Experts believe that the current gloomy stock market will become brighter if more investment funds enter Vietnam, calming down domestic investors and raising the securities demand. However, management companies seem to be continuing to wait for their time.
Twelve investment fund management companies were established in 2006. However, only the Hanoi Fund Management Company (HFM) announced the setting up of its VND200bil ($12.5mil) fund – Hanoi Fund. Other companies have not made any move.
The State Securities Commission (SSC) thinks that the best solution to the current gloomy stock market is to develop institutional investors, including investment funds. Meanwhile, only one fund, set up by Manulife, has got the approval from SSC to raise funds worth VND250bil ($15.62mil).
Experts guess that only several management companies will have their funds debut this year. HFM is preparing for the establishment of two new funds, the domestic one with VND500bil ($31.25mil) in capital, and the foreign one with the expected capital of $50-100mil. The funds will aim at both listed and unlisted securities and IPOs. Hanoi Fund, another fund managed by HFM, saw the net asset growth of 70% by the end of June 2007. The dividend HFM plans to give to the investors may reach 30% this year.
Another fund, to be managed by Viet Long Fund Management Company, is expected to be ‘given birth’ to in some days, and is believed to have the capital of VND300bil ($18.75mil).
According to Nguyen Thuc Vinh, Director General of Viet Long Fund Management Company, as the market keeps falling, investors have become hesitant with their investment deals. However, it would be quite different for investment funds, which always aim at long-term investment strategy.
“It is the right time to make disbursement now. I believe that the stock market will see vigorous development in the next five years,” said Mr Vinh.
Saigon Securities Incorporated (SSI) has just set up a fund management company; however, the company has been well preparing its plan to set up a fund. SSI has announced it will set up the fund right in 2007, but has not revealed the scale and the operational time.
Sources said that the Ban Viet Management Company was also moving ahead with its plan to establish a $150mil fund. The Vietnam Fund Management Company is raising funds to set up the VND300bil ($18.75mil) VF2.
Management companies are still trying to set up new funds, though they know well about the difficulties existing funds are facing. The price of VF1 certificate (being managed by the Vietnam Fund Management Company), for example, is now 20% lower than the net value asset NAV. The price of Prudential Management Company’s certificate is just around the face value, while Manulife fund management company is trying hard to raise funds.
Nevertheless, a lot of other management companies seem to be not hurrying with plans to set up funds. It is partially because of the market’s fall. Moreover, experts said, the strict regulations stipulated by the Securities Law have also prompted management companies to delay their plans on setting up funds. These companies now focus on doing business themselves, and doing authorised business.
Under the current regulations, two years after their establishment, management companies can establish member funds (minimum contributed capital VND50bil or $3.12mil, 50 members at least, capital contributors must be legal entities, state owned enterprises are not allowed to make capital contribution with state owned capital).
Source: VNE
Showing posts with label Funds. Show all posts
Showing posts with label Funds. Show all posts
Wednesday, August 22, 2007
Thursday, August 16, 2007
VinaCapital launches infrastructure fund
VinaCapital officially launched Vietnam Infrastructure Limited (VNI), a US $402 million fund dedicated to investment in Vietnam’s rapidly growing infrastructure sector, at a ceremony held in Hanoi this afternoon.
The amount of money would be invested in infrastructure projects in Vietnam in field of energy, traffic system, water supply system and telecommunications, said Mr Don Lam, CEO and Co-Founder of VinaCapital.
The fund would focus its investment in such big cities as Hanoi, Ho Chi Minh City, Da Nang and Can Tho and key economic regions of Vietnam, he added.
Mr William Lean, managing director of VinaCapital said the VNI had bought 3.8% of the shares of the Tan Tao Industrial Park Joint Stock Company (ITACO), valued at nearly US $20 million.
The money was used for infrastructure in Long An province, including a 70-kilometre highway construction from Ho Chi Minh City-based Tan Son Nhat Airport to the centre of the province, a thermo-electric plant and a water supply company.
VNI has also bought 2.4% of the shares of Thac Mo Hydro-Electric Plant, equivalent to nearly US $2 million; and 5.2% of the shares of Ba Ria Thermo-Electric Plant, valued at nearly US $4 million.
Mr Lean added that VNI was also investing in projects to build a highway in Ha Tay province with an investment capital of US $80. The road is 40 metres wide and 24 kilometres long, linking the western part of Hanoi with Son Tay town of Ha Tay province.
At the launching ceremony, VNI signed two memoranda of understanding. The first is an agreement with TRANCO company for the construction of a road in the Hanoi area. The second, with ITACO, is for the development of a 600 MW power plant and supporting coal port.
VinaCapital July 5 listed its fourth fund Vietnam Infrastructure Limited on the Alternative Investment Market (AIM) which is for new and potential firms of the London Stock Exchange (LSE).
The closed-end fund has a size of US $402 million that was mobilised from overseas investors.
After listing, the fund was disbursed US $100 million to invest in hydropower and thermo-power plants. The remaining capital will be used within 12 to 18 months later to buy toll rights in big cities and participate to upgrade local airports into international ones.
With the fourth fund, VinaCapital has managed the amount of some US $1.8 billion investing mainly in Vietnam. The fund manager now also runs three other investment funds in Vietnam - the US $800-million Vietnam Opportunity Fund (VOF), the US $600-million VinaLand, and the US $50-million DFJ VinaCapital L.P. which invests in information technology. The two former funds are now listed on AIM as well.
Source: VNE
The amount of money would be invested in infrastructure projects in Vietnam in field of energy, traffic system, water supply system and telecommunications, said Mr Don Lam, CEO and Co-Founder of VinaCapital.
The fund would focus its investment in such big cities as Hanoi, Ho Chi Minh City, Da Nang and Can Tho and key economic regions of Vietnam, he added.
Mr William Lean, managing director of VinaCapital said the VNI had bought 3.8% of the shares of the Tan Tao Industrial Park Joint Stock Company (ITACO), valued at nearly US $20 million.
