Talking up some big economic challenges

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The Vietnamese government recently took a range of tough decisions to stabilise the  macroeconomy and bridle inflation to foster belief in the country’s sustained growth in the medium and the long term.

VIR listens to executives of listed or would-be-listed firms about their firms’ near-term challenges and what Vietnam’s economic future holds.

Vincom’s Management Board chairman Le Khac Hiep

We are doing our utmost to be named among the top property developers in Vietnam. Our property projects were carefully prepared, so that the company’s performance was not much affected by sharply rising lending rates in 2010.

Vietnam’s property market will see a number of changes in 2011 with high-end apartment segment in big cities experiencing robust growth.

With accumulative experiences and strong financial and human resources, Vincom seeks to make huge leaps in the years to come and generate greater dividend rates to shareholders.

In 2011, the firm is set to rake in VND5.2 trillion ($251 million) in revenue and VND2.3 trillion ($119 million) in after-tax profits. We are in the legal setup stage to debut on the Singapore Stock Exchange within 2011.

Tri Viet Securities Joint Stock Corporation (TVSC) Management Board chairman Pham Thanh Tung

TVSC seeks to make debut on Hanoi Stock Exchange in late second quarter of 2011.

The amended Securities Law version will come into force from July 1, 2011 allowing securities firms to deploy trusted investment services. TVSC will take on the opportunity to launch new services to satisfy investor needs.

TVSC is set to be named among the top five securities firms in this trusted investment segment. Having foreign organisational investors among our stockholders is the firm’s strategic vision in the coming period to enhance competitiveness.

Tri Viet is seeking foreign organisational investors with sound finance to become our shareholders. Our chartered capital, currently stood at VND96 billion ($4.63 million), will be hiked in the near term, providing an opportunity for foreign investors to hold Tri Viet stakes.

SacomReal (SCR) deputy general director Bui Tien Thang

Amid current lackluster property market, SCR outlined its 2011 business strategy which highlights restructuring and project base expansion.

Last year saw exceptional growth (our pre-tax profit rose 375 per cent against 2009 reaching VND670 billion or $32.3 million) would underpin the company’s development in 2011.

Our strategic vision currently and in the long haul are project investment, development and property trading.

In 2011, SCR is set to reap VND1.889 trillion ($91.25 million) in property revenue, making up 78 per cent of our total revenue. The firm is engaged in seven property projects, including two mid-end apartment complexes in Ho Chi Minh City’s District 6 and Tan Binh district.

Vietnam Association of Securities Business (VASB) deputy chairman Phan Quoc Huynh

The recent Vietnam dong devaluation, petrol, power and food price surges will have detrimental impacts on listed companies’ performances.

Vietnamese government and management agencies have taken a slew of measures to alleviate adverse impacts of price upsurge, it would need time for these measures to be felt.

Ongoing efforts to stabilise the macroeconomy and reign in inflation may deter capital flows from funneling into the stock market in the short term.

Investors need to be persevering at this point of time. I think a clearer trend of the stock market will shape in late second quarter or early third quarter of 2011.

Saigon Securities Inc.(SSI) investment analytic director Nguyen Ngoc Bich

In late 2010, SSI gave three forecasts for Vietnam’s stock market. However, we revised the forecasts in light of current economy vulnerabilities.

We anticipate inflation pressures would be alleviated in late 2011 and this will help pull down bank lending rates, providing a catalyst for the securities market’s rally.

In the long haul, when inflation was kept at a moderate level, State Bank monetary policies would be eased, banks and businesses would again embrace the development track.

VNM was the safest stock among blue-chips and CTG had rosy growth potential within one-year though it was a bit risky, according to SSI analyses.

Thu Duc Housing Development Joint Stock Company (TDH) management board chairman Le Chi Hieu

THD strives to double profit figures within the next five years.

The firm will disburse capital on long-term projects with high profitability which would help ensure our profits in the medium term.

The stock market was slipping over many consecutive months and TDH’s share was not an exception. Our price-to-earnings ratio (P/E) was around 4x by late 2010 and current share price of around VND27,000/unit was much lower than the book value which stood at VND36,000 per unit by December 31, 2010.

TDH has a rich investment portfolio of property projects involving all market segments from mid- and hi-end to tourism properties, irrespective of some big potential projects which are in the legal setup stage and will be unveiled in the near future.

Habubank deputy general director Nguyen Du Huong

In the face of economic vulnerabilities in 2010, Habubank (HBB) still reaped more than 20 per cent growth in profits against 2009 and its overdue debt made up 2.39 per cent.

In 2011, HBB is set to achieve 20-30 per cent growth in diverse business fields. The bank basically fulfilled banking services restructuring in 2010.

Significantly, within 2011 HBB will convert VND1.050 trillion ($50.7 million) worth in bonds into stock to raise its chartered capital to VND4.050 trillion.

HBB’s current price-to-earnings ratio (PE) is 6.3x and price-to-book value ratio (PB) is 0.8x, lower than listed banks’ average of 8.2x and 1.3x, respectively and its 2010 dividend rate was 12 per cent.

Besides, since getting on the Hanoi Stock Exchange in late 2010, HBB was among shares with the best liquidity.