Analysts have been talking about the trend of “brand name trading”. This is when big corporations signs agreements on strategic partnership and cooperation.
A lot of cooperation agreements have been signed recently, between the Vietnam Post and Telecommunications Group (VNPT) and three corporations, Vincom (real estate developer), BIDV (bank) and Vinaconex (construction); between BIDV and the Vietnam Development Bank (VDB); between the Vietnam Coal and Mineral Industries Group (Vinacoal) and a transport works design company.
It has become a trend that big corporations cooperate with each other, which can help them share risks in doing business while allowing them to seek more profit.
VNPT, for example, is mainly a telecommunications service provider. However, with the cooperation with Vinaconex and Vincom, it is attempting to enter a new business field: construction and real estate. The enterprises that cooperate with VNPT will also benefit from having VNPT as a special partner in terms of access to its services.
The news about cooperation between corporations has brought about a lot of effects. One year ago, when the stock market was hot, news about cooperation deals helped a lot in making corporations’ shares more valuable. The shares of the companies involved in cooperation agreements skyrocketed right after mass media reported on the deals.
That explains why questions have been raised about the reasons for the partnerships.
VNPT now can establish a bank, while FPT, a software and informatics company, now can jump into other business fields, including finance and securities. Meanwhile, other enterprises have not made any moves after their hand shakings.
Vincom’s representatives stressed that the company did not intend to take advantage of VNPT to polish its image. VNPT and Vincom now have common, specific goals in capital investment, technology infrastructure for high-grade apartment areas.
According to VNPT’s representative, it will not happen that VNPT will be the sole service provider for Vincom. VNPT will have to compete with other rivals, though it has advantages as the strategic partner of Vincom.
Anyway, experts have warned that enterprises should think carefully before making cooperation deals. If the benefit the two sides can get does not satisfy enterprises, they will cheapen their brand names.
Source: VNE
Showing posts with label BIDV. Show all posts
Showing posts with label BIDV. Show all posts
Friday, August 31, 2007
Friday, August 10, 2007
Banks rushing to issue bonds
In July 2007 alone, the total value of bonds issued by commercial banks reached VND21,500bil, including the VND3tril worth of bonds issued by the Bank for Investment and Development of Vietnam (BIDV).
Banks are seemingly rushing to issue bonds at this moment, and analysts say that this is the result of the decision by the central bank in May to require higher compulsory reserve ratio on bank deposits. The decision has certainly led to the higher cost of capital mobilisation, which explains why banks have to find another way to mobilise capital. Issuing bonds proves to be a good solution, because banks do not have to make compulsory reserves for the capital raised from bond issuances as they have to do for the capital raised from bank deposits.
Commercial banks are ready to pay high interest rates for the bonds in order to attract more buyers. In the long term, the interest rates for deposits are expected to increase gradually, thus making the high interest rates banks have to pay at this moment cheaper.
Banks are rushing to issue bonds also because the issuances may help raise their total assets. Big total assets can satisfy shareholders of banks while attracting more clients.
However, the problem lies in the fact that banks are still trying to raise more funds though their usable capital remains profuse. The financial reports of several banks show that the mobilised capital has increased sharply in the last time, while outstanding loans have not increased accordingly. Last month BIDV issued VND3tril worth of bonds. Though the bank has not declared detailed figures, sources said that the buyers of the bonds were mainly other commercial banks.
Some analysts think that banks are trying to issue bonds because they want more long-term capital. Currently, the banking system is the biggest lender. The stock market is still in its first stage of development, and only few enterprises can access this capital source. Only a few enterprises have raised funds by issuing bonds, including the HCM City Infrastructure Investment (CII), which issued VND500bil worth of bonds last month with the guarantee of VIB Bank and VISecurities. There are many reasons behind the underdevelopment of the bond market, but the biggest reason, according to Dang Doan Kien, Director General of VISecurities, is that Vietnam still lacks credit rating firms, which can release credit ratings of enterprises as bond issuers.
In fact, the move by banks to issue bonds in the last time has been encouraged by the State Bank of Vietnam and the Ministry of Finance. On August 1, Deputy Prime Minister Nguyen Sinh Hung signed a document, requesting relevant ministries to join forces to control inflation. The central bank has been asked to check monetary policies, control payment instruments, and urged to use open market tools in order to limit the supply of cash. Therefore, bond issuance, which helps withdraw cash from circulation, has been backed by the central bank.
Sources said that several other banks were seeking permission to issue bonds and the proposals would be accepted.
Despite a lot of efforts, the consumer price index (CPI) jumped high in the first seven months of the year to 6.19%, higher than last year’s same period level of 4.4%. Controlling inflation is the most important task for the remaining months of the year. However, analysts have warned that it will be very difficult to obtain the goal at the same time as stabilising the exchange rate to encourage exports. International economics has the theory of the ‘impossible trinity’, which means three things cannot be obtained at the same time: free capital movement, a fixed exchange rate, and an independent monetary policy.
Source: VNE
Banks are seemingly rushing to issue bonds at this moment, and analysts say that this is the result of the decision by the central bank in May to require higher compulsory reserve ratio on bank deposits. The decision has certainly led to the higher cost of capital mobilisation, which explains why banks have to find another way to mobilise capital. Issuing bonds proves to be a good solution, because banks do not have to make compulsory reserves for the capital raised from bond issuances as they have to do for the capital raised from bank deposits.
Commercial banks are ready to pay high interest rates for the bonds in order to attract more buyers. In the long term, the interest rates for deposits are expected to increase gradually, thus making the high interest rates banks have to pay at this moment cheaper.
Banks are rushing to issue bonds also because the issuances may help raise their total assets. Big total assets can satisfy shareholders of banks while attracting more clients.
However, the problem lies in the fact that banks are still trying to raise more funds though their usable capital remains profuse. The financial reports of several banks show that the mobilised capital has increased sharply in the last time, while outstanding loans have not increased accordingly. Last month BIDV issued VND3tril worth of bonds. Though the bank has not declared detailed figures, sources said that the buyers of the bonds were mainly other commercial banks.
Some analysts think that banks are trying to issue bonds because they want more long-term capital. Currently, the banking system is the biggest lender. The stock market is still in its first stage of development, and only few enterprises can access this capital source. Only a few enterprises have raised funds by issuing bonds, including the HCM City Infrastructure Investment (CII), which issued VND500bil worth of bonds last month with the guarantee of VIB Bank and VISecurities. There are many reasons behind the underdevelopment of the bond market, but the biggest reason, according to Dang Doan Kien, Director General of VISecurities, is that Vietnam still lacks credit rating firms, which can release credit ratings of enterprises as bond issuers.
