Macro/ Strategy

In 2024, Vietnam continued to loose its fiscal policy to support economic growth. The 12-month mobilization interest rate remains low, fluctuating around 5% by the end of 2024. In the context of bank deposit interest rates currently at a very low level, the portfolio has achieved a good return of 27.9%, with a dividend yield of 7.9% and a return (price difference) of 20%.

We remove DPR and VCS because the dividend yield is no longer attractive in 2025.

We add VIP and IDC thanks to meeting the criteria of high-dividend yield portfolio and positive business prospects for 2025. In which:

• VIP: a large cash reserve, no debt, maintains consistent and attractive dividend payouts, and is attractively valued. In addition, business operations in 2025 are expected to be positive thanks to (1) steady growth in domestic fuel consumption, (2) favorable oil transportation rates, and (3) reduced depreciation costs as one ship has fully depreciated.
• IDC: The financial situation is healthy, with a maintained cash dividend payout ratio of 30-40% of charter capital over the past 3 years. We assess that business operations in 2025 will remain favorable thanks to (1) the continued upward trend in average rental prices and (2) strong contributions from the residential and energy sectors.