Vietnamese industrial output rises

Vietnam estimated on Tuesday its industrial output in December would be 18.8 percent higher than the same month a year earlier.
Industrial output for January-December was estimated to have risen 17% this year to 490.82 trillion VNDong (31 bio US$), the General Statistics Office said.

Total Output 2006 +17%
Of which:
State +9.1%
Non-state +23.9%
Foreign-invested +20.8%

Source: Reuters

Tet phenomenon: Vietnam Index starts to fall

Vietnam's stock market fell 5.68% as a string of new listings boosted share supply while investors were eager to cash out ahead of the year-end holidays.

"The influx of new shares together with investors' increased appetite for cash ahead of the Lunar New Year to clear debt put a lot of pressures on prices and demand is weakening very fast as potential buyers expect prices to fall further," said a dealer in Hanoi.

Traders said cash demand generally rises towards the end of the year as businesses and investors try to clear debt and pay bonuses.

Source: Reuters

2006 Inflation in Vietnam up to 6.6%

Consumer prices in Vietnam rose by 0.5% in December, pushing the annual inflation rate to 6.6%.

Of the 10 baskets of commodities making up the consumer price index (CPI), food and food services had the highest increase by 7.9% as a result of the 14.1% in food prices, driven mainly by the increasing demand for rice exports and pest attacks.

Last year Vietnam reported a rise in prices by 8.4%.

Source: Thanh Nien

Trade deficit up by 8%

Vietnam's exports are estimated to have risen 22.1% to 39.6bio US$ this year from 2005, but the annual trade deficit would widen 8% to 4.81bio US$, according to the Trade Ministry
While the export earnings were 4.9%t above the 2006 target, imports would still rise 20.4% from last year to 44.4bio US$.
Exports are forecast at 46.8bio US$ in 2007 as Vietnam benefits from its full World Trade Organisation membership, the Trade Ministry said.
Crude oil exports -- Vietnam's largest foreign exchange earner -- are estimated at 8.3bio US$ this year, followed by textiles at 5.8bio US$, 3.6bio US$ from footwear and 3.4bio US$ from seafood exports, the Trade Ministry said.
The highest growth in earnings this year was rubber, which would bring in 1.27 billionbio US$, or 58.3% more than last year.
Coffee exports would rise 49% on 2005 to 1.1bio US$. Vietnam is the world's biggest exporter of robusta coffee.
The government's statistics office is expected to release full trade figures later this month.

Source: Reuters

SVC share price almost doubled

Shares in Saigon General Services Co. (SVC), Vietnam's first financial services provider to list, almost doubled to 160,000 VNDong (9.94US$) at their market debut.
After opening at 350,000 VNDong (21.7US$), 5,100 shares in the firm, known as Savico, changed hands, nearly doubling their pre-debut price of 81,000 VNDong.
Of the 5,100 shares, foreign investors bought 1,000 shares.
The pricing gave Savico an initial market value of 128mio US$, as it listed all its 12,873,410 shares.

Savico has investments in semi-private bank Phuong Dong Bank, real-estate firm Thu Duc Housing Co. (TDH), telecom company Saigon Posts and Telecommunication Co. and infrastructure investment firm CII (CII).
It acts as a dealer for Toyota, Ford and GM-Daewooand also sells Suzuki motorcyles. It operates cosmetics and garments shops and a taxi fleet in Ho Chi Minh City.

Source: Reuters

Dragon Capital to buy Tiberon

Tiberon Minerals is set to be acquired by private-equity firm Dragon Capital Management, a major shareholder, in a 218mio US$ deal to help develop a tungsten/fluorspar mine of northern Vietnam.

The Nui Phao mine in the Vietnamese province of Thai Nguyen held one of the largest deposits in the world of both tungsten and fluorspar outside of China. Fluorspar is used in refrigerants and aluminum production. Tungsten is used in steel alloys and electric light filaments.

Dragon said Tuesday it will offer 3.17US$ a share for the 87.8% stake in Tiberon it doesn't already own, a bid that values all of Tiberon at about 248mio US$. That's a 53% premium over the closing share price of Tiberon.