In fact, the move by banks to issue bonds in the last time has been encouraged by the State Bank of Vietnam and the Ministry of Finance. On August 1, Deputy Prime Minister Nguyen Sinh Hung signed a document, requesting relevant ministries to join forces to control inflation. The central bank has been asked to check monetary policies, control payment instruments, and urged to use open market tools in order to limit the supply of cash. Therefore, bond issuance, which helps withdraw cash from circulation, has been backed by the central bank.
Sources said that several other banks were seeking permission to issue bonds and the proposals would be accepted.
Despite a lot of efforts, the consumer price index (CPI) jumped high in the first seven months of the year to 6.19%, higher than last year’s same period level of 4.4%. Controlling inflation is the most important task for the remaining months of the year. However, analysts have warned that it will be very difficult to obtain the goal at the same time as stabilising the exchange rate to encourage exports. International economics has the theory of the ‘impossible trinity’, which means three things cannot be obtained at the same time: free capital movement, a fixed exchange rate, and an independent monetary policy.
Source: VNE
Thursday, August 09, 2007
Adjusting IPO roadmap to balance market
Investors and experts have hailed the Government’s adjustment of the initial public offering (IPO) roadmap by state-owned enterprises (SOEs) under the equitisation process, calling it a suitable reaction to market changes.
After several unsuccessful IPOs since March, Prime Minister Nguyen Tan Dung has asked the Ministry of Finance and the State Securities Commission (SSC) to adjust the IPO plan in order to balance supply and demand, reduce the threats of a volatile market and ensure investors’ interests as well as limit state budget losses.
As many as 40 enterprises have made IPOs with nearly 451 million auctioned shares since early this year, according to the Monetary Policy Department under the State Bank of Viet Nam.
In a short period of time, a large amount of shares were issued; whilst investment capital was limited, making auctions bored. The average share price of IPOs since March has risen little over the initial level. Even worse, withdrawal of investors has meant many enterprises had to conduct a second auction. Typical examples were Viet Nam Insurance (BVI) and the PV Insurance Company (PVI).
According to experts, while the securities market has not yet been recovered, if IPOs keep going on as scheduled, shares will be devaluated, causing losses to both the state and investors.
Nguyen Trong Dung, Vice Director of the Government Office’s Enterprise Reform Department revealed that to-be-equitised SOE capital scale is so huge that pumping more commodities into the securities market while supply is over demand will cause loss to the state.
Deputy Director of the Institute for Market and Price Research under the Ministry of Finance Ngo Tri Long agreed that the IPO roadmap applied to major SOEs should be adjusted.
On these ground, several commercial banks reconsidered their IPO itinerary.
From now to the year-end, four commercial banks, including the Bank for Investment and Development of Viet Nam (BIDV) and 21 SOEs are scheduled for equitisation, resulting in a large amount of money about to be injected into the market.
BIDV is preparing for its IPO, but the bank should think twice, no deadline is to be fixed and it is necessary to ensure an appropriate price which will not only benefit the State but also ensure employees’ interests, said BIDV General Director Tran Bac Ha.
This message was echoed by Minister of Finance Vu Van Ninh, who said enterprises’ IPOs should be based on the market’s demand. The process of SOE equitisation will continue to be conducted as defined in a Prime Minister decision, but to-be-equitised enterprises should take time preparing IPOs, the minister added.
In 2007, as many as 20 SOEs, including the Ha Noi Beer Corporation, the Sai Gon Beer Corporation, the Viet Nam Commercial Bank (VCB), the Mekong Delta House Development Bank, the House Development and Investment Corporation and the Ha Noi Urban Development Corporation are set for equitisation. The number should top 71 by 2010.
Source: VNA
After several unsuccessful IPOs since March, Prime Minister Nguyen Tan Dung has asked the Ministry of Finance and the State Securities Commission (SSC) to adjust the IPO plan in order to balance supply and demand, reduce the threats of a volatile market and ensure investors’ interests as well as limit state budget losses.
As many as 40 enterprises have made IPOs with nearly 451 million auctioned shares since early this year, according to the Monetary Policy Department under the State Bank of Viet Nam.
In a short period of time, a large amount of shares were issued; whilst investment capital was limited, making auctions bored. The average share price of IPOs since March has risen little over the initial level. Even worse, withdrawal of investors has meant many enterprises had to conduct a second auction. Typical examples were Viet Nam Insurance (BVI) and the PV Insurance Company (PVI).
According to experts, while the securities market has not yet been recovered, if IPOs keep going on as scheduled, shares will be devaluated, causing losses to both the state and investors.
Nguyen Trong Dung, Vice Director of the Government Office’s Enterprise Reform Department revealed that to-be-equitised SOE capital scale is so huge that pumping more commodities into the securities market while supply is over demand will cause loss to the state.
Deputy Director of the Institute for Market and Price Research under the Ministry of Finance Ngo Tri Long agreed that the IPO roadmap applied to major SOEs should be adjusted.
On these ground, several commercial banks reconsidered their IPO itinerary.
From now to the year-end, four commercial banks, including the Bank for Investment and Development of Viet Nam (BIDV) and 21 SOEs are scheduled for equitisation, resulting in a large amount of money about to be injected into the market.
BIDV is preparing for its IPO, but the bank should think twice, no deadline is to be fixed and it is necessary to ensure an appropriate price which will not only benefit the State but also ensure employees’ interests, said BIDV General Director Tran Bac Ha.
This message was echoed by Minister of Finance Vu Van Ninh, who said enterprises’ IPOs should be based on the market’s demand. The process of SOE equitisation will continue to be conducted as defined in a Prime Minister decision, but to-be-equitised enterprises should take time preparing IPOs, the minister added.
In 2007, as many as 20 SOEs, including the Ha Noi Beer Corporation, the Sai Gon Beer Corporation, the Viet Nam Commercial Bank (VCB), the Mekong Delta House Development Bank, the House Development and Investment Corporation and the Ha Noi Urban Development Corporation are set for equitisation. The number should top 71 by 2010.
Source: VNA
BIDV insurer increases capital to 500 billion VND
The Finance Ministry has given the nod to the BIDV Insurance Company (BIC) to increase its charter capital 2.5 times to 500 billion VND (31.25 million USD), the company announced.
This will be the third time BIC has boosted their charter capital since early 2006. In April 2006, it raised capital to 100 billion VND and the figure was doubled six months later.
According to BIC, the Bank for Investment and Development of Viet Nam (BIDV) made the move to capital for BIC with the aim of improving its financial capacity and competitive edge as well as meeting demand of the insurance sector, which is forecast to boom in the near future.
BIC is currently among Viet Nam's top five non-life insurance companies.
Source: VNA
This will be the third time BIC has boosted their charter capital since early 2006. In April 2006, it raised capital to 100 billion VND and the figure was doubled six months later.
