Vietnam top stocks: Consumer, agriculture, export

Saigon Securities, or SSI, is Vietnam’s  largest brokerage firm and listed on the Ho Chi Minh City Stock Exchange, offering corporate finance advisory and capital raising services, mergers and acquisitions advice, equity research, sales and trading services. Inside investor asked Chairman and CEO Nguyen Duy Hung for a quick update on the Vietnam market and SSI’s best picks.

Q: Could you give an outline of the competitive environment for asset management, investment and security broker firms in Vietnam?

A: The economic environment will continue to be tough in 2013. Companies will still have tough time weathering the economic condition. But I believe this is the time to invest in well run companies in growth sectors at cheap valuation.

Q: Who are your main customers?

A: We cater our services to both institutional and individual clients.

Q: What are the best blue chips at the Hanoi and HCM stock exchanges in your view?

A: We like sectors that benefit from the nation’s growth such as consumer, agriculture and  exports.

Q: Who are your main global partners in the financial services sector?

A: We work with almost all global bankers, but, however, Australia and New Zealand Banking Group, or ANZ, and Daiwa Securities from Tokyo are our strategic investors. We also work with HSBC, Deutsche Bank, Credit Suisse, Citibank and JP Morgan.

Q: What are the most popular investment funds you are offering?

A: We offer investment in companies that offer a high dividend yield and sustainable earnings growth, as well as funds that invest in agriculture and consumer products.

Q: In which main assets is Saigon Securities invested, in Vietnam and abroad?

A: Our main assets are in agriculture, consumer, logistic and  export.

Q: What are your services for corporations and institutional investors?

A: In a nutshell: We help connecting capital to opportunities.

Q: How would you assess the current situation with spiraling bad loans in the banking sector impacting Vietnam as an investment destination?

A: The banking sector is going through restructuring, which we believe will bring more investment opportunities.

Q: How would you recommend leveraging against inflation spikes when investing in Vietnam?

A: By buying stocks at cheap value and stocks that offer high dividend yield.

Q: What are your predictions for the VN-Index [the ho Chi Minh Stock Index] in 2013?

A: I believe it will reach 500 throughout the year [the VN index stood at 468.09 as of end of trading on January 25].