Vietnam's Kinh Do Food Corporation (KDC) expects its net profit to rise by one third this year and to complete the takeovers of two subsidiaries, including North Kinh Do Food Co (NKD), an executive said on Thursday.
Le Phung Hao, Deputy General Director of the Ho Chi Minh City-based firm, said this year's net profit would rise 37.8 percent from 2006 to 332 billion dong ($20.5 million) and to 572 billion dong ($35.4 million) next year.
"We will complete the acquisitions within this year after a share issue for which we are seeking licence from the State Securities Commission," Hao told Reuters on the sidelines of a conference in Hanoi.
In April, Kinh Do said it would issue 11 million shares to raise funds for three property projects and lift its registered capital by 30.6 percent to 470 billion dong ($29 million).
"We need more than 1,200 billion dong for our property projects," Hao said.
The projects include an office building in downtown Ho Chi Minh City, a shopping mall and office complex and an apartment building.
"Foreign investors are arriving in Vietnam, people's living standards are also getting higher, so the pressure on housing in Ho Chi Minh City is huge," Hao said.
Kinh Do was also running a venture with a Vietnamese military company to build a complex of office, trade promotion facilities and apartments in Ho Chi Minh City, he said.
Kinh Do's future business would include food processing, retail property and financial investment with food processing still contributing 70-80 percent of revenues, Hao said.
After the share issue, Kinh Do will take over the North Kinh Do Food Company, based in the northern province of Hung Yen.
It would be the first acquisition between two firms listed on the country's fledgling stock market, which has risen about 20 percent so far this year after a 144 percent surge last year.
North Kinh Do, which has a market value of $144 million, makes cakes, snacks and processes foods for domestic markets and export to the United States and Taiwan. Its shares last traded flat at 230,000 dong ($14.2) each.
Kinh Do makes food, confectionaries and fruit juice. It is also a general trading firm, dealing with a wide range of goods from textiles and electric appliances to stationery, fruit and vegetables.
Shares in Kinh Do ended up 2.04 percent at 250,000 dong ($15.5) on Thursday, valuing the company at $557 million.
It would also take over Kido Company, another subsidiary in the 10-member Kinh Do group, Hao said.
Source: Reuters
Showing posts with label Kinh Do. Show all posts
Showing posts with label Kinh Do. Show all posts
Thursday, August 30, 2007
Friday, August 17, 2007
Kinh Do bakery buys stake in Sai Thanh software solutions
Commercial baker Kinh Do (KDC), which is listed on the HCM City stock exchange, has expanded its activities into training by buying a stake in the Sai Thanh Solutions Company (SSC).
KDC chairman Tran Kim Thanh said the company had set up its own training centre but needed a professional consulting and training firm to better satisfy staff and client needs.
KDC has acquired 40 per cent of SSC, which specialises in offering solutions for investment, consultation and training in business and management.
Thanh, who is also chairman of SSC, said: "We want to develop SSC into a strong brand with a focus on improving management skills of corporate senior managers. That’s why we entered a co-operation agreement with Singapore Institute of Management (SIM)."
On Tuesday SSC signed an agreement with SIM for a training programme for senior managers as the first step.
SSC also plans to invest VND100 billion (US$) in developing a modern training centre in District 7 in HCM City.
Source: VNS
KDC chairman Tran Kim Thanh said the company had set up its own training centre but needed a professional consulting and training firm to better satisfy staff and client needs.
KDC has acquired 40 per cent of SSC, which specialises in offering solutions for investment, consultation and training in business and management.
Thanh, who is also chairman of SSC, said: "We want to develop SSC into a strong brand with a focus on improving management skills of corporate senior managers. That’s why we entered a co-operation agreement with Singapore Institute of Management (SIM)."
On Tuesday SSC signed an agreement with SIM for a training programme for senior managers as the first step.
SSC also plans to invest VND100 billion (US$) in developing a modern training centre in District 7 in HCM City.
Source: VNS
Thursday, June 21, 2007
Investors to buy stakes in Eximbank
The joint stock Viet Nam Export Import Bank (Eximbank) announced it plans to sell stakes to 16 strategic shareholders on June 20.
They include the Asia Commercial Bank (ACB), confectioner Kinh Do Group, Ban Viet Securities Investment Company, aviation service firm Sasco, and the Saigon Post and Telecommunication Company.
Together they will acquire 500,000 shares for 4 trillion VND (250 million USD), or at eight times their face value.
This strategic placement is part of the bank’s plan to increase its capital this year to 2.8 trillion VND (175 million USD) from 1.2 trillion VND (75 million USD), according to chairman Nguyen Thanh Long.
