Vietnam Economy and Stock Market: 2021 Mid-Year Outlook: Post-Pandemic Investment Strategy

Strategy report | July 2021
VIETNAM ECONOMY AND STOCK MARKET

2021 mid-year outlook:
Post-pandemic investment strategy
Research team
Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the US
PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.
Contents
I. Vietnam economy 1H21 review and economic outlook update 3

II. Vietnam stock market review 21
III. Vietnam stock market prospects 29
IV. Stock recommendations 37
2 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

I. Vietnam economy 1H21 review and economic outlook update
❑ 2Q21's Vietnam economy recovered positively from a low base, amid the ongoing fourth COVID-
19 wave, which has spread more rapidly than the previous three outbreaks. In 1H21, Vietnam’s
GDP growth came in at 5.6% YoY, demonstrating the endurance to ensure economic
development amid the pandemic. Key drivers of this growth include: 1) Vietnam’s prompt
response to and effective containment of COVID-19, helping minimize its adverse effects on the
economy; 2) strengthened external demand, thanks to accelerating COVID-19 vaccinations and
continued stimulus policies in major trading partners, resulting in double-digit growth in exports
and improving industrial production; 3) Vietnam remaining an attractive destination for the wave
of FDI; 4) strengthened macroeconomic stability, thanks to stable inflation and exchange rates.
However, the fourth wave of the COVID-19 pandemic has caused exports to slow, retail and
consumption activities to decline in May and June (compared with the same period last year), a
slower disbursement of public investment, and increased unemployment rate.
❑ We lower our forecast for Vietnam's economic growth in 2021 to 6.5%, from 6.9% in our previous
forecast, to reflect the impact of the fourth COVID-19 outbreak. In addition, we revised domestic
consumption downward from our previous forecast.
❑ Key drivers of economic growth: 1) the deployment of a COVID-19 vaccine has been accelerating;
2) the support of monetary and fiscal policies will promote investment and consumption; 3) the
government’s promotion of public investment; 4) sustainable export growth, thanks to key trade
agreements officially coming into force; and 5) stable growth of FDI inflows.
❑ Main risks to Vietnam's growth prospects: 1) the resurgence of the COVID-19 pandemic on a
global scale, due to the increased number of variants; 2) a slow vaccination rollout prevents a
robust recovery; 3) a long wait until Travel and Aviation return to pre-pandemic levels; thus,
weak consumption may slow the overall growth momentum of the economy.
Vietnam macroeconomic dashboard
Indicators Graph J an-20 Feb-20 Mar-20 Apr-20 May-20 J un-20 J ul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 J an-21 Feb-21 Mar-21 Apr-21 May-21 J un-21
COVID-19 trackers
Global new COVID-19 cases per million 1 10 101 308 373 548 917 1,014 1,091 1,556 2,215 2,585 2,498 1,431 1,888 2,887 2,480 1,472
Total global vaccination per hundred 0.12 1.28 3.28 7.71 14.6 24.91 39.54
New COVID-19 cases per million in Vietnam 0.0 0.1 2.0 0.6 0.6 0.3 2.1 5.0 0.5 0.9 1.7 1.2 3.6 6.5 1.6 3.3 46.3 98.8
Total vaccination per hundred in Vietnam 0.05 0.52 1.13 3.68
Vietnam's stringency index 12.3 40.9 53.5 88.8 71.5 63.3 58.5 77.3 72.2 55.6 45.6 53.5 58.5 70.9 61.6 54.0 73.7 77.3
Economic indicators
Index of Industrial production (monthly, % YoY) -5.5 23.7 5.4 -10.5 -3.1 7.0 1.1 -0.6 3.8 5.4 9.2 9.5 22.2 -7.2 3.9 24.1 11.6 6.8
PMI (point) 50.6 49.0 41.9 32.7 42.7 51.1 47.6 45.7 52.2 51.8 49.9 51.7 51.3 51.6 53.6 54.7 53.1 44.1
Average CPI (% YoY) 1.23 5.91 5.56 4.90 4.39 4.19 4.07 3.96 3.85 3.71 3.51 3.23 0.06 -0.14 0.29 0.89 1.29 1.47
Retail sales growth (cumulative, % YoY) 10.2 8.3 4.7 -4.3 -3.9 -0.8 -0.4 0.0 0.7 1.3 2.0 2.6 6.4 5.5 5.1 10.0 7.6 4.9
International traveller growth (monthly, % YoY) 32.8 -21.8 -68.1 -98.2 -98.3 -99.3 -98.9 -98.9 -99.1 -99.1 -99.0 -99.0 -99.1 -99.1 -98.7 -25.8 -40.6 -18.0
FDI disbursement (monthly, % YoY) 322.2 -62.5 -47.4 39.3 -35.9 0.0 49.3 -70.3 -66.0 -25.2 -0.7 1.4 4.1 -1.0 14.3 7.7 6.5 7.2
FDI registration (monthly, % YoY) 3.2 -17.5 -5.8 -20.9 -3.1 8.3 0.0 -7.8 6.2 0.5 11.1 -44.8 -62.6 268.3 361.9 -42.3 42.4 -22.7
Export growth (cumulative, % YoY) -17.0 8.2 7.4 2.1 -0.9 0.2 1.5 2.4 4.2 5.0 5.4 6.5 50.5 23.2 22.0 28.3 30.9 28.4
Import growth (cumulative, % YoY) -12.5 3.0 3.6 -0.5 -4.8 -3.0 -3.2 -2.4 -0.9 0.2 1.6 3.6 41.0 25.9 26.3 30.8 36.2 36.1
Trade balance (monthly, US$bn) -0.3 2.3 2.0 -0.9 1.0 1.9 2.8 5.0 3.0 2.9 0.5 -0.3 2.1 -0.5 1.2 -1.2 -2.1 -1.0
Credit growth (% YoY) 11.6 12.6 11.6 10.3 9.6 9.7 10.0 10.1 10.2 10.3 11.0 12.2 12.9 12.7 14.0 15.2 15.1
VND/US$ (% MoM) 0.2 0.1 1.7 -0.9 -0.6 -0.4 -0.1 0.0 0.1 0.0 -0.2 -0.2 -0.2 -0.1 0.2 -0.1 0.0 -0.1
Stock market
VNIndex return (% MoM) -2.5 -5.8 -24.9 16.1 12.4 -4.6 -3.2 10.4 2.7 2.2 8.4 10.0 -4.3 10.6 2.0 4.0 7.2 6.1
VN-Index's 20-day volatility 18.1 17.3 45.0 26.6 16.8 26.0 30.7 8.9 9.3 14.4 12.1 15.7 41.0 46.4 12.3 21.2 12.8 18.4
Source: GSO, Bloomberg, Mirae Asset Securities (Vietnam) Research compilation

Note: Red spots in graphs indicate negative data

I.1 – Economic growth
• After bottoming in 2Q20, Vietnam's economic growth in 4Q20 and 1H21 has confirmed a V-shaped recovery. Although
2Q21 economy
Vietnam has experienced a third and fourth wave of the COVID-19 pandemic (at end-January and April 2021, respectively),
recovered from low Vietnam's economy in 1H21 continued to rebound, up 5.6% YoY from the bottom of 1H20 (+1.8% YoY in 1H20). Vietnam’s
GDP expanded by 4.7% YoY in 1Q21 and increased by an estimated 6.6% YoY in 2Q21.
base amid fourth
• In 1H21, Manufacturing and Construction (accounting for 37.6% of total GDP) recovered 8.4% YoY, as Vietnam has both
COVID-19 wave
maintained production activities and combated the pandemic; Services (accounting for 41.1% of total GDP) grew by 4%
YoY, with Wholesale and Retail (+5.6% YoY) and Finance, Insurance, and Banking (+9.3% YoY) as the main driving forces;
Agriculture, Forestry and Fishery (accounting for 12.2% of total GDP) increased by 3.8% YoY, due to improved production
of agricultural and fishery products.
• Thus far, Vietnam’s GDP recovery is among the strongest in Asia in 2021.
Quarterly GDP growth GDP growth by sector Vietnam’s GDP growth was among the highest in Asia
(% Agriculture, forestry, and fishing China India

YoY) Manufacturing and Construction Indonesia Malaysia
9.0 (%
(YoY) Services YoY) Philippines Thailand
8.0 Overal GDP growth
10% 25
7.0 6.6 20
15
6.0 8%
10
5.0 4.7 5
4.5
6% 0
4.0 3.7
-5
2.7 4% -10
3.0
-15
2.0 -20
2%
-25
1.0
0.4
-30
0.0 0% 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2 2016 2017 2018 2019 2020 1Q21 1H21 2018 2019 2020 2021
2016 2017 2018 2019 2020 2021
Source: GSO Source: GSO Source: Bloomberg, Mirae Asset Securities (Vietnam) Research compilation

I.1 – Economic growth (cont’d.)
GDP growth by sector in 2019, 2020, and 1H21
1H21 2020 2019
Processing and manufacturing industry
Healthcare and social support activities
Financial , banking and insurance activities
Industry
Generation and distribution of electricity, gas, hot water, water steam, air conditioning
Water supply; waste management and treatment, sewage
Education and training
Professional, scientific and technological activities
Total growth
Wholesale and retail, repair of motor vehicles
Construction
Information and communication
Fishery
Real estate business
Forestry
Services
Agriculture
Transportation, warehousing
Accommodations and restaurant
Administrative and support services
Arts, entertainment and recreation
Mineral
-16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14

(% YoY)
Source: GSO, Bloomberg, Mirae Asset Securities (Vietnam) Research compilation

I.1 – Economic growth (cont’d.)
❑ Vietnam's economy is expected to recover in a V-shaped pattern in 2021; however, we lower our forecast for Vietnam's
The economy to economic growth in 2021 to 6.5%, from 6.9% in our previous forecast, to reflect the impact of the fourth COVID-19 outbreak.
In addition, consumption is revised downward significantly from our previous forecast.
consolidate
❑ Key growth drivers in 2H21 include:
V-shaped recovery
▪ Expected containment of Vietnam’s COVID-19 resurgence in July, with herd immunity achieved by early-2022 at the earliest.
▪ Free trade agreements and the economic recovery of Vietnam’s major trading partners are the main export drivers.
▪ Disbursement of public investment is expected to be accelerated in the last months of 2021 and early-2022.
▪ With low interest rates, high credit growth will help boost spending and investment.
▪ FDI inflows are expected to grow in 2021, benefiting from supply chain diversification after Vietnam's main partners
gradually contain COVID-19 and restart their investment promotion.
▪ We expect domestic consumption to gradually regain its growth momentum, along with improving consumer confidence,
although much depends on the pace of vaccine rollout and speed of the fourth COVID-19 wave containment.
Vietnam GDP growth consensus Vietnam’s GDP growth rates
2021F 2022F % YoY

(% YoY)
2021F consensus 2022F consensus 9.0 1H Growth 2H Growth Annual Growth
8.0
8.0
7.5
7.0
7.0 6.75
6.0
6.5 5.0
6.65
6.0 4.0
3.0
5.5
2.0
1.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F
Source: Mirae Asset Securities (Vietnam) Research compilation Source: GSO, Mirae Asset Securities (Vietnam) Research

I.2 – COVID-19 vaccinations
• The fourth wave of COVID-19 is spreading more rapidly than previous ones. Thanks to active anti-pandemic measures,
Vietnam is COVID-19 hotspots have been gradually removing social distancing measures, with Hanoi loosening rules for some
accelerating COVID-19 essential services from June 22, and Bac Ninh and Bac Giang expected to return to normalcy from July 10, putting a series
of industrial parks into operation. However, Ho Chi Minh City has seen an increasing number of new infections.
vaccinations
• As of end-June, Vietnam's COVID-19 vaccination rate reached 3.7% of the population, far behind many other countries in
the world (the world’s average vaccination rate of 23.5%).
• Vietnam plans to promote COVID-19 vaccination going forward. The Ministry of Health expects that injections will be
given to top-priority people by 3Q21. In 2021, at least 50% of those aged 18 and older will be vaccinated. By the end of
1Q22, over 70% of the population will be vaccinated.
• We expect Vietnam to achieve herd immunity by early 2022 at the earliest. On a positive note, efforts to promote
Vietnam’s homemade COVID vaccine, Nanogen raise the possibility of Vietnam achieving herd immunity in 2022.
COVID-19 vaccination rates Vietnam plans to accelerate COVID-19 vaccination
(%) (%)
70
70
60
60
50
50
50
40
40
30
23.5
30
20
20
10
3.7
10
3.68
0
0
End of June 2021 Oct-21 Early 2022
Source: Ourworldindata, Mirae Asset Securities (Vietnam) Research compilation, updated as of 06/30/2021 Source: Ministry of Health
(Vietnam