The money was used for infrastructure in Long An province, including a 70-kilometre highway construction from Ho Chi Minh City-based Tan Son Nhat Airport to the centre of the province, a thermo-electric plant and a water supply company.
VNI has also bought 2.4% of the shares of Thac Mo Hydro-Electric Plant, equivalent to nearly US $2 million; and 5.2% of the shares of Ba Ria Thermo-Electric Plant, valued at nearly US $4 million.
Mr Lean added that VNI was also investing in projects to build a highway in Ha Tay province with an investment capital of US $80. The road is 40 metres wide and 24 kilometres long, linking the western part of Hanoi with Son Tay town of Ha Tay province.
At the launching ceremony, VNI signed two memoranda of understanding. The first is an agreement with TRANCO company for the construction of a road in the Hanoi area. The second, with ITACO, is for the development of a 600 MW power plant and supporting coal port.
VinaCapital July 5 listed its fourth fund Vietnam Infrastructure Limited on the Alternative Investment Market (AIM) which is for new and potential firms of the London Stock Exchange (LSE).
The closed-end fund has a size of US $402 million that was mobilised from overseas investors.
After listing, the fund was disbursed US $100 million to invest in hydropower and thermo-power plants. The remaining capital will be used within 12 to 18 months later to buy toll rights in big cities and participate to upgrade local airports into international ones.
With the fourth fund, VinaCapital has managed the amount of some US $1.8 billion investing mainly in Vietnam. The fund manager now also runs three other investment funds in Vietnam - the US $800-million Vietnam Opportunity Fund (VOF), the US $600-million VinaLand, and the US $50-million DFJ VinaCapital L.P. which invests in information technology. The two former funds are now listed on AIM as well.
Source: VNE
Monday, August 13, 2007
HCMC to sell 500 bln dong in urban bonds
An investment fund in Vietnam's Ho Chi Minh City will raise a combined 500 billion dong ($31 million) by auctioning three types of urban bonds later this week, the Hanoi's stock exchange said on Monday.
The Ho Chi Minh City Investment Fund for Urban Development Project told the exchange that it would auction on Thursday a 150 billion-dong bond with maturity on Aug. 29, 2012 and a 200 billion-dong bond for maturity on Aug. 20, 2017.
A third bond to be auctioned on the same day would raise 150 billion dong for maturity on Aug. 20, 2022.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debts.
Source: Reuters
The Ho Chi Minh City Investment Fund for Urban Development Project told the exchange that it would auction on Thursday a 150 billion-dong bond with maturity on Aug. 29, 2012 and a 200 billion-dong bond for maturity on Aug. 20, 2017.
A third bond to be auctioned on the same day would raise 150 billion dong for maturity on Aug. 20, 2022.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It assigned a Ba3 rating for the country's dong debts.
Source: Reuters
Friday, August 03, 2007
VinaCapital’s $325-mln Danang urban complex gets go-ahead
London-listed fund manager VinaCapital received Thursday approval for building a US$325-million commercial-residential complex in Vietnam’s central Danang city. To be built in Son Tra district, the 9-ha VinaCapital Square complex will have two trade centers, two deluxe hotels with 600 rooms, a 25,000-sq.m exhibition and conference center, and a 42-story office block.
The largest-ever property project in the city will also have around 1,300 luxury apartments and a villa area.
But its date of commencement is not known.
With $500 million in its kitty, VinaCapital, which manages the Vietnam Opportunity Fund, is expected to invest in offices, trade centers, residential areas, industrial parks, and entertainment areas in key Vietnamese areas like HCMC, Hanoi, Nha Trang, Hoi An, and Danang.
VinaCapital also operates two other funds – the $205 million real estate fund VinaLand, and the newly set up $50 million DFJ VinaCapital L.P. which invests in information-communication technology firms.
Source: Thanh Nien
The largest-ever property project in the city will also have around 1,300 luxury apartments and a villa area.
But its date of commencement is not known.
With $500 million in its kitty, VinaCapital, which manages the Vietnam Opportunity Fund, is expected to invest in offices, trade centers, residential areas, industrial parks, and entertainment areas in key Vietnamese areas like HCMC, Hanoi, Nha Trang, Hoi An, and Danang.
VinaCapital also operates two other funds – the $205 million real estate fund VinaLand, and the newly set up $50 million DFJ VinaCapital L.P. which invests in information-communication technology firms.
Source: Thanh Nien
Monday, July 30, 2007
US portfolio investment heating up Vietnam’s stock market
The recent report by Merrill Lynch, which said that Vietnam did not deserve to be an investment address, has not had any impacts on the expectations of US investors in Vietnam’s stocks.
The report appeared at a time when the market was down and thought might ‘pour cold water’ on investors. But it has turned out to have had no considerable impact on US investors. The portfolio investment from the US keeps rising with more and more well-known investment funds coming to Vietnam.
Most recently, Heartland Funds announced a plan to cooperate with Lexington Langha, Vikoa Investment Consultant to set up an investment fund in Vietnam with capital directly sourced from US companies (not through third countries).
According to James Kim, a founder of Lexington Langha, the fund has the initial capital of $50-100mil, but it may be expanded if there are enough good investment opportunities.
Heartland Funds is a well-known fund in the US. It has been recognised as the leading fund in the first quarter of 2007, and Heartland Funds plans to take full advantage of its fame to make investment in the stock, real estate and capital markets in Vietnam.
Mr James said that many American investors wanted to join Vietnam’s market and they were awaiting the opportunities to inject money in.
In early July, IDG Venture, which has US-sourced capital, announced its investment in two more projects, the Goldsun Focus Media and Vega Software. It is expected that from now until the end of 2007, IDJ Venture will announce its investment in six to eight more projects.
Dragon Capital, the most long-standing fund management company in Vietnam, which is now managing $600mil worth of capital in Vietnam, has 30% of capital contribution sourced from US investors.
Indochina Land, which manages the real estate projects of the leading investment group Indochina Capital, last month signed a memorandum of understanding with Hoang Quan Group, the leading real estate group in Vietnam.
