Top 10 most valuable brands in Vietnam for 2018

• Value: 1.182 billion USD
• Sector: Real Estate

Last year, while Vingroup took Vincom Retail, a company specializing in managing and operating shopping malls, to the stock market, the spotlight shifted to Vinhomes, the real estate arm of the conglomerate. In February 2018, Vinhomes officially changed its name from Nam Ha Noi Urban Development Joint Stock Company. Shortly after, Vinhomes merged with two other companies, Tân Liên Phát Construction Investment Joint Stock Company and Vinhomes Real Estate Management and Trading Company, increasing its charter capital to 28.365 trillion VND (14 times higher than initially), later adjusted to 26.377 trillion VND. The merged companies hold major real estate projects of the group such as Times City and Vinhomes Central Park.

In its prospectus, Vinhomes stated that 2018 would mark the first year of restructuring for Vingroup, focusing its real estate operations under Vinhomes. Vinhomes is responsible for the development, management, and operation of Vinhomes and VinCity-branded real estate projects. The company set a revenue target of 24.614 trillion VND and net profit of 5.461 trillion VND for 2018; the target for 2019 was significantly higher at 80.338 trillion VND in revenue and 20.803 trillion VND in profit.

Vinhomes' listing on the Ho Chi Minh Stock Exchange (HOSE) immediately set multiple unprecedented records. On the second trading day, Vinhomes achieved a record for negotiated transactions with 267.8 million shares, valued at 1.35 billion USD. Prior to this, Singapore's GIC Private Limited investment fund announced a 1.3 billion USD investment in Vinhomes, acquiring a 5.74% stake, as well as providing loans for various projects. On May 22, Vinhomes officially surpassed its parent company Vingroup to become the highest market capitalization stock on the market, valued at 13.9 billion USD. At this time, the combined market cap of Vingroup's trio of stocks, including VIC, VHM, and VRE, surpassed that of listed banks and was equivalent to more than one-fifth of Vietnam's entire stock market capitalization.

As of August 2018, Vinhomes completed 7 projects, launched 11 others, and planned 26 more. From 2010 to 2018, approximately 51,000 real estate units were successfully sold. For the first nine months of 2018, Vinhomes reported revenue of 22.405 trillion VND and net profit of 11.887 trillion VND. Real estate remains the main revenue contributor, accounting for approximately 65% of Vingroup's total revenue, also offsetting losses from other new business areas. As of September 30, 2018, Vinhomes' inventory value reached 38.392 trillion VND, mainly consisting of construction and development costs for office, school, hotel, and shopping center projects under Vinhomes Green Bay, Vinhomes Metropolis, Vinhomes Golden River, VinCity Gia Lâm, VinCity Park, and Vinhomes Central Park, among others. The cost of unfinished projects amounted to 19.830 trillion VND, primarily from projects like Cần Giờ Urban Area, Leman Golf Course, Vinhomes Kỳ Hòa, and VinCity Sportia.

• Value: 947 million USD
• Sector: Beverages

Saigon Beer-Alcohol-Beverage Corporation (Sabeco, SAB) recently released its consolidated financial report for 2018, showing a decrease in both revenue and after-tax profit. However, the net profit still exceeded the expectations set by the shareholders' meeting. Sabeco attributes this positive outcome to cost-cutting efforts and growth in financial revenue. Specifically, in Q4 2018, Sabeco reported a slight decline in revenue to 10.406 trillion VND, while the cost of goods sold increased, leading to an 11% drop in gross profit, which totaled 2.184 trillion VND. This resulted in a profit margin decrease from 23.4% to 21%, due to the rising costs of raw materials.

On January 23, 2019, Sabeco held its 2019 customer conference at the Adora Hoang Van Thue Center in Ho Chi Minh City, with participation from 10 Sabeco-affiliated companies and nearly 700 distributors nationwide. During the event, Melvyn Ng, Deputy CEO of Business, and Hoang Dao Hiep, Deputy CEO of Marketing, provided an overview of Sabeco's 2018 performance. They also addressed several questions and feedback from distributors. The conference critically examined sales policies, operational logistics, and set clear directions for improvements to achieve better success in 2019.

