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Vinalines IPO garnering new interest
Monday, 10 September 2018 01:27

After forecasts had dimmed the outlook for state-owned shipping giant Vinalines' upcoming IPO, the prospects for the hottest state divestment in the shipping industry in 2018 are on an upward trend, thanks to growing interest from international groups. Nguyen Canh Tinh, acting CEO of Vinalines, discussed the company’s investment opportunities and future plans with VIR.

The Vinalines initial public offering (IPO) on September 5 is just around the corner. What investment opportunities are there for investors?

Vinalines will auction off more than 488.8 million shares or 34.8 per cent of its stake on September 5, thus reducing the state holding to 65 per cent. As shareholders of Vinalines – the country’s largest ship-owner, largest port operator, and leading logistics services provider – investors will share the ownership of the biggest closed-value chain of seaports, shipping, and logistics services in the country.

In 2017, shipping made up 42 per cent of Vinalines’ total revenue, while ports and logistics accounted for 28.7 and 29.3 per cent, respectively.

Regarding debts, the company’s long-term debts were reduced from VND3.07 trillion ($135.84 million) in 2015 to VND1.6 trillion ($70.79 million) in 2017, while its equity rose from VND10.37 trillion ($458.84 million) to VND12.5 trillion ($553.09 million) over the same period, thus reducing the long-term debt/equity ratio from 30 to 13 per cent.

Business performance is improving, with net revenue and pre-tax profit forecast to hit VND505 billion ($22.35 million) and VND180 billion ($1.96 million), respectively, in the second half of 2018. The figures will be raised to VND1.05 trillion ($46.37 million) and VND222 billion ($9.8 million), respectively, in 2019.

 

Vinalines enjoys favourable market conditions as Vietnam’s trade volume is forecast to continue growing in the coming years from 299 million tonnes to 842 million tonnes by 2030, while the domestic cargo volume is also projected to ascend to 115.5 million by 2020 from 72 million tonnes in 2016.

What is more, the enforcement of upcoming free trade agreements will drive imports and exports of seafood, farm produce, textile and garment, and rice between Vietnam and international markets. With these advantages, investors who invest in Vinalines shares with par value of VND10,000 ($0.44) per share now will make huge profits in the future.

Many forecasts show that there is a possibility that Vinalines could join the string of companies that recently failed with their IPOs after the collapse of the strategic stake sale. How are you planning to avoid this?

The failure of the strategic state stake sale in early August raised doubts about the attractiveness of Vinalines. We could not find a strategic investor because of the time limitations required by legal documents. Potential investors did not have enough time for due diligence and decision-making.

In recent days, many more powerful domestic and international groups, including SK Group, SK Shipping, SK Securities, and many others, showed their interest in the IPO. We worked with many of them. Besides, logistics and seaports remain among the most attractive industries to foreign investors. Vinalines is a springboard for any investors who want to expand to and in Vietnam, as well as go international.

Vinalines now still holds stake in a number of loss-making units. What is the giant’s divestment plan?

We will divest stakes in 18 member companies, nine of which will be totally divested. These nine are Vitranschart, Tin Nghia Industrial Park Development JSC, Petec, Sesco, Inlaco Haiphong, Haiphong Maritime Investment and Trading JSC, Dong Do Marine, OSTC (previously named NOSCO), and Vinalines Nha Trang. We will cut our holding in nine others, namely VOSCO (from 51 to 49 per cent), Vinaship (from 51 to 36 per cent), Haiphong Port (from 92.56 to 65 per cent), Danang Port (from 75 to 65 per cent), Can Tho Port (from 99.05 to 51 per cent), Cam Ranh JSC (from 80.9 to 51 per cent), Cai Lan Port (from 56.58 to 51 per cent), Transvina (from 56 to 51 per cent), and Khuyen Luong Port (from 49 to 36 per cent).

What are the group’s investment plans to cash in on the future growth of international trade?

Vinalines is planning to invest in deep seaport development. In the north, we aim to develop six container and general terminals at Lach Huyen International Gateway Seaport. In particular, we are waiting for the government’s approval to build berths 3 and 4 and will co-operate with our partners to develop a grain handling port. In central Vietnam, we will also invest in eight container terminals, five general berths, and four others for oil tankers at Lien Chieu Seaport in Danang. In southern Vietnam, we will develop two more wharves at Vinalines Hau Giang General Port.

In logistics, Vinalines will develop ICDs and logistics centres in Lach Huyen-Haiphong, Danang, Binh Duong, Dong Nai, and Hau Giang with an area of 10-30 hectares each. We will develop an integrated supply chain to create added value for our customers. For shipping, we will develop a fleet with a total load of 1.1 million deepwater tonnage, with container vessels making up 13 per cent.