Tiberon has been working to develop the mine, but has run into opposition from the Vietnamese government over the company's plan to expand its stake in Nui Phao.
In September, the Vietnamese Ministry of Planning and Investment said it wanted the original ownership ratio to continue, with Tiberon owning 70% and Vietnamese joint-venture partners holding 30%.

The Nui Phao project is the largest mining project now under development in Vietnam and is scheduled to begin production in early 2009. It contains over 55 million tonnes of proven and probable reserves, also making it one of the largest tungsten-fluorspar deposits outside China. That may bode well for its prospects as demand from that country, which has been producing and consuming steel at a record pace, continues to pick up speed.

For now, CMC Cometals, a division of U.S.-based Commercial Metals Co., has agreed to buy all of Nui Phao's projected acid-grade fluorspar output for the first three years of production.
Dragon, an investment banking institution with an exclusive focus on Vietnam, has agreed to pay a 10mio US$ break fee to Tiberon under certain circumstances if the deal doesn't go through.

Source: Thanh Nien

Vietnam’s seafood exports worth more than 3bio US$

This is an growth of 11% growth, compared to 2005, grace to high global prices. Both traditional markets like Japan, the US, and the EU and new ones like the Middle East, Eastern Europe, Africa and South America were big buyers.

Shipments to Japan were worth 834mio US$ (+22%), to the EU 713mio US$ (+87%) and to the US 643mio US$ (+4%).

The fishery ministry attributed the strong performance to the industry’s focus on quality, trade promotion, and forecast of prices and demand.
It has set a target of 9 percent annual increase in exports to 4-4.5bio US$ by 2010.

Source: Thanh Nien

Rubber share price almost quadrupled at auction

Vietnam's Tay Ninh Rubber Co. has raised 573.22bio VND (35.6mio US$) from an auction of nearly 8.4 million shares.

Tay Ninh Rubber Co. sold the state shares on offer, or 28% of its stock, at an average price of 68,341VND (4.25US$) at its initial public offering last Thursday.

The pricing gave the firm an initial market value of 127.5mio US$ after the auction in which 103 institutional and nearly 1,600 individual investors sought to buy nearly seven times more shares than were on offer.
Foreign investors bought more than 2.9 million shares, or 34% of those sold.

Source: Reuters

High demand for BVS shares

Shares in Baoviet Securities rose 120% on Monday on their debut on the Hanoi exchange, where the index jumped to a lifetime high as investors bet on Vietnam's expanding capital market.

Baoviet shares ended at 320,000 VND (19.9US$) each, or 120% above the 9US$ pre-debut price on unofficial markets after soaring 162 percent to 380,000 dong at the opening.

Foreign investors bought 5,000 of the 40,500 shares which changed hands in the firm, which handled 22% of the shares and fund certificates traded last year on the Ho Chi Minh City exchange.

The closing price valued the Hanoi-based firm at $298.5 million after investors sought to buy three times more shares in Baoviet Securities than were on offer at an auction last month.

It listed all its 15 million shares, 60 percent of them held by state-run Vietnam Insurance Corporation (Bao Viet), the country's largest insurer. Baoviet Securities is a relatively new business of parent firm Bao Viet, which said early this year it would diversify into banking, financial leasing, real estate and public health insurance.

The government will retain 51 percent of Bao Viet and sell a maximum 30 percent to foreign investors in a partial privatisation, a Bao Viet executive said without giving a timeframe.

Source: Reuters

Dutch Lady builds 2nd diary factory

Friesland Foods started the construction of a US$20 million milk factory in the northern Vietnam province of Ha Nam Saturday, its second in Vietnam since 1996.

It is expected to be operational in January 2008 with an annual output of 45 million liters, which will increase to 200 million liters.

Source: VNA

VFM gets 2nd fund approved

The Vietnamese Securities Regulator has given the VietFund Management Ltd.Co (VFM) the nod to disburse capital for its second investment fund.

VFM is a joint venture between te bourse-listed Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) and the UK fund management company, Dragon Capital.

The 400bio VND (24mio US$) Vietnam Growth Investment Fund (VF2) has attracted 15 investors. The fund is operational for five years. VF2 eyes shares of companies involved in education, healthcare and IT projects.