• Value: 622 million USD
• Sector: Telecommunications

Despite facing numerous challenges in 2018, Mobifone achieved solid results and is now moving forward with its business plan for 2019. The company employs 3,905 staff, 90% of whom hold a university degree, and 20% have a master's degree, with an average monthly income of 22.79 million VND. Mobifone's return on equity for 2018 is estimated at 25.7%, meeting 100% of its targets. The company paid an estimated 5,403 billion VND in taxes, with its parent company achieving 91.1% of its revenue target, totaling 36,906 billion VND, and 100% of its pre-tax profit target.

Looking ahead to 2019, Bui Son Nam, Deputy CEO of Mobifone, outlined six key goals: maintaining its position as the second-largest mobile company in the market, focusing on sustainable development in core areas such as mobile services, IT, and digital content, fully transitioning to a digital business model, sustaining profit growth, increasing labor productivity and average employee income, enhancing the value of its production activities, and driving greater business efficiency. The company’s profit target for 2019 is set at over 6,000 billion VND.

During the meeting, Chairman Nguyen Hoang Anh emphasized several priorities for Mobifone: coordinating with the Department of Technology and Infrastructure to resolve the AVG issue, aligning the 2019 development plan with the company’s privatization efforts, and ensuring that Mobifone’s strategy aligns with other businesses within the same sector under the Committee’s oversight.

For IT, Chairman Nguyen Hoang Anh highlighted the importance of stabilizing the organization and enhancing business operations, urging leaders to act decisively and strategically in staffing and restructuring according to development needs.

In the second quarter of 2019, Mobifone will begin testing its 5G mobile network in Hanoi and Ho Chi Minh City, with plans for nationwide rollout. This move positions Vietnam to adopt 5G alongside the global rollout, marking a significant step forward in the country’s telecommunications capabilities.

• Value: 512 million USD
• Sector: Telecommunications

In 2018, despite facing stiff competition from other service providers and increasing customer demands for higher service quality and customer care, VNPT VinaPhone successfully met its production and business targets set by the Group. With the hard work and dedication of 14,000 employees, the company achieved impressive results, with a total profit of 1,550 billion VND, reaching 100% of its target, and an 18% increase over 2017. Revenue from telecommunications and IT services (excluding card payments) was projected to be 41,772 billion VND, achieving 99% of the target and a 5.6% increase compared to 2017.

In 2018, VNPT VinaPhone's management focused on implementing the VNPT4.0 strategy, concentrating on mobile services such as data growth, integrated packages, nurturing subscribers, increasing ARPU, and expanding revenue from ICT digital services. They also worked to enhance customer experience, particularly for corporate clients by launching integrated packages for families and offices, and measuring customer experience. The company adopted a more decentralized approach, empowering business centers across the country to compete more effectively in their regions.

Despite these achievements, VNPT VinaPhone acknowledges the challenges it faced in 2018 and the intense competition in the rapidly evolving market in 2019. Building on the successes of 2018, VNPT VinaPhone has set ambitious revenue growth targets for 2019, with a basic target of 45,766 billion VND (up 9.3% from 2018) and a more aggressive target of 46,586 billion VND (up 11.2%).

During the 2018 year-end review, CEO Pham Duc Long praised the efforts and accomplishments of the entire company while highlighting areas that still need improvement. He stressed the importance of staying agile and professional in response to market changes and regulatory shifts, particularly in the areas of IT services, digital transformation, and enhancing customer engagement.

• Value: 416 million USD
• Sector: Aviation

Vietnam Airlines announced that 2018 was the first year the company exceeded 100,000 billion VND in consolidated revenue, with pre-tax profit reaching nearly 2,800 billion VND, a 15% increase over the target. The parent company alone achieved 73,500 billion VND in revenue and 2,012 billion VND in pre-tax profit, surpassing its annual target by 102.7%. The company paid nearly 6,600 billion VND in taxes.

Vietnam Airlines' operating profit margin for the year stood at 4.38%, with its debt-to-equity ratio (D/E) dropping below 3, improving from the beginning of the year. In 2018, the airline safely operated almost 142,000 flights, transporting 22 million passengers and nearly 350,000 tons of cargo, with an on-time performance rate (OTP) of 90%.