Indochina Land Holdings and Indochina Land Holdings 2 are both developing projects on apartments, offices, hotels and resorts for selling on the domestic market.
Several days ago, at a ceremony releasing the report reviewing the 5 years of the Vietnam-US Bilateral Trade Agreement (BTA), experts from the project on supporting the implementation of BTA, Star, said that US investors held from 1/3 to 1/2 of total foreign portfolio investment in Vietnam.
James Riedel, senior advisor to Star project, also said that US investors were interested in Vietnam’s market very much, and the opening of the service market in Vietnam had impacted their decisions.
Mr Riedel said that it was quite a normal thing that the market went up and down. The most important thing is that Vietnam needs to have a good system which can absorb the huge capital from foreigners, while avoiding crises.
Analysts said that Vietnam now had all the necessary conditions to attract US investors. However, American investors still want to learn about Vietnam from other US investors. Lexington Langha is an example. While following legal procedures to set up a fund in Vietnam, Mr James is now trying to make contact with several foreign funds in Vietnam like Vina Capital, Indochina Capital and Mekong Capital to discuss issues relating to investment in Vietnam.
Source: VNE
The report appeared at a time when the market was down and thought might ‘pour cold water’ on investors. But it has turned out to have had no considerable impact on US investors. The portfolio investment from the US keeps rising with more and more well-known investment funds coming to Vietnam.
Most recently, Heartland Funds announced a plan to cooperate with Lexington Langha, Vikoa Investment Consultant to set up an investment fund in Vietnam with capital directly sourced from US companies (not through third countries).
According to James Kim, a founder of Lexington Langha, the fund has the initial capital of $50-100mil, but it may be expanded if there are enough good investment opportunities.
Heartland Funds is a well-known fund in the US. It has been recognised as the leading fund in the first quarter of 2007, and Heartland Funds plans to take full advantage of its fame to make investment in the stock, real estate and capital markets in Vietnam.
Mr James said that many American investors wanted to join Vietnam’s market and they were awaiting the opportunities to inject money in.
In early July, IDG Venture, which has US-sourced capital, announced its investment in two more projects, the Goldsun Focus Media and Vega Software. It is expected that from now until the end of 2007, IDJ Venture will announce its investment in six to eight more projects.
Dragon Capital, the most long-standing fund management company in Vietnam, which is now managing $600mil worth of capital in Vietnam, has 30% of capital contribution sourced from US investors.
Indochina Land, which manages the real estate projects of the leading investment group Indochina Capital, last month signed a memorandum of understanding with Hoang Quan Group, the leading real estate group in Vietnam.
Indochina Land Holdings and Indochina Land Holdings 2 are both developing projects on apartments, offices, hotels and resorts for selling on the domestic market.
Several days ago, at a ceremony releasing the report reviewing the 5 years of the Vietnam-US Bilateral Trade Agreement (BTA), experts from the project on supporting the implementation of BTA, Star, said that US investors held from 1/3 to 1/2 of total foreign portfolio investment in Vietnam.
James Riedel, senior advisor to Star project, also said that US investors were interested in Vietnam’s market very much, and the opening of the service market in Vietnam had impacted their decisions.
Mr Riedel said that it was quite a normal thing that the market went up and down. The most important thing is that Vietnam needs to have a good system which can absorb the huge capital from foreigners, while avoiding crises.
Analysts said that Vietnam now had all the necessary conditions to attract US investors. However, American investors still want to learn about Vietnam from other US investors. Lexington Langha is an example. While following legal procedures to set up a fund in Vietnam, Mr James is now trying to make contact with several foreign funds in Vietnam like Vina Capital, Indochina Capital and Mekong Capital to discuss issues relating to investment in Vietnam.
Source: VNE
Indochina Capital pours extra 1.1 million USD into Navigos
Indochina Capital poured an additional 1.1 million USD into the Navigos Group on Vietnamworks’ fifth birthday last week.
Navigos, a US-invested human resources services provider in Viet Nam and the investor of local well-known job website www.vietnamworks.com has received a total invested capital of 3.1 million USD from Indochina.
The vigorous growth of Navigos as well as the success of the above website would be the most important and attractive factors luring Indochina Capital, said the investor fund’s managing director, Tung Kim.
Navigos plans to list on the local bourse by launching an initial public offering (IPO) by 2010 at the latest. Navigos’s shares have fetched at the price of 2.5 USD per one from 0.01 USD three years ago.
Around 900,000 people have accessed to Vietnamworks website for job vacancies for five years and the number is expected to increase by four times this year, according to Navigos Group.
Navigos Group is a brand owned and operated by Management Consulting Group Ltd, a British Virgin Islands Co.
Source: VNA
Navigos, a US-invested human resources services provider in Viet Nam and the investor of local well-known job website www.vietnamworks.com has received a total invested capital of 3.1 million USD from Indochina.
The vigorous growth of Navigos as well as the success of the above website would be the most important and attractive factors luring Indochina Capital, said the investor fund’s managing director, Tung Kim.
Navigos plans to list on the local bourse by launching an initial public offering (IPO) by 2010 at the latest. Navigos’s shares have fetched at the price of 2.5 USD per one from 0.01 USD three years ago.
Around 900,000 people have accessed to Vietnamworks website for job vacancies for five years and the number is expected to increase by four times this year, according to Navigos Group.
Navigos Group is a brand owned and operated by Management Consulting Group Ltd, a British Virgin Islands Co.
Source: VNA
Financial investment: many opportunities, big profit
Aiming to become multi-area financial groups, commercial banks are promoting financial investment services besides their old business fields.
On July 25, the Saigon Thuong Tin Investment Joint Stock Company (SacomInvest) became operational in HCM City with chartered capital of VND300 billion (US$18.75 million). Its founding shareholders are Sacombank, Sacomreal, Toan Thinh Phat, Thanh Thanh Cong, in which Sacombank contributes 11% of capital.