According to BIC, the Bank for Investment and Development of Viet Nam (BIDV) made the move to capital for BIC with the aim of improving its financial capacity and competitive edge as well as meeting demand of the insurance sector, which is forecast to boom in the near future.
BIC is currently among Viet Nam's top five non-life insurance companies.
Source: VNA
Wednesday, July 25, 2007
Vietindebank bags $20.3 mln in 1st half net profit
Vietnam's second largest bank by assets, state-run Bank for Investment and Development or Vietindebank, said on Wednesday its net profit reached 326.89 billion dong ($20.3 million) in the first half of this year.
Vietindebank and four other state-run banks have been ordered to partially privatise this year and in 2008, a move seen as a test of market-opening commitments Vietnam made before joining the World Trade Organisation in January.
The unlisted Hanoi-based bank gave no comparison for the corresponding period last year but it said its after-tax earnings in 2006 totalled 1.08 trillion dong.
In a statement via the Ho Chi Minh Stock Exchange Vietindebank said its assets at the end of June rose 25 percent from the end of 2006 to 201.59 trillion dong, nearing the target for the whole of this year.
Vietindebank has projected its assets at the end of 2007 to jump 26 percent from 2006 to 211.3 trillion dong, with loans expected to rise 20 percent to 122.7 trillion dong.
Using Vietnamese accounting standards, Vietindebank's return on earnings is forecast to rise to 10.42 percent by the end of the year, from 6.38 percent in April, the bank has said.
Earlier this month Vietindebank said it planned to list its shares in Vietnam in the first quarter of next year while an overseas flotation at undisclosed time would follow.
Vietindebank has hired U.S. investment bank Morgan Stanley as an adviser on a domestic IPO scheduled in the last quarter of 2007.
Source: Reuters
Vietindebank and four other state-run banks have been ordered to partially privatise this year and in 2008, a move seen as a test of market-opening commitments Vietnam made before joining the World Trade Organisation in January.
The unlisted Hanoi-based bank gave no comparison for the corresponding period last year but it said its after-tax earnings in 2006 totalled 1.08 trillion dong.
In a statement via the Ho Chi Minh Stock Exchange Vietindebank said its assets at the end of June rose 25 percent from the end of 2006 to 201.59 trillion dong, nearing the target for the whole of this year.
Vietindebank has projected its assets at the end of 2007 to jump 26 percent from 2006 to 211.3 trillion dong, with loans expected to rise 20 percent to 122.7 trillion dong.
Using Vietnamese accounting standards, Vietindebank's return on earnings is forecast to rise to 10.42 percent by the end of the year, from 6.38 percent in April, the bank has said.
Earlier this month Vietindebank said it planned to list its shares in Vietnam in the first quarter of next year while an overseas flotation at undisclosed time would follow.
Vietindebank has hired U.S. investment bank Morgan Stanley as an adviser on a domestic IPO scheduled in the last quarter of 2007.
Source: Reuters
Friday, July 20, 2007
Banks and funds snap up $31 mln CII bonds
Seven institutional investors including two banks have snapped up the 7-year corporate bonds worth 500 billion dong ($31 million) issued by an investment firm in Ho Chi Minh City, underwriters of the debt said on Friday.
Ho Chi Minh City Infrastructure Investment Co. (CII) sold the July 2014 bonds at an annual coupon of 10.3 percent, underwriters Vietnam International Bank and Vietnam International Securities Company said in a statement.
CII has said it will use proceeds from the issue to finance water supply and bridge construction projects in the city. It did not say if the bonds would be listed on Vietnam's stock market.
Shares in CII were trading down 2.86 percent at 68,000 dong ($4.2) by 0227 GMT on Friday, valuing the firm at around $126 million.
State-run Vietindebank and Saigon Securities (SSI) each bought 100 billion dong worth of the debt.
Other investors included Baoviet Securities (BVS), Prudential Balanced Fund (PRUBF1), Prudential Vietnam Assurance Private Ltd., Hong Kong-based PCA International Funds SPC and unlisted Military Bank that is run by Vietnam's army.
CII invests in urban projects such as roads, bridges, and residential areas. It also provides consultation on financial investment and collects road tolls.
Source: Reuters
Ho Chi Minh City Infrastructure Investment Co. (CII) sold the July 2014 bonds at an annual coupon of 10.3 percent, underwriters Vietnam International Bank and Vietnam International Securities Company said in a statement.
CII has said it will use proceeds from the issue to finance water supply and bridge construction projects in the city. It did not say if the bonds would be listed on Vietnam's stock market.
Shares in CII were trading down 2.86 percent at 68,000 dong ($4.2) by 0227 GMT on Friday, valuing the firm at around $126 million.
State-run Vietindebank and Saigon Securities (SSI) each bought 100 billion dong worth of the debt.
Other investors included Baoviet Securities (BVS), Prudential Balanced Fund (PRUBF1), Prudential Vietnam Assurance Private Ltd., Hong Kong-based PCA International Funds SPC and unlisted Military Bank that is run by Vietnam's army.
CII invests in urban projects such as roads, bridges, and residential areas. It also provides consultation on financial investment and collects road tolls.
Source: Reuters
Vietindebank to issue $186 mln of 5-year bonds
Vietnam's second largest bank by assets, Bank for Investment and Development (BIDV, Vietindebank), said on Thursday it would sell 3 trillion dong ($186 million) of 5-year bonds on domestic markets from next week.
The July 23, 2012 bond would carry an annual coupon of 8.15 percent, the Hanoi-based bank said in a statement.
Vietindebank said the bonds would be sold to domestic and foreign institutions "to raise long-term funds and meet the funding demand in business activities".
Vietindebank Chief Executive Tran Bac Ha said last week the lender, national carrier Vietnam Airlines, state oil group Petrovietnam and Vietnam Posts and Telecommunications group would form a share-holding firm to lease aircraft.
Pending government approval, the firm would buy four of Boeing Co.'s new 787 planes to lease to domestic airlines with the first delivery in 2015, when the new company would be fully operational.
The aircraft purchase would be worth as much as $800 million at list prices.
Vietindebank has hired U.S. investment bank Morgan Stanley as an adviser on its IPO. It plans to list overseas following its domestic flotation in the first quarter of 2008.
Vietindebank and four other state-run banks have been ordered to partially privatise this year and in 2008, a move seen as a test of Vietnam's commitments on joining the World Trade Organisation to open its markets.
Source: Reuters
The July 23, 2012 bond would carry an annual coupon of 8.15 percent, the Hanoi-based bank said in a statement.
Vietindebank said the bonds would be sold to domestic and foreign institutions "to raise long-term funds and meet the funding demand in business activities".
