Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

Thematic (Sector/Industry)

Vietnam's key economic strength is its low cost manufacturing ability, and investors should certainly turn their attention towards the plastics industry, which has been delivering <a href="http://www.sggpnews.org.vn/Business/Economy/2015/9/115411/" target="_blank">20-25% growth per annum</a>, making it the fastest growing industry in Vietnam.  With plastic consumption currently <a href="http://en.vietnamplus.vn/thai-firms-investing-in-vietnams-plastic-industry/90327.vnp" target="_blank">only at 41 kg./capita,</a> there is still ample room for growth in this industry.  A portfolio in Vietnam should consist of plastic manufacturing companies, and the strategic advantages of this industry provides…

Vietnam's key economic strength is its low cost manufacturing ability, and investors should certainly turn their attention towards the plastics industry, which has been delivering 20-25% growth per annum, making it the fastest growing industry in Vietnam.  With plastic consumption currently only at 41 kg./capita, there is still ample room for growth in this industry.  A portfolio in Vietnam should consist of plastic manufacturing companies, and the strategic advantages of this industry provides…

Rapid Growth of Vietnam's Plastics Industry: Benefits of Low Cost Manufacturing/Low Oil Prices

The low rubber price environment has presented a large number of buy opportunities in Vietnam, with the main beneficiaries being companies that benefit from the lower cost of materials.  Investment in Vietnamese tire manufacturing companies therefore presents a strong opportunity, as mentioned in <a href="https://www.smartkarma.com/insights/da-nang-rubber-jsc" target="_blank" data-smartkarma-citation="insights:2145">Da Nang Rubber JSC</a> , which mentions how these companies are able to benefit from the low cost of rubber, and the strong growth of Vietnam's automotive industry in the future.  Apart from this, further…

The low rubber price environment has presented a large number of buy opportunities in Vietnam, with the main beneficiaries being companies that benefit from the lower cost of materials.  Investment in Vietnamese tire manufacturing companies therefore presents a strong opportunity, as mentioned in Da Nang Rubber JSC , which mentions how these companies are able to benefit from the low cost of rubber, and the strong growth of Vietnam's automotive industry in the future.  Apart from this, further…

Opportunities in Vietnam in a Low Rubber Price Environment

Vietnam officially removed the foreign ownership limitation this September, allowing foreign investors to take 100% ownership of companies.  This legislation is one of the last steps for Vietnam to successfully transition to an emerging market, yet its unclear implementation currently results in Vietnam still being a frontier market.  While the legislation has been passed, foreign investors can expect actual implementation to be an unclear, length process, determined on a case to case basis…

Vietnam officially removed the foreign ownership limitation this September, allowing foreign investors to take 100% ownership of companies.  This legislation is one of the last steps for Vietnam to successfully transition to an emerging market, yet its unclear implementation currently results in Vietnam still being a frontier market.  While the legislation has been passed, foreign investors can expect actual implementation to be an unclear, length process, determined on a case to case basis…

Vietnam's Removal of the Foreign Ownership Limitation: A Future Portfolio for Emerging Vietnam

External broker reports(aggregated public sources), Rong Viet Securities

Rong Viet Securities

External broker reports(aggregated public sources)

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Equity Bottom-Up

<ul><li>Amid challenges in the domestic bias transport tire market due to competition and shifting consumer preferences, DRC has pivoted to radial transport/car tires, targeting the low-to-midend segment in high-density markets like the US and Brazil.</li><li>However, high raw material prices and elevated transportation/discount costs from global expansion hinder net profit margins, making a return to pre-2020 levels difficult.</li><li>Domestic market: Bias transport tires are projected to grow 6.9%/year, supported by Vietnam’s 8-9% annual production growth.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Amid challenges in the domestic bias transport tire market due to competition and shifting consumer preferences, DRC has pivoted to radial transport/car tires, targeting the low-to-midend segment in high-density markets like the US and Brazil.However, high raw material prices and elevated transportation/discount costs from global expansion hinder net profit margins, making a return to pre-2020 levels difficult.Domestic market: Bias transport tires are projected to grow 6.9%/year, supported by Vietnam’s 8-9% annual production growth.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DRC - Radial tires are at the heart of long-term outlook

<ul><li>Net revenue reached VND 1,377 bn (+1.0% YoY), reflecting a mixed performance.</li><li>The bright spot stemmed from a robust recovery in domestic bias tire market share (+8.9% YoY), driven by stronger local production, a slowdown in Chinese imports, and DRC’s enhanced attractive dealer discounts.</li><li>Strong results from other tire segments, including PCR (+38.1% YoY) and motorcycle/bicycle tires (+11.3% YoY), further bolstered DRC’s revenue this quarter. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Net revenue reached VND 1,377 bn (+1.0% YoY), reflecting a mixed performance.The bright spot stemmed from a robust recovery in domestic bias tire market share (+8.9% YoY), driven by stronger local production, a slowdown in Chinese imports, and DRC’s enhanced attractive dealer discounts.Strong results from other tire segments, including PCR (+38.1% YoY) and motorcycle/bicycle tires (+11.3% YoY), further bolstered DRC’s revenue this quarter. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DRC - Lower Rubber Prices Will Boost QoQ Performance

Vietnam

Danang Rubber is a leading Vietnamese manufacturer specializing in the production and sale of various tire and inner tube products. Their offerings include tires for motorcycles, bicycles, trucks, light trucks, agricultural machinery, and off-the-road (OTR) vehicles, as well as technical rubber products. The company is headquartered in Da Nang, Vietnam, and was founded in 1975.

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Danang Rubber (DRC VN)

Rapid Growth of Vietnam's Plastics Industry: Benefits of Low Cost Manufacturing/Low Oil Prices

Vietnam's key economic strength is its low cost manufacturing ability, and investors should certainly turn their attention towards the plastics...

Nomadic Equity

Opportunities in Vietnam in a Low Rubber Price Environment

The low rubber price environment has presented a large number of buy opportunities in Vietnam, with the main beneficiaries being companies that...

Nomadic Equity

Vietnam's Removal of the Foreign Ownership Limitation: A Future Portfolio for Emerging Vietnam

Vietnam officially removed the foreign ownership limitation this September, allowing foreign investors to take 100% ownership of companies. This...

Nomadic Equity

DRC - Radial tires are at the heart of long-term outlook

Amid challenges in the domestic bias transport tire market due to competition and shifting consumer preferences, DRC has pivoted to radial...

Rong Viet Securities

DRC - Lower Rubber Prices Will Boost QoQ Performance

Strong results from other tire segments, including PCR (+38.1% YoY) and motorcycle/bicycle tires (+11.3% YoY), further bolstered DRC’s revenue this...

Rong Viet Securities

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