SacomInvest operates in various fields, such as business management consulting, investment project management, real estate business, commercial brokerage, transport work construction, building infrastructure facilities for industrial zones, etc.
With the great financial potentials of its founding shareholders, SacomInvest focuses on infrastructure, energy, and real estate (high-class apartments, offices). The firm also plans to focus on business purchasing, buying the majority of shares of companies that have good foundations but operate ineffectively.
Luong Dinh Quang, Chairman of SacomInvest Board of Directors, said that SacomInvest had bought 40% of the stocks of the Kien Giang Tourism Company, 30% of the Dang Huynh Industrial Zone in the southern province of Long An and had become a strategic shareholder of the Bourbon Gia Lai Sugar Company and Nam Viet Investment Joint Stock Company.
According to Dang Van Thanh, Chairman of Sacombank Board of Directors, the real estate market is getting warmer. The need for housing, workshops, offices for lease is increasing. This is an opportunity for investment companies.
The Bank for Investment and Development of Vietnam (BIDV) has also set up a branch of the BIDV Financial Investment Joint Stock Company in HCM City to expand the company’s operations in the south.
It is easy to see that banks are establishing financial investment companies. Some banks like the Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Agriculture and Rural Development (Agribank), Sacombank have made joint ventures with some foreign financial institutions to set up securities investment funds.
BIDV has combined with six groups to set up the Industrial and Energy Management Fund Company, which has up to VND10 trillion (US$625 million) of capital. Meanwhile, Southern Bank has negotiated with Amcorp Bhd (Malaysia) to establish financial, insurance, securities trading, fund management companies in Vietnam.
There are many infrastructure investment projects witnessing the participation of banks. The HCM City-Trung Luong-My Thuan-Can Tho highway project has capital of BIDV, the Hanoi-Hai Phong highway, capital from Vietcombank.
According to Tran Phuong Binh, General Director of DongABank, through financial investment, banks can provide services for clients of its partners. For example, DongABank cooperates with water supply companies to gain the payment service for clients of water supply companies. The bank is also ready to loan to clients of water supply companies to install water meters, etc.
Financial investment is now a lucrative area of banks. Of the total VND880 billion ($55 million) of profit so far this year of Asia Commerce Bank (ACB), more than 30% comes from financial investment.
Ly Xuan Hai, General Director of ACB, said that ACB was trying to take advantage of 40% of its chartered capital to bring about big profit for the bank.
In financial investment, ACB divides its capital into two parts: one to buy shares of some companies to become their strategic shareholders and the other to invest in short-term securities. However, financial investment is highly risky so the bank is always very careful in making its portfolio and has to develop a professional risk management system.
Source: VNE
On July 25, the Saigon Thuong Tin Investment Joint Stock Company (SacomInvest) became operational in HCM City with chartered capital of VND300 billion (US$18.75 million). Its founding shareholders are Sacombank, Sacomreal, Toan Thinh Phat, Thanh Thanh Cong, in which Sacombank contributes 11% of capital.
SacomInvest operates in various fields, such as business management consulting, investment project management, real estate business, commercial brokerage, transport work construction, building infrastructure facilities for industrial zones, etc.
With the great financial potentials of its founding shareholders, SacomInvest focuses on infrastructure, energy, and real estate (high-class apartments, offices). The firm also plans to focus on business purchasing, buying the majority of shares of companies that have good foundations but operate ineffectively.
Luong Dinh Quang, Chairman of SacomInvest Board of Directors, said that SacomInvest had bought 40% of the stocks of the Kien Giang Tourism Company, 30% of the Dang Huynh Industrial Zone in the southern province of Long An and had become a strategic shareholder of the Bourbon Gia Lai Sugar Company and Nam Viet Investment Joint Stock Company.
According to Dang Van Thanh, Chairman of Sacombank Board of Directors, the real estate market is getting warmer. The need for housing, workshops, offices for lease is increasing. This is an opportunity for investment companies.
The Bank for Investment and Development of Vietnam (BIDV) has also set up a branch of the BIDV Financial Investment Joint Stock Company in HCM City to expand the company’s operations in the south.
It is easy to see that banks are establishing financial investment companies. Some banks like the Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Agriculture and Rural Development (Agribank), Sacombank have made joint ventures with some foreign financial institutions to set up securities investment funds.
BIDV has combined with six groups to set up the Industrial and Energy Management Fund Company, which has up to VND10 trillion (US$625 million) of capital. Meanwhile, Southern Bank has negotiated with Amcorp Bhd (Malaysia) to establish financial, insurance, securities trading, fund management companies in Vietnam.
There are many infrastructure investment projects witnessing the participation of banks. The HCM City-Trung Luong-My Thuan-Can Tho highway project has capital of BIDV, the Hanoi-Hai Phong highway, capital from Vietcombank.
According to Tran Phuong Binh, General Director of DongABank, through financial investment, banks can provide services for clients of its partners. For example, DongABank cooperates with water supply companies to gain the payment service for clients of water supply companies. The bank is also ready to loan to clients of water supply companies to install water meters, etc.
Financial investment is now a lucrative area of banks. Of the total VND880 billion ($55 million) of profit so far this year of Asia Commerce Bank (ACB), more than 30% comes from financial investment.
Ly Xuan Hai, General Director of ACB, said that ACB was trying to take advantage of 40% of its chartered capital to bring about big profit for the bank.
In financial investment, ACB divides its capital into two parts: one to buy shares of some companies to become their strategic shareholders and the other to invest in short-term securities. However, financial investment is highly risky so the bank is always very careful in making its portfolio and has to develop a professional risk management system.
Source: VNE
Wednesday, July 18, 2007
Half of portfolio investment in Vietnam tapped from US
It is estimated that 1/3 or 1/2 of total portfolio investment capital flowing into Vietnam in mid 2006 was coming from the US.