Vietindebank Chief Executive Tran Bac Ha said last week the lender, national carrier Vietnam Airlines, state oil group Petrovietnam and Vietnam Posts and Telecommunications group would form a share-holding firm to lease aircraft.
Pending government approval, the firm would buy four of Boeing Co.'s new 787 planes to lease to domestic airlines with the first delivery in 2015, when the new company would be fully operational.
The aircraft purchase would be worth as much as $800 million at list prices.
Vietindebank has hired U.S. investment bank Morgan Stanley as an adviser on its IPO. It plans to list overseas following its domestic flotation in the first quarter of 2008.
Vietindebank and four other state-run banks have been ordered to partially privatise this year and in 2008, a move seen as a test of Vietnam's commitments on joining the World Trade Organisation to open its markets.
Source: Reuters
Monday, July 16, 2007
Vietnam fertiliser maker plans Q3 listing
State-run Petrovietnam Fertiliser and Chemicals Company (PVFCC), with a market value of $1.4 billion, plans to list on domestic markets within the third quarter, the company said on Monday.
Shareholders of PVFCC, 60.05 percent owned by state oil and gas Petrovietnam group, have asked its management board to seek a listing either on the Ho Chi Minh Stock Exchange or the over-the-counter Hanoi market, Chairman Dinh Huu Loc said in the statement.
Loc did not say how much PVFCC planned to raise from the listing.
Shares in PVFCC eased to 58,000-60,000 dong ($3.6-$3.7) on the unofficial markets late last week from 63,000-65,000 dong in late June prior to the listing decision.
Shareholders met on June 30 for the first time after PVFCC sold one third of its shares to the public at an initial public offering in April, and raised more than $430 million.
State-run Vietindebank, Vietnam's second-largest by assets, owns 19 million shares in PVFCC, or 5 percent of the company. Asia Commercial Bank (ACB), one of Vietnam's two listed banks, owns 1 percent with 3.8 million shares.
PVFCC operates Vietnam's only fertiliser plant, the Phu My Urea Plant in the southern province of Ba Ria-Vung Tau. Its urea production and the fertiliser it imports meet 40 percent of Vietnam's domestic demand.
Source: Reuters
Shareholders of PVFCC, 60.05 percent owned by state oil and gas Petrovietnam group, have asked its management board to seek a listing either on the Ho Chi Minh Stock Exchange or the over-the-counter Hanoi market, Chairman Dinh Huu Loc said in the statement.
Loc did not say how much PVFCC planned to raise from the listing.
Shares in PVFCC eased to 58,000-60,000 dong ($3.6-$3.7) on the unofficial markets late last week from 63,000-65,000 dong in late June prior to the listing decision.
Shareholders met on June 30 for the first time after PVFCC sold one third of its shares to the public at an initial public offering in April, and raised more than $430 million.
State-run Vietindebank, Vietnam's second-largest by assets, owns 19 million shares in PVFCC, or 5 percent of the company. Asia Commercial Bank (ACB), one of Vietnam's two listed banks, owns 1 percent with 3.8 million shares.
PVFCC operates Vietnam's only fertiliser plant, the Phu My Urea Plant in the southern province of Ba Ria-Vung Tau. Its urea production and the fertiliser it imports meet 40 percent of Vietnam's domestic demand.
Source: Reuters
Sunday, July 15, 2007
BIDV increases capital for its insurance, securities businesses
The Bank for Investment and Development of Viet Nam (BIDV) yesterday increased charter capital for two of its major subsidiaries, BIDV Insurance Co (BIC) and BIDV Securities Co (BSC) to improve their competitiveness.
"BIC’ charter capital was raised from VND200 billion (US$12.5 million) to VND500 billion ($31.25 million) and becoming one of the biggest companies in this sector," said general director of BIDV Tran Bac Ha, "The company will be equitised at the same time as BIDV."
After equitisation, BIC will co-operate with American International Group (AIG) and operate under the parent corporation in both life and non-life insurance sectors.
Commenting on the increase of BSC’s charter capital from VND300 billion ($18.75 million) to VND700 billion ($43.75 million), the general director said. "There are over 55 securities companies, making competition increasingly fierce. I think, the increase of charter capital will be a boost for BSC and we will focus on underwriting services by supplying quality cover, beyond the capacity of many smaller companies."
For the first half of the year, BIC posted earnings of VND5.28 billion ($330,000). BSC reported a pre-tax profit of VND62 billion ($3.87 million), three times more than the same period last year, accounting for 15 per cent of its market value.
By the third quarter, BIDV plans to open a trading centre for banking, insurance and securities services in Ha Noi.
Source: VNS
"BIC’ charter capital was raised from VND200 billion (US$12.5 million) to VND500 billion ($31.25 million) and becoming one of the biggest companies in this sector," said general director of BIDV Tran Bac Ha, "The company will be equitised at the same time as BIDV."
After equitisation, BIC will co-operate with American International Group (AIG) and operate under the parent corporation in both life and non-life insurance sectors.
Commenting on the increase of BSC’s charter capital from VND300 billion ($18.75 million) to VND700 billion ($43.75 million), the general director said. "There are over 55 securities companies, making competition increasingly fierce. I think, the increase of charter capital will be a boost for BSC and we will focus on underwriting services by supplying quality cover, beyond the capacity of many smaller companies."
For the first half of the year, BIC posted earnings of VND5.28 billion ($330,000). BSC reported a pre-tax profit of VND62 billion ($3.87 million), three times more than the same period last year, accounting for 15 per cent of its market value.
By the third quarter, BIDV plans to open a trading centre for banking, insurance and securities services in Ha Noi.
Source: VNS
Thursday, July 12, 2007
Leading banks announce earnings
Three leading banks yesterday announced mid-year earnings results, as analysts begin assessing the health of the financial sector in the wake of recent price wars and monetary tightening.
The Technological and Commercial Joint Stock Bank (Techcombank) announced they had gained VND314.8 billion (US$19.6 million) in pre-tax profit for the first six months of 2007. Two State-owned giants Vietcombank and the Bank for Investment and Development of Viet Nam (BIDV) also announced their performance in capital mobilisation and loans.
Banks over the past couple months have increased rates on term deposit to raise capital before the seasonal surge in loan demand toward the end of the third quarter.
The situation has been complicated by recent monetary tightening by the State Bank of Viet Nam, which has increased reserve requirements in an attempt to ease inflationary pressure.
How loan growth will develop in the second half of the year will depend on which banks have the capital to splurge and how much risk they are willing to assume.
Source: VNS
The Technological and Commercial Joint Stock Bank (Techcombank) announced they had gained VND314.8 billion (US$19.6 million) in pre-tax profit for the first six months of 2007. Two State-owned giants Vietcombank and the Bank for Investment and Development of Viet Nam (BIDV) also announced their performance in capital mobilisation and loans.