By 2020, we aim to maintain our leading position in the Vietnamese maritime industry and become a famous brand in the region by 2030.

 
Vinalines conducts roadshow to promote upcoming IPO
Thursday, 06 September 2018 01:55

State-run shipping giant Vinalines conducted a roadshow yesterday to promote its upcoming initial public offering (IPO) scheduled to take place on September 5, 2018 at the Hanoi Stock Exchange.

At the event, Tran Tuan Hai, head of Vinalines' Development Strategy and Communications Division, introduced investment opportunities in the company to interested investors.

Vinalines is the country's largest shipping company and currently owns a fleet of 84 vessels with a total load of 1.87 million deepwater tonnage, accounting for around 25 per cent of Vietnam's national shipping fleet.

The firm is also the largest port operator with 15 seaports of a total capacity of 75 million tonnes a year, accounting for 23.53 per cent of the country's total number of piers and 30.37 per cent of the country's total length of piers.

In 2017, the seaport business brought about the highest profit to Vinalines, with VND1.257 trillion ($55.6 million).

Additionally, Vinalines is a leading logistics services provider with a wide network of warehouses and modern inland container depots along influential seaports.

"Vinalines will reduce the state holding to 65 per cent. By 2020, it aims to maintain its leading position in the Vietnamese shipping industry and become a famous brand in the region by 2030," Hai noted.

The giant also plans to expand its logistics network in the future by investing in inland container depots (ICDs) and logistics centres throughout the country, while focusing on developing deep seaports in the northern, central, and southern regions.

The parent company Vinalines aims to make a net revenue of VND505 billion ($22.35 million) and pre-tax profit of VND180 billion ($1.96 million) in the second half of 2018. The figures will be raised to VND1.048 trillion ($46.37 million) and VND222 billion ($9.8 million), respectively, in 2019.

 

After the failure of a strategic stake sale, the Vietnamese conglomerate is now betting on the IPO where it will auction off over 488.8 million shares or 34.8 per cent of the stake at the starting price of VND10,000 ($0.44) per share under the ticker MVN.

Registration documents to take part in the IPO and deposits will be accepted on August 8-28.

Vinalines has great expectations for the IPO after drawing great attention among domestic and international groups, including Korea Investment, SK Securities, SM Group, Daiwa, PVI, Mirae Asset, and others.

 
Vietnam among fastest-growing e-commerce markets in Southeast Asia
Tuesday, 04 September 2018 01:52

Vietnam is one of the fastest-growing e-commerce markets in Southeast Asia, according to information released at the Vietnam Online Marketing Forum 2018 (VOMF 2018) on August 17.

According to a Nielsen report, Vietnam is second only to Singapore in terms of total online users. Ninety-five per cent of its adult population have a mobile phone, with 78 per cent having a smartphone. Seventy-nine per cent of users view products on a mobile app or website and 75 per cent use smartphones to search for product information before making a purchase.

With significant figures on online shopping and hot trends and held by the Vietnam E-Commerce Association (VECOM), this third holding of VOMF gathered together some 35 leading speakers on domestic and foreign marketing. Speakers included prestigious experts from leading organizations and businesses in the field of online marketing research and marketing, including Nielsen, Google, Facebook, comScore, and Paypal.

With the theme “Human or Robot”, this year’s forum addressed trends in technological development and active measures to tackle change. It attracted about 2,000 delegates interested in online business, including over 55 organizations offering online marketing services.

There were four key sessions. The first presented an overview of the marketing world and global trends in online marketing and the changing experience of modern consumers. It was followed by a session on “Human Or Robot”, which included the application of AI in online marketing and effectively exploiting Chatbox. Session 3 was Data-driven Marketing and Session 4 Marketing 020 from strategy to planning and tools.

It was also an opportunity to exchange information and solutions and seek business cooperation opportunities in the field of online marketing. The forum not only supports e-commerce businesses in identifying appropriate online marketing strategies and improving online marketing effectiveness but also contributed to expanding the online marketing market and enhancing the market share of domestic enterprises.

 

The forum is an annual event in online marketing on a national scale and is organized to promote the online marketing in particular and Vietnam’s e-commerce development in general, to help businesses access new trends from around the world.

E-commerce in Vietnam grew 25 per cent last year against 2016 and this growth is forecast to continue this year.

Trends in multi-channel links were also of interest to businesses. The rate of revenue from e-commerce channels is on the increase because consumers’ purchasing habits are changing, in large part by growing technology.

Businesses are also aware of the importance of user data, meaning data management is indispensable for enterprises in their sustainable development. All latest trends and fluctuations and the potential to exploit the market were discussed by experts at the different sessions.

 
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