Dragon Capital Vietfund Management (DCVFM) | Fund Factsheet

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VFMVF4 – 02/2017


In February 2017, VF4 has returned 2.8% compared to the market return of 1.9%. The main contributors to VF4 return include Transportation (+11.4%), Real Estate (+10.7%) and Consumer Products (+8.7%). The expectations on recovery of Banking sector in January has become more positive and affect market sentiment in general, lead to a rally of several sectors whose growth depends on the credit expansions of the banking system such as Real Estate, Transportation in February. Within this month, the market also have the new listing of Viet Jet Corporation. For only 1 day before month end, Viet Jet’ stock price has increased by 27,6% compared to the IPO price.

Viet Jet Air Corporation (VJC) first listed their shares in 28 February 2017. This is the only private company that operates in the low-cost airline services in Vietnam. Since its constituent in 2007, Viet Jet has steadily acquired the domestic airline market, overturn the prolonged monopolistic position of Vietnam Airlines. Since 2011 – the year that Viet Jet has its first commercial flight, the company’s market share has increased to 41.5%, almost equal to one of Vietnam Airline. Currently, Viet Jet is having 23 planes, mostly used for domestic travel. According to its plan to 2020, the company will have 118 planes, acquired via the contracts signed with Boeing in the past years and increase the number of flight routes from 23 to 36 in the near future, including international routes. In 2017, Viet Jet planned revenue is VND 42,000 billion and Net profit is VND 3,400 billion, equivalent to a YoY growth rate of 53% and 48% respectively.