 Domestic aviation market went into low season of the year.
1.500.000
In Q4.2020, a number of commercial international flight routes was 1.000.000
reopened but contributed minimally to the total volume due to: (1) 500.000
Low flight frequency; (2) Post-entry quarantine measures remains.
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2019 2020
Source: CAA, GSO, Vietnam Tourism, VCBS
AVIATION: POTENTIAL OF RECOVERY FROM 2021
The number of passengers through airports
In 2021, passengers traffic is expected to recover due to: (unit: million passengers)
45 41,8
40,3
36,7
 Well-controlled pandemic situation in Vietnam. 40
35 30,3
 The procedure of post-entry disease control and quarantine applied 30 25,6
to international commercial flights will soon be implemented. 25
 The vaccine development process witnessed positive signals. 20

15 11,7
10
In the long-term, Vietnam aviation market retains strong growth
5
potential with main drivers : 0
2017 2018 2019 2020F 2021F 2022F
 The domestic passengers traffic possessed abundant room for

Important aviation infrastructure projects are being deployed
growth as: (1) Air travel frequency per capita is still low; (2)
Average income and middle-class population size increase
dramatically; (3) Vietnam’s long and divided topography brings
huge advantage to air travel; (4) Expansion in scale of low-cost
airlines.
 The number of international passengers benefits from the

increasing global integration of Vietnam’s economy and
international tourism attraction policies are promoted.
Many aviation infrastructure projects are being strongly invested in

2020, expected to ease the capacity constraint situation in many key
airports and bring about growth potential in the coming years.
Source: CAA, ACV, VCBS
AVIATION: INVESTMENT OPPORTUNITY FOR LONG-TERM HORIZON
Profit after tax of HVN & VJC (unit: billion VND)

Air transportation companies are the most heavily damaged,
2.000
which requires a number of years to offset the lost recognized in
2020 and recover financially, due to: 1.000
0
Q1.2019 Q2.2019 Q3.2019 Q1.2020 Q2.2020 Q3.2020
-1.000
 Low profit margin characteristic. HVN
-2.000 VJC
 Recurring fixed costs such as aircraft rental, regular maintenance
-3.000
and airport services putting great pressure on cash flows.
-4.000
-5.000
Long-term investment opportunity for service providers in

NPAT margins trend of aviation companies
airports that:
80%
 Have business performance and financial health not severely 60%

affected by the pandemic.
40%
 Possess high competitive advantages and abundant room for
business scale expansion to capture \industry growth. 20%
0%
2016 2017 2018 2019 9T.2020
-20%
-40%
HVN VJC ACV SCS NCT SGN AST
Source: Financial statements, VCBS
SEAPORTS: BENEFIT FROM THE PRODUCTION RELOCATION WAVE
Accumulated volume of goods through
seaports (unit: thousand tons)
The goods output through seaports in 10M.2020 slightly 700.000
increased compared to the same period despite the impact of 600.000

Covid-19, thanks to : 500.000
400.000
 Marine transportation was less interrupted by the pandemic.
300.000
 The export-import turnover of Vietnam still witnessed positive
200.000
growth during the period.
100.000
0
Business performance of seaport operators in the coming 4M 5M 6M 7M 8M 9M 10M
years will benefit strongly from: 2019 2020
15% The growth of export-import turnover compared

 The manufacturing facilities relocation wave from China. to the same period
 Trade agreements (CPTPP, EVFTA, RCEP,…) benefiting 10%
7,0%
many key export products of Vietnam. 10,5% 10,0%
 The strong promotion of road infrastructures and deep-water 5%

5,9%
seaports projects, which will reinforce the connection between 6,6% 5,1%
key industrial areas, consumption markets and important ports 0%

Q1.2019 Q2.2019 Q3.2019 Q4.2019 Q1.2020 Q2.2020 Q3.2020
system.
 The growth in traffic of ultra large containerships. -5%
-10%
-8,4%
Source: Vinamarine, Finpro, VCBS
SEAPORTS: DRIVERS FOR DEEP-WATER SEAPORTS
The volume of container cargo through seaports in Cai Mep (unit: TEU)
The dramatically growth in export-import goods volume to US 2.500.000
and EU boost the traffic of ultra large vessels.

2.000.000
The trend of vessel upsizing of many large container carriers.

1.500.000
The improvement in deep-water ports strategic planning and 1.000.000

the support from government:
500.000
 The construction progress of seaports.
0
 Connection infrastructures. 2015 2016 2017 2018 2019
 The promotion in ports relocation from Ho Chi TCIT - TCCT CMIT TCTT SSIT
Minh city. Export-Import turnover between Vietnam and US & EU

80.000 (unit: million USD)
70.000
60.000
50.000
 Decrease in competition pressure in Cai Mep – Thi Vai area. 40.000 US

EU
30.000
 Lach Huyen seaport will still bear considerable pressure in
attracting cargos. 20.000
10.000
0
2014 2015 2016 2017 2018 2019
Source: Vinamarine, VPA, CEIC, VCBS
SEAPORTS: PORTS ON CAM RIVER (IN HAI PHONG)
Volume of goods through seaports in Hai Phong (unit: million tons)
The ports on the upstream of Cam river (Hai Phong) are likely to
enjoy positive growth in the coming years due to: 140
120
 The trend of traffic relocation to downstream ports of shipping
100
companies has basically finished.
80
 Benefit from the growth of cargo volume in the area. 60
 Profit margin expands since many companies no longer have 40
much depreciation and interest expenses while benefiting from 20

financial revenue. 0
2014 2015 2016 2017 2018 2019 10M.2020
Dividend yield of some seaport operators in Hai Phong Depreciation & Interest expense of seaport operators (unit: billion VND)
350
14% 13%
301,7
12% 300
10% 9% 9% 9% 250
188,7
8% 200 176,0
6% 6% 7% 159,8
6% 150
6% 104,1 106,2
4% 4% 100
56,8 47,8
2% 50
0% 0
2017 2018 2019 9M.2019 9M.2020
PHP VSC DVP PHP VSC VGR DVP
Source: GSO Hai Phong, Financial Statements, VCBS
AIRPORT CORPORATION OF VIETNAM - ACV
9M.2020 business results of ACV (unit: billion VND)
OVERVIEW
16.000
13.517
14.000
ACV is the largest airport operator in Vietnam. 12.000

10.000
Almost monopoly position with business operation at 21 airports 8.000 6.998
5.908 6.124
across the country. 6.000
4.000
Revenue and profit come from providing aviation and non- 1.332
2.000 1.255
aviation services at airports.
0
9M.2019 9M.2020
Revenue Gross profit NPAT
9M.2020 BUSINESS RESULTS: The trend of profit margin of ACV
Net revenue of ACV in 9T.2020 was VND 6.124 billion,

60%
decreased 54,7% compared to the same period due to: (1) Impact 49%
51%
from the pandemic and flight limitation order to the volume of 50%
41%
passengers and flights through airports (2) Service fee reduction 40%
37%
45%
policies to support airlines. 38%
30%
33% 20%
NPAT in 9T 2020 was VND 1.332 billion (-77,4% yoy) since 20%
30%
fixed cost accounted for a large percentage in total cost. 22%

10%
00%
2016 2017 2018 2019 9M.2020
Gross margin NPAT margin
Source: ACV, VCBS
The number of passengers through airports
INVESTMENT CATALYSTS: (unit: million passengers)
45 41,8
40,3
40 36,7
Large financial revenue, abundant cash reverse and many cost 35 30,3
cutting measures helps ACV maintain profitability and financial 30 25,6
health in 2020. 25
20
The number of passengers through airports is expected to
15 11,7
recover positively from 2021.
10
The almost monopoly position and strong advantage as the 5
developer of large aviation infrastructure projects : 0
2017 2018 2019 2020F 2021F 2022F
 ACV officially became the developer of T3 Terminal Tan
Son Nhat and T2 Noi Bai Expansion projects. Important infrastructure development
projects of ACV in the coming years
 ACV was chosen as the developer of Class-3 projects of Investment
Long Thanh airpot phase 1. Capacity
value Year of
Projects (passengers/
The runway repair projects at Noi Bai and Tan Son Nhat are (billion deployment
year)
expected to finish by the end of 2020. VND)
T3 Tan Son Nhat 10.990 2021 20.000.000

RISKS:
T2 Noi Bai
4.051 2021 5.000.000
Difficulty in reoperating international flight routes. Expansion
Delay in the progress of infrastructure development projects. Long Thanh airport
99.000 2021 25.000.000
phase 1
Source: ACV, CAA, VCBS
VALUATION TARGER PRICE
P/B Method 90,177 83,044 VND
EV/EBITDA Method 75,911 UPSIDE +15.4%
PRICE FLUCTUATION FORECAST

90.000
80.000 Unit: billion VND 2019 2020F 2021F

70.000
60.000
Net revenue 18,329 7,512 13,256
50.000
+/- yoy (%) 13.7% -59.0% 76.5%
40.000
Profit for common
30.000 8,201 1,851 4,814
shareholders
20.000
10.000
+/- % 32.9% -77.4% 160.0%
0
EPS (VND/ share) 3,450 765 1,990
ACV Relative VN Index
GEMADEPT CORPORATION - GMD
Shareholders structure of GMD (Updated 11/2020)
OVERVIEW
GMD is one of the largest logistics and seaports operators, with

a port system and logistic infrastructures spreading across the
45,50%
country, concentrating in Hai Phong and Cai Mep areas. 50,74%
Major shareholders
GMD is operating 06 seaports with the total capacity of 1,7 Managers
million TEUs/ year: Nam Hai, Nam Hai Dinh Vu, Binh Duong, Other shareholders
Nam Dinh Vu, Dung Quat, Phuoc Long and Nam Hai ICD.
The company is constructing the deep-water seaport Gemalink

in Cai Mep – Thi Vai, which is expected to come into operation 3,76%
in 2021.
9M.2020 business results of GMD (unit: billion VND)
9M.2020 BUSINESS RESULTS: 2.500
1.996
Net revenue in 9M.2020 was VND 1.901 billion, decreased 4,8% 2.000 1.901
compared to the same period due to the impact from Covid-19

1.500
and the competition pressure in Hai Phong.
NPAT was VND 372 billion (-31,9% yoy), profit margin 1.000 804 753
declined due to: (1) Rising management cost along with the 547
500 372
progress of Gemalink construction, (2) In 9M.2020, the
company no longer recognized financial revenue from 0
investment transfers. 9M.2019 9M.2020
Revenue Gross profit NPAT
Source: GMD, VCBS
The growth of export-import turnover compared to
INVESTMENT CATALYSTS: 15% the same period
10%
Competition pressure in Nam Dinh Vu port area is likely to 10,0%
7,0%
10,5%
remain at high level due to :
5%
5,9%
 Pressure in attracting cargos from Lach Huyen port. 6,6% 5,1%
 A number of new ports nearby come into operation. 0%

Q1.2019 Q2.2019 Q3.2019 Q4.2019 Q1.2020 Q2.2020 Q3.2020
Business performance of Nam Hai, Nam Hai Dinh Vu and Binh -5%
Duong ports are expected to accelerated in 2021.
Driver for long-term growth from Gemalink: -10%

-8,4%
 Growth trend of goods volume in Cai Mep area. The volume of container cargo through seaports in Cai
2.500.000 Mep (unit: TEU)
 Benefits from the relocation of ports in HCMC.
 Many seaports in the area have been operating above 2.000.000
designed capacity.
1.500.000
 Benefit from the cargo volume of CMA-CGM shipping lines.
1.000.000
RISKS:
500.000
Lach Huyen seaports continue to attract goods from middle-size
vessels.
0
2015 2016 2017 2018 2019
The delay in development progress of transportation and
TCIT - TCCT CMIT TCTT SSIT
logistic service infrastructures in Cai Mep area.
Source: Fiinpro, VPA, VCBS
P/B Method 28,479 31.322 VND
FCFF Method 35,586 UPSIDE +12,7%
PRICE FLUCTUATION FORECAST
30.000
Unit: billion VND 2019 2020F 2021F
25.000
20.000 Net revenue 2,641 2,509 2,696
15.000 +/- yoy (%) -2.47% -5.06% 7.46%

10.000 Profit for common
515 410 469
shareholders
5.000
+/- % -67.7% -20.8% 14.5%

0
EPS (VND/ share) 1,595 1,242 1,421
GMD Relative VN Index
CONSTRUCTION
MATERIALS
Highlights in 9M/2020: The construction materials industry has faced many difficulties from the Covid-19 and almost
recorded a decline in consumption volume and selling price. However, the level of influence is different among sub-
sectors.
Figure 1: Revenue and gross profit of ceramic tile companies Figure 2: Total consumption of steels
Source: Fiinpro Million tons Source: VSA