The fund had conducted negotiations over three projects whose capital amounts to 40bio VND (2.4mio US$), the fund manager said.

The fund is to increase its capital after investing three-fourths of its total, set for the third quarter of next year.

As the country’s first public fund, VF1 is fully invested in nine listed and 33 unlisted firms since its inception in mid-June 2004.

Foreign investors now own over 38% of VF1 shares.

VF1 plans to sell 12 million more shares in a new first phase to pre-existing shareholders, with those owning every 10 units eligible to buy four new units at the par value of VND10,000.

In phase two, those holding every 15 units can buy four new units at the average net asset value of each VF1 unit in the four latest weeks.

Additionally VietFund is also working with American-owned insurance and reinsurance broker Aon Vietnam to establish a pension fund with initial capital of VND20 billion ($1.2 million).

The company expects numerous companies to authorize VietFund to manage their employees’ retirement funds, increasing planned pension funds one hundred-fold.

Source: Thanh Nien

FPT to offer phone services

FPT won a licence to provide land-line telephone services nationwide as the country's leading information technology firm diversifies business.

FPT Telecom received the licence on Thursday and will offer telephone services packed with broadband Internet and IP television to compete with seven operators in the country.

Source: Reuters

EVN issues 62mio US$ bond

Electricity of Vietnam (EVN) has priced 62mio US$ in bonds to yield 9.70%.

EVN said in a statement on Wednesday that proceeds of the 10-year issue, its eighth offer this year, would be used for the construction of power plants.

The bonds, carrying a coupon of 9.70 percent, were priced at par to yield 9.70 percent. They will mature on Dec. 19, 2016.

Source: Thanh Nien

Credit Suisse to trade in Vietnam

Vietnam has awarded Credit Suisse securities trading code certificates which allow the bank to engage in the trading of domestic equities, as well as government and corporate bonds.

Vietnam will earn 8.45bio US$ in oil exports this year

Crude oil, the country’s foremost foreign exchange earner, was likely to make up 21% of the country’s total export turnover this year, said the Ministry of Trade.

The output of 17.5 million tons was 5% lower than targets, but export values exceeded targets on the back of rising world market prices.

Last year, the oil sector exported 18 million tons of crude worth nearly 7.4bio US$ mainly to China, Singapore, Japan, UK and US. Its crude oil production decreased 7.7% to roughly 18.5 million tons in the year.

Under a plan proposed by the Ministry of Planning and Investment, Vietnam is set to lower crude oil exports between 2006 and 2010 so as to ensure sufficient supply of the product for domestic industries. Accordingly, the country's crude oil export will decline to 18.5 million tons in 2006 and 15.6 million tons in 2010.

To reduce reliance on petroleum imports, Vietnam is investing 2.5bio US$ into constructing its first oil refinery, Dung Quat in the central Quang Ngai Province with annual processing capacity of 6.5 million tons.

The decade-delayed mega project is scheduled to become operational in late 2008 or early 2009, meeting about 40% of the domestic demand for petroleum products. Another two oil refineries are scheduled to come productive in 2009.

Energy experts forecast that Vietnam would turn into a net importer of crude oil by 2015, when all three refineries become operational and demand for crude oil rises.Vietnam's crude oil output may increase by almost 80 percent over the next few years, demand for refined products is expected to rise strongly as the country's economy expands.

Source: Thanh Nien

Constrexim Holding plans to offer 6.4mio shares

Vietnam Investment Construction Export Import Holding Corp., which expects to raise about 70.4bio VND (4.4 mio US$) from the share sale on Dec. 26, will use the funds to develop real estate projects in Hanoi and industrial projects, including a hydropower plant, in the provinces..

The company, which has registered capital of 203bio VND, will sell 31.54% of its stake, via an OTC-auction. The shares will be offered to local and foreign investors at an initial price of VND11,000 each. Foreign investors can buy a maximum of 6.09 million shares or a 30% stake.
After the IPO, the state will own 57.82% of the equity, employees 2.2% and strategic investors 8.44%.

In 2005, the company, which is involved in a range of construction projects and services, reported a net profit of 21bio VND, a revenue of 1.7 trillion VND.

