REPORT ON VIETNAM SEAPORT SECTOR FROM A CREDIT RATING PERSPECTIVE

FiinRatings has proudly published the Vietnam Seaport Sector Report. The analysis team selected 45 companies operating in the seaport sector and conducted preliminary credit rating analysis using our methodology based on publicly available data.

FiinRatings has proudly published the Vietnam Seaport Sector Report. The analysis team selected 45 companies operating in the seaport sector and conducted preliminary credit rating analysis using our methodology based on publicly available data. 

 The 31-page report covers sector highlights, detailed profiles on business risks and financial risks, and outlook for the upcoming periods. Let's take a look at some key highlights from the report: 

• FiinRatings assesses the seaport industry risk rating as Intermediate, corresponding to a lower-than-average risk level in our six-tier rating system. We consider Vietnamese seaport companies to exhibit relatively low cyclical sensitivity, high concentration (as the largest 04 companies account for nearly 90% of market share), and high similarity in the range of products and services offered. 

• The industry growth rate is expected to remain stable due to import-export activities, particularly from FDI enterprises. The trend to diversify manufacturing chains to regions surrounding China (China+1) is anticipated to strengthen further, especially in the processing,  manufacturing, textile and footwear industries. 

• We observe a significant divergence in the business risk profiles among seaport companies. With minimal differences in services among providers, the business risk profiles of companies in this sector largely depend on their geographical locations of the ports and their relationship with shipping lines to maintain competitive positions. 

• Seaport companies also vary in terms of financial risk profiles. The majority of companies in our sample own ports that have been established and operational for a long time, resulting in lower financial leverage due to the low working requirements of the industry. Moreover, we observe that several companies are engaged in initial investment processes that require substantial capital despite their lack of stable revenue streams. Consequently, this leads to reduced financial leverage and debt servicing capacity. 

For a more in-depth view of the Vietnam Seaport Sector Report, please read HERE. 

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