Capitalization rates for business valuations

Businesses across Ho Chi Minh City have increased prices of essentials due to higher production costs despite consumer purchasing power having decreased by up to 25 percent, a survey of Tuoi Tre (Youth) newspaper has shown. Enterprises in Vietnam have issued warnings that food prices will continue to rise unless solutions are found to restrain surging food input costs, including raw materials, gasoline, and animal feed. As a case in point, cooking oil is now being sold 15-20 percent more expensive at supermarkets in Ho Chi Minh City than at the beginning of the year, and 70-90 percent higher than the price of 2020. Notably, Tuong An cooking oil now sells for VND60,000-160,000 (US$2.6-$6.9) per liter, depending on the type, while a set of 10 chicken or duck eggs is offered at VND33,000-VND38,000 ($1.4-$1.64) at traditional markets. The rates are about 20 percent higher than earlier this year, and nearly double those of last year, mostly owing to higher production costs and … [Read more...] about Purchasing power drops, food prices rise in Ho Chi Minh City

Though the benchmark VN-Index has lost nearly 19 percent this year, the bank said it was confident about the long-term prospects of the market as companies have been "on a roll" in terms of growth and profits in recent years. The average earnings per share of listed companies had grown by 35 percent last year, and while trading had dipped in the last few months, the Vietnamese market had surpassed Singapore and Indonesia to become the second largest in Southeast Asia behind only Thailand. Local retail investors accounted for around 87 percent of trading. Though foreigners had been mostly withdrawing from the market for nearly three years, they "have started to dip their toes into this market again" in the past few weeks. This was because only seven of the 30 biggest stocks on the main bourse, the Ho Chi Minh Stock Exchange, had reached their foreign ownership limit. Overall the VN-Index had a foreign ownership limit of 44 percent, and current foreign holdings were at less … [Read more...] about HSBC optimistic about Vietnam stock market despite plunge

Vietnam’s aviation industry needs to improve to keep up with the global market as flights resume following the pandemic, Deputy Minister of Transport Le Anh Tuan said on May 24. He made the remark at an international seminar titled “Vietnam aviation in a post-pandemic world” organised by Tap chi Cong San (Communist Review) and the Ministry of Transport. There were 42 million international visitors out of 116 million air passengers in Vietnam in 2019, before the pandemic broke out. About half of them came to Vietnam to invest and seek business opportunities. The volume of goods shipped by air reached 1.5 million tonnes in 2019, which was rather low compared to other modes of transport but accounted for 25 percent of the value of exported goods. With a growth rate of over 15 percent per year in the 2010-2019 period, Vietnam's aviation market is considered to be the fifth fastest-growing market in the world and the fastest in Southeast Asia. Due to the impacts of the COVID-19 … [Read more...] about Solutions sought to help Vietnam’s aviation industry take off