Source: Thanh Nien

Vietnamese rubber exports boost in 2006

Vietnam's rubber exports reached 1.65 bio US$ from Jan. to Nov. 2006, an increase of 300mio US$ ahead of 2005's figure.

Increased export turnover was driven by a rise in rubber prices, up 6-7 mio VND (375US$-437US$) per tonne from last year. Average export prices in 2005 were 1,370US$/ton, compared to an average price of 1,163US$/ton in 2004.

Vietnam now ranked sixth in rubber production in the world and fourth in natural rubber exports after Thailand, Indonesia and Malaysia, according to the International Rubber Association.

Vietnamese rubber was currently being exported to 20 countries, of which China was the leading importer. Chinas overall rubber demand was expected to increase 6% per year by 2010.

Over the next five years, global demand for natural rubber was expected to increase at a rate of about 3.3% annually, according to the International Rubber Search Group (IRSG).

By 2010, the worlds demand for natural rubber would reach 9.6 tons/year while production output was likely to hit only 9.3mio tons.

Source: VNA

150% increase of FPT's share price

Shares of FPT rised by 150% on their debut on the Ho Chi Minh City stock market on Wednesday, the stock market said.

A total of 83,530 shares in the Hanoi-based firm changed hands at 400,000 VNDong (24.9 US$).The initial share price set for FTP's debut was 160,000 dong each.

The pricing valued FPT at 1.5bio US$. In October,

Source: Reuters

Oil and gas import tariffs halved

As of Dec. 12, oil and gas import tariffs will be reduced from 20 percent to 10 percent, according to the Ministry of Finance.

The rate is applicable to light oil and gas products of all sorts, except for gas used for aircraft, whose importing tariff remains fixed at 15 percent.

Source: Vietnam Net

Thai paper firm to build packaging factory in Vietnam

Siam Pulp and Paper plans to invest 220mio US$ to set up a large packaging paper facility in Vietnam’s southern Binh Duong province. The facility will be able to turn out 220,000 tons of packaging products per year when it goes on stream in early 2009.

30% of its output will be exported while the rest will be sold in Vietnam, where the company already has a market. The new facility will scale up SCG’s packaging paper capacity to 1.74 million tons a year.

The company expects strong demand for such products in Vietnam as almost half of the country’s demand of 580,000 tons this year was imported. Annual growth in demand is forecast to be 10-15% for the next 10 years.

Source: Tuoi Tre

IPO: Viet Thang Textile raises 1.8mio US$

Viet Thang Textile Co raised 29.2bio VNDong (1.8 mio Us$) from selling 2.8mio shares to Vietnamese investors. The average price was at 0.65US$, 0.02US$ above the initial offering price. Thus, the market value of Viet Thang rose by 0.3mio US$ to 9.1mio US$.

Viet Thang has joint ventures with South Korean and Russian firms in Ho Chi Minh City to produce yarn, fabric and jackets for export.
Viet Thang was established in 1960 and is a member of the Vietnam National Textile and Garment Corp. It produces and trades fiber, towels, materials and machinery for the industry.

Source: Reuters

Successful IPO of Taiwanese tile maker

Taicera Enterprise Co. Ltd., has raised 113.6bio VND (7mio US$) from selling 3.9 million shares in an initial public offering.

Taicera, which built its first workshop in the southern province of Dong Nai in 1995, now produces tiles and bricks for domestic markets and export to countries including Australia, South Korea, Thailand and the United States.

Taicera has said the proceeds from the IPO would be used to raise its registered capital to VND300 billion ($18.7 million) from $15.6 million.

Fourteen institutional and 173 individual investors sought to buy nearly twice as many shares than were on offer. Foreign investors bought 24% of the offered stock.

Source: Reuters

Vinamilk (VNM) starts Forward Integration

Vinamilk (VNM)is investing nearly US$747,000 to construct V.Mart convenience stores throughout the country.
Last weekend it opened the first two supermarkets in Ho Chi Minh City.
Vinamilk was founded thirty years ago and currently holds 75% of the Vietnamese diary market.