”Eximbank and its strategic partners will cooperate in various areas including products and services, clientele, and network,” he said, adding, for instance, non-banking partners would use Eximbank’s services. They would also make joint investments.
Source: VNA
They include the Asia Commercial Bank (ACB), confectioner Kinh Do Group, Ban Viet Securities Investment Company, aviation service firm Sasco, and the Saigon Post and Telecommunication Company.
Together they will acquire 500,000 shares for 4 trillion VND (250 million USD), or at eight times their face value.
This strategic placement is part of the bank’s plan to increase its capital this year to 2.8 trillion VND (175 million USD) from 1.2 trillion VND (75 million USD), according to chairman Nguyen Thanh Long.
”Eximbank and its strategic partners will cooperate in various areas including products and services, clientele, and network,” he said, adding, for instance, non-banking partners would use Eximbank’s services. They would also make joint investments.
Source: VNA
Saturday, June 16, 2007
What lies behind enterprise-bank cooperations?
The quickest way for enterprises to enter the financial market is to join hands with banks, while banks find it easiest to attract more clients if they cooperate with enterprises.
Big corporations and bankers nowadays tend to ‘shake hands’ in multifaceted cooperation agreements. Joint stock banks aim to attract more clients when they choose strategic shareholders. Experts have said that this is the quickest way to grab the market share that they had not got before.
Eximbank’s Director General Pham Van Thiet said that bankers and big corporations cooperated with each other in order to take full advantage of the client networks and services of the partners.
For example, Eximbank has signed an agreement with Kinh Do Group, under which, the bank can use the network of the group to offer more services to more clients. A large number of Kinh Do’s clients will use Eximbank’s services.
With the same goal, Eximbank has at the same time signed cooperation agreements with 16 local partners which operate in different fields. The total share value the bank has sold to its strategic shareholders has reached VND500bil ($31.25mil).
As for enterprises, which once found it very hard to access bank loans, they can more easily get loans after joining hands with banks.
Nevertheless, it is quite difficult to find suitable partners. A banker said that it took him many years to find a partner who could meet the requirements on capital, business vision, business network, and most importantly, had suitable development plans.
Under the new agreement signed between the Vietnam Post and Telecommunication Group (VNPT) and the Vietnam Industrial and Commercial Bank (Incombank), the two sides will move ahead with cooperation activities, make capital contributions and support each other in expanding and developing many business fields.
Similarly, 16 partners of Eximbank have promised to use each others’ services and make investment cooperation deals. Moreover, experts have said, enterprises all aim to hold bank shares to enter the financial market, which is very hot nowadays. Bach Viet and PC2, for example, have inked cooperation deals with An Binh Bank.
The financial market is so hot that 20 more applications to set up banks have been submitted to the State Bank of Vietnam, while foreign investors are also seeking to make investment in Vietnamese banks.
Source: VNE
Big corporations and bankers nowadays tend to ‘shake hands’ in multifaceted cooperation agreements. Joint stock banks aim to attract more clients when they choose strategic shareholders. Experts have said that this is the quickest way to grab the market share that they had not got before.
Eximbank’s Director General Pham Van Thiet said that bankers and big corporations cooperated with each other in order to take full advantage of the client networks and services of the partners.
For example, Eximbank has signed an agreement with Kinh Do Group, under which, the bank can use the network of the group to offer more services to more clients. A large number of Kinh Do’s clients will use Eximbank’s services.
With the same goal, Eximbank has at the same time signed cooperation agreements with 16 local partners which operate in different fields. The total share value the bank has sold to its strategic shareholders has reached VND500bil ($31.25mil).
As for enterprises, which once found it very hard to access bank loans, they can more easily get loans after joining hands with banks.
Nevertheless, it is quite difficult to find suitable partners. A banker said that it took him many years to find a partner who could meet the requirements on capital, business vision, business network, and most importantly, had suitable development plans.
Under the new agreement signed between the Vietnam Post and Telecommunication Group (VNPT) and the Vietnam Industrial and Commercial Bank (Incombank), the two sides will move ahead with cooperation activities, make capital contributions and support each other in expanding and developing many business fields.
Similarly, 16 partners of Eximbank have promised to use each others’ services and make investment cooperation deals. Moreover, experts have said, enterprises all aim to hold bank shares to enter the financial market, which is very hot nowadays. Bach Viet and PC2, for example, have inked cooperation deals with An Binh Bank.
The financial market is so hot that 20 more applications to set up banks have been submitted to the State Bank of Vietnam, while foreign investors are also seeking to make investment in Vietnamese banks.