Banks over the past couple months have increased rates on term deposit to raise capital before the seasonal surge in loan demand toward the end of the third quarter.
The situation has been complicated by recent monetary tightening by the State Bank of Viet Nam, which has increased reserve requirements in an attempt to ease inflationary pressure.
How loan growth will develop in the second half of the year will depend on which banks have the capital to splurge and how much risk they are willing to assume.
Source: VNS
BIDV to announce strategic investors next month
The Bank for Investment and Development of Viet Nam (BIDV) has announced that it will decide and make public its strategic investors on August 15, 2007.
The announcement will come ahead of the run up for its initial public offering (IPO) that is scheduled for the fourth quarter of this year and is part of an equitsation consultation contract it signed with Morgan Stanley in Ha Noi on July 11.
BIDV General Director Tran Bac Ha said that it is likely his bank would ask more than one strategic investor to come onboard but they wouldn't be entitled to preferential stock prices and may even be ased to offer higher bids than the average share price at the IPO.
Under the contract, which will run until September this year, Morgan Stanley will provide BIDV with consultancy on designing and implementing the equitisation plan, evaluating the business, selecting and selling stakes to strategic investors, while preparing the IPO and listing both inside and outside the country.
By the end of June, BIDV’s assets had surged to 200 trillion VND (approximately 12.5 billion USD) and it had slashed its bad debt ratio from 9.6 percent to 4.46 percent.
Source: VNA
The announcement will come ahead of the run up for its initial public offering (IPO) that is scheduled for the fourth quarter of this year and is part of an equitsation consultation contract it signed with Morgan Stanley in Ha Noi on July 11.
BIDV General Director Tran Bac Ha said that it is likely his bank would ask more than one strategic investor to come onboard but they wouldn't be entitled to preferential stock prices and may even be ased to offer higher bids than the average share price at the IPO.
Under the contract, which will run until September this year, Morgan Stanley will provide BIDV with consultancy on designing and implementing the equitisation plan, evaluating the business, selecting and selling stakes to strategic investors, while preparing the IPO and listing both inside and outside the country.
By the end of June, BIDV’s assets had surged to 200 trillion VND (approximately 12.5 billion USD) and it had slashed its bad debt ratio from 9.6 percent to 4.46 percent.
Source: VNA
Wednesday, July 11, 2007
Banks and a finance group lend $156 mln for hydroelectricity plant
All four state-owned banking giants in Vietnam and a financial institution have joined hands to provide VND2.5 trillion (US$156 million) for building a hydropower plant in the northern Son La province.
Following credit deals signed Tuesday, the Industrial and Commercial Bank of Vietnam, the Bank for Investment and Development of Vietnam, Asia Commercial Bank, Military Bank and PetroVietnam Finance Co will provide VND1.92 trillion in long-term loans.
The rest will be provided as working capital by the Bank for Foreign Trade of Vietnam.
The Nam Chien Hydroelectricity Plant will be built at a cost of VND4.17 trillion Nam Chien company in Muong La district.
The 200MW plant will be ready by 2009 or 2010 at the latest.
Power demand is increasing by 20 percent a year while the state-run Electricity of Vietnam has said generation will grow by less than 15 percent.
In recent years the government has adopted priority policies to attract investors in the power sector.
The Ministry of Planning and Investment said several mammoth electricity projects involving investments of billions of dollars by foreign companies were awaiting approval.
In the north, the US’s AES and Vietnam Coal and Mineral Industries Group plan to build the 1,200 MW Mong Duong 2 thermal power plant at a cost of $1.4 billion in Quang Ninh province.
While Japan’s Sumitomo Corp., which has more than 25 projects in Vietnam, is planning to build a 2,640 MW, $4 billion power plant in Khanh Hoa province, in central Vietnam.
In the south, the US’s Cannon Group is seeking to build a 1,000 MW power plant in Dong Nai province, while Singapore’s leading power and integrated utilities firm, SembCorp Utilities Pte. Ltd., looks set to invest $500 million to build a 700 MW plant in Ho Chi Minh City.
Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17 percent per year, driving the government to plan the construction of 60 additional plants by 2020.
Source: Thanh Nien
Following credit deals signed Tuesday, the Industrial and Commercial Bank of Vietnam, the Bank for Investment and Development of Vietnam, Asia Commercial Bank, Military Bank and PetroVietnam Finance Co will provide VND1.92 trillion in long-term loans.
The rest will be provided as working capital by the Bank for Foreign Trade of Vietnam.
The Nam Chien Hydroelectricity Plant will be built at a cost of VND4.17 trillion Nam Chien company in Muong La district.
The 200MW plant will be ready by 2009 or 2010 at the latest.
Power demand is increasing by 20 percent a year while the state-run Electricity of Vietnam has said generation will grow by less than 15 percent.
In recent years the government has adopted priority policies to attract investors in the power sector.
The Ministry of Planning and Investment said several mammoth electricity projects involving investments of billions of dollars by foreign companies were awaiting approval.
In the north, the US’s AES and Vietnam Coal and Mineral Industries Group plan to build the 1,200 MW Mong Duong 2 thermal power plant at a cost of $1.4 billion in Quang Ninh province.
While Japan’s Sumitomo Corp., which has more than 25 projects in Vietnam, is planning to build a 2,640 MW, $4 billion power plant in Khanh Hoa province, in central Vietnam.
In the south, the US’s Cannon Group is seeking to build a 1,000 MW power plant in Dong Nai province, while Singapore’s leading power and integrated utilities firm, SembCorp Utilities Pte. Ltd., looks set to invest $500 million to build a 700 MW plant in Ho Chi Minh City.
Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17 percent per year, driving the government to plan the construction of 60 additional plants by 2020.
Source: Thanh Nien
Vietindebank plans to buy 4 Boeing 787s
Vietnam's state-run Vietindebank said on Wednesday it planned to purchase four Boeing 787 planes to lease to domestic airlines.
"We have applied for permission from the government to establish a company to lease planes," a spokesman for the Hanoi-based bank said.
He said the company would be fully operational by 2015.
The country's flag carrier Vietnam Airlines has placed an order for four Boeing 787 planes with the first delivery scheduled next year.
The bank, Vietnam's second-largest bank by assets, said on Wednesday it planned to issue shares to the public for the first time in the last quarter of this year.
Vietindebank, which has hired U.S. investment bank Morgan Stanley as an adviser on its initial public offering, said it planned to list overseas after its domestic listing, but declined to give further details.
Source: Reuters
"We have applied for permission from the government to establish a company to lease planes," a spokesman for the Hanoi-based bank said.
He said the company would be fully operational by 2015.
