Key takeaways from FiinGroup Invest Summit 2021

07 January 2021 - 02:58 PM Alternate Text


Thank you for attending our FiinGroup Invest Summit 2021: Vietnam in a Post-Covid-19 World Economic Outlook, Corporate Earnings Quality and Investing Strategy 2021, which was live on Tuesday [January 5, 2021].

Speakers discussed and gave comments on different topics on world context and implications for Vietnam, growth quality and prospects of sectors (including banks), investing strategies as well as key risks to watch in the time to come.

Key takeaways include:

  • World context & implications for Vietnam: FED is unlikely to raise rates in 2021 and even first half of 2022, and there is a room for Vietnam to continue to lower interest rates. The U.S.’s labelling of Vietnam as currency manipulator (once effective) will hurt Vietnam’s export items (i.e. Wood)
  • Vietnam: In 2021, Vietnam’s economic growth rate is projected to outpace the five-year average (2016-2020). Public investment will be allocated to Transport infrastructure, Energy, Digital transformation, etc.
  • Non-finance corporate: Earnings are back on track but the quality of growth remains underperformed. There are certain sectors with poor earnings growth quality but their valuations seem to be “expensive” (i.e. Airport, Industrial property, Industrial machinery). Otherwise, Covid-19-hit sectors will have chance to bounce back in 2021 (i.e. Retail, Personal Goods, Electricity).
  • Banks: Earnings story will be rotated among banks in 2021. Investing opportunities will come from banks with credit growth not relying on corporate bonds, NIM expansion prospect, low contribution of investment income to TOI, and “attractive” valuation.
  • Corporate bonds: credit quality of corporate bonds is deteriorated, especially real estate bonds. There is great divergence in the financial health of bond issuers, thus interest rates might be mispriced from the perspective of both issuers and investors.
  • Vietnam stock market valuation: is not really “expensive” given the expected strong corporate earnings recovery in 2021.

We hope that the analysis and evaluation shared by our speakers in this webinar will help you have an overview of the prospects for economic growth as well as corporate earnings in 2021, thereby forming your own investing strategies for this year.

Click HERE to enter the webinar replay at any time.

Presentation in English: HERE

Presentation in Vietnamese: HERE