3%
0% 25 50%
43%
20 17,3 40%
-2% -3% 16,6
-6% 30%
15 28%
-10% 20% 21% 21% 20%
-13% -14% 10
-15% 10%
-16% 6%
-19% 5 0%
-4%
0 -10%
-27% 2013 2014 2015 2016 2017 2018 2019 9M- 9M-
VGC VIT CVT TTC VTA TCR 2019 2020
+/- yoy revenue +/- yoy gross profit Total consumption volume Growth
• Steel industry: Total steel consumption volume of the whole industry in

• The ceramic tile industry in 9M/2020 has been heavily
9M.2020 decreased by 4% yoy.
influenced by the construction slowdown lasting from 2019
and the covid-19 epidemic in 2020. • In the country, the construction market begins to progress slowly from 2019. By
2020, the covid-19 epidemic slowed down the supply recovery and construction
• Most of the listed companies in the industry recorded a
progress of real estate projects.
significant decline in revenue and NPAT.
• Domestic long steel selling price at the end of Q3 / 2020 is estimated to decrease
• According to a VCBS survey, the selling price of common
by 4.5% compared to early 2020. Especially in the Southern market, the selling
ceramic tiles at the end of Q3 / 2020 has decreased by 5-10%
price is somewhat more competitive compared to the North when the supply
compared to the beginning of 2020.
increases sharply from the factories of Nghi Son, Hoa Phat-Dung Quat, Tue
Minh and Tung Ho.
• In addition, in the segment of flat steel, covid-19 also makes the construction of
export markets and trade and transport between countries difficult. Besides
increasing commercial protection of flat steel segment in exporting countries.
sectors.
Figure 3: Total consumption volume of cement and clinker Figure 4: Fluctuation of crushed stone prices in the Southern region
Million tons Source: Vietnam Cement Association 1.000 VND/m3
120 20% 300
18% 280
100 16%
14% 260
80
12% 240
60
9% 8% 220
40
200
20 4% 4%
3% 3% 3% 180
0 0%
160
Domestic consumption Export (cement và clinker) Growth Núi Gió Tân Cang 3 Thạnh Phú 2 Tân Đông Hiệp
• Cement industry: In 9M/2020, total consumption volume of the whole • Crushed stone industry: Construction stone business activities in the Southern
industry reached a slight growth of 3% yoy thanks to a positive clinker region are evaluated positively in the context of the Covid-19 epidemic, specifically:
export volume. However, clinker export activities during the year did not
• The Mines at Bien Hoa, Vinh Cuu, Bac Tan Uyen still recorded growth in the
bring much profit for domestic manufacturers when the selling price of
context of Covid-19 thanks to construction activities at Long Thanh, Kien Giang and
clinker was insignificantly higher than the cost of production.
Can Tho areas continued to be positive. As a result, selling prices remained stable or
• Particularly, domestic consumption volume in 9M/2020 reached 45.5 increased slightly compared to the end of 2019. Listed companies in this area such as
million tons, down 6% yoy, affected by the slowdown in domestic VLB (+ 12% yoy), DHA (+ 21% yoy) still recorded a positive growth in gross profit.
construction activities.
• The mines at Tan Dong Hiep was facing a difficult challenge to stop mining.
However, this pushed up selling prices due to scarcity, besides the positive real estate
Source: VCBS research projects in Di An and civil & infrastructure projects in HCM City also increased
demand for construction stone in the period. Revenue from some listed companies
represented in this area such as C32 (+ 5%), NNC (+ 11% yoy) recorded a positive
growth
sectors.
Figure 5: The export value of Vietnam's furniture Figure 6: TOP 5 countries exporting furniture in the US market
Million Tỷ USD
Source: MOIT Source: U.S. Department of Commerce
9.000 25%
23,5% 40
8.000 +61% yoy
35 +36% yoy
7.000 17,9% 20% -17% yoy -17% yoy
30 -23% yoy
6.000
15% 25 20,8
5.000
12,3% 20
4.000 16,0
9,5% 10%
3.000 15
7,0% 8,1
10 6,8 6,7 3,9
2.000 5% 4,9
3,2 1,4
1.000 5 0,8
0 0% 0
2016 2017 2018 2019 9M/2019 9M/2020 China Mexico Viet Nam Canada Malaysia
Furniture +/- yoy 2015 2016 2017 2018 2019 LK 9T/2019 LK 9T/2020
• Vietnam's furniture industry in 9M/2020 recorded a positive export growth with a value of US $ 6.4 billion, + 18% yoy.
• Notably, export activities in the US market continued to record strong growth +36% yoy as Vietnam's furniture industry is benefiting when
the US is imposing tariffs (20-25%) on Chinese furniture
PROSPECTS OF RECOVERY FROM BOOSTING PUBLIC INVESTMENT OF THE
GOVERNMENT
Figure 7: Disbursement of investment capital from the state budget, 2016-2020 Figure 8: Disbursement of investment capital from the state budget in 2020
1.000 billion VND Biliion VND
500 70% 60.000 160%
147%
450 63% 140%
60% 140%
57% 50.000 120%
400
51% 50% 120%
350 47% 45%
40% 40% 40.000 81% 100%
300
250 30% 80%
30.000
52% 54% 60%
200 22% 20%
150 20.000 27% 40%
10% 16%
100 4% 3% 20%
0% 10.000
50 -12% 0%
-6%
0 -10% 0 -20%
9T/2016 9T/2017 9T/2018 9T/2019 9T/2020 T1 T2 T3 T4 T5 T6 T7 T8 T9 T10
Plan of Government Actual disbursement % Plan +/- yoy 2019 2020 +/- yoy
Source: MOIT Source: MOIT
• Public investment disbursement progress has been significantly improved: In 9M/2020, the total disbursement capital for
development investment from the state budget reached 322 trillion VND, up 40% yoy. Noted that the disbursement amount increased
significantly compared to the average for the 2016-2019 period.
• In which, disbursement activity recorded a sharp increase over the same period from June 2020 onwards. This has partly supported
a recovery in domestic cement and construction steel consumption in Q3 / 2020 (Figure 9 & 10).
FORECAST OF CONSTRUCTION MATERIALS INDUSTRY IN 2021
Figure 9: Total domestic construction steel consumption by quarter, 2019-2020 Figure 10: Total production of the domestic cement consumption by quarter, 2019-2020
Million tons Million tons
3,0 10% 20 0%
6% 18 -2%
2,5 5% 16 -4%
2,0 0% 14 -6%
-1% -7,4% -6,9%
12 -8%
1,5 -5% 10 -10%
8 -12%
1,0 -10% 6 -14%
4 -16%
0,5 -16% -15%
2 -18,0% -18%
0,0 -20% 0 -20%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2020 +/- yoy 2019 2020 +/- yoy

Source: VSA Source: Vietnam Cement Association
Figure 11: VCBS forecasts the prospects of the construction materials industry in 2021
Negative Neutral Positive Outstanding
Crushed Stone DHA, VLB

Asphalt PLC
Steel HPG, POM, HSG, NKG
Furniture PTB
Cement HT1
Construction plastic BMP, NTP
Ceramic tile CVT, VGC, TTC
HOA PHAT GROUP (HPG) – Overview
Core-business Figure 12: Shareholder structure Figure 13: Revenue structure in 9M/2020
Real estate
Core business is steel production and commercial with the revenue Other industries 1%
3%
proportion of over 80% - number one position in market share of Argiculture
12%
long steel (32.6%, 10M/2020, VSA) and steel pipe (31.0%, Trần Đình Long &
relative, 32,69%
10M/2020, VSA).
The others,
55,04%
Performance Updates
Steel
Dragon Capital, 84%
In 9M/2020, HPG's business activities showed strong growth: 5,01%
• Revenue and NPAT of HPG reached VND 64,340 billion (+ VOF, 3,70%
PENM Germany,
41% yoy), and VND 8,845 billion (+ 56% yoy) respectively . 3,49%
Source: HPG
• Revenue and NPAT of the core business - steel products still
Figure 14: Revenue – NPAT – EPS, 2018- 2021F
achieved outstanding growth, respectively 51% yoy and 48%
Billion VND
yoy in the context of the industry facing many difficulties
after putting the furnace No. 1 & 2 at Dung Quat factory into 90.000 81.968 20%
operation. 80.000 18%
70.000 63.658 16%
• HPG's agricultural segment also recorded a sudden growth in 55.836 14%
60.000
NPAT +573% yoy thanks to the increase in prices of 50.000 46.162 12%
10%
Australian pork and beef in this year. 40.000
8%
30.000 6%
20.000 8.015 8.601 8.960 4%
5.895 7.578
10.000 4.037 2.742 3.245 2%
0 0%
2017 2018 2019 2020F
Revenue NPAT EPS Net margin

Source: HPG
HPG – Outlook
STEEL
Great competitive advantage in low production costs: HPG's profit margin was 17.4% in 9M/2020 compared to EAF
furnace companies which only reached less than 3%. Steel capacity in the South and Central in 9M/2020 reached 935
thousand tons (+ 60% yoy in sales volume in the region thanks to good competitive selling prices).
Figure 15: Production cost of 1 ton of billet in some companies in 2019 Figure 16: Operating margin of some construction steel companies
Billion VND/ton
25%
10,9 10,9 10,8

10,3 10,2 10,2 20%
9,1
15%
10%
5%
0%
HPG-BOF The CBI VCA TDS DNS EAF 120
average tons/batch -5%
domestic
selling
-10%
price of
2018 2019 9M/2020
billet in
2019 HPG POM TDS TNB VCA DNS VIS
Source: VCB research
Source: Fiinpro
HPG – Outlook
STEEL
The 3-year safeguard tax extension helps strengthen HPG's leadership position.
Public investment boost in the second half of the year could support steel demand.
Domestic demand for HRC steel is large relative to the domestic supply.
Long-term growth prospects for Vietnam's construction industry.
REAL ESTATE
Large land bank.
RISKS
In 2020, domestic construction industry might slow down.
In the medium term after 2021, there is a risk of a sharp increase in billet supply in Southeast Asia from large-scale steel projects
in Indonesia and Malaysia.
In the long term, HPG faces competition pressure if safeguard tax expires.
HPG – Valuation
Valuation TARGET PRICE
VND
DCF Method: VND 39,200/share
39,200/share
UPSIDE +9.8%
CHANGE IN STOCK PRICE FORECAST
HPG VN-Index
HPG Unit: VND bn 2019 2020F 2021F
40.000 1.050
VN_INDEX
1.000
35.000
950
Net revenue 63.658 90.292 103.617
30.000 900
850 +/- yoy (%) 14,0% 41,8% 14,8%

25.000
800
20.000 750 NPAT 7.570 12.708 14.904

700
15.000
650 +/- % -12,0% 67,7% 17,3%
10.000 600
12/11/2018
10/11/2019
11/11/2019
12/11/2019
10/11/2020
11/11/2020
1/11/2019
2/11/2019
3/11/2019
4/11/2019
5/11/2019
6/11/2019
7/11/2019
8/11/2019
9/11/2019
1/11/2020
2/11/2020
3/11/2020
4/11/2020
5/11/2020
6/11/2020
7/11/2020
8/11/2020
9/11/2020
EPS (VND 000/share) 2.742 3.835 4.498
PHU TAI JSC (PTB) – Overview
Core business Figure 17: Shareholder structure Figure 18: Revenue structure in 9M/2020
The other Services
PTB operates mainly in three areas: (1) exploiting and processing paving commodities 2%
stone, (2) manufacturing interior-exterior wood products and (3) Toyota 0%
car sales.
Business performance Board members
group, 43,8% Stone slab
In 9M.2020, PTB's business activities were affected by the covid-19 The others, 39% Furniture
epidemic as: 56,2% 58%
Although revenue recorded a slight increase of + 3.4% yoy, NPAT

recorded a decrease of 19% yoy. Inside:
• The paving stone segment recorded a slight growth of +9% yoy in
revenue thanks to the increase in capacity at factories (Dak Nong, Toyota trading
1% Source: PTB
Binh Dinh Phu Cat, Thanh Chau Phu Yen) and an increase in
export orders. However, profit before tax decreased by 33% yoy, Figure 19: Revenue – NPAT – EPS, 2018- 2021F
Billion VND
mainly from lower selling prices during the period.
• The wood products manufacturing segment recorded outstanding 14.000 9%
growth in both revenue and EBT, respectively +51% yoy and 11.746 8%
12.000
+73% yoy from an increase in orders as US imposes a relatively 7%