Source: Thanh Nien

Vietnam Stock market resumes trading

The Vietnam stock exchangeresumed trading Monday after a suspension on Friday and reached a new lifetime high (724.3 points) this morning.

State Securities Commission chairman Vu Bang, said the center was in the process of upgrading its system and would use a continuous order matching system by June next year.
The bourse would build a modern system expected to start operation in early 2009 and a backup system was also being developed at the Saigon Hi-Tech Park in HCMC, he added.

Source: Thanh Nien

USA-Vietnam: Permanent Normal Trade Relations granted

The US Congress has given final approval to a bill to restore normal trade ties with Vietnam.

The bill granting "permanent normal trade relations" (PNTR) status to Vietnam was approved during an all-night session.

Some lawmakers criticized the move to boost trade ties with Vietnam, citing what they called the communist-ruled state's poor human rights record and crackdown on dissent.

Source: AFP

Vietnam stock exchange halts trade after "a small technical error"

Trade was halted after the first order matching as the error emerged in data transmitted from the centre to securities companies.

"It is a small technical error in the system but we have to stop," Ho Chi Minh City Securities Trading Center director Tran Dac Sinh said.

Trade should be resumed on Monday.

Source: Reuters

PV Insurance's IPO on December, 27

PV Insurance, a subsidiary of state oil monopoly Petrovietnam, will raise at least 8.4 mio US$ from selling state shares at an initial public offering late this month.

PV Insurance would sell 11,729,900 state shares, a 23% stake, on Dec. 29 at an initial price of 11,500 dong ($0.72) each. The initial price suggested its value was $36 million.

The state will retain 35 million shares, or 70 percent of the firm, the Industry Ministry, which controls Petrovietnam, said in approving the partial privatisation. PV Insurance would also sell 3 million shares, or 6 percent of its shares to state-run Vietnam Marine Corporation, its strategic partner.

The firm offers non-life insurance and has financial investments.

Insurance premiums rose 18 percent in the first half of 2006 from a year earlier to 8 trillion VN Dong (498mio US$).

The Vietnam National Re-Insurance Corporation (VNR) and Bao Minh Insurance Corp (BMI) are listed on the Hanoi OTC market while a third firm, Baoviet Securities, run by top insurer Bao Viet, will make its debut in Hanoi on Dec. 18.

Petrovietnam has been partially privatising subsidiaries, in line with the government's drive to speed the restructuring of state-owned companies, to raise funds for its core oil and gas exploration and production businesses.

Source: Reuters

Rubber company raised 39mio US$ in IPO

Vietnam's small Dong Phu Rubber Co. has raised 626.04bio VND (39mio US$) by selling more than 11 million state shares. The firm, known as Doruco, sold all 11,701,300 shares on offer at an average price of 53,502 VND (3.33 US$) each at its initial public offering on Wednesday.

Doruco is a subsidiary of state-run General Rubber Corporation, the largest of Vietnam's 60 rubber producers.

Doruco, which has yet to announce a listing plan, produces latex from 8,600 hectares of rubber trees.

Source: Reuters

Cable firm implements new structures

Sacom becomes a group by 2008, two years earlier than initial targets.
Sacom posted total turnover of VND1.12 trillion ($69 million) in the first ten months of the year, up 17.6% on the year’s plan and pre-tax profit of 147.3 bio VND (9.1 mio US$), hitting the year target of 100 bio VND (6.2mio US$).

The company is preparing a shares issue to mobilize 70.6 bio VND (4.4 mio US$), which is set to be launched early next year.

Sacom is negotiating to sell 85 percent of the shares issued to the Singapore-based Tamasek Group.

The raised capital will help Sacom implement major projects including 350 bio VND (21.7 mio US$) resort in the central highlands Dalat city, and capital contribution of 100 bio (6.2 million US$) to a venture with SCC to manufacture optic cables.

Sacom has recently restructured its five affiliates into four joint stock companies and one joint venture.

These include 200 bio VND (12.4 mio US$)- Saigon Cables Co. (SCC); 50 bio VND (3.1 mio US$)- Sam Phu Plastic Co.; 25 bio VND (1.5 mio US$) Sam Cuong Electricity and Telecommunications Materials Co.; and 25 mio US$-Taihan-Sacom Cables Joint Venture.