Source: VNE
Friday, June 15, 2007
Vietnam Eximbank sells nearly 18% to strategic partners
The Vietnam Export-Import Bank (Eximbank) has sold 17.8% of its shares, worth VND4 trillion (US$248 million), to 17 strategic partners.
Several monster companies including Saigon Industrial Corp., PetroVietnam Finance Company, Asia Commercial Joint Stock Bank, Nguyen Kim Trade Center, the Saigon Trade Corporation, and Kinh Do Corp. were among the strategic partners.
The acquisition details were unavailable.
Before this acquisition, Vietnam’s largest confectioner Kinh Do Corp was Eximbank’s largest shareholder, holding a 6.42% stake, which the listed-confectioner had paid $90 million for.
The unlisted bank is considering selling a 30% stake under the central bank’s cap to foreign investors.
An Eximbank representative said the bank was targeting suitable foreign partners, placing a high priority on technology assistance and human resources that could help the bank achieve its goal of becoming the leading credit organization in Vietnam.
Temasek Holdings, an investment arm of Singapore government, has proposed to buy a 10% stake in the bank.
Founded in1989, the Eximbank has established correspondent banking relationship with more than 424 foreign banks in 49 countries enabling it to play an instrumental role in developing commercial financing and international trade.
It has a chartered capital of VND2.8 trillion ($175 million).
The bank has total assets of VND18.33 trillion ($1.1 billion), deposits of VND13.47 trillion, and a pre-tax profit last year of VND258.6 billion ($16 million).
Source: Thanh Nien
Several monster companies including Saigon Industrial Corp., PetroVietnam Finance Company, Asia Commercial Joint Stock Bank, Nguyen Kim Trade Center, the Saigon Trade Corporation, and Kinh Do Corp. were among the strategic partners.
The acquisition details were unavailable.
Before this acquisition, Vietnam’s largest confectioner Kinh Do Corp was Eximbank’s largest shareholder, holding a 6.42% stake, which the listed-confectioner had paid $90 million for.
The unlisted bank is considering selling a 30% stake under the central bank’s cap to foreign investors.
An Eximbank representative said the bank was targeting suitable foreign partners, placing a high priority on technology assistance and human resources that could help the bank achieve its goal of becoming the leading credit organization in Vietnam.
Temasek Holdings, an investment arm of Singapore government, has proposed to buy a 10% stake in the bank.
Founded in1989, the Eximbank has established correspondent banking relationship with more than 424 foreign banks in 49 countries enabling it to play an instrumental role in developing commercial financing and international trade.
It has a chartered capital of VND2.8 trillion ($175 million).
The bank has total assets of VND18.33 trillion ($1.1 billion), deposits of VND13.47 trillion, and a pre-tax profit last year of VND258.6 billion ($16 million).
Source: Thanh Nien
Wednesday, June 06, 2007
Ice cream maker to merge with Kinh Do
The joint stock ice cream manufacturer Kido will soon merge with commercial baker Kinh Do Corp, which is listed at the Ho Chi Minh City Securities Trading Centre.
Kido chairman Tran Kim Thanh said at Kido’s annual meeting held on June 5 that consultants were working on the merger plan and expected it to be completed in the third quarter.
Procedures are also taking place for listed confectioner North Kinh Do to merge with Kinh Do Corp as well.
This year Kido plans investments worth around 90 billion VND (5.6 million USD) to expand production.
The investments include a new ice cream factory in the northern province of Hung Yen to save transport costs from southern to the northern areas. Currently Kido has a factory in HCM City.
Construction for the Kido Hung Yen project will begin in October. When put it opens in October 2008, the 43 billion VND factory will turn out five million liters of ice cream annually, which is more than double the capacity of the existing factory.
The company has recently increased its equity capital to 60 billion VND (3.7 million USD) from the previous 40 billion VND (2.5 million USD).
This year, its target is 15 billion VND in net profit, up 46 percent from 2006’s 10.5 billion VND.
In another development, the HCM City Securities Trading Centre accepted Royal Securities Corp. (ROSE) as its 48 th trading member.
This securities company has equity capital of 20 billion VND (1.2 million USD), and provides services including brokerage and consultancy. The company is located on the second floor of the Eden Mall, 106 Nguyen Hue Street, District 1, in the city
Source: VNA
Kido chairman Tran Kim Thanh said at Kido’s annual meeting held on June 5 that consultants were working on the merger plan and expected it to be completed in the third quarter.
Procedures are also taking place for listed confectioner North Kinh Do to merge with Kinh Do Corp as well.
This year Kido plans investments worth around 90 billion VND (5.6 million USD) to expand production.