The information was released at a ceremony announcing the report on the 5-year impact of the Vietnam-US Bilateral Agreement (BTA) on Vietnam’s trade and investment by James Riedel, Senior Advisor to the technical project on supporting the implementation of the BTA. The ceremony was co-organised by the Central Institute for Economic Management (CIEM) and the US Agency for International Development (USAID).
Mr Riedel said that this tendency would be maintained in the future with the official participation of big-scale investment banks and institutional investors from the US.
US portfolio investment capital has been flowing into Vietnam through well-known investment funds. Recently, JP Morgan and Citigroup have been granted trading codes to make transactions on Vietnam’s bourse. Small investors have also tried to access Vietnam’s stock market through investment funds.
Indochina Capital, a US-based investment bank, set up an investment fund in Vietnam with the capital of $100mil in 2005, in which American investors hold 45% of total capital. The US’s Vietnam Partners joined forces with the Bank of Investment and Development of Vietnam (BIDV) to set up a $100mil investment fund in Vietnam (US partner holds 30% of capital). Dragon Capital is now managing the fund of $600mil, 30% of which comes from American investors.
IDG Venture has 100% of its capital coming from the US. It has injected money in several tens of companies in Vietnam, and is now planning to raise its investment capital here in Vietnam to $1bil in the time to come.
Vietnam has been successful in attracting both direct and indirect investment. The first foreign investment fund, Vietnam Fund, was established in 1991, which then had the investment capital of $54mil. Six more funds had been established four years later, capitalised at $438mil in total, including the Vietnam Investment Fund ($90mil), Beta Vietnam Fund ($71mil), Vietnam Frontier Fund ($67mil).
However, the Asian financial crisis then froze the funds’ development, forcing the funds to stop operating in Vietnam.
Between 2001, when the BTA came into effect, and mid 2006, 13 more funds were established with the total investment capital of $1bil. The well-known funds are Mekong Enterprise Fund ($19mil), Vietnam Opportunity Fund ($171mil), Indochina Land Holdings ($100mil).
Source: VNE
The information was released at a ceremony announcing the report on the 5-year impact of the Vietnam-US Bilateral Agreement (BTA) on Vietnam’s trade and investment by James Riedel, Senior Advisor to the technical project on supporting the implementation of the BTA. The ceremony was co-organised by the Central Institute for Economic Management (CIEM) and the US Agency for International Development (USAID).
Mr Riedel said that this tendency would be maintained in the future with the official participation of big-scale investment banks and institutional investors from the US.
US portfolio investment capital has been flowing into Vietnam through well-known investment funds. Recently, JP Morgan and Citigroup have been granted trading codes to make transactions on Vietnam’s bourse. Small investors have also tried to access Vietnam’s stock market through investment funds.
Indochina Capital, a US-based investment bank, set up an investment fund in Vietnam with the capital of $100mil in 2005, in which American investors hold 45% of total capital. The US’s Vietnam Partners joined forces with the Bank of Investment and Development of Vietnam (BIDV) to set up a $100mil investment fund in Vietnam (US partner holds 30% of capital). Dragon Capital is now managing the fund of $600mil, 30% of which comes from American investors.
IDG Venture has 100% of its capital coming from the US. It has injected money in several tens of companies in Vietnam, and is now planning to raise its investment capital here in Vietnam to $1bil in the time to come.
Vietnam has been successful in attracting both direct and indirect investment. The first foreign investment fund, Vietnam Fund, was established in 1991, which then had the investment capital of $54mil. Six more funds had been established four years later, capitalised at $438mil in total, including the Vietnam Investment Fund ($90mil), Beta Vietnam Fund ($71mil), Vietnam Frontier Fund ($67mil).
However, the Asian financial crisis then froze the funds’ development, forcing the funds to stop operating in Vietnam.
Between 2001, when the BTA came into effect, and mid 2006, 13 more funds were established with the total investment capital of $1bil. The well-known funds are Mekong Enterprise Fund ($19mil), Vietnam Opportunity Fund ($171mil), Indochina Land Holdings ($100mil).
Source: VNE
Wednesday, July 11, 2007
Foreign funds on real estates and stocks to kick off soon
The London-Headquartered Lion Capital and the Hongkong-based Grandford International Promotions Ltd. on July 10 signed a business contract to co-establish funds mostly for real estates development and stock exchange.
The potential funds will have a designed capital of 100 million USD each and also help in State-owned enterprises (SOEs) equitisation and be in support of the private economic sector.
Lion Capital Vietnam Fund General Manager Bui Cong Giang said they are looking for projects on industrial parks in key economic zones, marts, new metropolis in Ha Noi and HCM City, bridges, hotels and resorts.
Lion Capital, which has made investment of 2 billion Euro in companies over Europe, received a licence for securities transaction in Viet Nam since late 2006 while GrandFord has had long-time Asian experiences in property development, building over 500 bridges in the continent.
Source: VNA
The potential funds will have a designed capital of 100 million USD each and also help in State-owned enterprises (SOEs) equitisation and be in support of the private economic sector.
Lion Capital Vietnam Fund General Manager Bui Cong Giang said they are looking for projects on industrial parks in key economic zones, marts, new metropolis in Ha Noi and HCM City, bridges, hotels and resorts.
Lion Capital, which has made investment of 2 billion Euro in companies over Europe, received a licence for securities transaction in Viet Nam since late 2006 while GrandFord has had long-time Asian experiences in property development, building over 500 bridges in the continent.
Source: VNA
Tuesday, July 10, 2007
VNI fund buys 3.8% of Itaco equity
The Viet Nam Infrastructure Limited (VNI) has purchased 3.8 percent of stake of the Tan Tao industrial park joint stock company (ITACO), worth 14.06 million USD.
ITACO, specialising in infrastructure investment and services for industrial zones, is one of the 10 largest companies listed on the Ho Chi Minh Securities Trading Centre.
The has invested in various of parks in the southern key economic region, such as Tan Tao IP in Ho Chi Minh City and Tan Duc IP in Long An province.
Meanwhile, VNI is Viet Nam's first infrastructure investor. It made its debut at the Alternative Investment Market (AIM) on the London Stock Exchange on July 5.