10.000 9.130
high tax of 20-25% on Chinese interior-exterior wood production 8.389
8.047
6%
8.000
enterprises. 6.862 5%
5.552 5.656
• Toyota sales segment recorded a negative EBT of VND 7.4 billion 6.000
4.719
4%
– mainly due to reduced demand and intense competition in Da 4.000

3%
2%
Nang from a second Toyota distributor in this area.
2.000
541 1%
. 400 457 371
0 0%
2018 2019 2020F 2021F
Revenue NPAT EPS (VND) Net margin

Source: PTB, VCBS forecast
PTB – Outlook
Construction stone has great advantage in quantity and reserve of quarries: Currently PTB owns 17 paving stone quarries and
01 construction quarry with a total reserve of 59.3 million m3, remaining mining time is 20-30 years on average.
Wood segment benefits from the US tax on Chinese interior/exterior wood products
 Currently, China does not have many advantages in interior/exterior wood products compared to Vietnam as there is
similarity in technology, besides the labor costs of China is relatively high. Therefore, high taxes from US on China has
helped Vietnamese businesses to benefit.
Figure 20: Labor costs in some Asian countries Figure 21: TOP 5 countries exporting furniture in the US market
USD/ giờ Tỷ USD +61% yoy
+36% yoy
5,0 40
-17% yoy -17% yoy
35 -23% yoy
4,0 30
3,0 25 20,8
20 16,0
2,0 15 8,1
10 6,8 6,7 3,9
1,0 4,9 3,2 1,4
5 0,8
- 0
2010 2011 2012 2013 2014 2015 2016 2017 China Mexico Viet Nam Canada Malaysia
Indonesia Việt Nam Thái Lan
2015 2016 2017 2018 2019 LK 9T/2019 LK 9T/2020
Philippines Trung Quốc Malaysia
Source: IMA Asia Source: U.S. Department of Commerce
 This is partly reflected in the Q3.2020 financial statements of PTB when there are many new customers from the US, EU and
Japan countries. In addition, the two factories to expand capacity by the end of 2019, Phu Tai Dong Nai Plant (+67%
capacity) and Thang Loi Plant (+100% capacity), operated impressively in 2020 with capacity up to 90%.
PTB – Outlook
In 2021, PTB's Revenue - NPAT – ROIC are expected to grow significantly as:
• The paving stone segment is expected to grow when Artificial Quartz Stone Factory starts to operate from Q4.2020.
• Wood segment is expected to continue to grow based on the number of existing orders. Also, the operation of Binh
Dinh plant phase 1 from the end of H1/2021 would increase PTB's total wood processing capacity by 15%.
• Hand-over of Phu Tai Residence project is expected to bring in VND 250 billion of EAT, which is expected to
start booking from Q3.2021 until 2022.
RISKS
In 2021, domestic construction industry might continue to progress slowly.
In the medium term after 2021, US might no longer impose tariffs on Chinese wooden products for interior and exterior from
China.
PTB – Valuation
DCF METHOD: VND 81,000 /share VND

81,000/share
UPSIDE +50%
STOCK PRICE FLUCTUATION FORECAST

PTB VN-Index
PTB
Unit: VND bn 2019 2020F 2021F
80.000 1.050
VN_INDEX
70.000
1.000 Net revenue 5.552 5.656 6.862
950
60.000
900
+/- yoy (%) 17,6% 1,9% 21,3%
50.000 850
40.000 800
750
NPAT 457 371 541
30.000
700
20.000
650 +/- % 8,8% -11,9% 46,0%
10.000 600
12/11/2018
10/11/2019
11/11/2019
12/11/2019
10/11/2020
11/11/2020
1/11/2019
2/11/2019
3/11/2019
4/11/2019
5/11/2019
6/11/2019
7/11/2019
8/11/2019
9/11/2019
1/11/2020
2/11/2020
3/11/2020
4/11/2020
5/11/2020
6/11/2020
7/11/2020
8/11/2020
9/11/2020
EPS (VND 000/share) 9.130 8.047 11.746
ENERGY SECTOR
ENERGY SECTOR - UPDATE
Energy with Covid 19 pandemic.

Energy consumption structure
3%
4%
 Construction Industry and Consumer electricity Industry consume the most Industrial,
electricity, account for 90%. Construction
Commercial
32%
Comsumer
 Economic and consumption activities were strongly influenced by Covid 19 55%
Agriculture, Forestry
which appeared at the beginning of the year and peaked at the social distancing and fishery
in April 2020 and August 2020. 6%
Source: EVN
 Covid 19 has interrupted the supply of raw materials from the beginning of 2020,
causing a shortage of raw materials for the Vietnamese industry. Then, Covid 19
Energy Production, GDP and IIP
spread to all over the world, decreasing consumption and shopping demand.
16%
Therefore, domestic industrial production is also affected, resulting in a slightly
14%
growth in electricity demand.
12%
10%
 Accumulation of 9M.2020, the industrial production index only increased by 8%
6%
2.7% YoY and GDP increased by only 2.1%, leading to an increase in electricity
4%
consumption across the country by only 2.68% YoY compare to above 10% in 2%
average before. 0%
2015 2016 2017 2018 2019 5T 6T 7T 8T 9T
Eletricity Production IIP GDP

Source: EVN, Fiinpro
4 ONI Index (NOAA)
El Nino – La Nina: Two facets in a year.
2
 El Nino takes place from the end of 2019 to the first half of 2020, making the
water flowing very low, especially the North, causing the 5M.2020 power 0
generation output from hydropower to decrease 34% over the same period. -2
10/11
04/12
10/12
04/13
10/13
04/14
10/14
04/15
10/15
04/16
10/16
04/17
10/17
04/18
10/18
04/19
10/19
04/20
 Increase mobilization of coal-fired thermal power in the first half of 2020: Coal Soure: NOAA
thermal power ran maximum capacity with more than 58% of total electricity Power generation structure
100%
output. Total thermal power output increases 16% yoy due to the fact that the
remaining significant source gas thermal power faces the difficulty in reduction of 80%
gas resources and new exploitation projects have not started to operate. 60%
40%
 Hydropower benefits in the second half of 2020: Since June 2020, rain has begun 20%
to appear more in the Northern mountainous region and especially more than 10
0%
storms entering the Central from September until now due to the La Nina.
2014
2015
2016
2017
2018
2019
6T.2020
7T.2020
8T.2020
9T.2020
Hydropower Coal - fired power Gas power
 Full market price (FMP) drop significantly in Oct., because price of Hydropower Average FMP
1500 Soure: EVN
is much lower than thermal power price. In October, FMP is at only 328
VND/kWh – lowest in the past 5 years.
1000
500
0
1 2 3 4 5 6 7 8 9 10 11 12
2020 2019
Source: EVNGENCO 3, EVN
Renewable energy
 New preferential tariff for solar PV: The selling price of solar PV has decreased to 7.09 cents/kWh compared to 9.35 cents/kWh
within 20 years for projects with commercial operation before 1/1/2021.
 Installation costs fell sharply over the years: According to IRENA, the average installation cost for solar power in 2019 was only $
995/kW, a decrease of 78.8% vs 2010. Onshore wind power is only 1,473 USD/kW, down 24% from 2010. PV panel price also
decrease by 20 -30% in 2020 due to increase of capacity factor and productivity. LOCE also has a very strong decrease in Solar PV
and Wind power.
 Strengthening the transmission system to release capacity, especially in Ninh Thuan and Binh Thuan areas: In 2020, 113 project have
been released with a total capacity of up to 5,700 MW. There are only 11 projects remain operating before June 30, 2019 (with a
capacity of roughly 360 MW) and a number of new solar power projects put in the planning have not been fully released.
 Strong growth in capacity and output: 9M.2020 output reached 8,160 GWh (+160% yoy). The proportion of total generation output is
up to 4.4% compared to less than 1% in 2018 and 2.5% in 2019. Installed capacity is nearly 6,000 MW, accounting for 10% of total
installed capacity.
Cents/kW US Output price
Total Installed cost Capacity factor LOCE
0,4 cents/kWh
60% 12
9,35 9,35 9,35 9,8
5000 50% 0,3 10 8,38 8,5
7,69 7,09
40% 8
0,2
30% 6
20% 0,1 4
0 2
10%
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
0
On-shore Windpower Floating Onshore Rooftop Onshore Offshore
Solar PV On-shore Windpower
On-shore Windpower
Solar PV Solar PV Solar PV Wind Wind
Hydropower Solar PV Solar PV power power
Off-shore Windpower Hydropower Hydropower
Off-shore Windpower FIT 1 FIT2
Source: IRENA, VCBS
ENERGY SECTOR - OUTLOOK
Hydropower will continue growing in the first half of 2021: La Nina will Probability of El Nino, La Nina
according to CPC/IRI
continue in the second half of 2020 and the beginning of next year. The rain area
100%
will be concentrated in the North Central region and move to the South Central
Coast and the North Central Highlands due to the combination of strong northeast 50%
monsoons this year. Thermal power could be reduce. Solar power in storm- 0%
affected areas also reduces radiation. 10 11 12 1 2 3 4 5 6
Thermal power: Thermal power plants will run more stably when La Nina passes La Niña Neutral El Niño
because these are base plants. Some plants are given high priority to allocate Qc to
17% Energy consumption and GDP
assist in repayment period and operate efficiently like HND. However, re-signing
15% Adjusted
the PPA at a lower price after the repayment period expires will reduce the impact 13% PP 7
of the interest rate reduction (HND, NT2) 11%
9%
Installation costs, LOCE continue to sharply decline in renewable energy due to 7%
5%
technology improvement and economic of scale advantage. 3%
2009 2012 2015 2018 2026 - 2030
Renewable energy development policy: Expect to lengthen the policy of wind
Source: EVN, revise PP7
power, solar power with attractive price due to great potential and incomplete
auction mechanism. 2030 planning Unit 2016 - 20202021 - 20252026 - 2030
Invest in thermal power projects using LNG when domestic gas resources are 500 kV
gradually exhausted. substation MVA 26,700 26,400 23,550
220 kV
Electricity demand continues to increase rapidly in the long term in correlation substation MVA 34,966 33,888 32,750
with the expectation of rapid economic growth of Vietnam.
500kV grid line km 2,746 3,592 3,714
Developing power grid due to high demand of capacity clearance
220 kV grid line km 7,488 4,076 3,435
Source: EVN, PP 7 Adjusted
Draft of power planning WIII would has some changes

Renewable energy such as wind and solar power will be significantly
Billion kWh Energy structure according to
increased in capacity. Wind power capacity is 3 times and solar power is
Adjusted PP VII
nearly 2 times higher than adjusted Power Master Plan VII. The total installed 700 572
capacity will increase by about 30 GW (accounting for 26% - 27% of the total 600 400
installed capacity of the whole system in 2030 compared to 9.5% in 2020). 500
400 265
300
Thermal power: More than 17GW of imported coal thermal power added to 200
the PMP VII will be passed through after 2030 or removed. Total additional 100
0
installed capacity by 2030 of thermal power plant is about 30 GW. 2020 2025 2030
Hydro power Coal - fired thermal Gas thermal

Renewable Import Nuclear power
In addition, the new power source planning projects are mainly concentrated
in the South Central Coast, the Central Highlands and the South West - far
Source: EVN, Adjusted PP VII
from the load, so there will be very high demand in developing the
transmission network. Specifically, it is expected that by 2030, if all registered
investment projects are approved, the South and South Central regions will
have a surplus of 80 GW and 18 GW of the Central Highlands.
We believe that the electricity business outlook has the following characteristics
 Benefit from La Nina: Companies hold Central and North hydropower plants.
 Developers of wind power projects can run commercially before November 1, 2021.
 Contractors of energy projects and power transmission networks.
 Construction Materials suppliers.
Some typical enterprises in the industry
Market cap Dividend yield