The investments include a new ice cream factory in the northern province of Hung Yen to save transport costs from southern to the northern areas. Currently Kido has a factory in HCM City.
Construction for the Kido Hung Yen project will begin in October. When put it opens in October 2008, the 43 billion VND factory will turn out five million liters of ice cream annually, which is more than double the capacity of the existing factory.
The company has recently increased its equity capital to 60 billion VND (3.7 million USD) from the previous 40 billion VND (2.5 million USD).
This year, its target is 15 billion VND in net profit, up 46 percent from 2006’s 10.5 billion VND.
In another development, the HCM City Securities Trading Centre accepted Royal Securities Corp. (ROSE) as its 48 th trading member.
This securities company has equity capital of 20 billion VND (1.2 million USD), and provides services including brokerage and consultancy. The company is located on the second floor of the Eden Mall, 106 Nguyen Hue Street, District 1, in the city
Source: VNA
Monday, May 21, 2007
Bourbon Tay Ninh Sugar Company to sell 49% of shares
The Bourbon Tay Ninh Sugar Joint Stock Company (SBT) will auction 49% of its shares next month.
3% of the total 70 million SBT shares will be sold exclusively to local cane farmers and 2%, to SBT staff, said SBT General Director Philippe Lombard.
Under the company's equitisation plan, SBT will retain 51% of the stake or 72.8 million of the total 141.9 million shares worth 1.4 trillion VND (approximately 104 million USD).
The company has so far signed contracts to transfer 24% of its chartered capital to 17 partners, including Vinamilk, Kinh Do, Bibica and VinaCapital.
SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing a 70% stake of the 28.5 million USD in chartered capital and its 95 million USD investment capital.
In 1998, the company increased its chartered capital to 39.5 million USD and its investment capital to 111 million USD.
After Bourbon acquired the two partners’ stake in 2000, capital then grew to 112 million USD and 113 million USD, respectively.
In March 2007, SBT received a licence from Tay Ninh provincial authorities to become a joint-stock company.
The company specialises in making refined sugar, producing power from sugarcane waste to serve its production lines and providing sugarcane cuttings.
It hauled in over 193 billion VND (11.8 million USD) from the 2006-07 sugarcane crop.
Source: VNA
3% of the total 70 million SBT shares will be sold exclusively to local cane farmers and 2%, to SBT staff, said SBT General Director Philippe Lombard.
Under the company's equitisation plan, SBT will retain 51% of the stake or 72.8 million of the total 141.9 million shares worth 1.4 trillion VND (approximately 104 million USD).
The company has so far signed contracts to transfer 24% of its chartered capital to 17 partners, including Vinamilk, Kinh Do, Bibica and VinaCapital.
SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing a 70% stake of the 28.5 million USD in chartered capital and its 95 million USD investment capital.
In 1998, the company increased its chartered capital to 39.5 million USD and its investment capital to 111 million USD.
After Bourbon acquired the two partners’ stake in 2000, capital then grew to 112 million USD and 113 million USD, respectively.
In March 2007, SBT received a licence from Tay Ninh provincial authorities to become a joint-stock company.
The company specialises in making refined sugar, producing power from sugarcane waste to serve its production lines and providing sugarcane cuttings.
It hauled in over 193 billion VND (11.8 million USD) from the 2006-07 sugarcane crop.
Source: VNA
Saturday, May 19, 2007
Blue chip firms speculate in real estate
Vietnamese companies are increasingly moving from their traditional business platforms into real estate speculation and development in a bid to boost corporate values on the stock market.
High-profile firms like REE are widening their portfolios to include real estate speculation and property development
The shift has become order of the day for many firms eager to tap into a red hot real estate market that is generating huge profits for investors as demand currently heavily outweighs supply.
Refrigeration and Engineering Corporation (REE) is one company known for its mechanical and engineering business. The firm is now a high-profile real estate developer with five successful office projects in Ho Chi Minh City on the books and more on the way.
Last year, REE pocketed over $3 million from the lease of company-owned office space and expects to double that figure this year after opening a further 27,000 square metres in area two months ago.
REE has plans to increase its forays into the market with a $25 million investment that will see the company increase its leased floor space by an additional 65,000sqm.
Confectionery maker Kinh Do Corporation recently announced that it would invest 30% of its operating profits into property development with an office and residential complex for Ho Chi Minh City.
Battery producer Pinaco and the Saigon Garment Company (SGC) are other cases in point. Pinaco is preparing a share issuance to raise capital to build a new factory in Dong Nai province and is looking for partners to develop its current 20,000sqm site in Ho Chi Minh City's District 6. SGC also plans to build a small industrial complex and move its facilities out of town. The company will rebuild residential and office blocks on its current site.