The country's flag carrier Vietnam Airlines has placed an order for four Boeing 787 planes with the first delivery scheduled next year.
The bank, Vietnam's second-largest bank by assets, said on Wednesday it planned to issue shares to the public for the first time in the last quarter of this year.
Vietindebank, which has hired U.S. investment bank Morgan Stanley as an adviser on its initial public offering, said it planned to list overseas after its domestic listing, but declined to give further details.
Source: Reuters
Vietindebank plans Q1 2008 domestic listing
State-run Bank for Investment and Development (Vietindebank), Vietnam's second largest, plans to list in the first quarter of 2008 after an IPO in the fourth quarter of 2007, chief executive Tran Bac Ha said on Wednesday.
"Our plan will go on as scheduled, but the government will have make a final decision on the IPO timing," Ha told Reuters before signing a contract with Morgan Stanley as consultant for its initial public offering.
Vietindebank said in a statement it would issue shares on an unspecified international market "at an appropriate time".
Source: Reuters
"Our plan will go on as scheduled, but the government will have make a final decision on the IPO timing," Ha told Reuters before signing a contract with Morgan Stanley as consultant for its initial public offering.
Vietindebank said in a statement it would issue shares on an unspecified international market "at an appropriate time".
Source: Reuters
Saturday, July 07, 2007
Market glut concerns delay BIDV IPO
Vietnam's third-largest bank, the Bank for Investment and Development, is considering delaying an initial public offering from the fourth quarter until next year on concerns about a market slowdown.
The Dow Jones Newswires quoted Do Ngoc Quynh, deputy director of BIDV's treasury department, as saying that officials of the state-run bank were now looking carefully at market conditions.
Following a big run-up, Vietnam's stock market has softened recently.
After the country was admitted to the World Trade Organization earlier this year, many state-run companies have launched IPOs, and many more are waiting in the wings.
In addition to BIDV, the Bank for Foreign Trade of Vietnam, the Industrial and Commercial Bank and the Mekong Delta Housing Development Bank have also been planning IPOs around the fourth quarter.
With so many IPOs coming on at the same time, there is concern about a potential glut pushing down share prices.
Source: Thanh Nien
The Dow Jones Newswires quoted Do Ngoc Quynh, deputy director of BIDV's treasury department, as saying that officials of the state-run bank were now looking carefully at market conditions.
Following a big run-up, Vietnam's stock market has softened recently.
After the country was admitted to the World Trade Organization earlier this year, many state-run companies have launched IPOs, and many more are waiting in the wings.
In addition to BIDV, the Bank for Foreign Trade of Vietnam, the Industrial and Commercial Bank and the Mekong Delta Housing Development Bank have also been planning IPOs around the fourth quarter.
With so many IPOs coming on at the same time, there is concern about a potential glut pushing down share prices.
Source: Thanh Nien
Friday, July 06, 2007
Government asks for reconsideration of equitisation plan
The Prime Minister has asked the Ministry of Finance, State Bank of Vietnam and other relevant ministries to reconsider the plan on state-owned enterprise equitisation for 2007.
The Prime Minister asked for this work to be done right in the second quarter of 2007. Special attention must be paid to big corporations, including state-owned banks, economic groups and general corporations, which have high equitisation value. This will help ensure the success of the equitisation of enterprises while positively impacting the capital market and the national economy.
Also connected to this issue, several days ago, at a meeting on investment in the first six months of the year, the Bank for Development and Investment (BIDV) officially proposed a rearrangement of the timing for the equtisations and IPOs of big corporations.
Tran Bac Ha, Director General of BIDV, said that the excess of IPOs would lead to the oversupply of commodities, harming the stock market and causing losses to the state.
Vietnam planned to equitise 26 general corporations in 2007; a series of IPOs to be made by big corporations, including Vietcombank (the Bank for Foreign Trade of Vietnam), Vietincombank (Vietnam Industrial and Commercial Bank), and BIDV were scheduled to have been made.
In the newly released instruction on implementing state-sourced capital investment, the Prime Minister has also asked ministries, economic groups and general corporations to carry out measures to push up the disbursement rate of construction projects.
The Prime Minister has asked ministries to check legal regulations relating to the implementation of projects. Ministries have been instructed to amend the regulations if necessary, and promulgate documents timely, which will help remove obstacles for investors.
According to the Ministry of Planning and Investment, the pace of the disbursement of state-sourced investment and development capital has been very slow, just fulfilling 42.6% of the yearly plan, while the disbursement of capital for key construction works has just fulfilled 30% of the plan.
The State Bank of Vietnam, the Vietnam National Administration of Tourism and Electricity of Vietnam, Vinh Long and Hau Giang provinces, had very low disbursement rates, less than 10%, while 36 ministries, branches and localities had disbursement rates of between 10-30% of the yearly plan.
Source: VNE
The Prime Minister asked for this work to be done right in the second quarter of 2007. Special attention must be paid to big corporations, including state-owned banks, economic groups and general corporations, which have high equitisation value. This will help ensure the success of the equitisation of enterprises while positively impacting the capital market and the national economy.
Also connected to this issue, several days ago, at a meeting on investment in the first six months of the year, the Bank for Development and Investment (BIDV) officially proposed a rearrangement of the timing for the equtisations and IPOs of big corporations.
Tran Bac Ha, Director General of BIDV, said that the excess of IPOs would lead to the oversupply of commodities, harming the stock market and causing losses to the state.
Vietnam planned to equitise 26 general corporations in 2007; a series of IPOs to be made by big corporations, including Vietcombank (the Bank for Foreign Trade of Vietnam), Vietincombank (Vietnam Industrial and Commercial Bank), and BIDV were scheduled to have been made.
In the newly released instruction on implementing state-sourced capital investment, the Prime Minister has also asked ministries, economic groups and general corporations to carry out measures to push up the disbursement rate of construction projects.
The Prime Minister has asked ministries to check legal regulations relating to the implementation of projects. Ministries have been instructed to amend the regulations if necessary, and promulgate documents timely, which will help remove obstacles for investors.
According to the Ministry of Planning and Investment, the pace of the disbursement of state-sourced investment and development capital has been very slow, just fulfilling 42.6% of the yearly plan, while the disbursement of capital for key construction works has just fulfilled 30% of the plan.
The State Bank of Vietnam, the Vietnam National Administration of Tourism and Electricity of Vietnam, Vinh Long and Hau Giang provinces, had very low disbursement rates, less than 10%, while 36 ministries, branches and localities had disbursement rates of between 10-30% of the yearly plan.
Source: VNE
Thursday, June 28, 2007
BIDV signs deal with AIG
American International Group, the world's largest insurer, on Thursday said it will extend its partnership with the Bank of Investment and Development of Vietnam (BIDV), becoming the latest foreign financial firm to strengthen ties in the fast-growing economy.