No. Tiker P/E P/B EV/EBITDA Type of energy
(VND billion) in 2019
1 POW 23,325.04 14.85 0.83 6.32 3.01% Gas power, Thermal power, Hydropower
2 REE 13,797.27 9.75 1.27 13.76 3.60% Hydropower, Thermal…
3 HND 8,971.00 5.92 1.37 3.19 8.92% Coal - fired
4 NT2 6,707.51 10.6 1.64 5.17 10.73% Gas power
5 VSH 4,093.89 52.86 1.29 55.87 0.00% Hydor power
6 PC1 3,951.22 9.25 1.02 7.76 0.00% Energy contractor, Hydropower, Wind power
7 SBH 3,503.15 11.78 1.68 7.59 7.09% Hydropower
8 CHP 2,894.18 13.38 1.74 15.83 5.08% Hydropower, Solar PV
9 TV2 1,676.50 7.6 1.6 5.58 0.00% Energy contractor, consultant, Solar PV
10 TBC 1,555.75 10.87 1.58 6.38 8.16% Hydropower
Source: Fiinpro, VCBS

Based on the above evaluation, we choose PC1 stock due to expectation of hydropower segment to improve significantly when LaNina continue,
investing in wind power projects and grid installation will take advantage of capital flows into wind power field.
ENERGY SECTOR - RISKS
Policy risk: The FIT price that is not extended and takes a long time to come up with new policy will delay investment decisions
for projects.
The possibility of releasing capacity for new projects that have been added to the plan is not high: Only 20-23% of RE
capacity has been added to the 2020 that could be released due to insufficient infrastructure, which will reduce capacity
generation, affecting the profitability of those project (in 2021, the clearance plan is 11,000 MW, 2023 will release 11,745 MW but
the remaining of 2,300 MW in 2021 and 1,555 MW 2023.
Input risks: For renewable energy, hydropower will depend heavily on Weather such as rainfall, radiation or wind speed, so we still
depend on the thermal power (coal – fired and gas – fired) . For thermal power projects, domestic coal output does not meet the
demand for coal-fired thermal power generation (it is expected that by 2030 only meets 50% of the required output) and must
depend on imports from Indonesia, Australia…. Gas reserves are declining, the Southeast region needs to subsidize LNG from
2021 - 2022 and import gas from Malaysia.
POWER CONSTRUCTION JSC No.1 (PC1) – Overview
Business activities
Shareholder portion Revenue structure
Four main sectors, the electricity transmission network construction and
Insdie: 2019
installation segment (36% of net revenue), electricity pole structure Outside: 9T.2020
20,03% Trinh Van
production (17% of net revenue), real estate (16% of net revenue), power Tuan Construction
HEHS 17%
source development (13% of net revenue) and other businesses.
19% Industrial
Vietnam 36%
Shareholder Holding Ltd
production
17,76% Nguyen Nhat 13%9% Real Estate

The major shareholder is Mr. Nguyen Van Tuan (Chairman) and his family 54,34%
Tan 51%
(20.03%), followed by BEHS, who just joined in early 2020 with 17.76%, Norges Bank 4% Power
Vietnam Holding Ltd (4.14%), Nguyen Nhat. Tan (3.23%), and other 4,14%
3,23% Others 17%
16% Commercial
shareholders. 17%
9M.2020 Result Source: PC1, fiinpro, VCBS
9M.2020's revenue reached VND 4,170 billion (-2.4% yoy, 59.5% of the year VND Bil
plan). GPM reached 20%, improved 4.9% over the same period. Profit after Business performance
7.000 25,0%
tax for parent company shareholders reached VND 373 billion (+ 24% YoY, 6.000
19,9% 20,0%
79% of the year plan). 5.000 17%
Revenue decreased slightly by 2.4% yoy due to a sharp decline in 4.000 15,2%
14%
15,1% 15,0%
commercial trading and other activities (-42% yoy); Construction revenue 3.000 10,0%
decreased due to the same period being the peak of handover of solar power
2.000
EPC projects, while 9M.2020, Covid epidemic affected. However, revenue 5,0%
1.000 237 467 358 302 372
from energy and industrial production grew very well, especially the
- 0,0%
hydropower segment, which has modest revenue but contributes the most to 2017 2018 2019 9T.2019 9T.2020
PC1's gross profit; Real estate segment increases considerably from PCC1
Total Revenue Gross profits
Thanh Xuan project. Profit after Tax Gross Profit margin
Source: PC1, VCBS
PC1 - OUTLOOK
CATALYST
 Hydropower segment has increased since the return of La Nina in Q2/2020. According to the General Department of Meteorology
and Hydrology, La Nina is likely to extend to the end of the spring causing many storms and air disturbance to increase rain in Northern
region - where PC1's hydropower plants are located. In addition, PC1 ran several hydropower plants in 2020 (Song Nhiem 4, Bao Lac
B, Mong An - a 50% increase in capacity).
 Investing in wind power with a total capacity of 144 MW in Quang Tri expected to be completed in Q4.2021 with a selling price of
8.5 cents/kWh will help the power generation segment become the most profitable segment for PC1 activities.
 The electrical construction segment will utilize capital inflows to the wind power and Solar PV market in the future.
Construction, industrial production has great benefits from renewable energy incentives and the demand for electricity has steadily
increased over the years.
 Prospects of further real estate projects: PCC1 Vinh Hung, Thang Long and potential project will add more value to the business.
Risk
 Weather, Account receivable, Wind project’s construction progress can’t meet the deadline of FIT2.
Revenue estimated Gross margin structure forecast

8.000 1.800
1.600
6.000 1.400
1.200
4.000 1.000
800
2.000
600
- 400
FY 2020E FY 2021E FY 2022E FY 2023E FY 2024E 200
-
Construction Industrial production Real Estate FY 2020E FY 2021E FY 2022E FY 2023E FY 2024E
Power Commercial
Construction Industrial production Real Estate Power Commercial
Source: VCBS estimated Source: VCBS estimated
Logo
DN PC1 – Valuation
DCF Model 27,000 VND 27,000/share
UPSIDE +8%

23.000
Unit: VND billion 2019 2020F 2021F
20.000
17.000 Net revenue 5.845 5.904 6.147
14.000
+/- yoy (%) 14,96% 1,00% 4,13%
11.000
8.000 NPAT 358 570 460
5.000
+/- % -23,31% 59,42% -19,34%
EPS (VND) 2.246 3.580 2.888

PC1 Relative VNINDEX
RETAIL INDUSTRY
GAINING BACK TO THE GROWTH MOMENTUM WHILE FACING THE
CHALLENGE OF COVID-19
1. Overview
In the recent 5-year period 2015-2020, Vietnam's retail industry has been considered very attractive with a Retail sale growth by categories 10M.2020
2-digit growth rate
Generally in 10M2020, the total retail sales of consumer goods and services reached VND 4,122.96 trillion (+ 1.27% Vehicle -1,1%
yoy) although it was the most heavily affected in Q42020 when the country did Social distancing that resulted in a sharp
Education -1,0%
drop in revenue from accommodation and tourism services, decreasing over 26% yoy. Retail sales of goods in the first 9
months of the year were recorded at 3,263.36 billion VND (+5.44% yoy) because the supply of essential goods is still
Household goods 6,3%
ensured by supermarkets and commercial center and customer’s shopping behavior has been shifted to online channels.
Textile 1,6%
Purchasing power is decreased mainly due to: The unemployment rate of first 9 months of 2020 is 2.48%, which is 1.14
times higher than the same period last year. Average monthly income of employed workers in 9 months of 2020 is Food 9,4%
proximately 5.5 million VND, 83 thousand VND less than the same period last year. Although the average income in
3Q.2020 has been improved compared to the previous quarter, this is the first year the income of employed workers in
the third quarter decreased compared to the same period last year in the past 5 years.
Total retail sale of goods and services in Vietnam Correlation of GDP / person and retail growth (mom) in
the first 9 months of the year of some regional countries
10M.2020
500.000
10,00%
400.000 Vietnam
5,00% Korea
300.000
0,00%
200.000
-5,00%
China
100.000 -10,00%
Malaysia
0 Indonesia
-15,00% Thailand
-20,00%
Total retail sale of goods and services Retail sale of goods

Food Textile
Household goods Education Source: GSO VCBS compiles
MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS Back
INDUSTRY HIGHLIGHTS
GAINING BACK TO THE GROWTH MOMENTUM WHILE FACING THE CHALLENGE OF COVID-19
2. The trend varied among products segment under the pandemic effect. FMCG and F&B showed positive performance
Mobile devices, electronics, especially non-essential products such as gold and silver jewelry, are facing difficulties due to the impact of covid-19 on consumers' purchasing
power. In which, MWG closes its affordable phone chain, strongly converts mobile stores to groceries stroers (ĐMX), PNJ closes shop-in-shops in shopping malls,…
Meanwhile the essential product group includes the consumer goods, especially FMCG are prioritized.
Department stores have faced declining margins due to declining customer traffic as well as increasing costs of transportation and input during the epidemic evidenced by
declined market share of grocery stores. traditional markets, the market share of supermarkets and online channels grew after the first 9 months of the year. However, we
highly appreciate the possibility that from 2021 when the epidemic has been controlled, the market share will gradually shift from supermarkets to small department stores
and convenience stores, which have lower cost and better convenience for consumers to have access to.
Due to concerns about recurrence of covid-19 outbreaks, department stores need to prepare e-commerce options and shipping solutions. In addition, the development of
e-commerce can help retailers have better approach to customers. We also note that consumers still prioritize spending on FMCG and spending on luxury products, meals to
go, and entertainment compared to the previous period which had slower recovery.
Online channel shows long-term growth potential as it continues to expand market share in value as well as leads in growth post social-distancing.
%yoy Change in FMCG across key metrics and sectors % Value share across
in urban and rural
5,0% 6,1% 6,6% Other
5,2%
6,1% 5,9%
12 14
13 14,2%
Online
10 12 14,9% 14,4%
12
22 12
8,8% Minimarket
6,1% 6,2%
8 8 8
5 8,9% 8,8% 8,8%
5 5 5 Cash & Carry
5
2
3
2 2 Hyper & Super
54,0% 52,8% 52,7% Speciality stores
FMCG Transactions Spend Avg.paid Unit Packaged Personal Wet market
FMCG Dairy Beverages
Spend Per trip price per per trip foods care
unit Street shop
FY2019 YTD 9M.2020 Sau giãn cách
2019 9M.2020 XH
Source: Kantar world panel
INDUSTRY HIGHLIGHTS
3. Movements of retailers to deal with Covid 19

At the time of 30/09/2020
Adjust store layout to expland shop-in-shop

Adjust sales
MWG strategy Convert TGDĐ stores to shop-in-shop
BHX started implementing a new business model: BHX: "5
billion", Super mini ĐMX in remote areas to increase market
share.
Focus on
efficiency of
operation/store Speed up the development of Long Chau pharmacy chain, start to
produce a number of supplemental products and medical equipment
FRT Omni-channel sales strategy: Cooperate with mobile brands those

Close down are strong in e-commerce such as Xiaomi, Honor, Realme; Partner
ineffective with other retailers (such as Nguyen Kim) to provide new product
stores categories; cross-border shopping (through a partnership with
Fado).
Close down ineffective store; Continue to expand shop-in-shop

PNJ model.
Trial phase Covid 19 Adapting phase

2018 2019 Apr 19 2020
Testing and replicating the shop-in- Quickly expand the Expanding to tier 2 cities - which are currently
shop model to open more stores to sell number of stores after a dominated by traditional retail models
other products from the existing store) successful trial
INDUSTRY HIGHLIGHTS
4. Purchasing power is forecasted to decline in short-term Forecast of total retail sale of goods and services
25%
Forecast of retail sales of consumer goods and services 20%
15%
VCBS forecasts a decrease in consumer purchasing power compared to the 10%
previous year due to concerns about epidemics in the world and the decline in 5%
income of a part of consumers due to covid-19 epidemic has yet to be 0%
improved in the short term. -5%
VCBS forecast growth rate of total retail sales of goods and services -10%
-15%
increased in the last quarter of the year -4.24% yoy and strongly recovered in
-20%
the middle of Q2.2021 with the growth rate of 14.49%.
-25%
Q1.2016
Q2.2016
Q3.2016
Q4.2016
Q1.2017
Q2.2017
Q3.2017
Q4.2018
Q1.2018
Q2.2018
Q3.2018
Q4.2018
Q1.2019
Q2.2019
Q3.2019
Q4.2019
Q1.2020
Q2.2020
Q3.2020
Q4.2020
Q1.2021
Q2.2021
% yoy Retail sale of goods and services, average salary, GDP and CPI
30% 25% % yoy retail sale of goods and services % yoy average salary GDP
20% 20%
10% 15%
Y = -0,273 -0,552*I +5,281*G +2,327C
0% 10%
Y: Retail sales and goods services growth rate
-10% 5%
-20% 0% I: Average wage growth
-30% -5% G GDP growth rate of Vietnam
C CPI of Vietnam
%yoy average salary
%yoy retail sale of goods and services
Source: GSO, VCBS forecast
SECTOR OUTLOOK
Still being attractive to foreign investors with long-term growth potential
1. Growth potential of the merchandise differentiation

