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VIB holds the no.1 market share in Vietnam car loans market; Consumer finance still has a great potential for growth In case of stable macroeconomic condition, we forecast an average growth of at least 20% per year in the next 2 to 3 years However, VIB could be strongly hit by its unstable mobilization structure if the economy slows down BUY recommendation for the last 2 quarters of 2019. Investors are advised to maintain an overall low weight for banking stocks

GMD is the biggest enterprise in port operation among listed companies Nam Dinh Vu Port is a growth driver for GMD in short and medium terms Gemalink project has a positive outlook and is expected to boost GMD growth in the medium term The lowest charges of international container handling at Hai Phong – Cai Mep ports increased by 10%. Risks

VRE is a retail real estate company with a leading “all in one” model in Vietnam and a nationwide business system The domestic retail real estate market is very potential VRE benefits from the ecosystem of the parent company Vingroup Risks are still existing

Q2 business results were more positive than those in Q1, and went beyond market’s expectations There was a surge in the revenue growth of large cap companies, which was also the main force of growth for the whole market in Q2 The overall profit margin was still at a good level

IIP in July slightly rebounded compared to June’s. Domestic demand strongly increased, which also resulted in higher retail sales. Agriculture sector still recorded a low growth. CPI inched up in July and the average CPI in the first 7 months of 2019 was the lowest in the last 3 years. A trade surplus was posted in July, thanks to a surge in export growth. Total registered FDI slowed down compared to the same period last year, while disbursed FDI remained stable. USD/VND exchange rates were relatively stable in July, interbank and unofficial exchange rates decreased to the buying rate at SBV. There was a slump in interbank exchange rates in July, and a net-withdrawal from the SBV in OMOs. Primary and secondary government bond trading in July was busy in July with a large trading volume.

It is likely that Vietnam will still be in the watchlist for currency manipulation by the US in the upcoming period as two criteria for this tag of Vietnam will hardly change significantly. There is still a possibility that the US will raise tariffs imposed on some certain commodities from Vietnam, especially in areas where Chinese goods circumventing penalties of US by being shipped through Vietnam.

China is currently the largest trading partner of Vietnam, the devaluation of CNY has created a great pressure on VND movements; and a pressure to the monetary policy of SBV to protect competitive advantages of exports, as well as the production capacity of domestic enterprises against imports from China. We believe that the target of the SBV is to maintain a moderate trend of VND devaluation compared to the USD (although the VND still goes up against the basket of currencies) at about 2%. This level is enough to partly neutralize the adverse impacts on the strong depreciation of the RMB, but still creates a safety buffer to make sure the 3% target, set at the beginning of the year, will not be violated. However, we realize that the pressure of VND devaluation in the coming time is not high due to the following main reasons: (1) Based on the observation of the above technical changes of NEER & REER (Figure 3), the 106 is no longer considered a psychological threshold for VND devalua

NLG’s revenue inQ2/2019 fell 33.7% yoy, NPAT of shareholders of the parent company gained 24% yoy. Healthy financial status with low debt rate. The key projects are implemented and offered for sale according to the company’s plans. 2019 revenue of NLG may reach VND3,408.6 billion (-2% yoy) and NPAT of the parent company will hit VND866.1 billion (+ 13.4% yoy.) Recommended: to BUY

We believe that Vinh Hoan is having the right development steps in the long-term by investing in production lines, expanding farming areas and self-controlling its own fingerling source. Besides, we are optimistic about Vinh Hoan’s ability to develop in the US and EU markets in the coming time. Collagen & Gelatin products will also be potential new steps for Vinh Hoan. In 2019, we estimate that Vinh Hoan's revenue and NPAT will increase by 10% and 7%. Thereby, EPS 2019 of Vinh Hoan will be around VND 16,000. Based on DCF valuation and P/E comparison method, we recommend to BUY Vinh Hoan stocks with a target price of VND115,000, equivalent to a P/E forward at 7x in 2019.

GDP growth: GDP growth in the first two quarters of 2019 was modest with the main force of processing – manufacturing sector. GDP in 2019 is forecast to have a positive growth of 6.6 – 6.8%. Inflation: Inflation in the 1H.2019 hit its 3-year lows, but the inflation pressure is expected to come back due to the increase in the government administrated prices. The average inflation rate in 2019 is under control, stays around 3.5 – 4.0%. Monetary policy: The SBV management of monetary policy was quite easing in 1H.2019, but in the last six months, it will be more prudent under the pressure of core inflation. Exchange rate: The VND dipped 0.54% YTD and is expected to depreciate 2 – 2.5% in the whole year of 2019.