Jan 13

 03 most interesting news today

1. #startup. Pitchbook

SoftBank’s new severity. In one week, four big startups in SoftBank’s portfolio decided to pare back their workforce. All these layoffs were to presage complete collapses for the companies involved.

2. #F&B

Starbuck failed to crack Vietnam coffee market. 3 reasons: (1) Highly fragmented market with fierce competition, (2) Difference in types of coffee beans and (3) Various & fast-changing local tastes

3. #superapp. Techinasia

Grab is betting on food delivery and financial services as the next big engines of growth, not ride-hailing anymore. 

Summary of my favorite topic: Vietnam stocks fail to reap spoils of US-China trade war

Vietnam is expected to be the winner of the trade world, but the unstable market reflects profitless prosperity. Vietnam stock market is dominated by banks (34.%) and one real-estate developer (VinGroup JSC – 16.1%).  These two industries bear so many risks for investors.

With average return on equity at 15%, banks in Vietnam are enviable bunch by any standard. However, while emerging markets staged a Santa rally at the end of 2019, Vietnamese stocks headed the other way. Besides, bank loans have already exceeded the country’s GDP level and roughly half of local banks are unable to meet the minimum 8% capital adequacy ratio.

While Vingroup has edged into auto and smartphone manufacturing, cash-cow business remains property. It is becoming problematic when land has become scarce — it’s difficult to find large parcels in the megacities of Hanoi and Ho Chi Minh City. As such, the government has slowed approving new projects, sapping growth potential for developers.