I.3 – Industrial production
❑ Although the fourth COVID-19 outbreak slowed the recovery of the Index of Industrial Production (IIP) in May (+11.6% YoY) and
Industrial
June (+6.8%), 2Q21 IIP still achieved double-digit growth (+11.5% YoY). Overall, IIP growth remains on a positive recovery
production momentum since 3Q20 (2Q20: +1.1%; 3Q20: +2.3%; 4Q20: +4.8%; 1Q21: +6.3%; 2Q21: +11.5%).
maintained ❑ Vietnam’s Manufacturing Purchasing Managers' Index (PMI) fell sharply, to 44.1 in June from 53.1 in May, the steepest
recovery, albeit deterioration in over a year and ending a six-month growth period. Output and new orders both fell at the sharpest rates since
the first outbreak of the pandemic in early-2020, while firms scaled back their employment and purchasing activity accordingly.
at slower pace, in
❑ However, industrial production is expected to maintain its recovery, albeit at a slower pace, driven by: 1) Vietnam's efforts to
May and June contain the pandemic via strict social distancing measures; 2) expectations for Bac Ninh and Bac Giang to put a series of
industrial parks into operation from July 10; 3) increasing vaccination rates; 4) moves towards herd immunity by Vietnam's key
trading partners, thereby boosting demand recovery in these countries.
Monthly IIP Manufacturing IIP in 1H21
IIP (% MoM) Basic metals 37.0

IIP (% YoY) Motor vehicles 33.1
(%) Machinery and equipment 17.2
Manufacturing and processing IIP (% YoY) Furniture 15.3
30 Leather and related products 12.9
Computer, electronic, optical products 12.7
20 Manufacturing 11.6
Paper and paper products 11.2
10 Electrical equipment 10.1
Beverages 9.2
0 Clothes 8.9
Textiles 8.6
Food products 6.5
-10 Seasonal effects Seasonal effects
Tobacco 5.3
-20 Manufacture of wood 4.8
Rubber and plastic products 4.5
-30 Chemicals and chemical products 4.1
Coke, refined petroleum products 3.0
Dec 19
Dec 20
Aug 19
Nov 20
Apr 19
Sep 19
Nov 19
Aug 20
Sep 20
Jun 19
Apr 20
Jun 20
Apr 21
Jun 21
Feb 19
Feb 20
Feb 21
Oct 19
Oct 20
Mar 19
May 19
Mar 20
May 20
Mar 21
May 21
Jan 19
Jul 19
Jan 20
Jul 20
Jan 21
Repair, maintenance, installation M&E -1.8

Pharmaceuticals -2.3
Printing, recorded media reproduction -3.9 (%)
Source: GSO, Mirae Asset Securities (Vietnam) Research compilation

I.2 – Industrial production (cont’d.)
Vietnam’s PMI plummeted in June after six consecutive months of growth
(Points) PMI 3-month average

60
55
50
45
40
35
30
Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun 17 Dec 17 Jun 18 Dec 18 Jun 19 Dec 19 Jun 20 Dec 20 Jun 21
Manufacturing PMI
Region/Country Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Global 50.3 47.1 47.3 39.6 42.4 48.0 50.6 51.8 52.4 53.1 53.8 53.8 53.6 53.9 55.0 55.8 56.0 55.5
Euro Area 47.9 49.2 44.5 33.4 39.4 47.4 51.8 51.7 53.7 54.8 53.8 55.2 54.8 57.9 62.5 62.9 63.1 63.4
US 51.9 50.7 48.5 36.1 39.8 49.8 50.9 53.1 53.2 53.4 56.7 57.1 59.2 58.6 59.1 60.5 62.1 62.1
UK 50.0 51.7 47.8 32.6 40.7 50.1 53.3 55.2 54.1 53.7 55.6 57.5 54.1 55.1 58.9 60.7 65.6 63.9
Emerging Markets 51.0 44.6 49.1 42.7 45.4 49.6 51.4 52.5 52.8 53.4 53.9 52.8 52.1 51.5 51.3 52.2 52.0 51.3
China 51.1 40.3 50.1 49.4 50.7 51.2 52.8 53.1 53.0 53.6 54.9 53.0 51.5 50.9 50.6 51.9 52.0 51.3
Japan 48.8 47.8 44.8 41.9 38.4 40.1 45.2 47.2 47.7 48.7 49.0 50.0 49.8 51.4 52.7 53.6 53.0 52.4
South Korea 49.8 48.7 44.2 41.6 41.3 43.4 46.9 48.5 49.8 51.2 52.9 52.9 53.2 55.3 55.3 54.6 53.7 53.9
Vietnam 50.6 49 41.9 32.7 42.7 51.1 47.6 45.7 52.2 51.8 49.9 51.7 51.3 51.6 53.6 54.7 53.1 44.1
ASEAN 49.8 50.2 43.4 30.7 35.5 43.7 46.5 49.0 48.3 48.6 50.0 50.8 51.4 49.7 50.8 51.9 51.8 49.0
Source: Bloomberg, Mirae Asset Securities (Vietnam) Research compilation

I.4 – Exports and imports
❑ The fourth outbreak of COVID-19 has severely affected the production activities of some industrial zones, resulting in
Trade deficit in exports growing at a slower pace in June (+17.3% YoY, to reach US$26.5bn) compared with the growth rates in the two
1H21, along with previous months. Meanwhile, imports sustained their growth momentum in June (+33.5% YoY, US$27.5bn) and 2Q21 (45.7%
YoY, US$83.5bn).
slower growth in
❑ In 1H21, Vietnam posted an estimated trade deficit of US$1.47bn, with export turnover reaching US$157.63bn (+28.4% YoY)
June exports and import turnover US$159.1bn (+36.1% YoY).
Exports, imports, and trade balance Growth rates of exports and imports Trade balance by partner
(US$ Trade balance (L) Exports (R) (US$ mn) (% YoY) Export growth (US$ 2018 2019 2020 1H21
mn) bn)
Imports (R) Import growth
60 80.0
6,000 35,000
50
5,000 60.0
30,000
40
4,000
37.2
25,000 30 40.0
3,000
20,000 20
2,000 20.0 11.2
10
1,000 15,000
0 0.0
0 -0.1
10,000
-10 -7.1
-1,000 -20.0
-15.3
5,000 -20
-2,000
-40.0 -29.0
-3,000 0 -30
Dec 19
Dec 20
Jun 20
Jun 21
Nov 19
Aug 20
Sep 20
Nov 20
Apr 20
Apr 21
Feb 20
Oct 20
Feb 21
Mar 20
May 20
Mar 21
May 21
Jan 20
Jul 20
Jan 21
Dec 19
Dec 20
Sep 20
Nov 19
Mar 20
Aug 20
Nov 20
Mar 21
Feb 20
Feb 21
Apr 20
Jun 20
Oct 20
Apr 21
Jun 21
Jan 20
May 20
Jul 20
Jan 21
May 21
-60.0
US China EU ASEAN Japan Korea
Source: GSO Source: GSO Source: GSO

I.4 – Exports and imports (cont’d.)
❑ We believe that export growth will gradually regain momentum, thanks to the following:
Export growth is
• Gradual recovery in the production activities of industrial parks, once they are focused on pandemic prevention and
expected to are prioritized for vaccinations. Bac Giang province plans to put more than 30,000 workers back to work by end-July
gradually regain and targets 120,000 workers in industrial zones by the end of 2021.
momentum • Gradual improvement in external demand, driven by the rollout of COVID-19 vaccines and Vietnam’s deepening
participation in the global supply chain. The PMIs of Vietnam’s major trading partners have rebounded above 50
points, signaling improving global demand.
• Key trade agreements officially coming into force. Since the EVFTA took effect in August 2020, the growth rate of
exports to the EU has recovered strongly, with growth of 14.2% YoY in 1Q21 and 17.4% YoY in 1H21. We expect
Vietnam’s two key markets — the US and China — as well as the new driver — the EU — to continue to boost Vietnam’s
exports in coming years.
Growth of monthly Vietnam’s exports by country Growth of monthly Vietnam’s exports by product
Electronic goods, computers, and their parts

US China EU ASEAN South Korea Japan Phones and their parts
(% YoY) (% YoY) Machinery, instrument, accessory
100 Textiles and garments
100
Shoes and sandals
75 75
50 50
25 25
0 0
-25 -25
-50 -50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
20 20 20 20 20 20 20 20 20 20 20 20 21 21 21 21 21 21 20 20 20 20 20 20 20 20 20 20 20 20 21 21 21 21 21 21
Source: GSO, Mirae Asset Securities (Vietnam) Research compilation Source: GSO, Mirae Asset Securities (Vietnam) Research compilation

I.5 – Public investment
❑ In 1H21, disbursed public investment reached VND153tr, completing 26.3% of the year plan. Disbursement of public
Disbursement of
investment capital decreased slightly in 1H21, compared with the same period last year, due to: 1) a sudden increase
public investment in construction material prices, especially steel, which has affected resource mobilization and the construction
capital expected to progress of contractors; and 2) the fourth wave of the COVID-19 pandemic, which has affected construction progress.
accelerate, thanks ❑ Resolution 63/NQ-CP, dated June 29, 2021, aims to strive for the disbursement rate of state budget investment capital
in 2021 to reach 95%−100% of the plan assigned by the Prime Minister; of this, disbursement should reach at least
to Decree 63/NQ-CP 60% of the plan by end-3Q21. We expect public investment disbursement to be more robust in 2H21 and 2022,
becoming a driving force for economic growth.
Growth rate of realized investment capital Public investment in 2017−1H21
Plan (L) Disbursement (L)

(% YoY) Total the State Non-State FDI (VNDtr) (%)
Disbursement growth (L) % Disbursement/Plan (R)
20
700 80
70
15 600
60
500 50
10
40
400
30
5
300
20
200 10
0
0
100
-10
(5)
1H21
1H17
1H18
1H19
1H20
0 -20
2017 2018 2019 2020 1H21
Source: GSO Source: Vietnam Ministry of Finance, as of June 30, 2021

I.6 – FDI
Registered FDI ❑ In 1H21, total newly- and additionally-registered capital recorded growth of 12.4% YoY to reach US$13.7bn.
• Registered FDI reached US$9.5bn (+13.2% YoY), with a total of 804 newly-licensed projects (-43.3% YoY).
maintained double-
• Additionally-registered FDI rose 10.6% YoY to reach US$4.1bn.
digit growth rate in
• Asian nations continued to be the largest FDI investors in 1H21, led by Singapore, Japan, China, and South Korea.
5M21 This reflects ongoing supply-chain restructuring, with Vietnam continuing to benefit from this restructuring.
❑ Realized FDI maintained positive growth of 6.8% YoY to record US$9.24bn in 1H21, amid the fourth COVID-19 wave.
FDI attraction and disbursement (2014−1H21) Some major FDI projects in 1H21
Registered FDI (L)
FDI disbursement (L)
(US$mn) (% YoY)
Registered FDI growth (R) Project Country Registered capital Products
30,000 50
Long An 1 and 2
Construction of a thermal
Thermal Power Plant Singapore ~ US$3.1bn
40 power plant
25,000 project
30
O Mon 2 Thermal Construction of a thermal
20,000 Japan ~ US$1.31bn
Power Plant project power plant
20
Additionally-
15,000 10 LG Display Hai Phong
Korea registered capital of OLED screen products
project
US$750mn
0
10,000
Plant of Polytex Far Additionally- Petrochemical and Textile
-10 Eastern Vietnam Co., Taiwan registered capital of vertical integration
Ltd US$610mn factory
5,000
-20
Jinko Solar PV Manufacturing solar
photovoltaic cell Hong Kong US$498mn panels and other
0 -30 technology project electrical equipment
2014 2015 2016 2017 2018 2019 2020 2021 YTD
Source: GSO, updated as of 06/20/2021 Source: MPI

I.6 – FDI (cont’d.)
Registered FDI by sector in 1H21 Registered FDI by country in 1H21
1.6% 0.5% 0.4% 1.1% Singapore Japan South Korea China
1.6%
2.6% Manufacturing, processing 2.2%
8.4%
Production, electricity, gas, steam and air
6.3% conditioning supply
Real estate activities 5.7%
Transportation and storage 38.7%

7.2%
47.5% Wholesale and retail trade; repair of motor
vehicles and motorcycles
Professional, scientific and technical
8.6%
activities
Agriculture, forestry and fishery
38.4%
Construction
12.1%
Others
17.0%
Registered FDI by locality in 1H21
1.5% Long An
11.6% Can Tho
1.8%
2.2% Hai Phong
25.7% Binh Duong
2.4%
Ho Chi Minh city
2.7% Quang Ninh
Bac Giang
3.2%
Ha Noi
3.4%
Bac Ninh
4.2% 9.6% Dak Lak
Tay Ninh
4.8%
Dong Nai
5.3% 8.3% Hung Yen
5.4% 7.9% Hai Duong
Ba Ria - Vung Tau
Others
Source: GSO, Mirae Asset Securities (Vietnam) Research compilation

