Vietnam Business Channel

SSI Securities: The Wuhan Coronavirus will affect 9 key Vietnamese industries

Ports are one of the sectors affected by the coronavirus – Photo courtesy of VNA/VNS

SSI Securities Corporation in Ho Chi Minh City has just released an analysis of the Wuhan Coronavirus and how it will impact industries in Vietnam. According to the report, there are nine key industries that may be negatively affected.

SSI’s report says the following industries are the most vulnerable on a short-term basis: airport services, aviation, beer, gas, oil, retail, seaport / shipping, seafood and securities.

SSI says that the aviation industry will see the greatest impact since China-related tourism has dropped by 90% and demand for international travel to Vietnam and Southeast Asia from Northeast Asia, Europe and the United States is also in decline.

Snapshots of other industries

• Beer consumption – in decline as fewer people are going to bars and clubs for social activities

• Freight transport to and from China - in decline due to low demand from Chinese consumers

• Garment industry exports will be affected – Chinese textile factories have been shut down and they are the biggest suppliers of fabric to Vietnam

• Oil & Gas – prices have fallen on investor concerns about weakening Chinese demand

• Retail sales – are being affected since people are wary of going to public places

• Seafood exports to China – forecast to decline due to lower consumer demand

• Seaports – Will be shipping less to and from China based upon less consumer demand

• Securities – The epidemic has had a negative impact on the psychology of securities investors

SSI also said in its report that it expects four industries to benefit from the epidemic: electricity, information technology, pharmaceutical products and water.

There is also a neutral assessment for 10 industries - automobile, banks, cement, construction, dairy, fertilizers, housing, industrial park real estate, insurance and steel.

 

 

 

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