MSCI Frontier Market Index: Viet Nam has 2 new stocks added and one removed
In a re-balancing update, MSCI added GMD VN (Gemadept) and TPB VN (TPBank) as two new constituents of MSCI Frontier Market Index while removing PLX VN (Petrolimex) out of the index. At month end April 2025, Vietnamese equities accounted for the largest percentage of frontier basket allocation (accounting for 23.2% of the total market cap), followed by Morocco with 14.9%.
Banking sector update
In the coming time, foreign ownership limit (FOL) levels for bank stocks could be increased up to 49%. The Government issued Decree No.69/2025/ND-CP, allowing commercial banks (excl. state-owned banks) which had to act as state agent in recent bailouts of failed banks, to increase their own FOL up to 49% instead of 30% at present.
Airports Corporation of Viet Nam (ACV VN): New airports
The Long Thanh International Airport is expected to come into operation soon next year with 1st phase capacity of 25 million passengers and 1.2 million tons of goods per year, progressively increasing up to 100 million passengers and 5 million tons of goods in the future. Meanwhile, Phu Quoc International Airport will be renovated with VND50 trillion of investment (about USD1.93 billion), increasing its annual capacity from 4 million passengers to 18 million passengers in 2030 and 50 million passengers in 2050.
Additionally, some smaller airports planned by the Government can be the next ACV’s projects: (1) Mang Den airport – capacity: 1 million passengers; (2) Van Phong airport – capacity: 1.5 million passengers and can be upgraded to 2.5 million passengers; (3) Quang Tri airport – capacity: 5 million passengers and 25.5 thousand tons of goods; and (4) Sa Pa airport – capacity: undisclosed. ACV was last traded at VND97,900 per share on 14th May 2025, leading to 20.2x P/E and 3.4x P/B.
Vietnam Airlines (HVN VN): Upcoming EGM
The state-invested airline has been convening shareholders to vote for a potential offering, in which all proceeds could be used to fund the purchase of 50 narrow-body aircraft (i.e. Airbus A320NEO or Boeing B737 Max) and up to 10 engines, totally worth approximately VND92.8 trillion (about USD3.6 billion). Ex-date is May 26th and the EGM will be held on June 22nd. HVN VN closed at VND34,450 per share on 14th May 2025, meaning 11.5x P/E.
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