I.7 – Domestic consumption
❑ Retail and consumption activities declined in May (-1% YoY) and June (-6.6% YoY), compared with the same period
Retail activity slowed
last year, due to the negative effects of the fourth wave of COVID-19, with many accommodation, food, and travel
due to fourth COVID- establishments having to temporarily close. As a result, the growth momentum of retail and consumer services
activities in 1H21 slowed (+4.9% YoY; if excluding the price factor, growth was 3.6% YoY) when compared with the
19 outbreak
improvement in preceding months (+7.6% YoY in 5M21 and +10% YoY in 4M21), but were still positive compared
with 1H20's decrease of 1.1% YoY.
❑ We expect domestic retail activities to gradually regain their growth momentum, with economic activities
returning to a normal state once the fourth pandemic wave is successfully contained, accompanied by an
improving consumer confidence index.
❑ The main risk for retail and consumer services is that the fourth resurgence of COVID-19 could be prolonged, as
this outbreak has different sources of infection.
Retail sales by sector (% YoY) Vietnam’s Consumer Confidence Index

Total 130 129 129
(% YoY) Retail sales of goods 128
Accommodation & Catering Services
20
Travel Services 126
125
125 124
0 123
122
121
-20 120
120
117 117
-40
115
-60
-80 110
Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 4Q20 1Q21
Source: GSO Source: Nielsen

I.8 – Unemployment rate
• The unemployment rate surged in 2Q21, due to the fourth outbreak of COVID-19. Specifically, in 2Q21, the
Unemployment rate unemployment rate increased to 2.62%, from 2.42% in 1Q21 and 2.37% in 4Q20. However, we believe that as soon as
surged in 2Q21 the pandemic is contained successfully, businesses will gradually resume normal production activities. Thus, the
unemployment rate is expected to decrease, helping solidify the recovery of domestic demand. Bac Ninh and Bac
Giang are expected to enjoy a new normal from July 10, 2021, putting a series of industrial parks into operation, and
many provinces and cities have gradually lifted social distancing measures in June.
• In 1H21, the new business registration situation was positive, with the number of newly-established enterprises
reaching 67,100 enterprises (+8.1% YoY), and registered capital climbing by 34.3% YoY. By contrast, the number of
enterprises temporarily suspending operations for a definite time and waiting for dissolution procedures still
increased over the same period last year.
Vietnam’s unemployment rate Enterprise establishment/dissolution situation
(%) Newly-established enterprises

Re-operated enterprises
2.8 2.73 (# Enterprises suspending operation for a definite time
firms) Enterprises waiting for dissolution procedures
2.7 80000
2.62
2.6
2.5 70000 +8.1%
2.5 -7.3%
2.42
2.37 60000
2.4
2.3 50000
2.2
40000 +22.1%
2.1
+38.2%
2 30000 +16.4 +3.9%
+25.7%
% -10.2%
1.9 20000
1.8
10000
Dec 12
Dec 13
Dec 14
Dec 15
Dec 16
Dec 17
Dec 18
Dec 19
Dec 20
Sep 12
Sep 13
Sep 14
Sep 15
Sep 16
Sep 17
Sep 18
Sep 19
Sep 20
Jun 12
Jun 13
Jun 14
Jun 15
Jun 16
Jun 17
Jun 18
Jun 19
Jun 20
Jun 21
Mar 16
Mar 13
Mar 14
Mar 15
Mar 17
Mar 18
Mar 19
Mar 20
Mar 21
0
1H20 1H21
Source: GSO
Source: GSO

I.9 – Exchange rate
• The VND/US$ edged up 0.33% YTD as of end-June, marking a slight appreciation of the VND against the US dollar.
VND/US$ exchange Meanwhile, most other Asian currencies depreciated against the US dollar in 1H21, while the USD index remained
rate remained stable, above 90 in 1H21.
• The VND/US$ exchange rate should remain relatively stable, thanks to: 1) an expected gradual return to a surplus
with VND tending to
for the trade balance, once exports accelerate; 2) continued positive FDI inflows into Vietnam, thanks to production
appreciate slightly shifts; 3) the SBV's flexible mechanism for regulating the supply and demand of foreign currencies; 4) expectations
for minimal appreciation of the US dollar in 2021, due to large-scale economic stimulus packages and Fed support
policies; and 5) the US Treasury’s mid-April removal of Vietnam from the list of nations labeled as currency
manipulators, which should reduce pressure on the VND/US$ exchange rate.
• We still expect the VND to appreciate within a range of around 0.5% against the US dollar in 2021.
VND/US$ exchange rate VND is relatively stable compared with other Asian currencies
(VND)
Official rate (SBV) Unofficial rate Commercial banks GBP CNY VND PHP
24,200 (End 2020 = 0%) INR MYR IDR KRW
24,000 THB JPY

8
23,800
6
23,600
4
23,400
2
23,200
23,000 0
22,800 -2
22,600
-4
22,400
22,200
Jun 19 Oct 19 Feb 20 Jun 20 Oct 20 Feb 21 Jun 21 Note: JPY = Japanese yen, PHP = Philippines peso, CNY = Chinese yuan, VND = Vietnamese
dong, INR = Indian rupee, KRW = Korean won, MYR = Malaysian ringgit, THB = Thailand baht,
IDR = Indonesian Rupiah
Source: FiinPro, SBV, updated 06/30/2021 Source: Bloomberg, as of 06/30/2021

I.10 – Inflation
❑ The consumer price index (CPI) rose 2.41% YoY in June, while 1H21 average CPI rose 1.47% YoY, the lowest level since 2016.
Inflation remained ▪ The CPI increase in 1H21 was due to: 1) an increase in raw material prices; 2) rising water prices, due to a recovery in
consumer demand; 3) increased educational service prices, due to the impact of the increase in tuition fees for the new
muted
school year 2020−2021, according to the roadmap of Decree No. 86/2015/ND-CP (dated October 2, 2015); 4) rising prices of
housing maintenance materials, along with higher input material prices.
▪ Meanwhile, the factors that served as a drag on the 1H21 CPI include: 1) decreased prices of food items; 2) a decline in
demand for travel and tourism, due to the impact of the epidemic; and 3) the government’s policy of reducing electricity
prices for people and producers, due to the COVID-19 pandemic.
❑ In 2021, inflation is expected to be around 4%, in light of: 1) the expected slow recovery of the Culture, Entertainment, and
Tourism segment, due to the impact of COVID-19; and 2) policies to ensure supply-demand balance and market stability.
These two aforementioned factors will mitigate the increasing inflation risk in 2H21 resulting from a rapid recovery of basic
commodity prices and impact of prolonged easing policies.
CPI: MoM and YoY CPI by industry (%)
1H21 avg.
CPI MoM (L) CPI YoY (R) Items YoY YTD MoM
(% YoY)
2.0% 7% Overall CPI 2.41 1.62 0.19 1.47
1.5% 5% Food and Foodstuff -0.33 0.55 -0.13 0.86
1.0% Beverage and Tobacco 1.58 1.19 0.11 1.57

3%
0.5% Garment, Footwear and Hats 0.98 0.49 0.00 0.85
1%
0.0%
Housing and Construction Materials 4.02 2.44 0.63 1.19
-1% Equipment and Household Appliances 0.58 0.54 0.10 0.53
-0.5%
-3% Medicines and Healthcare 0.16 0.07 0.02 0.22
-1.0%
Transportation 15.54 9.14 1.07 5.62
-1.5% -5%
Post and Telecommunications -0.82 -0.54 0.01 -0.68
-2.0% -7%
Education 4.11 0.42 0.03 4.09
Jun 19 Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21
Culture, Entertainment and Tourism -0.70 -0.25 -0.08 -1.19
Other Services 1.61 0.89 0.06 1.68
Source: GSO Source: GSO, updated as of June 2021

Key macroeconomic indicators
Indicator 2014 2015 2016 2017 2018 2019 2020E 2021F
Real GDP growth (%, YoY) 6.0 6.7 6.2 6.8 7.1 7.0 2.9 6.5
Export growth (%, YoY) 13.8 8.1 9.0 21.1 13.2 8.4 6.5 18
Import growth (%, YoY) 12 12.1 5.6 20.8 11.1 6.8 3.6 20
Trade balance (US$ bn) 2.0 -3.2 2.6 2.7 6.8 11.1 19.1 17.2
FDI disbursement (US$ bn) 12.4 14.5 15.8 17.5 19.1 20.4 20.0 21
Retail growth, excluding inflation (%, YoY) 6.2 8.5 8.3 9.3 9.4 9.2 -1.2 5
Average CPI (%) 4.1 0.6 2.7 3.5 3.5 2.8 3.2 4
Foreign exchange reserve (US$ bn) 34.5 30.5 36.7 49.2 55.3 78.5 94.8 110
Credit growth (%, YoY) 14.2 17.3 18.2 18.3 10.7 13.6 12.2 13
Exchange rate VND/US$ 21,388 22,485 22,761 22,698 23,175 23,314 23,267 23,151
Change in VND/US$ (%) 1.4 5.1 1.2 -0.3 2.1 0.5 -0.2 -0.5
Public debt (%/GDP)* 43.6 46.1 47.6 46.3 43.6 43.4 46.6 47.1
Source: GSO, Vietnam Customs, MPI, Bloomberg, WB, Mirae Asset Securities (Vietnam) Research
Note (*): GDP is revised to adhere to international practices. After recalculation, the revised GDP increased by 25.4% on average over the period 2010-2017.

II. Vietnam stock market review
• The VN-Index conquered the 1,400pt plateau, following a fifth monthly advance. With an
increase of 6.1% in June, it outperformed most regional peers, as well as other MSCI indexes.
• Most industries enjoyed a broad-based increase last month, with Real Estate and Banks
contributing the most to the VN-Index’s gain (~62%). Notably, Banks, Materials, Capital Goods,
Software & Services chalked up a fifth straight monthly gain.
• Market liquidity was robust. According to our liquidity metrics, market cash flows were highly
focused on Banks, Real Estate, Materials, Diversified Financials, Energy, Software & Services,
Insurance, Pharmaceuticals, and Automobiles & Components.
• Foreign investors sold a net a mount of nearly VND4tr (or US$190mn) in June, for a total net
outflow of US$1.5bn YTD. Bucking the trend, ETFs tracking VN Diamond (FUEVFVND), VN Finlead
(FUESSVFL), and VN30 (E1VFVN30) received net inflows in 1H21.
• A fourth wave of COVID-19, starting in end-April, is surging nationwide (with new cases spread
over 51 provinces). As of end-June, Ho Chi Minh City ─ the business and financial hub of Vietnam
─ has became a major hotspot. The time needed to contain the outbreak is a key risk factor to
monitor; the more time it takes, the more severe the economic impact. However, market
consensus expects more robust growth in 2021−2023. Such positive sentiment buoyed stock
prices, with signs of exuberance reflected in retail investors' behavior.

