On 7 February 2020, right in the first working week after Tet holidays, at the Head-office of Gemadept Corporation (GMD), representatives of the Board of Directors and the Investor Relations Department of the Company welcomed more than twenty representatives of investment funds and securities companies to learn about GMD's business activities and development strategy while seeking for opportunities of cooperation and investment.

This meeting was organized by Rong Viet Securities Joint Stock Company with the participation of many large and prestigious domestic and international investment funds such as KITMC, VinaCapital, PXP, Manulife, VFM, PYN, VCBF, MOIL, Alpha, Lumen …

In an open atmosphere, GMD representatives updated investors on the Company’s business performance, the progress of the port projects that GMD has been deploying, as well as discussed the development orientation of GMD in the coming time with specific goals.

The economy in 2019 faced many unpredictable challenges and fluctuations on the world and regional scale. In that context, by its utmost efforts, GMD continued to reach the targets with the pre-tax profit exceeding the plan. Total throughput of GMD ports in 2019 reached over 2 million TEUs. Nam Dinh Vu Port phase 1 performed more than 100% of the year plan. Southern and Central ports, namely Phuoc Long ICD, Binh Duong Port and Dung Quat Port, continued to achieve double-digit volume growth, contributing positively to the overall profit of the Company’s port network.

Also in 2019, GMD invested in more equipment and RTG (Rubber Tyred Gantry) cranes for existing ports to increase their operating capacity and built new barges to serve waterway transport …

Logistics business results last year recorded a positive contribution from shipping with strong growth in profits. The impressive outcome was the result of effective cooperation with partner shipping lines, taking advantage of GMD's port network to optimize the fuel costs of vessels and barges along with the effective organizational restructuring and corporate governance. Also in the past year, GMD and its partners have introduced new logistics services, including supply chain solution consulting services, to help customers reduce logistics costs and enhance competitiveness.

In the coming period, GMD continues to focus on promoting the development of two core businesses including Port operation and Logistics with the growth leverage of large port projects being urgently constructed. In the southern gateway, Gemalink deep-sea container Port with the capacity of 1.5 million TEUs, is planned to be put into operation in Q.4/2020 with the cargo commitment from GMD’s partner, CMA-CGM, members in the Ocean Alliance and other leading shipping lines that have accompanied GMD over the years, which will ensure that Gemalink operates at maximum capacity right in the first years. In the Northern commercial port cluster, the construction of Nam Dinh Vu phase 2 with the scale of 500,000 TEUs has been started. The project is planned to start operation in the first half of 2021.

With the introduction of new projects, GMD continues to increase its capacity to meet the increasing needs of import and export market, especially in the context of free trade agreements with large countries coming into execution. The competitive strategy based on quality, differentiation and comprehensive integrated service chain that has been carefully prepared by GMD will continue to create positive effects in the short term.

Also at the meeting, investors' questions related to the impact of the respiratory infection caused by the Corona virus, GMD representative shared that the months after Tet holidays are usually slack season, contrary to the peak season before Tet when the cargo volume is high and requires quick release. The outbreak of the epidemic fell into the slack season, so the current impact is not much as the demand for trading in this period is not high in fact.

If the epidemic is prevented and ended early, the impact on GMD in the short term is not much. Because after this time, the cargo being stuck at ports and factories will be pushed up for production and timely delivery according to the signed orders and contracts. Therefore, GMD is always in the position of preparing resources to ensure the transportation and handling cargo for customers. With the flexibility and timely adaptation of GMD's port and Logistics activities in various fields such as e-commerce or health-care, it will help stabilize and balance the supply chain of GMD in this period. In addition, in the case of agribusinesses changing from border trading (using inland transport) to official trading (using waterway transport), ports will even attract more customers.

However, in case the epidemic is prolonged, it will affect the global economy, Vietnam economy and therefore, GMD or any other port and logistics enterprises will be influenced. GMD believes that the disease will be prevented in a timely manner with the high determination of countries, agencies and everyone so that enterprises and the people feel secured for production and business.

Via the meeting, the effectiveness of the projects being operated by GMD, along with the potential and prospects of the projects that will be introduced by the Company were once again confirmed. The strong support from investors is the motivation for GMD to continue fulfilling its business plans for 2020.