Source: VNA
ITACO, specialising in infrastructure investment and services for industrial zones, is one of the 10 largest companies listed on the Ho Chi Minh Securities Trading Centre.
The has invested in various of parks in the southern key economic region, such as Tan Tao IP in Ho Chi Minh City and Tan Duc IP in Long An province.
Meanwhile, VNI is Viet Nam's first infrastructure investor. It made its debut at the Alternative Investment Market (AIM) on the London Stock Exchange on July 5.
Source: VNA
Manulife to launch Vietnam investment fund
Canadian insurer Manulife plans to raise 250 billion dong ($15.5 million) from a new investment fund in Vietnam, the government said on Tuesday.
The State Securities Commission said in a statement that Manulife would establish the Manulife Progessive Fund (MAFPF1). It planned to raise 250 billion dong by selling 25 million fund certificates with a face value of 10,000 dong each.
The statement did not provide details of when the sale would take place.
Source: Reuters
The State Securities Commission said in a statement that Manulife would establish the Manulife Progessive Fund (MAFPF1). It planned to raise 250 billion dong by selling 25 million fund certificates with a face value of 10,000 dong each.
The statement did not provide details of when the sale would take place.
Source: Reuters
Friday, July 06, 2007
New Viet Nam fund debuts at LSE
The Viet Nam Infrastructure Investment Fund (VNI) on July 5 made its debut at the Alternative Investment Market (AIM) on the London Stock Exchange (LSE).
The listing marks the first time that a Vietnamese infrastructure fund will see transactions on the AIM and will focus on the areas of energy, transportation, water and telecommunications.
Market experts have predicted that from now until 2020, Viet Nam will require close to 140 billion USD for the development of needed infrastructure projects. The VNI will focus on strategic projects in Ha Noi, Ho Chi Minh City and key economic zones nationwide, including highways, ports, airports, and power plants.
At the AIM, the VNI did earn 402,1 million USD through the issue of 402,1 million one-dollar shares.
Source: VNA
The listing marks the first time that a Vietnamese infrastructure fund will see transactions on the AIM and will focus on the areas of energy, transportation, water and telecommunications.
Market experts have predicted that from now until 2020, Viet Nam will require close to 140 billion USD for the development of needed infrastructure projects. The VNI will focus on strategic projects in Ha Noi, Ho Chi Minh City and key economic zones nationwide, including highways, ports, airports, and power plants.
At the AIM, the VNI did earn 402,1 million USD through the issue of 402,1 million one-dollar shares.
Source: VNA
Friday, June 22, 2007
Where are billion dollars to be injected?
Vietnamese people heard recently that foreign investment funds are planning to pour several billion dollars worth of capital into Vietnam. And a question has been raised about where the huge capital is to be injected in, as there seems to be no more room for foreign investors.
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Friday, June 15, 2007
Vietnam approves FPT fund management unit
Vietnam's top information technology services firm FPT Corp. has won a go ahead to set up a fund management company as part of its drive to branch out into financial services.
The State Securities Commission granted on Wednesday its preliminary approval for the establishment of FPT Fund Management Co., it said in a statement. FPT sources said the new firm was expected to become operational next month.
FTP has been seeking to diversify away from its core businesses of software production, mobile phone distribution and Internet services in its effort to get a slice of Vietnam's quickly expanding financial services market.
FPT has already won a go ahead to establish a brokerage firm and it is also seeking central bank permission to open a commercial bank.
Shares in FPT closed 0.33% down at 305,000 dong on Thursday, valuing the Hanoi-based company at $1.15 billion and making it the third-largest firm on the Ho Chi Minh Stock Exchange.
Source: Thanh Nien
The State Securities Commission granted on Wednesday its preliminary approval for the establishment of FPT Fund Management Co., it said in a statement. FPT sources said the new firm was expected to become operational next month.
FTP has been seeking to diversify away from its core businesses of software production, mobile phone distribution and Internet services in its effort to get a slice of Vietnam's quickly expanding financial services market.
FPT has already won a go ahead to establish a brokerage firm and it is also seeking central bank permission to open a commercial bank.
Shares in FPT closed 0.33% down at 305,000 dong on Thursday, valuing the Hanoi-based company at $1.15 billion and making it the third-largest firm on the Ho Chi Minh Stock Exchange.
Source: Thanh Nien
Thursday, June 07, 2007
Investment funds hunting wooden furniture companies’ shares
Investment funds are now eyeing wooden furniture companies’ shares since the wooden furniture processing industry proves to be the one which has seen the highest growth rate in the last few years.
According to the Ministry of Trade, Vietnam-made wooden furniture products are present in 120 countries throughout the world. 28% of exports go to Europe, 24% to Japan, and 20% to the US.
Tran Quoc Manh, Deputy Chairman of the HCM City Fine Arts and Wooden Furniture Processors’ Association, and Director of Sadaco, said that the industry had been witnessing the growth rate of 40-50% per annum in the last few years. Vietnamese companies can export products directly and not go through third parties.
“It is the right time for investment funds to inject money in wooden furniture companies, which have a high growth rate and low risk,” Mr Manh said.
Sadaco, for example, has signed a cooperation agreement with VinaCapital, while another fund is also seeking to buy Sadaco shares.
In February 2007, Aureos decided to make a $3mil investment in Truong Thanh Wooden Furniture Industrial Company to become the biggest strategic shareholder. Truong Thanh later received a lot of other offers from both domestic and foreign funds, including VinaCapital, Indochina Capital and Bao Viet Securities.
Truong Thanh had the total turnover of VND170bil 9$10.62mil) in 2005, and the figure rose to VND326bil ($20.37mil) in 2006. In the first quarter of 2007 alone, the turnover was VND173bil ($10.81mil).
The Denmark-based Penm has also signed an agreement on strategic cooperation with the Duc Thanh Wooden Furniture Processing Company. The deal was inked just two days after the fund set up a representative office in HCM City.