Market size Industry outlook Potential growth level
Modern retail channels (supermarkets, convenience stores, shopping centers) only account for 25% - 26% of
the total retail sales. Currently, traditional retail accounts for 74% of the market share, but the growth rate is
70 bn USD only 1% / year, while modern retail channels only account for 26% of the market share but the growth rate is
11.8% / year.
Pharmaceutical industry is still very potential in Vietnam. Revenue from the Vietnamese pharmaceutical
market will reach USD 7.7 billion in 2021 and USD 16.1 billion in 2026 with a growth rate of about 10.6% per
5,9 bn USD year (from 2012 to 2021) (according to BMI). Spending on pharmaceuticals per capita in Vietnam is about 50
USD / person / year by 2020 with the growth rate of 14% / year. (from IMS Health)
Electronics buying demand has been slowdown as over 70% of Vietnamese households owning basic items
7 bn USD such as refrigerators, washing machines, televisions, personal computers, and rice cookers. About 30% of
households own more advanced items such as air conditioners, microwave ovens, vacuum cleaners ...
The percentage of mobile phone users has reached over 90% of population, but since August 2020, Viettel has
officially turned down 2G network in some areas, and encouraged users to change to use 4G. Boosting demand
4 bn USD
of upgrading from featured phones to smartphones (featured phones, despite having 25% market share in
volume, only 4% market share in value.)
Jewelry consumption per capita remains low compared to other countries in the region.
The 2010-2019 CAGR of the world market reached 0.33%, while in Vietnam it was 2.24%. Looking back on
0,6 bn USD 2019, the consumption of gold bars in the domestic and international markets both recorded a decline. However,
Vietnam only recorded a decrease of 5.32% yoy which is considered positive compared to the sharp decline of
the world of 23.41% yoy.
1 bn USD
The eyewear and watches market is very fragmented with market share in the hands of most small-scale
businesses and unidentified imported goods.
Gross profit margin remains 30-40% (depends on different segments). Retailers can combine to implement a
0,75 bn USD
shop-in-shop model, without increasing operating costs for existing stores.
Source: Digital 2020 Vietnam, DataReportal
SECTOR OUTLOOK
Still being attractive to foreign investors with long-term growth potential
2. Modern trade retail model is becoming popular

Currently, MT model is being applied in some big merchandise such as grocery, pharmaceuticals, ICT, etc while GT model which comprises traditional small size stores is
dominating in other product segment. The emergence of MT model has made GT decelerate from double digit rate to about 5% per year.
Annual sale per store

MT share in grocery market MT market size and CAGR 2018 – CAGR CAGR
2023F In value In volume
VND bn 2014 2015 2016 2017 2018 2019
4 bn 24,3% 17,9%
Vietnam 25.8% pa
8% USD
CVs 2,65 2,82 2,64 2,82 3,11 3,41
20 bn
Indonesia 17% 11.1% pa 10,6% 41,6%
USD
Super market 58,84 38,47 25,72 20,26 18,62 17,07
10 bn
Philipines 32% 11.2% pa
USD Modern 8,5% 31,7%
8 bn grocery 49,71 34,82 26,41 21,98 20,57 18,87
Malaysia 46% 7.0% pa
USD Traditional
4,7% 0,8%
30 bn grocery 1,27 1,32 1,36 1,42 1,49 1,54
Thailand 47% 6.4% pa
USD
Potential of merchandise Number of stores by channel and revenue growth by channel
14% 12%
34% 8% 8%
33% 10% 16%
40% 29%
23%
% Growth
19%
30% 18%
12% 5%
4%
20% 5% 5%
4%
10%
2014 2015 2016 2017 2018 2019
Traditional grocery Convenient store Supermarket
20% 40% 60% 80% Penetration rate Source:Deloitte, Euromonitor, VCBS
MWG – Mobile world investment corporation
New business models have initially recorded positive results
1. 9M2020 performance 2000

Number of stores by chain
1623
By the end of 9M.2020, net revenue reached VND 81,352.32 billion (+ 5.98% yoy), NI reached VND 2,977.57 billion VND, (+ 0.05% yoy)
1500
GPM was significantly improved to 21.7% (up 3.3% from 18.4% in 2019, NPM remained at 3.7% (equal to 2019). 1124
1072 1032 1013 1018 1008
962
MWG has a total of 3,709 stores (an increase of 670 stores compared to the end of 2019). 1000
750
642
500 405
283
0
2. Company outlook TGDĐ ĐMX BHX
2017 2018 2019 9T.2020
The “VND 5 billion” BHX model initially recorded positive results after a
3-month testing period. Average area BHX revenue/shop/month
4050-500m2
1800
Continuing focus on improving GPM comes from: (1) improving purchasing
efficiency (2) improving terms of trade with suppliers due to the advantage of SKUs 5.500-6.000 1600
increasing sales scale. Accordingly, BHX's GPM (after cancellation and loss approaching 6000- 1400
rate) in 3Q.2020 remained at 25% (increased by nearly 5% compared to 20% 8000 products 1200
in 3Q.2019).
Revenue VND 150 million/day 1000
Continuing to actively adjust the speed of new store opening in parallel with 800
the increase in the number of “VND 5 billion " BHX models from upgrading 600
Customer 1.000 customer/day
existing stores with high average revenue and aiming to have 100 “VND 5 400
traffic
billion” BHX stores by the end of 2020.
200
Coverage HCM, Dong Nai, Long
In 3Q.2020, the average revenue per store returned to VND1.2 0
An, Bình Dương, Bình
billion/store/month. T1 T2 T3 T4 T5 T6 T7 T8 T9 T10 T11 T12
Phước, Bến Tre.
2018 2019 2020
Source: MWG
2. Outlook Large
Mini DMX Super mini DMX
DMX
Area 800- 300-250m2 By ½ area of mini DMX: 120-150m2
DMX implemented supermini DMX model (“DMS”) with initial positive 1.000m2
results in the context of saturated mobile phone market. By the end of By 60-70% SKUs of mini DMX
SKUs
September2020, the company had 52 DMS stores (33 new stores opened in
September 2020) in 12 provinces in the West, East and South Central region, Capex VND 5 bil VND 3 bil VND600-700 mil
contributing to accumulated revenue nearly VND100 billion, equivalent to the
Remote districts, communes/towns with 20
average revenue per store reached more than VND 1 billion /month. MWG Targets / Major roads, densely shops / province (distance between stores
plans to continue speeding up DMS store expansion to explore this market and customers populated areas from 15 to 20km).
increase the consumer electronics market share in the coming time.
VND 1 billion/store/month, focusing on
Revenue/store/mo items in the segment below VND 1 million
>VND10 bil ~ VND 4 bil (higher than with installment policy)
nth
GPM The overall GPM of the ~23%

whole chain is currently
Completed the transformation of Bigphone chain to the Bluetronics chain 21.7%.
(mobile devices and electronics chain), reaching 20 stores by the end of
September in Phnom Penh, Cambodia. MWG is aiming to expand to 50 stores Proportion of 15% 20%
by the end of 2020 to cover other provinces outside Phnom Penh, including household goods
Siem Reap, Sihanoukville, ... In addition, the localization during operation is with a high GPM
shown when MWG uses all staff is Cambodian and sales culture (store Operating costs are reduced thanks to: (1)
decoration, promotional activities,….) 2 employees/shift/day and no need for
additional senior management team, help
Advantages staff cost only 1/3 of mini DMX; (2) make
use of existing logistic systems; (3) the rent
cost is as cheap as ¼ compared to the mini
DMX.
3. Forecast and valuation

FORECAST
Stock price movement VND bil 2019 2020F 2021F
Rating OUTPERFORM with target price of 127,752 per share Net revenue
140.000 102,174 108,019 131,886
120.000
+/- yoy (%) 18.1% 5.7% 22.1%
100.000
80.000
VND
NI 3,834 3,960 5,093

60.000
MWG
+/- % 33.19% 3.29% 28.62%
40.000
20.000 Relative VN
Index EPS (VND/share) 8,665 8,833 11,128
0
VALUATION
Price movement
Recommend price 127,752
Timeline 3M 6M 12M
EV/EBITDA 128,396
VNIndex 11.4% 17.2% -8.1%
MWG VN EQUITY FCFF 127,107

36.2% 30.6% -13.8%
Relative to index 24.8% 13.4% -5.8%
PNJ – Phu Nhuan Jewelry Joint Stock Company
Gradually regaining growth momentum from the Covid-19 pandemic
1. 9M2020 performance
Total number of stores
3Q.2020's business result decreased with net revenue of VND 3,922 billion (-0.31% yoy) and net income
288 296
reached VND 202 billion (-2.84% yoy). In the first 9 months of the year, business results reflect the industry's 273
leading position in the face of short-term challenges from Covid-19 pandemic with net revenue reached VND 258
11,668.07 billion (-0.09% yoy), NI reached VND 642.01 billion (-20.34 % yoy).
202
174
(1) The retail segment of gold and silver jewelry was heavily influenced when the second wave of covid-19 154
broke out in Da Nang in early August, 2020. However, in the first 9 months of the year, the retail channel still
recorded a slight increase of 4.09% yoy.
61 59 63 63 62 54
(2) Gold bar business still recorded growth of 19% yoy in 3Q.2020. Accumulated 9M.2020 revenue from gold 38
bar trading increased by 15.63% yoy due to the hoarding demand for gold bar during the Covid-19 pandemic. 4 4 4 3 4 4 3
(3) The wholesale segment recorded a decline of 40% yoy in 3Q.2020. Accumulated 9M.2020 wholesale 12.2016 6.2017 12.2017 12.2018 06.2019 12.2019 T9.2020
revenue decreased by 27.17% yoy.
PNJ Gold PNJ Silver CAO Fine
Accumulated 9M.2929 GPM is 19.34% (last year recorded 20.87%), of which, GPM in 3Q.2020 is 18.72%.
During 9 months, PNJ opened 23 new stores and upgraded 8 PNJ Gold stores, closed 30 stores (13 Silver stores PNJ's revenue structure
and 17 Gold stores).
9T.2020 57,20% 15,60% 25%
6T.2020 58% 16,60% 23,10%

Number of stores
1Q.2020 59,20% 15,20% 24,10%
at the time of 53
38
September 2020 silver watches 9T.2019 54,90% 21,40% 22%
stores
stores
6T.2019 57% 20,60% 20,30%
3 CAO
stores
1Q.2019 57,20% 19,10% 21,90%
296 0% 20% 40% 60% 80% 100%

gold
stores Retail Whole sale Gold bar B2B Export
Source: PNJ
2. Company outlook
Vietnam jewelry market compared to other countries in the region shows an encouraging growth in the Jewelry consumption of some countries in the
context of the Covid-19 pandemic. In the first 9 months of 2020, Vietnam jewelry consumption reached 7.9 tons 14 region
(-41.45% yoy) due to the impact of Covid -19 pandemic, same compared to the decrease of the world (41, 02% 12
yoy) but relatively satisfactory compared to some regional countries
10
PNJ's growth rate was higher than the growth rate of gold and silver jewelry industry. In the 2016-2019 8
period, while the average growth rates of the jewelry and gold bar markets were 2.8% yoy and -3.8% yoy, 6
respectively, PNJ achieved impressive revenue growth with 22, 4% yoy.
4
Focus on improving operational efficiency of existing stores. During the Covid-19 pandemic, PNJ also took 2
advantage of the opportunity to access premises with convenient locations and reasonable rents to serve stores 0
opening when the market regains growth momentum after covid-19.
Launching Style by PNJ brand aimed at young customers. Japan Indonesia Malaysia
Singapore Korea Thailand
Business result in Q4.2020. PNJ's BOD shared that jewelry retail sales on the occasion of Vietnamese Women's Vietnam
Day 20/10 recorded a growth of 50% yoy. However, the short-term impact of purchasing power due to the covid-19
pandemic is unavoidable, leading to less positive business results for the whole year compared to 2019. VCBS Source: PNJ
forecasts that PNJ's 4Q.2020 revenue is VND 5,263.50 billion (-1.09% yoy).
PNJ's revenue growth compared to jewelry and
Consumption of jewelry and gold bar in Vietnam 60% gold bars industry (% yoy)
Correlation between gold consumption and jewelry
and GDP/capita in 2019 and 2025F forecast
100 (tons) 30%
87,9 40%
80000 20%
70000 80 73,8 20%
10%
60000 Singapore 00%
60 54,2 00%
USD/capita
50000 47,8 42,9 37,4 -10% -20%