The airline's fleet currently consists of 91 aircraft, including 12 A350-900s, 11 Boeing 787-9s, two A330-200s, two A321neos, 58 A321-200s, and six ATR72-500s. In 2019, Vietnam Airlines plans to complete the necessary steps for its privatization, increase its charter capital, and move its stock listing to the HOSE stock exchange.

• Value: 381 million USD
• Sector: Banking

In 2019, VietinBank will focus on improving operational efficiency while maintaining a steady growth rate and ensuring quality management. In 2018, VietinBank proactively, decisively, and flexibly implemented the goals of the 2016-2020 restructuring plan and the 2018-2020 medium-term business plan, particularly addressing bad debt resolution. The bank achieved solid growth in 2018 compared to 2017, with average loans increasing by 17.6%, a positive shift in loan structure by currency and term, total assets growing by 6.2%, loan balances rising by 9.3%, and deposits from individuals and businesses increasing by 10.6%. The performance of subsidiaries and foreign branches also saw substantial growth, with pre-tax profits up by 27%.

In 2018, VietinBank became one of the first two banks in Vietnam to meet SWIFT GPI standards and the first domestic bank to offer internet banking for trade finance (VietinBank Trade portal). The bank received multiple prestigious awards, including the National Quality Gold Award from the Prime Minister and the “BEST IN CLASS” award from the Asia-Pacific Quality Organization.

Additionally, VietinBank issued more than 4,000 billion VND in subordinated bonds, restructured its Tier 1 and Tier 2 capital, and improved financial management and labor productivity to ensure optimal operational efficiency.

• Value: 304 million USD
• Sector: Banking

Increasing capital is a crucial priority for BIDV in 2019. It is expected that after completing a capital sale to a strategic partner in the first half of 2019, the bank will continue to boost its Tier 2 capital. The estimated CAR ratio will rise from 9% to 13%. According to HSC's forecast, BIDV (Ticker: BID) will soon raise additional capital from the market after successfully placing private shares with its strategic partner, KEB Hana Bank, in the first half of 2019, pending approval from the State Bank of Vietnam (SBV) in October 2018.

Upon completion, BIDV's Tier 1 capital could increase by approximately 30%, or 18 trillion VND, assuming the bank sells 15% of its post-issuance shares at the current market price of 30,000 VND per share. The bank will then have an additional 9 trillion VND in room to raise Tier 2 capital, and the CAR under Basel I will significantly rise from 9% to 13%.

Additionally, HSC predicts that BIDV will be granted a higher credit growth limit than the current 14% after completing its private placement to raise capital. Loans to customers are projected to grow by approximately 15.4%, and customer deposits are expected to increase by 15%. The non-performing loan ratio is anticipated to reach 1.69% by the end of 2019. With these assumptions, HSC forecasts BIDV's pre-tax profit for 2019 to reach 10,642 billion VND, a 12.4% increase compared to 2018.

• Value: 2.8 billion USD
• Sector: Telecommunications

In 2018, Viettel launched a variety of products, services, and a technology ecosystem, positioning itself to become a digital service provider alongside its long-established role as a telecom operator. By the end of 2018, Viettel achieved total revenue of over 234 trillion VND, accounting for 60% of the total telecom revenue in Vietnam. The consolidated profit reached 37.6 trillion VND, contributing more than 70% of the sector’s profit, while its tax contribution to the state budget amounted to 37 trillion VND, representing over 70% of the sector’s total contribution.

In 2018, Viettel maintained its position as the number one brand in Vietnam, ranking among the top 50 most valuable telecom brands globally, with a brand value of 2.8 billion USD – a 23.7% increase from 2017. That year marked key milestones for Viettel, including the government's decision to rename it as the Military Industry-Telecommunications Group and approving its restructuring plan through 2020. Viettel also announced its entry into the 4.0 development phase, focusing on global business expansion. For 2019, Viettel aims to increase revenue by 7.3% (to over 251 trillion VND) and profits by 4.6% (to more than 39 trillion VND), with a tax contribution to the state budget of 38.1 trillion VND.

In its Phase 4 strategy, Viettel is committed to leading the 4.0 revolution for the economy, driving technology, services, business models, research, production, and products. This includes projects for e-government, education, agriculture, and smart cities, targeting both central and local governments and various sectors. Viettel is upgrading its 4G network to support essential digital services and NB-IoT connectivity. Once the frequency is available, Viettel will begin testing 5G in Q1 2019, focusing on technical trials and business models for broadband services on 5G. After 2020, Viettel plans to expand its 5G network based on business needs and the development of Vietnam’s economy and society.

