The ‘small kings’ in Vietnam stock market

VietNamNet Bridge - Having smaller charter capital and not being as well-known as big companies like Hoa Phat and The Gioi Di Dong, smaller companies still can make fat profits and become ‘kings’ in their business fields.



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By the end of September 2017, the number of listed stocks had reached 1,400, being traded on three bourses in Vietnam. The number of listed companies is on the rise and are from all fields of the economy.

Transportation & entertainment services

Tay Ninh Cable Car Tour Company (TCT), West Coach Station JSC (WCS), Superdong Kien Giang (SKG) and Dam Sen Water Park (DSN) are the only players in their fields. 

TCT is the only company which carries travelers from the base of the mountain to Chua Ba (Ba Temple) on cable cars. Therefore, it has the right to set the selling price, which allows it have the highest gross profit margin.

WCS, which runs the Western Bus Station, an important transport hub that connects HCMC and western provinces, doesn’t have any competition and has good business performance. 

By the end of September 2017, the number of listed stocks had reached 1,400, being traded on three bourses in Vietnam. The number of listed companies is on the rise and are from all fields of the economy.

The company’s gross profit margin is high at 58 percent as it doesn’t have to pay much in sale costs while its management costs are also low.

As one of very few carriers of passengers and cargo to Phu Quoc Island, SKG has been making high profits for many years. Its gross profit margin and net profit margin are 61 percent and 54 percent, respectively.

Meanwhile, DSN, which runs the largest water park in inner HCMC, reported net profit margin of 42 percent.

SCS – the goose that lays golden eggs

Saigon Cargo Service (SCS) share entered the bourse last July. Due to the concentrated shareholder structure, there have not been many SCS transactions. 

However, SCS enjoys a near monopoly in terminal services, leasing storehouses and cargo carrying at Tan Son Nhat Airport. SCSC is the only company recognized by CAAV as cargo terminal.

Established in 2008 with initial charter capital of VND300 billion, SCS capitalization value has soared to VND4.5 trillion. 

The ‘irradiation’ king An Phu (APC)

APC has seen high growth rates in recent years. It reported gross profit margin of 68 percent in the first six months of the year and net profit margin of 38 percent.

Analysts noted that APC’s growth is not from higher output or lower production costs, but from the service fee increase.

MB Securities reported that the service fee set by APC increased by 20-25 percent after Thai Son merged with An Phu. The company is the only service provider in the field.


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Luong Bang

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