41 39
40000 40 -20% -40%
30000 Korea
Malaysia 15,6 16,5 18 17 -30% -60%
20000 20 11,8 12,5 15,4
Thailand 10,5
-40%
10000 Indonesia -80%
Vietnam
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18
Q2'18
Q3'18
Q4'18
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
Q2'20
Q3'20
0 0 -50%
0,00 0,50 1,00 1,50 2,00 2,50 3,00 2012 2013 2014 2015 2016 2017 2018 2019
Grams/capita Gold bar Jewelery %g jewellery %g gold bar % g PNJ's revenue
% growth gold bar % growth jewelery
3. Forecast and valuation

FORECAST
Stock price movement VND billion 2019 2020F 2021F
100.000 Rating OUTPERFORM with target 81,851 per share

Revenue 17.000 16.932 19.524
90.000
80.000 +/- yoy (%) 16.7% -0.4% 15.3%
70.000
60.000 NI 1,193,925 973,95 1.269,993
50.000
VND
40.000 PNJ
30.000 +/- % 24.38% -18.4% 30.4%
20.000 Relative VN
10.000 Index EPS (VND/share) 4,896 4,896 5,209
0
VALUATION
Price movement
Price recommendation 81.851
Timeline 3M 6M 12M
P/E 78.188
VNIndex 11.4% 17.2% -8.1%
FCFF 85.514
PNJ VN EQUITY 30.2% 24.3% -12.3%
Relative to index 18.8% 7.1% -4.2%
FERTILIZER
INDUSTRY
FERTILIZER INDUSTRY
1. Global market highlights
Urea: Urea price has gone up by 12% in the third quarter of 2020 thanks to a recovery of urea consumption as well as a turnaround in its material
price in input such as coal, oil, natural gas…
Kali Clorua: Meanwhile Urea price has shown a good performance, KCl price has moved in a contrary direction by dropping 8% in the third
quarter . It has experienced 9 consecutive months of decline since early of 2020.
DAP: Due to the interruption of supply at Chinese market, DAP price has dropped sharply in the third quarter of 2020. Chinese market is known
as the largest supplier in global
%
$/ton
Fertilizer Price Movement Fertilizer Production %
Fertilizer‟s market share
50
450 30
Urea DAP MOP
40 25
400
20
30 15
350
10
20
300 5
10 0
250
India
Canada
Russia
Russia
Belarus
Russia
Israel
China
Indonesia
China
India
Morocco
China
United States
United States
0
200
2014
2015
2016
2017
2018
2019
2020
2014
2015
2016
2017
2018
2019
2020
2014
2015
2016
2017
2018
2019
2020
150 Ure DAP KCL Ure Phốt phát Kali
2017
2018
2019
2020
Source: VCBS compiles
FERTILIZER INDUSTRY
1. Domestic market movement
Supply side: Thanks to the good anti-epidemic measures from the government and the people, no local factories had to shut down, so the
domestic fertilizer supply chain was not interrupted meanwhile the volume and value of fertilizer import in 1H.2020 dumped sharply due to
the disruption of global supply and freight.
Demand side: 2020 is considered a milestone for the fertilizer export activities. As of September 2020, accumulated volume and value
increased by more than 35% year-on-year. Although the overall domestic fertilizer supply in 9M.2020 was still assured at a high level,
domestic fertilizer demand also increased positively.
500000 Volume of Fertilizer Import – Export 75,0% 120000 Value of Fertilizer Import – Export 120,0%
400000 60,0% 100000 100,0%
300000 45,0% 80000 80,0%
200000 30,0% 60000 60,0%
40000 40,0%
100000 15,0%
20000 20,0%
0 0,0%
Jan Feb Mar Apr May Jun Jul Aug Sep 0 0,0%
-100000 -15,0% Jan Feb Mar Apr May Jun Jul Aug Sep
-20000 -20,0%
-200000 -30,0%
-40000 -40,0%
-300000 -45,0%
-60000 -60,0%
Import Export % YoY Import (Lũy kế) % YoY Import Import Export % YoY Import (Lũy kế) % YoY Import
SECTOR OUTLOOK
2. Positive Outlook thanks to favorable weather condition
Short term(< 6 month): Regarding sales volume in the second half of 2020, VCBS believes that sales will record high in 4Q.2020 as usual
when the Winter-Spring season comes. Looking at the inventory movements of most large enterprises, inventories of Urea and NPK products
have declined rapidly, reflecting the good demand for consumption.
Long term(> 1 year): ONI has returned to slightly negative, ending 3 consecutive years of drought caused by the El Nino phenomenon. The
cycles of weather usually remain status at least 1-3 years before transitioning to a new climate state. Therefore, 2021 seems to be a La Nina
year. VCBS expects that La Nina should help fertilizer demand grow by 5% in 2021. However, negative movements of Brent and FO prices
will positively affect the gross profit margin of the business, especially in urea manufacturing enterprises.
Inventories of fertilizer enterprises

Weather Condition – ONI‟s movement
1800000
3
1600000
2,5
1400000
2 1200000
1,5 1000000
1 800000
600000
0,5
400000
0
200000
2011 2012 2013 2014 2015 2016 2017 2018 2019
-0,5 0
Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3
-1
DCM DPM LAS BFC
-1,5
PETROVIETNAM CA MAU FERTILIZER JSC– GENERAL
Business Activities Revenue mix

Shareholder Structure
After successfully upgrading the factory, DCM is
currently operating at around 110% of the designed
capacity for the Ca Mau brand granular urea factory.
From Q42020, the DCM plant will put the NPK plant
with a capacity of 360,000 tons of molten urea
technology into operation. 80%
Shareholder Structure
PVN is still a controlling shareholder with over 75%
PVN PVI Others
Ure NPK NH3
stake in DCM. PVN still ranks DCM in the list of
divestments in the short term. However, VCBS realizes
Business Result
DCM's outstanding problem is that the State has not 6.689
7.000
6.266
approved the equitization settlement. Therefore, it will be 5.747
6.000
difficult for PVN to continue divesting from DCM. 4.910
Sales
5.000
4.000 NPAT
Business Result
3.000 EPS
9M2020's sale reached VND 5,458 billion (+ 7.7% yoy);
2.000 Gross
Profit after tax reached 461.9 billion VND (+49.9% yoy) 1.171 1.205 1.239 1.112 Margin
619 637 656 805 588
1.000 426
thanks to favorable movements from low oil prices,
0
helping to improve gross profit. 2016 2017 2018 2019 2020
Source: DCM, VCBS compiles
PETROVIETNAM CA MAU FERTILIZER JSC
Advantages of NPK Fertilizer Segment Asset - Liabilities

16.000
VCBS sees many advantages of DCM in terms of new NPK fertilizer
Thousands
14.000
plant thanks to its low capital expenditure but outstanding quality.
12.000
10.000
Strong Cashflow 8.000
6.000
DCM generates ample amount of cash flow from operating activities 4.000
each year despite low corporate profit due to fluctuations in the input 2.000
gas price mechanism thanks to the high proportion of depreciation in 0
COGS.
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total asset Total debt
Binh Dien
Phu My NPK Viet – Han NPK Ca Mau NPK
NPK
Cash Flow
5,000 bn VND 3.000
Capex 1,300 bn VND 800 bn VND 120 bn VND
Thousands
(included MH3 )
2.000
Mixing by 1.000
Technology Chemical Blast Furnace Molten Urea
Barrel swivel
0
250.000 tons per 300.000 tons per 300.000 tons 50.000 tons per
Capacity (1.000)
year year per year year
(2.000)
Investment
20 mn 3.6 mn 2.9 mn 2.4 mn (3.000)
rate/ton NPK/
VND/ton/year VND/ton/year VND/ton/year VND/ton/year
year
Source: VCBS compiles +/-CF CFO CFI CFF
b = 90% b = 90% b = 90% b = 85% g = 2% Ke = 12.5%
2021 2022 2023 2024 ∞
The first year of debt- The first year of depreciation - free,

free, cash surplus profit increased sharply by more than
increased by 1,200 1,000 billion / year. Eligible to pay
billion / year dividends
Scenario Analysis Giá dầu Brent Oil
VCBS uses 3 scenarios of oil price from 40 - 50 - 60

40 USD 50 USD 60 USD
USD / barrel and 2 scenarios on VAT to present the
valuation matrix table when changing assumptions in
the model. VAT
VAT 17,500 15,900 14,000
exempt
Recommendation
Long – term: Buy 5% 20,500 19,200 17,800
DDM METHOD 15.202 15.202/CP
UPSIDE +25 %
14.000
12.000
FORECAST
10.000
Unit: bn VND 2019 2020E 2021F
8.000
6.000 Revenue 7,042 6,266 7,539
4.000 +/- yoy (%) 5.3% -11% 20.3%
2.000 NPAT 427 591 262

0
+/- % -35.1% 38.2% -46.3%
EPS (Thousan VND/share) 620 1,112 496

DCM Relative VN Index
GARMENT AND
TEXTILE
INDUSTRY
INDUSTRY HIGHLIGHTS
Billion USD Top 10 Exporters of Textile- 2019 Billion USD Top 10 Exporters of Apparel- 2019
1. Overview
140 10%
In 2019 before the pandemic, the global’s 160 10%
textile and clothing decreased by 2.4% and 120 8,3%
5%
0.4%, respectively. It was due to the 100 7,7% 5%
120
economic slowdown and the escalating trade
0%
tensions, particular the tariff between the US 80 0%
80
and China. However, China and Vietnam 60
-5% -5%
remained positive growth.
40
40
Textile: In the first time in history, Vietnam -10% -10%
20
exceeded Taiwan, ranking seventh-largest
textile exporter in 2019 (USD8.8 bn, up 0 -15% 0 -15%
8.3% yoy).
Apparel: Vietnam continued to rank 4th with
an export value of USD 30.6 bn, up to 7.7% Value of export % yoy Value of export % yoy
yoy.
Apparel export: In which, FDI companies: Textile import: In which, FDI companies :
USD 22.16 bn % of total VN: 56% USD 1.43 bn % of total VN: 65%
(-10.0 % yoy) (-13.7% yoy) (-21.0 % yoy) (-25.2 % yoy)
Textile export: In which, FDI companies: Fabric import: In which, FDI companies :
2.57 tỷ USD % of total VN: 71% USD 8.43 bn % of total VN: 54%
(-16.9 % yoy) (-16.1 % yoy) (-13.4 % yoy) (-15.9 % yoy)
Source: Vitas, Customs, VCBS compiles
INDUSTRY HIGHLIGHTS
Impact of Covid-19 on Vietnam's textile
2. Export – Import
export growth - 9M.2020
Top 5 importers of Vietnam's apparel - EU
9M2020: There is not much change in USA (27) Japan Korea China Canada Total
9M.2020
Vietnam’s textile export compared to 0%
the same period last year. Top 3
15% USA importers (the US, Japan and South
Japan Korea) accounted for 70% (in 2019: -4% -2,9%
5%
Korea 69%), of which the US market
10% 48% EU (27) registered the highest portion. -8% -6,7% -16,1%
China Vietnam imported total USD9.73 bn of
10% -12% -10,3%
Others fiber, yarn and fabric. And China -11,2%
12% remained the top supplier for -13,6%
Vietnam’s garment. -16% -14,3%
Bn USD Value of Vietnam's textile export Mn USD Import fibers, yarns of Vietnam Mn USD Import fabric of Vietnam
40 50%
1.400 China
39,8% 8.000 China
35 40% Taiwan
1.200 7.000 Korea
Korea
30 Taiwan
30%
1.000 Thailand 6.000
25 17,1% 16,4% Others Japan
20% 5.000
10,8% 800 Others
20 9,5%
10% 4.000
4,1% 600
15
3.000
0%
10 -9,4% -10,0% 400
2.000
5 -10%
200
1.000
- -20%
- -
2013 2014 2015 2016 2017 2018 2019 9T.20
2016 2017 2018 2019 9T.20 2016 2017 2018 2019 9T.20
FDI Local % yoy
Source: Vitas, Customs, VCBS compiles
SECTOR OUTLOOK
3. Raw material plays as the essential key for Vietnam to
enjoy the benefit from FTAs
RULE OF ORIGIN
CPTPP is a proposed FTA among 11 countries in Asia-Pacific region,
including Malaysia, Peru, Australia, Mexico, Canada, Japan, Singapore,
Brunei, Chile, New Zealand and Vietnam. It took effect from 14 Jan 2019. CPTPP EVFTA
Currently, Vietnam exports to 10 countries in CPTPP area (excluding
Yarn Fabric
Brunei). forward forward
Canda Tariff Phaseout Schedule for
Japan Tariff Phaseout Schedule for Textile and Apparel in CPTPP
12% Textile & Apparel in CPTPP 20%
10% 16% EIF Rule of origin of CPTPP is stricter than EVFTA