The memorandum of understanding (MOU) will focus on banking, insurance and finance. The two companies have been linked since 2005 through a business cooperation with AIA Vietnam, AIG's life insurance unit.
Its latest agreement will extend the partnership to include general insurance, consumer finance, asset management, banking services and training support.
AIG said it was attracted by economic growth of 7 to 8 percent annually in Vietnam for the past six years.
BIDV, which has $12.5 billion in assets and is also known as Vietindebank, is planning an IPO for the fourth quarter. It is Vietnam's third-largest bank.
Foriegn financial services companies Morgan Stanley, Citigroup, Credit Suisse and Deutsche Bank are all forging ties to Vietnam by linking up with local partners and making equity investments.
Source: Reuters
The memorandum of understanding (MOU) will focus on banking, insurance and finance. The two companies have been linked since 2005 through a business cooperation with AIA Vietnam, AIG's life insurance unit.
Its latest agreement will extend the partnership to include general insurance, consumer finance, asset management, banking services and training support.
AIG said it was attracted by economic growth of 7 to 8 percent annually in Vietnam for the past six years.
BIDV, which has $12.5 billion in assets and is also known as Vietindebank, is planning an IPO for the fourth quarter. It is Vietnam's third-largest bank.
Foriegn financial services companies Morgan Stanley, Citigroup, Credit Suisse and Deutsche Bank are all forging ties to Vietnam by linking up with local partners and making equity investments.
Source: Reuters
Tuesday, June 26, 2007
Insurance companies seek permission to increase capital
A lot of insurance companies have asked for permission to increase capital to improve their financial capability, according to the Ministry of Finance.
The applications all were made to the Ministry of Finance in the first quarter of 2007. Insurers asking to increase capital included Bao Viet, Bao Minh, Vinare, Bao Long, Vien Dong, BIC, and newly licenced companies like Toan Cau, Bao Nong, Bao Tin.
Insurers are rushing to increase their capital in order to have the capital levels stipulated by Government Decree 45. The decree, dated March 27, 2007, says that non-life insurance companies must have at least VND300bil in legal capital (the previously applied level was VND70bil), while life insurance companies must have at least VND600bil in legal capital instead of VND140bil. Brokerage insurance companies must have the minimum legal capital of VND4bil.
The insurance companies which have been previously established and do not have the required capital level must raise their capital within three years after the date the decree went into effect.
However, according to Phung Dac Loc, Secretary General of the Vietnam Insurance Association, the strict requirements stipulated in the decree are not the main reasons insurers want to increase their capital. In fact, insurers want to become stronger to get ready for the fierce competition to come.
Among the companies, BIC (BIDV Insurance Company) has asked for the biggest capital increase. BIDV, the mother bank, has decided to inject VND300bil more in the insurance company to raise the chartered capital of the insurer to VND500bil in June 2007.
Pham Quang Tung, BIC Director, said that the required capital levels might be high for local companies, but they proved to be relatively low compared to those of companies in regional countries. Insurers need to increase their capital in order to become financially stronger.
Mr Tung said that with the stock market’s development, it was not a difficult task nowadays to increase capital.
Source: VNE
The applications all were made to the Ministry of Finance in the first quarter of 2007. Insurers asking to increase capital included Bao Viet, Bao Minh, Vinare, Bao Long, Vien Dong, BIC, and newly licenced companies like Toan Cau, Bao Nong, Bao Tin.
Insurers are rushing to increase their capital in order to have the capital levels stipulated by Government Decree 45. The decree, dated March 27, 2007, says that non-life insurance companies must have at least VND300bil in legal capital (the previously applied level was VND70bil), while life insurance companies must have at least VND600bil in legal capital instead of VND140bil. Brokerage insurance companies must have the minimum legal capital of VND4bil.
The insurance companies which have been previously established and do not have the required capital level must raise their capital within three years after the date the decree went into effect.
However, according to Phung Dac Loc, Secretary General of the Vietnam Insurance Association, the strict requirements stipulated in the decree are not the main reasons insurers want to increase their capital. In fact, insurers want to become stronger to get ready for the fierce competition to come.
Among the companies, BIC (BIDV Insurance Company) has asked for the biggest capital increase. BIDV, the mother bank, has decided to inject VND300bil more in the insurance company to raise the chartered capital of the insurer to VND500bil in June 2007.
Pham Quang Tung, BIC Director, said that the required capital levels might be high for local companies, but they proved to be relatively low compared to those of companies in regional countries. Insurers need to increase their capital in order to become financially stronger.
Mr Tung said that with the stock market’s development, it was not a difficult task nowadays to increase capital.
Source: VNE
Friday, June 22, 2007
Bank equitization faces delay
Four major State-run commercial banks are seen going public later than scheduled, said Le Xuan Nghia, director of the State Bank of Vietnam's Development Strategy Department.
He told 70 EuroCham members and other participants at the Banking Equitization: Going Global" luncheon in HCMC on Tuesday that the initial public offerings (IPO) by these banks would be a little later than expected due to problems with finding strategic shareholders and sharing price.
The Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Investment and Development of Vietnam, the Industrial and Commercial Bank (Incombank) and the Mekong Delta Housing Development Bank earlier planned to launch IPOs by this October.
Tumbling blocks have also arisen as to selling shares to staff of these banks.
Nghia explained strategic investors considered the offered share prices too high. The Government has ruled prices for strategic investors are based on the average price at IPOs.
This rule might undergo change, Nghia said at the luncheon organized by the European Chamber of Commerce in Vietnam (EuroCham). Therefore, there will be share auctions for only strategic investors before the IPOs.
However, he pointed out selling shares to staff of the four banks as a complicated issue that remains to be solved. He said there had been heated discussions about the staff's interests regarding to the number of their working years and shares for them as well as the interests of staff at the parent companies and subsidiaries.
He acknowledged that all the "humanitarian" issues were a hard nut to crack.
The Government permits the price of shares for staff to be 60% of the price set at public auctions.
There is a plan to equitize the Bank for Agriculture and Rural Development from 2008 and this job should be done by 2009, he said.
Nghia said the Government wanted to improve corporate governance for the banking sector through the equitization of the State-run banks.
Nghia stressed that Vietnam was implementing its commitments to the World Trade Organization and that the bilateral trade agreement with the US, under which the financial market will be opened up to foreign investors.
The Government allows foreign banks with total assets of at least US$20bil to open branches in Vietnam, and those with US$10bil or more to establish 100% foreign-owned banks and joint ventures with local banks.
Nghia said there were now six applications for opening, 100% foreign-owned banks but around 33 applications for new local banks.