II.1 – Market performance review
• The VN-Index conquered the 1,400pt plateau, following a fifth monthly advance. With an increase of 6.1% in
Continuing to set new highs June, it outperformed most regional peers, as well as other MSCI indexes. The biggest market engines were
amid resurgence of COVID- Real Estate and Banks. Market liquidity was robust.
19 • A fourth wave of COVID-19, starting in end-April, is surging nationwide (with new cases spread over 51
provinces). As of end-June, Ho Chi Minh City ─ the business and financial hub of Vietnam ─ has became a major
hotspot. The time needed to contain the outbreak is a key risk factor to monitor; the more time it takes, the
more severe the economic impact. However, market consensus expects more robust growth in 2021−2023.
Global performance monitor: Monthly change (%)
Hong Indonesi Philippine Singapor

Vietnam US MSCI DM MSCI EM MSCI FM Korea Japan China Taiwan India Thailand Malaysia
Kong a s e
Index VNINDEX SPX MXWO MXEF MXFM KOSPI NKY SHCOMP HIS TWSE SENSEX SET FBMKLCI JCI PCOMP STI
06-2020 -4.6% 1.8% 2.5% 7.0% 1.6% 3.9% 1.9% 4.6% 6.4% 6.2% 7.7% -0.3% 1.9% 3.2% 6.3% 3.2%
07-2020 -3.2% 5.5% 4.7% 8.4% -1.1% 6.7% -2.6% 10.9% 0.7% 9.0% 7.7% -0.8% 6.8% 5.0% -4.5% -2.3%
08-2020 10.4% 7.0% 6.5% 2.1% 7.9% 3.4% 6.6% 2.6% 2.4% -0.6% 2.7% -1.3% -4.9% 1.7% -0.7% 0.1%
09-2020 2.7% -3.9% -3.6% -1.8% 0.6% 0.1% 0.2% -5.2% -6.8% -0.6% -1.5% -5.6% -1.3% -7.0% -0.3% -2.6%
10-2020 2.2% -2.8% -3.1% 2.0% 0.9% -2.6% -0.9% 0.2% 2.8% 0.2% 4.1% -3.4% -2.5% 5.3% 7.8% -1.7%
11-2020 8.4% 10.8% 12.7% 9.2% 4.0% 14.3% 15.0% 5.2% 9.3% 9.4% 11.4% 17.9% 6.5% 9.4% 7.4% 15.8%
12-2020 10.0% 3.7% 4.1% 7.2% 5.6% 10.9% 3.8% 2.4% 3.4% 7.4% 8.2% 2.9% 4.1% 6.5% 5.1% 1.3%
01-2021 -4.3% -1.1% -1.1% 3.0% 0.3% 3.6% 0.8% 0.3% 3.9% 2.8% -3.1% 1.2% -3.7% -2.0% -7.4% 2.1%
02-2021 10.6% 2.6% 2.5% 0.7% 0.1% 1.2% 4.7% 0.7% 2.5% 5.4% 6.1% 2.0% 0.7% 6.5% 2.8% 1.6%
03-2021 2.0% 4.2% 3.1% -1.7% -0.1% 1.6% 0.7% -1.9% -2.1% 3.0% 0.8% 6.0% -0.3% -4.1% -5.2% 7.3%
04-2021 4.0% 5.2% 4.5% 2.4% 6.3% 2.8% -1.3% 0.1% 1.2% 6.9% -1.5% -0.3% 1.8% 0.2% -1.1% 1.7%
05-2021 7.2% 0.5% 1.3% 2.1% 3.5% 1.8% 0.2% 4.9% 1.5% -2.8% 6.5% 0.7% -1.1% -0.8% 4.0% -1.7%
06-2021 6.1% 2.1% 1.6% 0.1% 2.4% 2.9% -0.2% -0.7% -1.1% 4.0% 1.5% -0.1% -3.1% 0.6% 4.1% -0.9%
Source: Mirae Asset Securities (Vietnam) Research, Bloomberg

II.2 – Key driving events in 2020 and 1H21
VN-Index
(Pts) movement and key events State Bank of Vietnam (SBV) The Government
The State Securities issues Circular promulgates Decree
1,500 Commission (SSC) 03/2021/TTNHNN on April 2, 52/2021/ND-CP on
requests implementation 2021, amending Cir. extension of time limit for
of temporary transfer 7
01/2020/TT-NHNN to extend payment of value-added
from Ho Chi Minh City
debt moratorium for loans hit tax, corporate income tax, 6 8
Stock Exchange (HOSE) Ho Chi Minh City
to Hanoi Stock Exchange by COVID-19 and allow banks personal income tax, and
1,400 implements social
to apply 3-year provisioning land rental in 2021. 4 5
(HNX). distancing according
roadmap for these loans. to Directive No.15/CT- 2
3
TTg, dated March 27, 1
2020.
1,300
Vietnam
imports first
batch of COVID-
COVID-19
19 vaccine
1,200 Record number of new Fourth outbreak in
accounts opened; COVID-19 Bac Giang
daily turnover has resurgence and Bac
VND285tr continuously recorded Ninh
credit new peaks since May 2020 provinces
1,100 support
package WHO
and a declares
fiscal COVID-19 New cases of COVID-19
package outbreak a RCEP is community infection appear
worth officially in Hai Duong and Quang
1,000 pandemic
VND30tr signed Ninh; Hai Duong implements
SBV cuts social distancing measures
refinancing from January 28, 2021
rate to 4.5%
Key events in June:
900 1) Ho Chi Minh City continues to implement social distancing for 15 days
Many SBV cuts according to Directive 15/CT-TTg.
countries refinancing
Circular ease the
2) The second social security package worth VND27,000bn is proposed.
rate to 4%
01/2020/TT- lockdown 3) Fed keeps key rate near zero, but forecasts initial hikes in 2023.
NHNN on debt Pandemic 4) The Ministry of Health plans to vaccinate 70% of the population in 2021.
800 rescheduling recurrence 5) Hanoi loosens restrictions on some essential services from June 22.
exemption or in Da Nang EVFTA 6) Leaders of the State Securities Commission affirm that the new
reduction of Support officially takes securities trading system will be completed by end-June, or at the latest by
interest and effect
package of the beginning of July, increasing the handling capacity of the Ho Chi Minh
fees VND62tr Stock Exchange from 900,000 orders/day to 3-5mn orders/day.
700
7) Ho Chi Minh City continues to implement social distancing measures
SBV cuts according to Directive 10.
Social distancing
refinancing 8) Bac Ninh and Bac Giang are expected to enjoy new normal from July 10,
measures enacted
rate by 100bps putting a series of industrial parks into operation.
600 to 5%
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

II.3 – Top market movers
Real Estate shines • Most industries enjoyed a broad-based increase last month, with Real Estate and Banks contributing the most to
the VN-Index’s gain (~62%).
• Notably, Banks, Materials, Capital Goods, Software & Services chalked up a fifth straight monthly gain.
Banks, and Materials were the top market leaders (unit: Index points)
GICS Industry group 06-2020 07-2020 08-2020 09-2020 10-2020 11-2020 12-2020 01-2021 02-2021 03-2021 04-2021 05-2021 06-2021
Real Estate -7.37 0.30 9.31 0.95 12.56 8.55 17.88 8.19 19.69 6.50 29.33 -8.26 29.72
Banks -11.08 -8.58 21.84 6.77 -2.22 27.46 30.86 -20.19 42.84 11.42 22.23 73.60 19.84
Materials -2.71 -2.39 6.90 3.50 5.24 12.29 18.91 -8.82 13.00 2.44 8.07 18.15 7.60
Utilities -3.03 -2.65 5.54 -0.92 -1.68 7.94 4.63 -7.08 7.59 0.87 -4.11 -1.37 6.35
F&B -7.72 -3.04 10.57 7.20 7.48 3.18 6.15 -12.42 9.00 -3.46 -4.54 -0.04 5.00
Diversified Financials 0.13 -0.70 1.03 0.86 0.41 1.39 5.44 -1.56 1.87 0.55 -0.10 4.55 4.82
Transportation -1.91 -3.35 2.94 1.92 -1.22 4.16 3.00 -1.46 4.52 0.15 -2.82 -3.18 3.21
Retailing -0.57 -0.75 2.53 1.43 0.02 1.49 0.56 1.86 0.34 -0.62 1.51 -0.31 1.66
Insurance -0.92 -1.13 1.68 0.21 0.32 1.05 2.33 -2.30 0.52 0.14 -0.43 -0.43 1.00
Capital Goods -0.36 -0.43 3.38 1.15 -1.32 3.49 4.32 1.22 3.16 0.66 0.25 0.52 0.76
Software & Services -0.39 -0.32 1.20 0.01 0.26 0.83 0.95 0.76 2.88 0.41 0.61 3.65 0.75
Consumer Durables & Apparel -0.46 -0.48 0.94 0.22 0.73 0.88 0.63 0.90 0.55 1.25 0.55 -0.16 0.54
Energy -0.65 -1.00 3.79 -0.39 -0.55 0.98 1.76 -1.50 3.77 -1.08 -2.11 1.85 0.40
Pharmaceuticals -0.05 -0.04 0.81 0.06 -0.15 0.32 0.35 -0.15 0.20 0.18 -0.09 0.09 0.35
Consumer Services 0.12 -0.30 0.04 0.05 -0.09 0.07 0.13 0.07 0.50 -0.15 -0.13 -0.27 0.15
Automobiles & Components -0.11 -0.10 0.13 0.20 -0.07 0.09 0.17 0.13 0.10 0.13 -0.09 0.02 0.11
Technology Hardware & Equipment 0.13 0.01 0.09 0.08 -0.01 0.27 0.10 -0.09 0.29 0.27 -0.07 0.11 0.10
Telecommunication Services 0.03 -0.01 0.00 0.01 0.00 0.01 0.02 0.20 -0.02 -0.01 0.00 0.02 0.07
Commercial & Professional Services 0.10 -0.09 0.08 -0.02 -0.01 0.12 0.07 -0.05 0.03 0.03 -0.06 0.00 0.05
Health Care Equipment & Services 0.02 0.00 0.05 0.02 -0.03 0.01 0.04 -0.05 0.01 0.01 -0.01 0.00 0.00
Media & Entertainment -0.06 -0.05 0.05 -0.05 -0.02 -0.01 0.02 -0.03 -0.02 -0.01 -0.10 -0.09 -0.01
Household & Personal Products 0.00 0.00 0.40 0.15 -0.11 0.25 0.16 -0.09 0.66 0.14 -0.03 0.00 -0.01
VN-INDEX -39.36 -26.72 83.26 23.56 20.26 77.61 100.79 -47.26 111.86 20.00 47.95 88.66 80.50

II.3 – Top market movers (cont’d.)
Top four leading • Real Estate led the market, thanks to VHM (+15%), NVL (+22%), PDR (+21%). Meanwhile, DXG (-14%)
underperformed its peers.
contributing stocks:
• Banks were riding a five-month win streak, led by VCB (+18%), MBB (+14%), ACB (+8%), and MSB (+10%). Bucking
VCB, VHM, NVL, and GVR the industry’s trend, many banking stock suffered a correction, such as BID (-3%), STB (-10%), VPB (-2%), TCB (-
2%), and EIB (-8%).
• Diversified Financials had a good month, with key players posting stellar performances, namely SSI (+24%), VCI
(+31%), and HCM (+30%).
• In addition, GVR (+22%), GAS (+13%), SAB (+9%), VJC (+11%), MWG (+10%), BVH (+8%), and FPT (+3%) also made
meaningful contributions to the market.
Top 20 leading contributors Top 20 lagging contributors
Index impact Index impact

Industry Ticker Price change (% MoM) Industry Ticker Price change (% MoM)
(points) (points)
Banks VCB 18.1 17.9 Banks BID -3.0 -1.6
Real Estate VHM 15.0 13.8 Banks STB -9.5 -1.6
Real Estate NVL 22.0 8.7 Materials HPG -2.3 -1.5
Materials GVR 22.4 7.0 Banks VPB -2.2 -1.0
Utilities GAS 12.6 5.4 Banks TCB -1.9 -1.0
Banks MBB 14.1 4.1 Banks EIB -7.6 -0.8
F&B SAB 8.7 2.4 Materials APH -20.1 -0.8
Real Estate PDR 21.3 2.2 Real Estate DXG -14.3 -0.6
Banks ACB 7.8 1.9 Banks CTG -0.8 -0.4
Diversified Financials SSI 23.9 1.9 Transportation LGC -9.9 -0.3
Retailing MWG 9.7 1.7 Non-classification ABS -31.1 -0.3
Transportation VJC 10.5 1.7 Capital Goods TSC -36.0 -0.3
Real Estate VRE 8.0 1.5 Real Estate HPX -7.8 -0.2
Real Estate VIC 1.3 1.4 Banks TPB -1.9 -0.2
Diversified Financials VCI 31.3 1.1 Capital Goods DIG -5.9 -0.2
Diversified Financials HCM 30.2 1.0 Non-classification PSH -14.2 -0.2
Insurance BVH 7.9 0.9 Utilities TMP -11.7 -0.1
Banks MSB 10.0 0.9 Capital Goods SHI -13.6 -0.1
Banks HDB 5.0 0.7 Retailing SVC -13.1 -0.1
Software & Services FPT 3.4 0.7 Capital Goods RAL -10.7 -0.1
Source: Mirae Asset Securities (Vietnam) Research, Bloomberg Source: Mirae Asset Securities (Vietnam) Research, Bloomberg

II.4 – Market liquidity heatmap
• Daily average trading value increased by 8% MoM to a record high of more than VND22tr in June. Except for
Widespread increase in Retailing, Consumer Durables & Apparel, and Technology Hardware & Equipment, trading values of the other
industries were more robust.
market liquidity
• According to our liquidity metrics, market cash flows were highly focused on Banks, Real Estate, Materials,
Diversified Financials, Energy, Software & Services, Insurance, Pharmaceuticals, and Automobiles & Components.
Market liquidity heatmap