8% EIF
12% B4
6% B11
B6
Will the US rejoin TPP?
8%
4%
4% Proportion of 11 countries in
2%
0% CPTPP of Vietnam‟s total export
0% Base Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
year
tariff
Market share of Vietnam in total imported 16,2%
16%
Mn USD Value of Vietnam‟s textile and apparel value of 11 countries in CPTPP
4.000 export to 11 countries in CPTPP
12%
3.000
83,8%
Yarn 8%
2.000
Garment
1.000 4%
0 0% CPTPP Others
Source: ITC, VCBS
SECTOR OUTLOOK
Bn USD Value of Vietnam's textile &
Potential market – EU: Bn USD Value of EU Apparel Imports
45 40 apparel to EU 15%
Export value to EU reached USD 4bn annually 40 35
which is equivalent to 2% EU import turnover and 35 10%
30
12% of VN export turnover 30 5%
25
When EVFTA takes effect 25
20 0%
20
42.5% of tariffs will be abolished as soon as the 15 15
-5%
agreement takes effect. The rest will be diminished 10 10
in the period of 3-7 years. 5
-10%
5
In general, 77% of VN export garment and textile - 0 -15%
2004
2000
2001
2002
2003
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
products remain taxed in the next 5 years after 2015 2016 2017 2018 2019 9M.20
EVFTA takes effect.
China Bangladesh Vietnam Cambodia EU Total Vietnam's export % yoy
Value of EU Apparel
EU Tariff Phaseout Schedule for
14% Base Imports from VN (2018-
Apparel in EVFTA Category tarrif Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 19)
12% rate
A A
B3 A 11,4% 0% B7 12% B3
10%
B5 B3 11,7% 8,8% 5,8% 2,9% 0% 19%
11%
8% B5 11,7% 9,7% 7,8% 5,8% 3,9% 1,9% 0%
6% B7 12,0% 10,5% 9,0% 7,5% 6,0% 4,5% 3,0% 1,5% 0%
B5
4% 58%
Competition pressure
2%
 Regarding price: Bangladesh may offer lower price due to their advantage in wage
Base
0% tariff
rate
Year Year Year Year Year Year Year Year  Regarding quick delivery: Turkey is located near EU.
1 2 3 4 5 6 7 8
Source: ITC, FASH455, Vitas, VCBS
POTENTIAL CHALLENGE
3. Challenge from the demand regarding product origin.

Import fiber, yarn and fabric of Vietnam's
Challenge: EVFTA may offer larger opportunities for Vietnam’s textile industry, however the garment - 9M.20
5.000
apparel sector will face many challenges:
Rules of origin are difficult to meet: in order to take advantage of EVFTA (tariffs for textiles 4.000 Fiber, yarn
and apparel will be reduce to zero), garments will need to use fabrics produced in Vietnam or 3.000
Fabric
the EU.
2.000
However, EVFTA allow to cumulate provision, fabrics originating in countries with which the
EU has a FTA in force will be considered the same as originating in Vietnam (Korea is the only 1.000
country that has an FTA with Vietnam and the EU)
-
China Taiwan Korea India Japan Others
Vietnam relies heavily on imported yarns and fabrics from China for apparel production.
9M.2020, Vietnam imported 62% fabrics from China and fibers accounted for 56% of total
value import. Source of Vietnam's Textile Imports
70%
RAW MATERIAL / SALES 63% 68,6%
60% 60% 54,4%
55% 57%
52% 53% 53% 50%
Others
46% 47%
42% 43% 40%
29,9% South
30% 26,7% Korea
20% 15,7% China
10% 4,7%
0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
TCM M10 MSH HTG GMC VGT TNG VGG GIL EVE STK Source: Vitas, ITC, Firm FS, VCBS
LISTED TEXTILE & GARMENT COMPANIES
9M2020 % yoy 2020 Cash ROE
No. Ticker Company Exchange P/E P/B
Sale NPAT Sale NPAT dividend (TTM)
1 EVE Everpia HOSE 596 11 -16,9% -68,8% 5,1% 8,1 0,4
2 GIL Binh Thanh HOSE 2.546 189 45,1% 109,0% 30% 27,4% 3,3 1,0
3 GMC May Sai Gon HOSE 1.114 11 -16,7% -83,8% 5% 7,5% 10,2 0,8
Hoa Tho Textile
4 HTG UpCom 2.465 43 -23,5% -46,2% 15% 16,4% 4,9 0,9
Garment
5 M10 May 10 UpCom 2.782 42 13,7% -18,7% 8% 15,4% 9,3 1,5
6 MNB Nha Be Garment UpCom 3.126 27 -13,3% -23,0% 15% 10,4% 12,4 1,5
Song Hong
7 MSH HOSE 2.970 165 -14,1% -53,7% 35% 19,8% 6,4 1,3
Garment
8 PPH Phong Phu Corp. UpCom 1.570 251 -38,1% 33,5% 15% 16,9% 4,2 0,7
Century Synthetic
9 STK HOSE 1.197 75 -27,6% -53,5% 12,2% 9,8 1,2
Fiber
Thanh Cong
10 TCM HOSE 2.717 201 -2,6% 30,6% 10% 18,0% 5,9 1,0
Textile Garment
11 TNG TNG HNX 3.529 129 -1,1% -25,9% 16% 17,2% 5,1 0,8
12 VGG Viet Tien Garment UpCom 5.170 71 -19,4% -75,6% 9,5% 8,8 0,8
13 VGT Vinatex UpCom 10.335 409 -23,3% -23,4% 3,3% 16,4 0,7
Source: Fiin Pro, VCBS
Century Synthetic Fiber Co. (STK - HOSE)
Core business
Shareholder structure
STK is one of the two leading manufacturers of polyester filament yarn in
Vietnam. STK focuses on medium and high-end yarn segments. STK supplies
yarn for garment companies such as: Nike, Adidas, Uniqlo, Decathlon. Puma…
Eland
Shareholder structure
25,3%
Strategic shareholder - Eland (Korea) hold 36.8% and Huong Viet Invesment 36,8% Huong Viet Invesment
Consultan Jsc
possesses 20,7%.
BoD & relatives
Business results
Others
Net revenue reached VND1,196.7 bn (-27.6% yoy) and NI plummeted 53.5%
yoy to VND75 bn. 37,9%
20,7%
Recycled yarn contributed 38% (in Q3.20 was 43%). Customer orders have
shown improvement since Sept 2020 (the capacity was nearly full).
Sportswear and leisurewear contributed 42% of total revenue. Net revenue & Net income
2.229
2.044
Vietnam Polyester filament yarn export - 2.000
9M.2020 1.665
212% 1.500
191%
1.000
117%
96%
500
40% 214 170 195 212
122
12% 13% 12%
-4% 1% -
Korea Thailand Taiwan Japan Local export Pakistan Total
2019A 2020F 2021F 2022F 2023F
-39% -33% -31% -36%

Source: Fiin Pro, Vitas, STK, VCBS
INVESTMENT THESISES
Risk:
Short term:
- Customer demand
‐ The demand of sportswear outperformed other traditional products. Price gap of STK declined not much as compare to (global) declined
the last year (<5% yoy).
- Chinese producers
Long term: continue to dumping
‐ High demand for recycled yarn remains main catalyst for long term outlook. polyester filament.
‐ The demand for recycled fiber is still huge potential, while the global supply is in shortage. To adapt the green - Oil price may
consumerism, major fashion brands are increasing the proportion of recycled and sustainable sourcing in their products. plummet.
Major global brands such as Nike, Adidas, Puma, Decathlon ... committed to increase the use of recycled materials.
‐ STK's recycled polyester yarn has been granted GRS (Global Recycling Standard) certification, capable of meeting the
stringent quality requirements from international brands.
‐ On the other hand, the current spinning-chip technology helps STK completely switch from virgin yarn (DTY, FDY) to
recycled yarn products.
Proportion of recycled yarn Begin to use 2025

recycled 50%
41% 42% resource
39% 39%
35%
2030
2025 100%
2024 100%
2020 100%
2018 80%
19% Source: STK, VCBS
2019A 2020F 2021F 2022F 2023F
Multiple method 19,161 22,100 VND
FCFF method 22,473 UPSIDE +17.5%
FORECAST
Stock price movement
1.100
1.050 Unit: Bn VND 2019 2020F 2021F
22.000 1.000
950 Net revenue 2,232 1,665 1,948
900
18.000
850 +/- yoy (%) -7.4% -25.3% 17.0%
800
750
14.000 NI 214 118 154
700
650
+/- % 20.1% -44.7% 29.7%
10.000 600
EPS (VND/share) 3,163 1,738 2,253
STK Relative VN Index
Others
Duc Giang Chemicals Corp (DGC) – OVERVIEW
DGC‟s Shareholder structure 1H.2020 Revenue structure
Business Activities
4%
Yellow & Red
DGC focus on phosphorus chemical products with a closed chain from Dao Huu phosphorus
Huyen and 5% 10% Photphoric acid
Apatite ore to phosphorus derivatives such as yellow, red phosphorus 27% WPA 50%
family
MAP, DAP
(48% Revenue), phosphoric acid (22% Revenue), and fertilizers (DAP, Vinachem
8% 48% Animal feed additive
MAP, DSP, SSP ...) (13% of Revenue), animal feed additive…
64% 9% DSP, SSP, FDCP
Others 13% fertilizer
H3PO4
Shareholder Structures
12% Other
The largest shareholder is the chairman's family - Dao Huu Huyen with
more than 27%, the institutional shareholder is Vinachem Group with
nearly 9%, and the others. Source: DGC, VCBS
Business performance
VND bil
Business Results 7.000 25,0%
6.092
Accumulated revenue of 9M.2020 reached VND 4,653 billion (+27.7% 6.000
5.092 20,0%
yoy, reaching 76% of the year plan). Consolidated EAT is 704.8 billion 5.000 4653
3.642 15,0%
VND (+77.5% yoy, 101% of the year plan). Export activities account for 4.000
3.000 2.622
80% of the revenue structure, mainly export to India, Korea, Japan (P4, 10,0%
H3PO4); Malaysia (fertilizer). 2.000
626 873 705 5,0%
1.000 320 572 397
Business results growth very well in most segments due to: (1) India's 128
- 0,0%
demand for P4 and fertilizer increased sharply; (2) Pure phosphorus used 2016 2017 2018 2019 9T.2019 9T.2020
for electronic equipment has increased demand despite Covid 19; (3) Total Revenue Profit after Tax Gross Profit margin
Fertilizer export to ASEAN countries is also good; (4) Thanks to decling Source: DGC, VCBS
prices of raw materials (apatite, electricity, sulfur).
DGC - OUTLOOK
CATALYST
 Demand for P4, Electronic phosphoric acid is expected to increase: P4, Electronic phosphoric acid is in very high
demand for electronic devices and used in transistors, liquid crystal displays, especially, the 5G race must use new chips.
 Increase capacity of electronic Phosphoric acid chain (to 50,000 tons – already had a contract of 30,000 tons) to produce
LCD screens.
 Continue deep processing Yellow phosphorus: Red phosphorus, P2O5
 Geopolitical tensions between India and China have increased demand for P4, DAP, MAP fertilizers for NPK
production.
 Potential for EU market expansion due to EVFTA: The proportion of Yellow phosphorus exports to the EU accounts
for 20%, and is expected to increase to over 30% after tax reduction.
 Mining Project 25: Start mining from Q2.2020 will help DGC be proactive about 25% - 30% of the input Phosphate
rock, avoid material risks and increase the power to negotiate with supplier.
 Duc Giang - Nghi Son project is the driving force for long-term growth and help DGC reach to new heights. Phase I is
expected to start in Q1.2021 with a total capital of about VND 2,400 billion, expected to produce Solid Sodium
hydroxide, chloramine B from Q1/2022. Solid Sodium hydroxide, Chloramine B with good product consumption ability
due to a large customer who plans to open a paper factory next to DGC's factory and high domestic demand but lack of
domestic supply.
 Prospects from future real estate projects: Duc Giang apartment building at 18/44 Duc Giang street, Thuong Thanh, Long
Bien, Hanoi - The company's headquarters is currently planned 1:500.
Risk: Competition risk, input
DGC – Valuation
P/E 49.000 VND 47.800/share
FCFF 46.600 UPSIDE +3,5%
HISTORICAL PRICE
52.000
ESTIMATION
47.000
42.000 Unit: VND billion 2019 2020F 2021F
37.000
Net Revenue 5,092 6,121 6,714
32.000
27.000 +/- yoy (%) -16.41% 20.22% 9.68%
22.000
17.000 NPAT 572 902 964
12.000
+/- % 57.85% 6.90% 3.33%
EPS (VND) 4,418 6,064 6,483