Prior to that, Duc Thanh had a foreign strategic shareholder, Mekong Enterprise Fund Ltd.
The Thuan An Wooden Furniture Processing Company, which is going to list on the bourse in June, has reported that the company has signed an agreement on investment in the company with two foreign based funds.
Source: VNE
According to the Ministry of Trade, Vietnam-made wooden furniture products are present in 120 countries throughout the world. 28% of exports go to Europe, 24% to Japan, and 20% to the US.
Tran Quoc Manh, Deputy Chairman of the HCM City Fine Arts and Wooden Furniture Processors’ Association, and Director of Sadaco, said that the industry had been witnessing the growth rate of 40-50% per annum in the last few years. Vietnamese companies can export products directly and not go through third parties.
“It is the right time for investment funds to inject money in wooden furniture companies, which have a high growth rate and low risk,” Mr Manh said.
Sadaco, for example, has signed a cooperation agreement with VinaCapital, while another fund is also seeking to buy Sadaco shares.
In February 2007, Aureos decided to make a $3mil investment in Truong Thanh Wooden Furniture Industrial Company to become the biggest strategic shareholder. Truong Thanh later received a lot of other offers from both domestic and foreign funds, including VinaCapital, Indochina Capital and Bao Viet Securities.
Truong Thanh had the total turnover of VND170bil 9$10.62mil) in 2005, and the figure rose to VND326bil ($20.37mil) in 2006. In the first quarter of 2007 alone, the turnover was VND173bil ($10.81mil).
The Denmark-based Penm has also signed an agreement on strategic cooperation with the Duc Thanh Wooden Furniture Processing Company. The deal was inked just two days after the fund set up a representative office in HCM City.
Prior to that, Duc Thanh had a foreign strategic shareholder, Mekong Enterprise Fund Ltd.
The Thuan An Wooden Furniture Processing Company, which is going to list on the bourse in June, has reported that the company has signed an agreement on investment in the company with two foreign based funds.
Source: VNE
Monday, May 28, 2007
70 investment funds queue to enter Vietnam
Vietnam’s stock market can bring super profit, and that explains why foreign investment funds are pouring their money into Vietnam’s stocks.
Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%.
The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.
There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.
A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.
The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.
In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.
After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.
Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.
Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.
BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.
Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).
Source: VNE
Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%.
The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.
There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.
A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.
The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.
In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.
After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.
Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.
Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.
BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.
Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).
Source: VNE
Saturday, May 26, 2007
Mekong Capital invests in Mobile Phone World
Mekong Capital will pump 4.5 million USD into national retail chain Mobile Phone World, announced Mekong Capital General Director Chris Freund, on May 25.
“We are pleased to utilise our Mekong Enterprise Fund II to invest in Mobile Phone World. This is one of the most impressive companies that we have had contact with in Viet Nam, based on the strategic vision of their management staff and their capacity to implement its plan,” said General Director Chris Freund.
The 50 million USD Mekong Enterprise Fund II was established to scout out unlisted companies and well run private companies that retain a high potential for growth.
Director of Mobile Phone World Nguyen Duc Tai said the company has been able to create a supermarket system after two years of operations that has seen the firm record the highest cell phone unit sales in the country.
Source: VNA
“We are pleased to utilise our Mekong Enterprise Fund II to invest in Mobile Phone World. This is one of the most impressive companies that we have had contact with in Viet Nam, based on the strategic vision of their management staff and their capacity to implement its plan,” said General Director Chris Freund.
The 50 million USD Mekong Enterprise Fund II was established to scout out unlisted companies and well run private companies that retain a high potential for growth.
Director of Mobile Phone World Nguyen Duc Tai said the company has been able to create a supermarket system after two years of operations that has seen the firm record the highest cell phone unit sales in the country.
Source: VNA
VinaCapital arm gets nod for $11 mln HCMC apartment project
Proforma Asia Limited, a subsidiary of the UK-listed VinaCapital, has announced plans for two residential projects in Ho Chi Minh City.
VinaCapital Phuoc Dien, Co., Ltd, joint venture between the British Virgin Islands-registered Proforma Asia Limited and the local Dien Phuoc Long Real Estate Trading Company, will build 55 villas and a 12-storey apartment block for sale and lease in district 9 at a cost of US$11.2 million.
It has also received the license from the city government for the purpose.
Another JV Proforma has formed with a local partner, International Consultant Company, has got the nod in principle to build an apartment complex project in Phu Huu Ward also in district 9.
To comprise three 12-storey blocks with 440 apartments in all and space for shopping malls, it is estimated to cost $15.6 million. The foreign partner will contribute 84% and the local firm the rest in terms of land.
The two projects are expected to begin soon.
Established in 2003, VinaCapital now manages three funds with a total corpus of $1.4 billion: the $800 million VOF and the $600 million Vinaland – both listed on London Stock Exchange – and the $50 million DFJ VinaCapital L.P., which invests in information and communication technology firms.
It is beefing up investment in real estate via Vietnam-focused funds and overseas subsidiaries.
It is also launching a new fund for investment in Vietnam's rapidly growing infrastructure sector, seeking to raise US$200 million in the first fundraising exercise this month.
The Vietnam Infrastructure Limited will seek admission to the Alternative Investments Market on the London Stock Exchange.
VIL will invest in Vietnam's infrastructure framework through a portfolio of infrastructure assets in key economic regions. It will be Vietnam's first fund fully dedicated to investment in this rapidly growing asset class.
VIL will focus on four key industries: energy, transport, water and telecommunications.
Source: Thanh Nien
VinaCapital Phuoc Dien, Co., Ltd, joint venture between the British Virgin Islands-registered Proforma Asia Limited and the local Dien Phuoc Long Real Estate Trading Company, will build 55 villas and a 12-storey apartment block for sale and lease in district 9 at a cost of US$11.2 million.
It has also received the license from the city government for the purpose.
Another JV Proforma has formed with a local partner, International Consultant Company, has got the nod in principle to build an apartment complex project in Phu Huu Ward also in district 9.