Source: VNE
He told 70 EuroCham members and other participants at the Banking Equitization: Going Global" luncheon in HCMC on Tuesday that the initial public offerings (IPO) by these banks would be a little later than expected due to problems with finding strategic shareholders and sharing price.
The Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Investment and Development of Vietnam, the Industrial and Commercial Bank (Incombank) and the Mekong Delta Housing Development Bank earlier planned to launch IPOs by this October.
Tumbling blocks have also arisen as to selling shares to staff of these banks.
Nghia explained strategic investors considered the offered share prices too high. The Government has ruled prices for strategic investors are based on the average price at IPOs.
This rule might undergo change, Nghia said at the luncheon organized by the European Chamber of Commerce in Vietnam (EuroCham). Therefore, there will be share auctions for only strategic investors before the IPOs.
However, he pointed out selling shares to staff of the four banks as a complicated issue that remains to be solved. He said there had been heated discussions about the staff's interests regarding to the number of their working years and shares for them as well as the interests of staff at the parent companies and subsidiaries.
He acknowledged that all the "humanitarian" issues were a hard nut to crack.
The Government permits the price of shares for staff to be 60% of the price set at public auctions.
There is a plan to equitize the Bank for Agriculture and Rural Development from 2008 and this job should be done by 2009, he said.
Nghia said the Government wanted to improve corporate governance for the banking sector through the equitization of the State-run banks.
Nghia stressed that Vietnam was implementing its commitments to the World Trade Organization and that the bilateral trade agreement with the US, under which the financial market will be opened up to foreign investors.
The Government allows foreign banks with total assets of at least US$20bil to open branches in Vietnam, and those with US$10bil or more to establish 100% foreign-owned banks and joint ventures with local banks.
Nghia said there were now six applications for opening, 100% foreign-owned banks but around 33 applications for new local banks.
Source: VNE
Wednesday, June 20, 2007
Strategic partnerships booming
Strategic partnerships have become a popular option for businesses, especially in the volatile circumstances of the growing domestic stock market and growing globalisation.
The most notable agreement is a partnership between PetroVietnam and Lilama in the energy, cement, engineering manufacturing, shipbuilding, transport, real estate, finance and banking sectors. PetroVietnam and Lilama are also considering the possibility of trading shares and sharing investment capital to become founding shareholders.
The Hua Na hydroelectric project is one result of their agreement. The company, with chartered capital of VND1.2tril, was established to own the hydropower plant.
PetroVietnam has already signed a comprehensive agreement with Vietnam Airlines to start an air taxi joint stock company, while Lilama has inked a construction and banking services agreement with Military Bank.
Two State-run groups, Bao Viet and VNPT, recently signed a strategic co-operative agreement where by the former will be responsible for insuring property, equipment, human resource and other VNPT assets, while the latter will become the post and telecom service provider to Bao Viet.
In the distribution sector, the four biggest Vietnamese retailers, Ha Noi Trade Corporation (Hapro), Sai Gon Trade Corporation (Satra); Sai Gon Co-op and Phu Thai Group, have decided to join forces to set up Viet Nam Distribution Association Network (VDA), which is hoped will become the leading distribution and logistics group in Vietnam and will pre-empt and compete effectively with large foreign distributors.
Under its WTO commitments, Vietnam will open its distribution market in 2009. Meanwhile, giant distribution groups are already present in Vietnam, including Metro, Big C and Parkson. In the future Lotte Shopping, Carefour and Wal-mart are expected.
With an investment capital of VND1.5tril ($93.75mil) in the first period of investment (March 2007-October 2008) and VND3-6tril ($187.5-375mil) in the second (November 2008-October 2011), VDA will focus on the development of modern trade centres, supermarkets and hypermarkets, which are planned to control a majority share of the distribution market.
During its debut ceremony, VDA signed three strategic co-operative agreements with Viet Nam National Shipping Lines (Vinalines), Viet Nam Association of Seafood Exporters and Producers (VSAP) and Bank for Investment and Development of Viet Nam (BIDV).
Intel Vietnam has inked a MoU on co-operation with Electricity of Viet Nam (EVN) Group to implement IT solutions in the sector and so strengthen its competitiveness.
However the record to ink strategic agreements must go to Hanaka group joint stock company based in Bac Ninh Province, which has become strategic partners with 10 local and foreign companies such as Japanese Sumitomo, Korean Golden Bridge, Vietcombank and Bach Dang Shipyard.
Source: VNE
The most notable agreement is a partnership between PetroVietnam and Lilama in the energy, cement, engineering manufacturing, shipbuilding, transport, real estate, finance and banking sectors. PetroVietnam and Lilama are also considering the possibility of trading shares and sharing investment capital to become founding shareholders.
The Hua Na hydroelectric project is one result of their agreement. The company, with chartered capital of VND1.2tril, was established to own the hydropower plant.
PetroVietnam has already signed a comprehensive agreement with Vietnam Airlines to start an air taxi joint stock company, while Lilama has inked a construction and banking services agreement with Military Bank.
Two State-run groups, Bao Viet and VNPT, recently signed a strategic co-operative agreement where by the former will be responsible for insuring property, equipment, human resource and other VNPT assets, while the latter will become the post and telecom service provider to Bao Viet.
In the distribution sector, the four biggest Vietnamese retailers, Ha Noi Trade Corporation (Hapro), Sai Gon Trade Corporation (Satra); Sai Gon Co-op and Phu Thai Group, have decided to join forces to set up Viet Nam Distribution Association Network (VDA), which is hoped will become the leading distribution and logistics group in Vietnam and will pre-empt and compete effectively with large foreign distributors.
Under its WTO commitments, Vietnam will open its distribution market in 2009. Meanwhile, giant distribution groups are already present in Vietnam, including Metro, Big C and Parkson. In the future Lotte Shopping, Carefour and Wal-mart are expected.
With an investment capital of VND1.5tril ($93.75mil) in the first period of investment (March 2007-October 2008) and VND3-6tril ($187.5-375mil) in the second (November 2008-October 2011), VDA will focus on the development of modern trade centres, supermarkets and hypermarkets, which are planned to control a majority share of the distribution market.
During its debut ceremony, VDA signed three strategic co-operative agreements with Viet Nam National Shipping Lines (Vinalines), Viet Nam Association of Seafood Exporters and Producers (VSAP) and Bank for Investment and Development of Viet Nam (BIDV).
Intel Vietnam has inked a MoU on co-operation with Electricity of Viet Nam (EVN) Group to implement IT solutions in the sector and so strengthen its competitiveness.
However the record to ink strategic agreements must go to Hanaka group joint stock company based in Bac Ninh Province, which has become strategic partners with 10 local and foreign companies such as Japanese Sumitomo, Korean Golden Bridge, Vietcombank and Bach Dang Shipyard.
Source: VNE
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