Increase of seafood exports to Korea expected

RoK will offer annual duty-free import quotas to some seafood products of ASEAN member countries from January 1, 2007.

Fisheries officials said this would be a good opportunity for Vietnamese businesses boost seafood exports to this potential market.

Source: Thanh Nien

Oil company offers successfully to public

Shares of Petrovietnam Drilling and Well Services Co (PVD) soared 150% on their stock market debut day to close at 130,000VND (8.09 US$). It has a market value of 550mio US$.

The listing of the firm, which is 51% owned by state oil monopoly Petrovietnam, represents the biggest opportunity yet for private investors to buy equity in Vietnam's exploration sector.
Crude oil is Vietnam's largest foreign exchange earner and the country is Southeast Asia's third-biggest crude producer.

PV Drilling charters and operates oil and gas drilling rigs and provides well-related services. It has been expanding overseas operations and recently won a tender to supply a rig to an Algeria-based project invested by Petrovietnam's investment arm PIDC.PV Drilling has a joint venture with U.S. oilfield firm BJ Services.

Its 3.2mio US$venture with U.S. oilfield firm BJ Services International S.A.R.L. in the southern province of Ba Ria-Vung Tau offers well reinforcement services.

Source: Reuters

Week 48: Stock Market Summary

	wk48	wk47	+/-	+/- %
VNINDEX	631.29	665.53	-34.2	-5.1
AGF	106	107	-1	-0.9
ALT	44.7
BBC	35.3	37.1	-1.8	-4.9
BBT	13.2	14	-0.8	-5.7
BMP	110	120	-10	-8.3
BPC	24.1	26	-1.9	-7.3
BT6	57.5	59.5	-2	-3.4
BTC	11.9	12.5	-0.6	-4.8
CAN	27.1	28.8	-1.7	-5.9
CII	41	43.1	-2.1	-4.9
CLC	52.5	53	-0.5	-0.9
COM	40	41	-1	-2.4
CYC	17.8	19.9	-2.1	-10.6
DCT	27.3	29.9	-2.6	-8.7
DHA	75	81.5	-6.5	-8.0
DPC	18.2	19.1	-0.9	-4.7
FPC	35.3	37.2	-1.9	-5.1
GIL	55	56	-1	-1.8
GMD	135	155	-20	-12.9
HAP	37.5	39.7	-2.2	-5.5
HAS	52.5	54	-1.5	-2.8
HTV	26	28.7	-2.7	-9.4
IFS	42.5	45	-2.5	-5.6
ITA	81	74	7	9.5
KDC	105	113	-8	-7.1
KHA	25.1	27	-1.9	-7.0
LAF	14.7	15	-0.3	-2.0
MHC	31.1	33.2	-2.1	-6.3
NHC	39	39.3	-0.3	-0.8
NKD	95.5	105	-9.5	-9.0
PGC	54
PMS	29	32	-3	-9.4
PNC	27	24.9	2.1	8.4
REE	107	113	-6	-5.3
RHC	35	36.5	-1.5	-4.1
SAM	131	127	4	3.1
SAV	44.5	45.3	-0.8	-1.8
SFC	42.5	46	-3.5	-7.6
SGC	45.5	48.9	-3.4	-7.0
SGH	50	55	-5	-9.1
SHC	34	36	-2	-5.6
SJS	363	330	33	10.0
SMC	37.5	35.8	1.7	4.7
SSC	70	76	-6	-7.9
STB	64	68	-4	-5.9
TMS	69	72.5	-3.5	-4.8
TNA	38.1	40.9	-2.8	-6.8
TRI	28	31	-3	-9.7
TS4	28.6	28.7	-0.1	-0.3
TTC	17	18.3	-1.3	-7.1
TYA	52	55	-3	-5.5
UNI	39.5	44	-4.5	-10.2
VFC	31.3	32.4	-1.1	-3.4
VFMVF1	29.5	30.8	-1.3	-4.2
VNM	105	112	-7	-6.3
VSH	43	46.3	-3.3	-7.1
VTC	35	37	-2	-5.4