For its transmission network, Viettel has virtualized core network devices, IT infrastructure, and migrated all IT applications to the cloud platform. It has rolled out a Content Delivery Network (CDN) at the provincial level across the network, preparing for 5G’s Mobile Edge Computing infrastructure. In data infrastructure, Viettel has invested in five Tier 3 Data Centers, with plans to upgrade to Tier 4, capable of serving millions of IoT users simultaneously. In IT, Viettel is implementing smart systems to enhance customer experience through new technologies such as Big Data, AI, and VR, including customer care, ERP, smart data analytics, and customer knowledge management systems. To ensure cybersecurity, Viettel has established a cybersecurity company to research and deploy comprehensive solutions, addressing challenges in digital transformation, including IoT and IT application security, smart information security monitoring on the Cloud, and building national firewalls for cyber space control.

• Value: 1.8 billion USD
• Sector: Food

According to the 2017 financial report audited by KPMG, Vinamilk recorded sales revenue of 51.134 trillion VND and after-tax profit of 10.278 trillion VND. By the end of the third quarter in 2018, Vinamilk's sales revenue approached 39.610 trillion VND, with after-tax profits of 7.920 trillion VND. Maybank Kim Eng Securities evaluated Vinamilk as continuing to maintain its leadership in the dairy industry, with the likelihood of sustaining this dominance in the long term. Due to its dominant market share, Vinamilk benefits significantly from the growing dairy industry.

In the first three quarters of 2018, Vinamilk achieved sales growth, even though imports decreased compared to the same period last year. This increase in sales was partly due to market share gains and possibly a returning consumer trend. A Vinamilk representative suggested that consumer demand had rebounded, and the company hoped this trend would continue into the fourth quarter of 2018 and into 2019.

Regarding export prospects, China has completed the protocol allowing three Vietnamese companies, including Vinamilk, TH Milk, and Moc Chau Milk, to export to China. The official document is expected to be signed in April 2019 during a high-level Vietnamese delegation visit to China. According to Maybank Kim Eng's recommendation, the first exports to China will likely take place in late 2019, contributing around 500 billion VND to Vinamilk's annual revenue, potentially doubling in 2020. China represents a huge market, more than 30 times the size of Vietnam's dairy market, importing 7-8% of its dairy products annually, valued at 3 billion USD. After the melamine milk scandal, Chinese consumers have shown concerns about domestic milk, and local dairy quality is affected by polluted pastures. Australia and New Zealand have significant market shares in China, but Vinamilk still holds a competitive advantage due to its geographical proximity to China.

• Value: 1.39 billion USD
• Sector: Telecommunications

Over the past year, VNPT has officially rolled out its 2017-2025 development strategy and 2030 vision (VNPT 4.0 strategy), aiming to become the leading digital service provider and digital transaction center in Vietnam. This includes the implementation of 10 programs and 34 strategic projects. VNPT is also working to restructure its organization as outlined in Decision 2129-QD/TTg from the Prime Minister and preparing for the privatization of the parent company.

In discussing its strategic goals for the digital transformation of Vietnam’s economy, VNPT leadership emphasized that in addition to digitizing its own operations, VNPT, as a key player in the telecom-IT sector, intends to take the lead in the national digital transformation process. The company will focus on contributing to the digital economy, including smart cities, e-government, digital enterprises, and digital citizens.

Besides modernizing its network infrastructure and developing a 4.0 technology ecosystem for digital transformation in fields like e-government, smart tourism, e-health, digital education, and smart agriculture, VNPT will focus on building its Innovative Digital Ecosystem (VNPT IDE). This ecosystem, based on 4.0 technologies, will serve as the core of the digital transformation process.

In 2019, VNPT IDE plans to undertake key tasks such as developing platforms on 4.0 technology foundations that allow both VNPT and third parties to focus on app development and business operations without worrying about underlying technologies, such as VNPT's IoT Platform CSP. Additionally, VNPT will focus on transferring knowledge of new technologies systematically and equipping physical infrastructure to global standards, including the VR/AR Lab developed in partnership with EON.