To comprise three 12-storey blocks with 440 apartments in all and space for shopping malls, it is estimated to cost $15.6 million. The foreign partner will contribute 84% and the local firm the rest in terms of land.
The two projects are expected to begin soon.
Established in 2003, VinaCapital now manages three funds with a total corpus of $1.4 billion: the $800 million VOF and the $600 million Vinaland – both listed on London Stock Exchange – and the $50 million DFJ VinaCapital L.P., which invests in information and communication technology firms.
It is beefing up investment in real estate via Vietnam-focused funds and overseas subsidiaries.
It is also launching a new fund for investment in Vietnam's rapidly growing infrastructure sector, seeking to raise US$200 million in the first fundraising exercise this month.
The Vietnam Infrastructure Limited will seek admission to the Alternative Investments Market on the London Stock Exchange.
VIL will invest in Vietnam's infrastructure framework through a portfolio of infrastructure assets in key economic regions. It will be Vietnam's first fund fully dedicated to investment in this rapidly growing asset class.
VIL will focus on four key industries: energy, transport, water and telecommunications.
Source: Thanh Nien
Wednesday, May 23, 2007
Prudential to create local investment fund
The Prudential Group has declared that it will establish a real estate invesment fund in Viet Nam starting in July with an initial capital of US$500 million.
The Property Investment Management Fund (PruPIM) will invest in high-rise construction and hotel projects in Ha Noi, HCM City, and major tourist areas around the country, and expects to begin generating returns at a rate of 15-20 per cent per year.
Source: VNN
The Property Investment Management Fund (PruPIM) will invest in high-rise construction and hotel projects in Ha Noi, HCM City, and major tourist areas around the country, and expects to begin generating returns at a rate of 15-20 per cent per year.
Source: VNN
Friday, May 18, 2007
Indochina Capital to pick up 20 pct in fruit processor
London-listed Indochina Capital fund has completed talks over acquisition of a 20% stake in local fruit processor Vinamit in the Ho Chi Minh City, taking its first step into the agriculture sector.
Peter Ryder, director of Indochina Capital attributed the investment choice to Vinamit’s impressive business strategy and the inherent potential of Vietnam’s agriculture sector.
The official signing of the agreement is scheduled to take place on May 25 in HCMC, but the value of the deal was not immediately available.
This will be the second investment in Vietnam for the newly-established US$500 million Capital Vietnam Holdings, listed with the ticker symbol ICV on the London Stock Exchange.
Its first investment came in a contract sealed last month to pick up a 15% stake in the telecom cable firm Viet Han Corp in central Quang Nam Province.
Capital Vietnam Holdings will assist the fruit processing firm in developing a business strategy and in seeking strategic partners.
Particularly, via Indochina Capital’s Mekong Securities arm, it will also offer consulting services for Vinamit’s listing on the local stock exchange, which is set for the first half of next year.
Vinamit is known as the country’s largest fruit processing firm with 60% of its annual revenue from export to China mainland, Malaysia, Singapore, Taiwan, Hong Kong, the EU and Japan.
In the domestic market, Vinamit products made from Vietnamese jack fruit, banana, guava, mango and sweet potato take up the lion’s share of 90%.
Indochina Capital Vietnam Holdings, which is structured as a closed-end investment company, isn’t just investing in equities listed on the Ho Chi Minh stock exchange and over-the-counter stocks.
It will also look at private equity and potentially some derivatives and debt securities. And it can also invest in non-Vietnamese companies which have a material portion of their business or assets in Vietnam.
Indochina Capital is among Vietnam’s most established investment firms and innovative leaders in the growing financial market.
It manages Vietnam-focused funds with two distinct strategies in real estate and the capital markets including Indochina Capital Vietnam Holdings; Indochina Land Holdings; Indochina Land Holdings 2; Mekong Securities; and Indochina Capital Advisory and Finance.
Indochina has invested in real estate in Vietnam for the past 15 years, having developed or financed projects worth more than $1 billion including offices, apartments and hotels.
Peter Ryder, director of Indochina Capital attributed the investment choice to Vinamit’s impressive business strategy and the inherent potential of Vietnam’s agriculture sector.
The official signing of the agreement is scheduled to take place on May 25 in HCMC, but the value of the deal was not immediately available.
This will be the second investment in Vietnam for the newly-established US$500 million Capital Vietnam Holdings, listed with the ticker symbol ICV on the London Stock Exchange.
Its first investment came in a contract sealed last month to pick up a 15% stake in the telecom cable firm Viet Han Corp in central Quang Nam Province.
Capital Vietnam Holdings will assist the fruit processing firm in developing a business strategy and in seeking strategic partners.
Particularly, via Indochina Capital’s Mekong Securities arm, it will also offer consulting services for Vinamit’s listing on the local stock exchange, which is set for the first half of next year.
Vinamit is known as the country’s largest fruit processing firm with 60% of its annual revenue from export to China mainland, Malaysia, Singapore, Taiwan, Hong Kong, the EU and Japan.
In the domestic market, Vinamit products made from Vietnamese jack fruit, banana, guava, mango and sweet potato take up the lion’s share of 90%.
Indochina Capital Vietnam Holdings, which is structured as a closed-end investment company, isn’t just investing in equities listed on the Ho Chi Minh stock exchange and over-the-counter stocks.
It will also look at private equity and potentially some derivatives and debt securities. And it can also invest in non-Vietnamese companies which have a material portion of their business or assets in Vietnam.
Indochina Capital is among Vietnam’s most established investment firms and innovative leaders in the growing financial market.
It manages Vietnam-focused funds with two distinct strategies in real estate and the capital markets including Indochina Capital Vietnam Holdings; Indochina Land Holdings; Indochina Land Holdings 2; Mekong Securities; and Indochina Capital Advisory and Finance.
Indochina has invested in real estate in Vietnam for the past 15 years, having developed or financed projects worth more than $1 billion including offices, apartments and hotels.
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