Trading valu
Industry 06-2020 07-2020 08-2020 09-2020 10-2020 11-2020 12-2020 01-2021 02-2021 03-2021 04-2021 05-2021 06-2021 e
(% MoM)
Banks 100% 10.3%
Real Estate 100% 27.3%
F&B 83% 18.2%
Materials 100% 8.7%
Utilities 67% 49.0%
Capital Goods 83% 24.4%
Transportation 83% 22.8%
Diversified Financials 100% 52.6%
Energy 100% 130.6%
Software & Services 100% 14.3%
Retailing 50% -11.7%
Insurance 100% 50.9%
Consumer Durables & Apparel 67% -12.7%
Pharmaceuticals 100% 55.0%
Automobiles & Components 100% 111.1%
Consumer Services 25% 37.7%
Technology Hardware & Equipment 83% -16.5%
VN-INDEX 100% 8.2%

II.5 – Foreign investment review
• Foreign investors sold a net a mount of nearly VND4tr (or US$190mn) in June, for a total net outflow of US$1.5bn YTD.
Net-selling • We note that offshore investors have continued to withdraw from Asian markets thus far in 2021. Bucking the trend, the
strategy Indian and Indonesian markets recorded net inflows of US$1.5bn and US$342mn in June, respectively.
maintained
Foreign net buying/selling by year and month (unit: US$mn) Capital flows of foreign investors in Asian markets
1,887 Market
1,421 June-2021 2Q21 2021 YTD 2020
1,163 (US$mn)
801
349 173 156 134 155 100 182
1
Vietnam -190.8 -720.5 -1,529.5 -876
-345
-876 S. Korea -792.3 -8,688.4 -17,036.6 -20,082
-1,530
2007 8 9 10 11 12 13 14 15 16 17 18 19 20 2021
India 1,498.1 757.8 8,084.2 23,373
(YTD)
Taiwan -1,813.7 -967.4 -13,103.9 -15,997
Indonesia 342.4 344.7 1,191.7 -3,220
Malaysia -283.2 -598.4 -1,027.6 -5,782
Philippines -79.5 -597.3 -1,543.8 -2,513

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6
2020 2021 Thailand -313.7 -1,482.3 -2,468.8 -8,287

II.5 – Foreign investment review (cont’d)
• In June, foreign investors continued to buy VHM, PLX, OCB, STB, SSI, DGC, MSN, HSG, and GMD; and pivoted to buy
Top net-buying/selling VCB, NVL, VRE, PDR, GAS, APH, KDH, HNG, HDB, and BWE. By contrast, they were heavy sellers HPG, VPB, MBB, VIC,
DXG, KDC, and GEX .
stocks
• In 1H21, they sold heavily HPG (VND13tr), VNM (VND6.2tr), CTG (VND6tr), VPB (VND4.5tr), and MBB (VND2.4tr). On the
other hand, VHM (VND4tr), NVL (VND1.7tr), MWG (VND1.5tr), STB (VND1.3tr), PLX (VND1.1tr), and PDR (VND1tr) were
top draws. Meanwhile, ETFs tracking VN Diamond (FUEVFVND), VN Finlead (FUESSVFL), and VN30 (E1VFVN30) received
net inflows of VND4.2tr, VND708bn, and VND697bn, respectively.
Top net-buying stocks in June (Unit: VNDbn) Top net-selling stocks in June (Unit: VNDbn)
Industry Ticker 6-2021 2021 YTD Industry Ticker 6-2021 2021 YTD
Real Estate VHM 1,375.2 2,980.1 Materials HPG -4,994.5 -12,971.1
Banks VCB 1,121.9 -624.3 Banks VPB -1,628.0 -4,529.4
Real Estate NVL 697.4 1,652.2 Banks MBB -1,587.2 -2,397.6
Energy PLX 659.2 1,127.8 Real Estate VIC -931.7 665.8
Real Estate VRE 624.8 78.8 Real Estate DXG -840.0 -1,131.9
Real Estate PDR 529.7 1,052.5 F&B KDC -551.4 -726.4
Banks OCB 413.0 733.2 Capital Goods GEX -510.9 -393.5
Utilities GAS 406.2 -697.4 Transportation VSC -364.4 -580.1
Banks STB 377.8 1,317.9 Banks CTG -331.2 -6,049.7
Diversified Financials SSI 349.1 -439.5 Transportation CII -274.5 -337.8
Materials APH 332.4 351.7 Insurance BVH -161.4 -622.1
Real Estate KDH 332.0 -1,073.6 Banks LPB -143.9 -483.1
Non-classification FUEVFVND 290.6 4,158.1 Transportation VJC -142.8 -213.4
Materials DGC 243.5 465.5 Diversified Financials VCI -124.4 -836.4
F&B MSN 219.3 -349.7 Real Estate KBC -118.8 518.7
Materials HSG 213.5 -181.7 Real Estate HDC -101.9 -101.1
F&B HNG 174.1 187.0 Materials DCM -95.5 -52.2
Banks HDB 166.1 345.5 Banks MSB -79.7 94.9
Transportation GMD 147.7 343.1 Capital Goods BCG -78.2 -186.4
Utilities BWE 138.4 163.1 Materials SMC -74.2 -205.0

III. Vietnam stock market prospects
• In our view, 2Q21 earnings results will somewhat reflect the negative impact of the current
outbreak. That said, we expect the YoY growth rate to be impressive, thanks to the base effect.
Looking forward, we revise our projection for full-year EPS growth upward, to 33.8% YoY (from
28%), with modest risks to the upside, based upon the assumption that the current outbreak will
come to an end in mid-July. In other words, we expect the pandemic’s impact on 2H21 earnings
to be minor. On top of that, robust external demand contributed to the upward revision, as
many major trading partners are reopening.
• The VN-Index is currently not undervalued in terms of both historical and peer comparisons.
With the benchmark’s P/E at nearly two standard deviations above the 10-year average, a
correction is expected to occur in July which could send the VN-Index to 1,200pts. That said, we
recommend taking advantage of a sharp correction as a buying opportunity for the next 3-year
growth outlook. We expect the VN-Index to subsequently rebound to the 1,500-point threshold.
• Market drivers: 1) The assumption that COVID-19 will be under control in July; 2) fiscal stimulus
and accelerated public investment disbursement boosting economic growth; 3) in the era of low
interest rates, savings continue to be diverted into the stock market; thus, buoyant market
liquidity powered by retail investors will remain intact; 4) investment and consumption will be
encouraged with low financing cost; 5) other long-term catalysts include emerging-market
classification visibility and SOE privatization.
• Notably, we highlight Banks, Materials, Real Estate, Diversified Financials, and Software &
Services, with solid fundamentals supporting by long-term drivers.

III.1 –EPS growth expectation
• According to Bloomberg stats, market consensus for VN-Index’s EPS growth in 2021, 2022, and 2023 are 31%,
Market optimism over 21%, and 16%, respectively. Overall, the market has confidence that 2021 earnings growth will remain
the next 3-year unscathed, despite the fourth wave of COVID-19 that began in end-April.
earnings growth • In our view, 2Q21 earnings results will somewhat reflect the negative impact of the current outbreak. That said,
we expect the YoY growth rate to be impressive, thanks to the base effect.
despite the current
• Looking forward, we revise our projection for full-year EPS growth upward to 33.8% YoY (from 28%), with
outbreak modest risks to the upside. This forecast is based upon an assumption that the current outbreak will come to an
end in mid-July. In other words, we expect the pandemic’s impact on 2H21 earnings to be minor. On top of that,
robust external demand contributed to the upward revision, as many major trading partners are reopening.
Market consensus for Vietnam EPS growth during 2021−2023 Vietnam EPS growth: Our projection vs. market consensus
(VND) (% YoY)
2021F 2022F 2023F Consensus Our projection
35%
121
116 33%
111 31%
106
29%
101
27%
96
25%
91
23%
86
21%
81
76 19%
Feb 21 Mar 21 Apr 21 May 21 Jun 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21

III.1 –EPS growth expectation (cont’d)
• The prospects for Banks remain intact, with 2021F EPS growth of 30% YoY, following impressive growth of 17% in 2020.
Uneven recovery Based on our projection, we expect Banks to contribute to 40% of VN-Index’s EPS gain. The main growth engines
include: 1) pent-up demand for post-COVID-19 business recovery is the main catalyst for high loan growth in 2021; 2)
decreases in funding cost have begun to outpace declines in lending rates, resulting in improved net interest margin
(NIM); 3) pandemic-affected loans have restructured repayment deadlines, without changes to loan classifications,
with provisioning pressure easing following Circular 03/2021/TT-NHNN; 4) non-interest income streams, stemming
from fee and commission services, forex trading, and securities trading, had increasing contributions to total
operating income. In addition, newly exclusive bancassurance agreements (e.g., 16-year Vietinbank−Manulife, 15-year
ACB−Sun Life, 15-year Vietcombank−FWD) are expected to shore up non-interest income.
2021 EPS growth outlook by GICS industry group
2019 growth 2020 growth 2021F growth
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
Source: Mirae Asset Securities (Vietnam) Research

III.1 –EPS growth expectation (cont’d)
• Materials are also expected to have a major contribution to the VN-Index’s EPS increases (~26%) on the back of 22%
Uneven recovery YoY growth in 2021 (2020: +30% YoY). This industry group consists of many sub industries, like Steel, Construction
Materials, Commodity Chemicals, Fertilizers & Agricultural Chemicals, and Paper Products. In our view, pent-up
demand for post-pandemic manufacturing recovery will exceed the supply capacity of commodities, which remain
restricted, due to 2020's lockdown. Thus, we expect commodity prices in general to continue to increase in the
foreseeable future, to reflect mismatched supply-demand dynamics. In particular, we maintain our Overweight rating
for Steel in 2H21, based on the following points: 1) unchanged actual production output of major miners, such as Rio
Tinto, Vale, or BHP, keeping iron ore prices at a high level; 2) increased consumption in North American and European
markets; and 3) low interest rates, coupled with safe debt/equity ratios.
• Real Estate is expected to grow 40% YoY in 2021, from a drop of 17% YoY in 2020. Thanks to this rosy prospect, we
project Real Estate to account for 14% of the VN-Index’s EPS increase in 2021. On the positive side, we expect the
government to continue to relax its land laws and speed up legal approval processes in the future. The industry so far
has no signs of a bubble, and laws regarding real estate industry have been in need of an overhaul for some time. We
also expect home prices in Vietnam to continue to rise in 2021, similar to situations in other parts of the world when
record-low interest rates combine with limited supply. As for industrial real estate, growth prospects look promising,
thanks to strong FDI inflows. We believe that Vietnam remains an attractive destination for FDI on the back of the
global supply chain shift, as well as the “China Plus One” manufacturing hub model over the coming years.
• Diversified Financials growth in 2021 is forecast at around 31% YoY, compared with a 43% YoY increase in 2020.
Vietnam has enjoyed a buoyant stock market, with the market gauge VN-Index having bottomed out since the end of
March 2020. In the era of low interest rates, savings have been diverted into the stock market, with buoyant market
liquidity powered by retail investors remaining robust. In other words, brokerage firms have been beneficial to
increasing transaction volumes. Moreover, their trading portfolios have generally performed well under the extended
upward rally.
• Software & Services is placed in strategic position to reap the financial rewards of digital transformation and
technology adoption. The industry’s EPS growth is expected to accelerate to 17% YoY in 2021 from 7% YoY in 2020. The
COVID-19 pandemic has resulted in rapid changes to work and consumption patterns, leading to accelerating demand
for information technology products and services, especially digital transformation. Moreover, Vietnam has became an
attractive IT outsourcing destination.