DGC Relative VNINDEX
Petrolimex Petrochemical Corp (PLC) – OVERVIEW
Shareholder structure Revenue structure
Business activities
PLC is a popular in lubricants, asphalt and industrial chemical solvents with 20,93% 26% 27%
24%
9M.2020 revenue ratios of 27%, 47% and 26% respectively. Asphalt product
40%
ranks first in the market with a market share of 30% - 40%, followed by
Adco and Transimex. Lubricant products ranked second in the market after
Castrol with about 10-12%. 79,07%
36%
Shareholder structure 47%
The largest shareholder is Vietnam Petroleum Corporation - Petrolimex with Lubricant Asphalt Chemical
PLX Others Inside: 2018
79.07%, the rest are internal shareholders and other shareholders. Outside: 2019
9M.2020 Result Source: PLC, VCBS
Accumulated revenue in 9M.2020 reached 3,914 billion VND (-10% yoy, VND bil Business performance
61% of the year plan) due to the influence of Covid 19. GPM reached 17.5% 7.000 6.436 20,0%
6.160
(+ 3.5% compared to 2019) - highest in the past 5 years. Net income reached 6.000 17,5%
18,0%
124 billion VND (+9.7% yoy, 74% of the year plan). 5.049 15,5% 16,0%
5.000 14,0%
14% 14%
Business results improved because: (1) Increased asphalt sales (+ 26% yoy in 3.914 12,0%
4.000
revenue); (2) More Polymer asphalt portion with higher selling price and GP;
10,0%
(3) Input prices such as base oil for blending lubricants, as well as raw 3.000
8,0%
asphalt sharply decreased according to oil prices, which reduced input prices, 2.000 6,0%
(4) Inefficiencies in the chemical segment were narrowed due to the 4,0%
1.000
influence of Covid. 19 171 153 145 124 2,0%
- 0,0%
2017 2018 2019 9T.2020
Total Revenue Gross profits
Profit after Tax Gross Profit margin
Source: PLC, VCBS
PLC - OUTLOOK
2020 2021 2022 2023 2024
CATALYST
Cao Bo - Mai Son
 Prospects of asphalt from Government stimulus, mainly focusing on transport Trung Luong - My Thuan
infrastructure projects. PLC's asphalt is cyclical with high correlate to Cam Lo - La Son
Government expenditure. My Thuan 2 bridge
 In 2020 – 2021, there are several projects are going to be groundbreaking such My Thuan - Can Tho
Mai Son – 45 NR
as the North-South Expressway are expected to need more 500,000 tons of
Vinh Hao - Phan Thiet
asphalt in the next 4 years (twice the sales volume / year of PLC) with a value
Phan Thiet - Dau Day
of more than 5,000 billion. In addition, Trung Luong - My Thuan, Cao Bo -
Dien Chau - Bai Vot
Mai Son, Cam Lo - La Son highway, 2nd Beltway (HN), 3rd Beltway (HN),
Can Lam - Vinh Hao
TSN, Noi Bai Airport improvement will increases demand for Polymer Nha Trang - Can Lam
asphalt. QL45 - Nghi Son
 High demand of Polymer asphalt with high GMP (20% - 30%) for Nghi Sơn - Dien Chau
expressways will increase PLC's business efficiency. Source: VCBS
 Maintain the sale of asphalt for road surface maintenance and repair and other Total
Thick Propotion Tons/m3 weight
road projects in the provinces due to PLC’s warehouses throughout the Antilside
country. asphalt
concrete 4 cm 6,5 - 6,8% 2,4 - 2,7 79.077
 Construction machinery highway construction also increases the demand for Fine grain
asphalt
lubricants. (PLX currently sells mainly to trucks and industrial machinery). concrete 5 cm 5,50% 2,4 - 2,7 94.354
RISK:
Middle grain 7 cm 4,6% - 5,1% 2,32 - 2,35 101.739
• Competition, raw material, receivables
Coarse grain 7 cm 4,6% - 5,1% 2,32 - 2,35 101.739
• Government expenditure progess.
Emulsion 0,6 - 1,5l/m2 44.930
Total 421.840
Source: VCBS
PLC – VALUATION
P/E Multiple 25.200 VND 26.900/Share
FCFF 28.637 UPSIDE +3,7%

30.000
Unit: VND billion 2019 2020F 2021F
25.000
20.000
Net Revenue 6.160 5.655 5.721
15.000 +/- yoy (%) -4,29% -8,19% 1,15%
10.000
NPAT 145 173 186
5.000
+/- % -5,12% 19,06% 7,40%
EPS (VND) 1.797 2.139 2.297

PLC Relative VNINDEX
FPT CORPORATION (FPT)
OVERVIEW
• FPT is a leading IT – Telecommunication enterprise in PBT by sector 2019 – 10M.2020

Vietnam, especially the export of software is growing rapidly
20%
with global growth strategy. The company is present in 45
countries in Asia, Europe, the Americas and Australia, with
CAGR of global IT services revenue of 24.6% over the past 3
42%
years.
• The company is also among the three enterprises with the

38%
largest share in the broadband Internet market. The education
segment is expected to provided FPT and the whole IT Technology Telecom Education, Investments, Others
industry with skilled human resources.
BUSINESS PERFORMANCE Financial Results 2016 - 10M.2020 (VND bn)

50000 50%
• After 10M.2020, FPT recovered its growth with accumulated 40%
40000
revenue reaching VND 23,635 billion (+7.4% yoy) and net 30%
30000 20%
EBT reaching VND 4,349 billion (+8.9% yoy). 10%
20000
0%
• Business activities of the company were maintained despite 10000
-10%
the difficulties from Covid-19. EBT margin improved slightly 0 -20%
2016 2017 2018 2019 10T.2020
to 18.4%, compared with 18.1% of last year.
Net revenue PBT PBT growth (% yoy) PBT margin (%)
Sources: FPT, VCBS
FPT CORPORATION (FPT) – OUTLOOK
INVESTMENT CATALYSTs
• FPT Software will continue to growth strongly in the long term. • Profitability in the telecom sector is gradually improving thanks to
Improved deployment capacity, competitive labor cost and recovered global IT economies of scales.
spending have helped the value of newly signed contracts increase strongly. By The number of subscribers and services users maintains a stable growth as FPT
continuously winning mega-deals in America and the APAC market recently (relating continues to penetrate deeper into the tier 2 and 3 provinces. Pay TV and data center
to cloud service, AI processing for e-commerce), CAGR of software export is also maintain positive prospects in the “new normal” context with rising demand for
forecasted to reach 21% for the period of 2020-2024. digital content.
Domestic spending for IT services is also expected to increase again in the beginning • The contribution of the Education segment in the structure of Net profit
of 2021 after the 13th National Congress ends. Products made-by-FPT such as before tax is increasing with the growing demand for IT sector.
AkaBot, Akachain, FPT Spro, FPT Smart Cloud… with high quality continue to serve RISK
clients on the market.
Main risks include: limited supply of highly qualified software engineers; fierce
competition in Telecommunications sector with Viettel and VNPT; the return of
Covid-19 may have a more profound impact on IT spending and slow down growth in
global market.
Global IT Services Revenue (VND billion) Global IT Services by market 2018 – 10M.2020 (%)
6000 5534 16%

5000 4693 4525
4000 8%
3000 2672
1817 2070 1656 52%
2000 1154 1450
779 986 734
1000 24%
0
Japan US EU APAC
Japan US EU APAC
2018 2019 10M.2020 Sources: FPT, VCBS
FPT CORPORATION (FPT) – PRICING
FCFF method 64,927 62,263 VND
SoTP method 59,599

UPSIDE +15.7%
HISTORICAL PRICE FORECAST
(VND bn) 2019 2020F 2021F

60.000
50.000 Revenue 27,717 30,147 35,290

40.000
VND
30.000 +/- yoy (%) +19.4% +8.8% +17.1%
20.000
NPAT 3,135 3,692 4,481
10.000
0 +/- % +19.7% +17.7% +21.4%
EPS (VND/share) 3,670 5,049 5,701

FPT Relative VN Index
DISCLAIMER
This report is designed to provide updated information on macroeconomics, fixed-income, including
bonds, interest rates, industries, equity outlook and some other related. The VCBS analysts exert
their best efforts to obtain the most accurate and timely information available from various sources,
including information pertaining to market prices, yields and rates. All information stated in the
report has been collected and assessed as carefully as possible.
It must be stressed that all opinions, judgments, estimations and projections in this report represent
independent views of the analyst at the date of publication. Therefore, this report should be best
considered a reference and indicative only. It is not an offer or advice to buy or sell or any actions
related to any assets. VCBS and/or Departments of VCBS as well as any affiliate of VCBS or
affiliate that VCBS belongs to or is related to (thereafter, VCBS), provide no warranty or
undertaking of any kind in respect to the information and materials found on, or linked to the report
and no obligation to update the information after the report was released. VCBS does not bear any
responsibility for the accuracy of the material posted or the information contained therein, or for any
consequences arising from its use, and does not invite or accept reliance being placed on any
materials or information so provided.
This report may not be copied, reproduced, published or redistributed for any purpose without the
written permission of an authorized representative of VCBS. Please cite sources when quoting.
Copyright 2012 Vietcombank Securities Company. All rights reserved.

CONTACT INFORMATION
Tran Minh Hoang

Head of Research
tmhoang@vcbs.com

2021 Outlook ENG Official

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BÁO CÁO TRIỂN VỌNG 2020

INDUSTRY AND STOCK PICKS

Monetary base in some countries

2020 Source: Bloomberg, VCBS Research

CPI Exchange rate USD/VND

Summary of macroeconomic forecast 2021

Trade balance Credit growth

Source: VCBS Research

FIXED INCOME MARKET

INDUSTRY AND STOCK PICKS

300.000 48.047 25%

Source: HNX, VCBS

5Y 7Y 10Y 15Y 20Y 30Y

Offering volume Winning volume

Source: HNX, VCBS

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 8

6,0% Yield Curve

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 9

Volume of bond issuance is forecasted about VND 300-

25.000 Risks: An unexpected factor appeared in the market,

ST VDB VBSP Other

Source: HNX, VCBS Research

FIXED INCOME MARKET

VN Index HNX Index Source: Bloomberg, VCBS

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 12

Source: Fiinpro, Bloomberg, VCBS

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 4

45 Sectors‟ P/E in Vietnam Sectors' P/B in Vietnam

Average P/E & P/B in ASEAN markets

5 2,05 1,74 1,39 1,43 1,43

Source: Fiinpro, Bloomberg, VCBS

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 5

three exchanges (namely HSX, HNX and 10.000.000

June with total value reaching VND 15,000 2.000.000

billion. On the other hand, VRE, VIC, MSN and 0

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 15

the world, especially crude oil producing countries. But

20,00 • Prestigious financial institutions in the world have

• Meanwhile, the bank of Morgan Stanley forecasts that

100,00 production will face difficulties due to epidemics,

540,00 decrease over the same period in Q1.2020, 1 percentage

Source: MSCI Source: Bloomberg, VCBS

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 19

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 20

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 22

3 Mai Son – Route 45 12,111 Bidding in progress. Clearance: 18.500

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 15

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 24

MACROECONOMY FIXED INCOME EQUITY MARKET INDUSTRY & STOCK PICKS 25

FIXED INCOME MARKET

INDUSTRY AND STOCK PICKS

BANKS • ACB CTG MBB TPB

REAL ESTATE • VHM

CONSTRUCTION MATERIALS • HPG PTB

RETAIL • MWG PNJ

OTHERS • DGC PLC FPT

‐ Retail loans improve loan yield and reduce concentration risk.

Propotion of Retail credit Proportion of retail banking loans in 2019

Source: SBV, Banks, Bloomberg, VCBS sumary