This picture taken on August 29, 2023 shows the Tan Vu container port in Hai Phong. US President Joe Biden visits Hanoi on September 10 to boost economic ties as Washington looks to move away from over-reliance on China, but a lack of highly-skilled labour and infrastructure weaknesses mean Vietnam may struggle to replace its neighbour. (Photo by Nhac NGUYEN/ AFP)/ To go with 'VIETNAM-US-ECONOMY-DIPLOMACY,FOCUS' by Alice PHILIPSON
HANOI: Given the positive outlook for export activity in the last months of the year, seaport and logistics stocks are expected to perform well.
For the last quarter of the year, exports are forecast to rebound as inflation in major economies, such as the United States and Europe, is cooling down and inventories in importing countries decline.
Demand for goods also increases during the year-end holiday period, even as Vietnam benefits from multinational corporations’ shifting their production from China to the country.
Moreover, China’s move to lower interest rates to revive its economy also opens up hopes for improved consumer demand and production there in the near future.
The potential dynamism in export activity will improve the performance of seaport enterprises, thus increasing the attractiveness of their ticker symbols on the stock market.
The recent issuance of a draft proposal to increase prices of seaport services by the Vietnam Maritime Administration also provides support for the industry.
The proposal suggests increasing the price of container handling services starting from Jan 1, 2024. Specifically, the price for container handling service is expected to rise by 10% for most ports in Vietnam.
In some cases such as for deep-water ports that can accommodate vessels with a capacity of 160,000 deadweight tonnage (DWT) or more or ports using power from renewable-energy sources, the price might be raised by 20% from the current level.
Yuanta Securities Vietnam said that the increases will have a positive impact on deep-water ports that accommodate vessels over 160,000 DWT and encourage seaport enterprises to use clean fuel as per the government’s policies.
According to Vietcombank Securities Co, the seaport industry continues to benefit from positive factors, including the implementation of free-trade agreements between Vietnam and its trading partners, which are expected to boost import-export activities through tariff cuts.
Meanwhile, the ongoing trend of shifting supply chains to Vietnam serves as a foundation to boost the operations of seaports, especially feeder ports that handle vessels with capacities under 3,000 twenty-foot equivalent units, the securities firm added.
In its updated report, Mirae Asset Securities Vietnam said that Vietnam’s seaport and logistics sectors will be the industries that benefit the most from the improvement of Vietnam-US relations, as the United States is currently the largest market for Vietnamese goods. — Viet Nam News/ANN