III.2 – Historical valuations
Current P/E level of VN- • The current P/E of the VN-Index is 19.3x, approaching the 10-year average plus two standard deviations (SDs) of
20x. Looking back, the current P/E level of VN-Index is 14% below the historical high set in April 2018 (i.e., 22x).
Index is 14% below Thus, a correction is likely to occur when the current P/E reaches 20x (or even 21x). We also expect this correction
historical high set in to get underway in July, before the market prices in the 2Q21 earnings results.
April 2018 • In the meantime, the valuations of the Singapore, US, India, Thailand, and Philippines markets are over their 10-
year P/E average plus two SDs.
P/E of VN-Index: 10-year band chart 10-year P/E band chart of VN-Index and other markets
(x) P/E -2SD -1SD (x)

10-yr Avg +/-2 SD 10-year average Current P/E
10-year average +1SD +2SD
22
40
20 20.0 35
18 30
17.2
16 25
14.5 20
14
15
12
11.75
10
10
9.01 5
8
0
6
Jun 11 Jun 13 Jun 15 Jun 17 Jun 19 Jun 21

III.3 – Relative valuations
Vietnam’s market has a • In 1H21, the VN-Index increased 28% YTD, superior to those of other markets, such as Taiwan (+21%), S. Korea
(+15%), and the US (+14%). Also, MSCI frontier markets (FM), and developed markets (DM) increased 13%, and
relatively reasonable 12%, respectively.
valuation, with high ROE • Following a standout performance in 1H21, Vietnam’s valuation is positioning in the vicinity of the median that
separates “cheap” and “expensive” valuations. That said, with high ROE and expectations for robust EPS growth,
and high EPS growth we believe Vietnam’s market valuation is relatively reasonable.
prospect
Vietnam’s market has relatively high ROE, with reasonable P/E Vietnam’s market is expected to enjoy high EPS growth, reasonable forward P/
16
Vietnam 72
Korea
US 64
14
Taiwan 56
MSCI FM
India 48
12 MSCI EM Taiwan
40
2019-2021 EPS CAGR (%)

China Japan MSCI DM 32
ROE (%)
10 MSCI EM India
24
Hong Kong MSCI DM
16 Malaysia US
Malaysia China Japan
8 8 Indonesia
Vietnam
Korea MSCI FM
0 Thailand
Thailand
-8 Philippines
6 Philippines
Hong Kong Singapore
Indonesia -16
12 14 16 18 20 22 24
4
Forward P/E (x)
12 14 16 18 20 22 24 26 28 30 32 34
P/E (x)

III.4 – Market valuation
• Thanks to the strong market momentum, the VN-Index achieved the best-case target of 1,400pts.
Reasonable range of VN-
• We revised our forecast for full-year EPS growth upwards to 33.8% (from 28%) on optimism over 2H21
Index from 1,200 to earnings prospects. With a reasonable P/E range of 14x–18x, we project the VN-Index will fluctuate within
1,500pts, with base-case the range of 1,200–1,500pts, with the base-case target of 1,350pts.
target of 1,350pts • The VN-Index is currently not undervalued in terms of both historical and peer comparisons. With the
benchmark’s P/E nearly two standard deviations above the 10-year average, a correction is expected to get
underway in July. The correction could send the VN-Index to 1,200pts; that said, we recommend taking
advantage of that sharp correction as a buying opportunity for the next 3-year growth outlook. We expect
the VN-Index to subsequently rebound to the 1,500-point threshold.
• Notably, we highlight Banks, Materials, Real Estate, Diversified Financials, and Software & Services, with solid
fundamentals supporting by long-term drivers.
Correlation between VN-Index and EPS Reasonable range of VN-Index from 1,200 to 1,500pts
(point) VNINDEX EPS (RHS) (VND) Fair P/E
1,800 120
12 14 16 18 20
VN-Index projection is
1,600
100 26% 963 1,123 1,284 1,444 1,605
2021 EPS growth expectation

based on fair P/E of 16x
1,400
80 28% 978 1,141 1,304 1,467 1,630
1,200
30% 993 1,159 1,325 1,490 1,656

1,000 60
800 32% 1,009 1,177 1,345 1,513 1,681

40
600 34% 1,024 1,195 1,364 1,534 1,707
20
400
36% 1,039 1,212 1,386 1,559 1,732
200 0
2006 2008 2010 2012 2014 2016 2018 2020 2022 38% 1,055 1,230 1,406 1,582 1,758
Source: Mirae Asset Securities (Vietnam) Research

III.6 – Upcoming market events in 2H21
World events Vietnam's events
Date Country Event Date Event
7/6/2021 Australia RBA Interest Rate Decision 7/16/2021 Expiry date of the VN30 futures contract
7/8/2021 United States FOMC Minutes 7/19/2021 Update VN30 Index's members
Announcement of Vietnam Leading Financial Index (VNFIN LEAD)’s
member change. Announcement of members’ information update
7/16/2021 Japan BoJ Interest Rate Decision 7/19/2021
July of Vietnam Financial Select Sector Index (VNFINSELECT) and
Vietnam Diamond Index (VNDIAMOND).
7/20/2021 China Loan Prime Rate 1Y 7/30/2021 VFMVN30 ETF portfolio update
7/29/2021 United States Fed Interest Rate Decision
7/29/2021 United States GDP Growth Rate QoQ Adv Q2
VNFIN LEAD’s member change coming effective.
8/6/2021 Australia RBA Interest Rate Decision 8/2/2021 Members’ information update of VNFINSELECT and VNDIAMOND
coming effective.
August
8/5/2021 United Kingdom BoE Interest Rate Decision 8/11/2021 Announcement of MSCI Frontier Markets Index
8/19/2021 United States FOMC Minutes 8/19/2021 Expiry date of the VN30 futures contract
8/20/2021 China Loan Prime Rate 1Y 23−27 August, 2021 Restructuring of Ishares MSCI Frontier 100 ETF
9/7/2021 Australia RBA Interest Rate Decision 06−17 September, 2021 Announcement of FTSE Vietnam ETF portfolio restructuring in 3Q21
Announcement of VanEck Vectors Vietnam (VNM) ETF portfolio
9/20/2021 China Loan Prime Rate 1Y 13−17 September, 2021
restructuring in 3Q21
September
9/22/2021 Japan BoJ Interest Rate Decision 9/16/2021 Expiry date of the VN30 futures contract
9/23/2021 United States Fed Interest Rate Decision 20−24 September, 2021 Announcement of annual FTSE Russell country classification review
9/23/2021 United Kingdom BoE Interest Rate Decision
Announcement of members’ information update of VNFIN LEAD
10/5/2021 Australia RBA Interest Rate Decision 10/18/2021 and VNDIAMOND. Announcement of VNFINSELECT’s member
change.
October 10/14/2021 United States FOMC Minutes 10/18/2021 Completion of VFMVN30 ETF portfolio restructuring
10/20/2021 China Loan Prime Rate 1Y 10/21/2021 Expiry date of the VN30 futures contract
10/28/2021 Japan BoJ Interest Rate Decision 10/30/2021 VFMVN30 ETF portfolio weight update
10/2/2021 Australia RBA Interest Rate Decision
Oct/Nov ASEAN Business and Investment Members’ information update of VNDIAMOND and VNFIN LEAD
ASEAN 11/01/2021
2021 Summit coming effective
11/4/2021 United States Fed Interest Rate Decision 11/01/2021 VNFINSELECT’s member update coming effective
November 11/4/2021 United Kingdom BoE Interest Rate Decision 11/01/2021 Completion of VFMVN30 ETF portfolio restructuring
11/22/2021 China Loan Prime Rate 1Y 11/18/2021 Expiry date of the VN30 futures contract
11/25/2021 United States FOMC Minutes 22−26 November, 2021 Ishares MSCI Frontier 100 ETF restructuring
Nov-21 G-20 G-20 Summit
12/7/2021 Australia RBA Interest Rate Decision 04−17 December, 2021 Announcement of FTSE Vietnam ETF portfolio restructuring in 4Q21
Announcement of VanEck Vectors Vietnam (VNM) ETF portfolio
12/16/2021 United States Fed Interest Rate Decision 11−17 December, 2021
restructuring in 4Q21
December
12/16/2021 United Kingdom BoE Interest Rate Decision 12/16/2021 Expiry date of the VN30 futures contract
12/17/2021 Japan BoJ Interest Rate Decision
12/20/2021 China Loan Prime Rate 1Y
Source: Tradingeconomics.com, Mirae Asset Securities (Vietnam) Research compilation

IV. Stock recommendations
Industry
Investment themes 12-month target price (VND) and potential upside
(Overweight)
PDR DIG BCM NVL SZC AGG VHM NLG KBC
Demand recovery Real Estate 116,500 33,700 70,800 131,700 50,800 60,300 128,500 45,000 56,600
30% 30% 29% 28% 24% 21% 18% 17% 42%
HPG NKG HSG DGC
Commodity price
Material 66,600 39,100 49,400 98,200
surge
29% 18% 16% 21%
NT2 POW SJD
Demand recovery Utilities 25,600 14,000 19,200
21% 12% 11%
PLX GAS
Commodity price
Oil & gas 64,800 102,500
surge
11% 10%
SBT QNS FMC TDM MWG GMD FPT
Others 31,000 52,900 46,900 35,500 174,000 48,000 95,000
40% 27% 26% 24% 19% 11% 11%
Source: Mirae Asset Vietnam Research (closing price on June 22, 2021)

Real Estate – Awaiting opportunity in 2H21
• Residential real estate: Limited new supply in Q1 with demand remaining unchanged continues to push prices slightly higher
Recovery in 1H21 in both Hanoi and HCMC. Take-up rate remains high, as much as over 90%, indicating strong demand. We forecast an increase
in supply in 2H21, similar to previous years, especially in Hanoi, which could accordingly see listed real estate companies record
significant gains.
• Industrial real estate: Asking rental prices continue to climb, following high demand from production movement from China
and EVFTA. In 1Q21, there was no significant new supply in the North, but the South has two new industrial parks in Binh
Duong and Dong Nai. Listed industrial real estate companies have seen their stock prices going up steadily recently, but with
the uncertainty of COVID-19, we remain cautious over the prospects at least until 2022.
• Retail real estate: Much like the industrial real estate segment, we are not expecting any significant recovery for the retail
industry, due to COVID-19 developments. With many of its stores closed during the current fourth wave, we expect Vincom
Retail, the only listed company in this segment, to have another difficult year before turning around in 2022.
Apartment prices in Hanoi (US$/m2) Apartment prices in Ho Chi Minh city (US$/m2)
High-end Mid-end Affordable Luxury High-end Mid-end Affordable
2500 7000
2300
6000
2100
1900 5000
1700
4000
1500
3000
1300
1100 2000
900
1000
700
500 0
Souce: CBRE, Mirae Asset Vietnam Research

Real Estate – Awaiting opportunity in 2H21 (cont’d.)
2021 outlook • We expect the COVID-19 pandemic to continue to pose a challenge for real estate companies in 2021; however,
not all firms will be equally affected, with large companies that boast strong sale networks and ample capital
reserves to fare better than the rest.
• On the positive side, we expect the government to continue to relax its land laws and speed up legal approval
processes in the future. The industry has so far shown no signs of a bubble, and laws regarding real estate
industry have been in need of an overhaul for some time. We also expect home prices in Vietnam to continue to
rise in 2021, similar to situations seen elsewhere around the world when record-low interest rates combine with
limited supply.
• We believe industrial real estate will remain in high demand in 2H21, but the segment could be losing steam as
Vietnam continues to battle the COVID-19 pandemic.
Industrial land asking prices in the South (US$/sqm/term) Industrial land occupancy rate in the South (%)
HCMC Binh Duong Dong Nai HCMC Binh Duong Dong Nai
250 95
230 93
210 91
190 89
170 87
150 85
130 83
110 81
90 79
70 77
50 75
Source: CBRE, Mirae Asset Vietnam Research

Market
Revenue Net profit Net profit growth EPS P/E
cap.
(VNDbn) (VNDbn) (VNDbn) CAGR (VND) (x)
(Bloomberg FY21 FY21 FY21 FY21

FY20 FY20 FY18-FY20 FY21F FY20 Our view
tickers) F F F F
• BCM's total available industrial land

bank currently reaches about 710 ha,
mainly in Binh Duong province, a hot
spot in attracting FDI. According to the
capital contribution ratio of projects, the
potential land fund of BCM in 2021 is
about 1,575 ha.
BCM VN 56,821 6,505 8,690 1,986 2,607 34% 31% 1,918 2,519 22
• BCM owns nearly 1,000 ha of urban land
bank in the Binh Duong New City
project.
• Switching to a different stock exchange
and divesting its subsidiaries will help
BCM to garner more attention from
investors.
• Focusing on land clearing and

infrastructure investment, SZC had a
2,000 ha clean land bank in Sonadezi
Chau Duc Industrial Park at end-FY20.
1,540 ha is available for lease, the largest
such area in Ba Ria Vung Tau province.
We expect this to be enough to fulfill the
SZC VN 4,100 433 913 186 388 37% 109% 1,860 3,880 11 company’s 10-year business plan.
• We forecast net earnings to surge by
109% YoY in FY21 and 52% YoY in FY22,
based on boosting sales in industrial
land and the Huu Phuoc urban area
project. Our forecast and target price do
not include 100 ha of additional
(Shares outstanding and closing price on June 22, 2021) industrial land in the town of Phu My.

Market
cap.

tickers) F F F F
• Since end-FY20, KBC has lured a large

amount of FDI into its industrial parks,
such as Quang Chau and Nam Son Hap
Linh (NSHL). The investments have come
from multinational groups that want to
relocate manufacturing from China to
Vietnam. Notably, Foxconn rents 22 ha in
the Quang Chau industrial park (Bac
Giang), while Oppo plans to rent 62.7 ha
in the NSHL industrial park (Bac Ninh).
• The Trang Cat land fund promises big
returns. In 2020, KBC paid over
VND3,687bn in land use fees for the
Trang Cat urban area. The project has an
area of 585 ha near central Hai Phong.
KBC VN 18,672 2,151 5,958 224 2,024 -27% 804% 477 4,308 9
• As the land was accumulated by KBC 10
years ago, the cost of the Trang Cat
urban area is relatively low. KBC expects
infrastructure investment to be
VND11,328.8bn, while the value of the
area is projected to be about
VND60,000bn. The government has
approved a masterplan of 1/500 and
clearance of 511/585 ha for the project.
As per company guidance, KBC may sell
a part of this project to other investors
and obtain high earnings in 2022.
• For FY21, KBC issued high guidance, with
consolidated revenue of VND6,600bn
and NPAT of VND2,000bn.
Market
cap.

tickers) F F F F
• We forecast revenue in 2021 at
VND66,282bn (-6.5% YoY) and NPAT at
VND30,252bn (+7.3% YoY), mostly
coming from three mega projects, as
well as VHM Wonder Park.
• We put the pre-sale in 2021 at
VND102.7tn (+63.5% YoY), slightly higher
than management’s own target of
VND91tn, of which 60% will come from
VHM VN 359,543 71,547 66,282 28,207 30,252 169% 7% 8,315 8,516 13 retail and 40% from block sale.
• For FY22–FY23, we forecast a CAGR for
PATMI at 19%, with debt-to-equity ratio
declining to just 17.6% (FY20: 27.8%).
• Regarding sales, VHM plans to open for
sale three new projects in Hanoi:
Wonder Park, Dream City, and Co Loa.
From 2022 to 2023, VHM will launch two
big projects in Can Gio and Green Ha
Long.
• The slowdown in sales and possibly
handovers in 2021 could be
compensated by a potential new M&A
deal in Q2 or Q3 this year, with value of
up to VND1,500bn.
• Not including announced projects, NVL
still has 3,700 ha of land waiting to be
NVL VN 111,202 5,026 13,943 3,919 4,997 24% 28% 4,023 5,073 20 developed, most of which is reserved for
hospitality real estate and residential
projects in and around Ho Chi Minh City.
• The average selling prices of several NVL
projects (most notably its hospitality real
estate products) have risen by 10–20%,
which is outstanding amid Vietnam’s
fourth COVID wave.
(Shares outstanding and closing price on June 22, 2021)

Market
cap.

tickers) F F F F
• NLG’s joint venture strategy with
Japanese partners (Hankyu Hanshin,
Nishiteshu) provided it with project
development experience (in typical
NLG VN 11,011 2,217 5,058 835 1,365 16% 63% 3,253 4,789 8 urban projects) and make use of cheap
funding costs from Japan.
• NLG raised its stake in Dong Nai
Waterfront City LLC (Izumi City, 170 ha,
7,000 units) to 65.1%.
• With many large projects booking in
2021, NPAT could reach a record high.
DIG expects consolidated revenue of
VND2,800bn and NPAT of VND1,444bn,
up by 12% and 60.5%, respectively.
• DIG’s FY21 plan is based on the
following projects: 1) Nam Vinh Yen New
Urban Area; 2) Vi Thanh Commercial
Residential Project—Hau Giang; and 3)
recognition of extraordinary profits from
transfer of the Dai Phuoc – Dong Nai
DIG VN 9,213 2,487 2,704 711 1,097 54% 54% 2,157 3,135 8 Ecological Urban Area project to another
developer.
• DIG plans to invest an estimated
VND9,436.3bn in 2021. Most of the
investment budget — up to
VND9,264bn/VND9,436bn — will be used
by DIG to invest in project development.
In its 2021 investment portfolio, North
Vung Tau and Long Tan (in Dong Nai
province) are the two largest invested
projects, with a value of VND2,190bn and
(Shares outstanding and closing price on June 22, 2021) VND1,694bn, respectively.

Market
cap.

tickers) F F F F
• In 2021, AGG will hand over the rest of
the Panorama project, along with parts
of the Sky 89 and The Sóng projects.
• In 2021, AGG is expected to acquire an
additional 35 ha from projects such as
BC 27 (27 ha in Binh Chanh), D7 (5.4 ha
in District 7), and BD3 (Binh Duong).
AGG is also in the process of negotiating
AGG VN 4,120 1,754 3,648 415 582 92% 40% 5,031 7,012 7
to acquire the BD30 project (Binh
Duong).
• Based on Decree 148/2020/ND-CP,
amending and supplementing detailed
regulations on implementation of the
land law effective from February 2021, it
is expected that the legal procedures of
BC27 and others will be expedited.
• In 2021, PDR is forecast to record
VND5,147bn in revenue (+31.6% YoY)
and VND2,061bn in NPAT (+68.9% YoY),
thanks to the handover of parts of the
high-rise areas of subdivisions 4 and 9 in
the Nhon Hoi project. It is also expected
that PDR will record about VND600bn in
financial revenue from the Binh Duong
Tower project in 3Q21.
PDR VN 43,663 3,911 5,147 1,220 2,061 40% 69% 2,926 4,234 21
• PDR holds 470 ha of land bank,
concentrated in localities with high
potential for tourism or economic
development: Binh Dinh, Quang Ngai,
Binh Duong, Ba Ria - Vung Tau, Phu
Quoc, and Da Nang.
(Shares outstanding and closing price on June 22, 2021) • Diversifying, planning to expand into
industrial real estate, renewable energy
and real estate brokerage service.
Steel & Galvanized steel - Profit in FY21 surpasses historical
peak
Investment highlights in • Besides the growth engine of the domestic construction industry, we believe the gradual removal of social
distancing in major markets, such as North America and Europe, will support Vietnam's steel industry in 2H21.
2H21 Steel production in 4M21 reached 10.48mn/mt (+38.3% YoY), of which export volume reached 3.82mn/mt (+47%
of YoY), worth US$2.67bn (+88% YoY).
• In 2H21, we maintain our Overweight rating for the steel industry based on the following points: 1) the actual
production output of major miners, such as Rio Tinto, Vale, or BHP, remaining unchanged, keeping iron ore
prices at a high level; 2) increasing consumption in the North American and European markets; and 3) low interest
rates and safe debt/equity ratio. We expect iron ore prices in 2H21 to remain above 160 US$/mt, 70% higher than
the same period last year.
Export steel sales volume of Vietnam (‘000 mt) Price chart of iron ore FE 62% and coking coal (US$/mt)
Coking coal Iron ore FE 62%

'000 mt
250
700
600 200
500
150
400
100
300
200
50
100
0
0
Source: Bloomberg, Mirae Asset Vietnam Research

peak (cont’d.)
Valuation • Vietnam's steel industry is trading at P/E of 10.8x and EV/EBITDA of 6.5x, respectively. It is 16% lower than the
average valuation of Asia's steel industry (P/E 12.6x; EV/EBITDA 9.1x). Moreover, we forecast the growth rate of
Vietnam's steel industry in 2021 to be 18% (vs. 5% globally), with 2021F P/E and EV/EBITDA at 8.9x and 5.3x,
respectively, and we believe this is a very attractive valuation for such a high-ROE market.
• Among the product segments, we estimate the HRC segment will see the biggest growth, with 3.5mn mt of
additional capacity from blast furnaces 3 and 4 of the Dung Quat Hoa Phat project (DQCP).
Forecast growth rate of sales volume by segment from FY16 to FY22 Forecast sales volume by segment from FY16 to FY22 (‘000 mt)
'000 mt
50%
14,000
40%
12,000
30% 10,000
8,000
20%
6,000
10%
4,000
0%
2,000
2017 2018 2019 2020 2021f 2022f
-10% 0
2016 2017 2018 2019 2020 2021f 2022f
Crude steel Steel pipe & square steel
Galvanized steel HRC & CRC Crude steel Steel pipe & square steel Galvanized steel HRC & CRC
Source: VSA, Mirae Asset Vietnam Research

peak (cont’d.)
Risks • Risk of slowdown in domestic construction market due to rising steel prices: The super-cycle of construction
material price take place all over the world, led by steel price, may cause the deceleration in domestic
construction industry in 2021. In fact, many businesses have decided to postpone construction to wait for the
compliment offset the price of materials term from developer. Therefore, we believe with some projects, the
timeline to finish will delay by 6−18 months.
• Risk of price fluctuations: Should HRC prices drop sharply in 3Q21, steel companies will be affected first. For
galvanized steel companies, the impact would come in 4Q21 if HRC prices were to drop sharply in 3Q21.
Price of domestic construction steel from FY19 to 1H21 Correlation between HRC price and gross profit margin of NKG and HSG
VNDmn/mt USD/mt
18.5 30% 900
17.0 800
25%
700
15.5 20%
600
14.0 15% 500
12.5 400
10%
11.0 300
5%
200
9.5
0%
100
8.0
-5% 0
HRC price (RHS) Gross profit margin NKG (LHS)

2021 2020 2019 Gross profit margin HSG (LHS)

peak (cont’d.)
Market
cap.

tickers) F F F F
• We forecast revenue for 2021 of

VND169,736bn (+88% YoY), with revenue
of construction steel at VND57,487bn
(+35% YoY); steel pipe and galvanized
steel at VND36,942bn; and HRC at
VND46,976bn (+788% YoY).
• We forecast NPAT of HPG in 2021 to be
VND28,063bn (+108% YoY). Gross and
net profit margin in 2021 should improve
slightly to 22.7% and 16.5%, respectively
(vs. 21% and 15% in 2020).
HPG VN 230,802 90,119 169,736 13,506 28,063 19% 108% 3,019 6,274 8
• We assume iron ore prices in 2022 will
correct to US$140/mt (-18% YoY).
However, from 2022, HPG will record
revenue from the container segment, for
which we forecast revenue of
VND22,000bn in 2022. Thus, we expect
HPG’s 2022 consolidated revenue to
reach VND170,296bn, but net profit
margin to drop to VND25,517bn (-9.1%
YoY); we forecast 2022 net profit margin
at 15%, equivalent to NP margin in 2020.
• We forecast sales of galvanized steel and

steel pipe in 2021F at 1,539,471/mt (+35%
YoY) and 512,934/mt (+24% YoY),
HSG VN (*) 18,963 27,531 44,558 1,153 3,341 -5% 190% 2,353 6,834 6
respectively, equivalent to consolidated
revenue of VND44,558bn in 2021F (+62%
YoY).
(Shares outstanding and closing price on June 22, 2021. Fiscal year of HSG ends by September 30)

peak (cont’d.)
Market
cap.

tickers) F F F F
• We project gross profit margin to

improve to 19.5% in 2021F, thanks to low
inventory price in 4Q20 (vs. 16.8% in
2020), equivalent to NPAT of
VND3,341bn (+190% YoY) in 2021F. We
HSG VN (*) 18,963 27,531 44,558 1,153 3,341 -5% 190% 2,353 6,834 6 project NPAT margin in 2021F to rise to
7.5% (vs. 4.5% in 2020).
• We argue that HSG faces risks in 2H21,
as the proportion of inventories/total
assets at end-March 2021 accelerated to
41%, a dangerous level.
• We forecast sales of galvanized steel and

steel pipe in 2021F at 758,700 mt (+35%
YoY) and 212,661 mt (+50% YoY),
equivalent to consolidated revenue of
VND22,013bn in 2021F (+90% YoY).
• Thanks to low inventory price in 2H20,
we forecast gross profit margin and EBIT
margin to improve to 10% and 7.3%,
respectively, in 2021 (vs. 7.5% and 4.4%
NKG VN 5,710 11,560 22,013 295 1,224 -25% 315% 1,672 6,728 5 in 2020). Forecast NPAT in 2021 will
break a historical record set in 2017, at
VND1,224bn (+315% YoY).
• Inventories/total assets level in 1Q21
increased to 35% from 28% in 2020;
however, we believe this remains within
a safe boundary.
• We forecast revenue from exports to
account for 60% of total revenue in
(Shares outstanding and closing price on June 22, 2021. Fiscal year of HSG ends by September 30) 2021F.

Utilities - Turn for the better
V-shaped recovery in • Vietnam’s electricity consumption recorded a CAGR of 8.59% over FY16–FY20, with the lowest growth rate (3.42%
YoY) seen in FY20, due to the impact of the COVID-19 pandemic. However, from bottom in 2Q20 (-2.5% YoY),
power demand power demand has since rebounded. According to Vietnam Electricity Corporation (EVN), electricity consumption
increased by 6.74% YoY in 4M21.
• Hydropower generators were the biggest beneficiaries, thanks to favorable hydrology and a low-cost power
source. The water levels of some of the main rivers in the Central and Southern regions have increased
continually from 2H20, rising 3.1 times YoY, as of end-May, 2021. Vietnam’s hydropower production volume
increased by 31% YoY in FY20 and 55% YoY in 1Q21, thus boosting the hydropower group’s business performance.
Vietnam’s annual electricity consumption and GDP growth YoY growth of total produced and imported electricity output
Electricity consumption growth GDP growth
11.3% 6.78%
9.0% 9.2%
8.7%
4.21% 4.12%
3.83%
7.1% 7.0%
6.8%
5.2%
6.2%
3.4%
1Q20 2Q20 3Q20 4Q20 1Q21
2.9%
-2.51%
FY16 FY17 FY18 FY19 FY20 FY21F
Source: GSO, Mirae Asset Vietnam Research

Utilities - Turn for the better (cont’d.)
FY21 outlook • In 2Q21, electricity demand will be negatively affected by the COVID-19 pandemic. We expect output growth to be
maintained at 1% YoY in 2Q21 (1Q21: 4.1% YoY) and to recover in 2H21, thus fulfilling EVN’s 5.2% YoY growth
target for FY21.
• Based on seasonal cycles in rainfall statistics, we will see improvements in hydropower outcomes in FY21 and
1H22. We expect SJD to earn 59% YoY higher net profit and the PC1 hydropower group to record 18% YoY growth
in gross profit in FY21. In contrast, our thermal power portfolio will see a drop in net profit in FY21, due to lower
mobilization. However, we expect NT2 to maintain dividend yields of about 9% in FY21.
Avg. performance of listed hydropower companies Current P/E of listed power companies (x)
% YoY in revenue % YoY in net profit 100
HNA
1536%
80
60
40
SHP
324%
20 DNH GEG
147% TTA VPD
DTK VSH TMP
-10% POW REE NT2 PC1 ND2CHP AVC SEB SJD S4A
181% HND PPC QTP TBC
-177% 56% 0
-11% 23%
-26%
1Q20 2Q20 3Q20 4Q20 1Q21 -20

Market
cap.
(Bloomberg
FY20 FY21F FY20 FY21F FY18-FY20 FY21F FY20 FY21F FY21F Our view
tickers)
• FY21–FY22: Flat bottom line in FY21,

then strong earnings growth in FY22
• We forecast net profit to decrease in
FY21 by a modest 2% YoY. FY21
results will be affected by 17% lower
gross profit. Our forecast does not
include any one-off reimbursements
from EVN for foreign-exchange
losses, unlike total one-off revenue
and gross profit of VND1,028bn in
4Q20, zero cost of goods sold. In
contrast, FY21 provisioning for bad
debt is estimated at VND56bn (-85%
POW VN 29,156 29,732 32,632 2,365 2,323 2% -2% 999 970 13 YoY). Interest expense will decline by
21% YoY. For FY21 core-businesses,
we expect gross profit of power
generation to rise by 7% YoY, thanks
to a 22–23% YoY decrease in repair
and maintenance expenses of the Ca
Mau 1&2 power plants and Vung Ang
1 coal-fired power plants. Our FY21
profit-after-tax forecast is 65% higher
than POW’s preliminary target.
• For FY22, we expect net profit to
surge by 44% YoY, based on 22%
higher selling volume and 15% lower
interest expense.

Market
cap.
(Bloomberg
tickers)
• FY21–FY22: Lower financial expenses to

maintain bottom line.
• Improved cash flow from FY21, after
NT2 VN 6,074 6,082 7,724 625 568 -8% -9% 2,095 1,895 11
paying off long-term loans.
• Dividend yield to be retained at 9% in
period of FY21–FY22.
• Attractive annual dividend yield of 12%

in FY20–FY27. We assume SJD will
maintain a payout ratio of at least 95%,
resulting in forecast cash dividend per
share of VND2,000/year over the next
seven years.
SJD VN 1,193 331 499 101 161 -19% 59% 1,465 2,096 8
• In FY28, at the end of BOT contract of
the Can Don hydropower plant (77.6
MW, accounting for 75% of total
capacity), we expect the dividend to rise
by 189% YoY to VND5,400/share (32% of
dividend yield).

Oil & Gas - Oil price hits pandemic high
Market
cap.
(Bloomberg
tickers)
• Gas flow from the Sao Vang - Dai Nguyet

field creates a growth driver for 2021: In
November 2020, GAS received the first
flow from the Sao Vang - Dai Nguyet field,
with annual output of about 1.5bn m3 of
gas in the early years of exploitation.
• Continuing to implement liquefied
natural gas (LNG) storage projects to
reinforce monopoly position in Vietnam’s
GAS VN 177,997 64,135 73,773 7,855 9,275 -7% 18% 4,028 4,846 19
gas industry: In FY21–FY25, GAS will focus
on investment in and development of an
LNG storage system, including Thi Vai and
Son My projects.
• With a forecast rebound in Brent oil price
to US$65 per barrel in 2021 (+50% YoY)
and rise in electricity consumption, we
expect GAS to see increases in revenue
(+15% YoY) and NPAT (+18% YoY).
• Divestment of PGB will be complete in

FY21. PLX owned 40% of PGB, equivalent
to 120mn shares, with a booked value of
VND2,056bn. We expect PLX to achieve
VND2,400–3,000bn in cash flow and
PLX VN 72,887 123,919 130,202 988 3,229 -34% 227% 764 2,495 23 VND500bn in profit from the divestment.
• Selling all treasury shares in FY21. With
ENEOS' determination to buy, all 75.1mn
shares of PLX can be successfully sold as
planned, expected to bring about
(Shares outstanding and closing price on June 22, 2021) VND4,200bn.
Other potential stocks
Market
cap.
(Bloomberg
tickers)
• The technology sector is recovering, with

a continued rise in new orders in foreign
and domestic markets, and profit margin
expected to improve on the increasing
proportion of its revenue from digital
transformation and focus on developing
FPT VN 77,679 29,830 35,558 3,538 4,369 6% 23% 3,598 4,444 19 FPT-made products and solutions.
• Steady growth in telecom services, due
to: 1) Increasing demand for internet
usage; 2) PayTV to start recording profit;
and 3) expansion of new data centers.
• Healthy finances, low debt ratio, and
strong cash flow.
• Evolving DMX to consolidate CE market

in rural area. The new generation of
DMX stores, the DMX supermini (DMXS),
was launched in June FY20. MWG plans
to open about 700 DMXS this year. The
products range of DMXS is not limited to
CE, but includes mobile phones and
accessories, boosting MWG’s market
MWG VN 69,317 108,546 120,567 3,918 4,170 21% 6% 8,654 9,130 16 share in both segments.
• Robust growth of BHX to persist. FY21
revenue is forecast to increase by 41%
YoY. Gross margin expansion of BHX
expected to continue in FY21, based on
stronger bargaining positions and
reduced logistics expenses by using
(Shares outstanding and closing price on June 22, 2021) more locally-produced fresh products.

Other potential stocks (cont’d.)
Market
cap.
(Bloomberg
tickers)
• The Nam Dinh Vu, Nam Hai Dinh Vu, and

Gemadept Dung Quat ports will become
the main drivers of GMD’s port revenue
in the future
• We expect GML’s output to reach about
675,000 TEU in 2021, with a profit
contribution of VND137.4bn. The port’s
GMD VN 12,974 2,606 2,922 371 534 -10% 44% 1,149 1,684 26 output should increase strongly to reach
a maximum capacity of 1,500,000 TEU in
2023–2024, which corresponds to nearly
VND350bn in GMD’s profit. In addition,
we believe GMD’s profit from SCS in
2021 could recover to about VND180bn
(+17.8% YoY). Finally, cooperation with CJ
Group and “K” Line Ltd. will increase
their contributions to GMD’s profits.

APPENDIX 1
Stock Ratings Industry Ratings
Buy : Relative performance of 20% or greater Overweight : Fundamentals are favorable or improving
Trading Buy : Relative performance of 10% or greater, but with volatility Neutral : Fundamentals are steady without any material changes
Hold : Relative performance of -10% and 10% Underweight : Fundamentals are unfavorable or worsening
Sell : Relative performance of -10%
Ratings and Target Price History (Share price (─), Target price (▬), Not covered (■), Buy (▲), Trading Buy (■), Hold (●), Sell (◆))
* Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months.
* Although it is not part of the official ratings at Mirae Asset Daewoo Co., Ltd., we may call a trading opportunity in case there is a technical or short-term material development.
* The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future earnings.
* The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.
Analyst Certification
The research analysts who prepared this report (the “Analysts”) are subject to Vietnamese securities regulations. They are neither registered as research analysts in any other
jurisdiction nor subject to the laws and regulations thereof. Opinions expressed in this publication about the subject securities and companies accurately reflect the personal
views of the Analysts primarily responsible for this report. Mirae Asset Securities (Vietnam) LLC (MAS) policy prohibits its Analysts and members of their households from
owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director or advisory board member of the subject companies.
Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not
been promised the same in connection with this report. No part of the compensation of the Analysts was, is, or will be directly or indirectly related to the specific
recommendations or views contained in this report but, like all employees of MAS, the Analysts receive compensation that is determined by overall firm profitability, which
includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of
this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or MAS except as otherwise stated herein.
Disclaimers
This report is published by Mirae Asset Securities (Vietnam) LLC (MAS), a broker-dealer registered in the Socialist Republic of Vietnam and a member of the Vietnam Stock
Exchanges. Information and opinions contained herein have been compiled in good faith and from sources believed to be reliable, but such information has not been
independently verified and MAS makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the
information and opinions contained herein or of any translation into English from the Vietnamese language. In case of an English translation of a report prepared in the
Vietnamese language, the original Vietnamese language report may have been made available to investors in advance of this report.
The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws
and accounting principles and no person whose receipt or use of this report would violate any laws and regulations or subject MAS and its affiliates to registration or licensing
requirements in any jurisdiction shall receive or make any use hereof.
This report is for general information purposes only and it is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or
other financial instruments. The report does not constitute investment advice to any person and such person shall not be treated as a client of MAS by virtue of receiving this
report. This report does not take into account the particular investment objectives, financial situations, or needs of individual clients. The report is not to be relied upon in
substitution for the exercise of independent judgment. Information and opinions contained herein are as of the date hereof and are subject to change without notice. The price
and value of the investments referred to in this report and the income from them may depreciate or appreciate, and investors may incur losses on investments. Past
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Strategy report | July 2021

VIETNAM ECONOMY AND STOCK MARKET

I. Vietnam economy 1H21 review and economic outlook update 3

2 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Total vaccination per hundred in Vietnam 0.05 0.52 1.13 3.68

Source: GSO, Bloomberg, Mirae Asset Securities (Vietnam) Research compilation

4 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

(% Agriculture, forestry, and fishing China India

5 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

1H21 2020 2019

Processing and manufacturing industry

Healthcare and social support activities

Financial , banking and insurance activities

Water supply; waste management and treatment, sewage

Education and training

Professional, scientific and technological activities

Wholesale and retail, repair of motor vehicles

Information and communication

Real estate business

Accommodations and restaurant

Administrative and support services

Arts, entertainment and recreation

-16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14

Source: GSO, Bloomberg, Mirae Asset Securities (Vietnam) Research compilation

6 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Vietnam GDP growth consensus Vietnam’s GDP growth rates

2021F 2022F % YoY

7 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

COVID-19 vaccination rates Vietnam plans to accelerate COVID-19 vaccination

8 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Monthly IIP Manufacturing IIP in 1H21

IIP (% MoM) Basic metals 37.0

Repair, maintenance, installation M&E -1.8

Source: GSO, Mirae Asset Securities (Vietnam) Research compilation

9 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

(Points) PMI 3-month average

Source: Bloomberg, Mirae Asset Securities (Vietnam) Research compilation

10 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Source: GSO Source: GSO Source: GSO

11 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Electronic goods, computers, and their parts

12 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Growth rate of realized investment capital Public investment in 2017−1H21

Plan (L) Disbursement (L)

Source: GSO Source: Vietnam Ministry of Finance, as of June 30, 2021

13 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Source: GSO, updated as of 06/20/2021 Source: MPI

14 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Transportation and storage 38.7%

Registered FDI by locality in 1H21

Source: GSO, Mirae Asset Securities (Vietnam) Research compilation

15 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Retail sales by sector (% YoY) Vietnam’s Consumer Confidence Index

Source: GSO Source: Nielsen

16 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

Vietnam’s unemployment rate Enterprise establishment/dissolution situation

(%) Newly-established enterprises

17 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

rate remained stable, above 90 in 1H21.

24,000 THB JPY

18 | Vietnam focus: Strategy Mirae Asset Securities (Vietnam) Research

1.0% Beverage and Tobacco 1.58 1.19 0.11 1.57

Other Services 1.61 0.89 0.06 1.68