Other firms, which are preparing for initial public offerings (IPO), are also building large offices to boost corporate values. Vietcombank is due for an IPO in October and has stated it will put up a 77,000sqm office block in the country's second city, while Bank for Investment and Development of Vietnam, Electricity of Vietnam, Bao Viet and Bao Minh are all building their own office buildings.
Real estate investments are not only boosting corporate profiles but are also bringing in tidy profits for companies not afraid to step away from their traditional business models. Grade A office monthly rental rates in Hanoi and Ho Chi Minh City now reach $38 per square metre and are expected to fetch up to $46 by next year. Housing and retail space demand is also strong with rents set to increase across the board.
Source: VNE
High-profile firms like REE are widening their portfolios to include real estate speculation and property development
The shift has become order of the day for many firms eager to tap into a red hot real estate market that is generating huge profits for investors as demand currently heavily outweighs supply.
Refrigeration and Engineering Corporation (REE) is one company known for its mechanical and engineering business. The firm is now a high-profile real estate developer with five successful office projects in Ho Chi Minh City on the books and more on the way.
Last year, REE pocketed over $3 million from the lease of company-owned office space and expects to double that figure this year after opening a further 27,000 square metres in area two months ago.
REE has plans to increase its forays into the market with a $25 million investment that will see the company increase its leased floor space by an additional 65,000sqm.
Confectionery maker Kinh Do Corporation recently announced that it would invest 30% of its operating profits into property development with an office and residential complex for Ho Chi Minh City.
Battery producer Pinaco and the Saigon Garment Company (SGC) are other cases in point. Pinaco is preparing a share issuance to raise capital to build a new factory in Dong Nai province and is looking for partners to develop its current 20,000sqm site in Ho Chi Minh City's District 6. SGC also plans to build a small industrial complex and move its facilities out of town. The company will rebuild residential and office blocks on its current site.
Other firms, which are preparing for initial public offerings (IPO), are also building large offices to boost corporate values. Vietcombank is due for an IPO in October and has stated it will put up a 77,000sqm office block in the country's second city, while Bank for Investment and Development of Vietnam, Electricity of Vietnam, Bao Viet and Bao Minh are all building their own office buildings.
Real estate investments are not only boosting corporate profiles but are also bringing in tidy profits for companies not afraid to step away from their traditional business models. Grade A office monthly rental rates in Hanoi and Ho Chi Minh City now reach $38 per square metre and are expected to fetch up to $46 by next year. Housing and retail space demand is also strong with rents set to increase across the board.
Source: VNE
Tuesday, May 15, 2007
With profits up, TRIBECO thirsts for more
The Tribeco beverage company has set a bulky 459 billion VND (28.7 million USD) revenue target in a campaign to yield over 14 billion VND in net profits this year.
The targets are up 52% and 62%, respectively, from the figures achieved in 2006.
Tribeco chairman Tran Kim Thanh said that strategic partners would play a large part in achieving the goals.
The confectioner Kinh Do Corp, which Thanh also chairs, holds around 35% of Tribeco. With Kinh Do's support, Tribeco is constructing two new factories, one in the north and one in the south; in Hung Yen province and Binh Duong province, respectively.
The factory in Binh Duong will open in August and the Hung Yen-based factory will begin production in December. As the company's first northern production base, the Hung Yen plant will cut Tribeco's transport costs dramatically.
Additionally, Tribeco entered a partnership late last month with the Taiwanese company Uni-President, which specialises in food processing, beverages and retail chains.
Uni-President will help Tribeco produce new products and send its specialists to assist Tribeco in finance, technology, and product and market development.
Source: VNA
The targets are up 52% and 62%, respectively, from the figures achieved in 2006.
Tribeco chairman Tran Kim Thanh said that strategic partners would play a large part in achieving the goals.
The confectioner Kinh Do Corp, which Thanh also chairs, holds around 35% of Tribeco. With Kinh Do's support, Tribeco is constructing two new factories, one in the north and one in the south; in Hung Yen province and Binh Duong province, respectively.
The factory in Binh Duong will open in August and the Hung Yen-based factory will begin production in December. As the company's first northern production base, the Hung Yen plant will cut Tribeco's transport costs dramatically.
Additionally, Tribeco entered a partnership late last month with the Taiwanese company Uni-President, which specialises in food processing, beverages and retail chains.
Uni-President will help Tribeco produce new products and send its specialists to assist Tribeco in finance, technology, and product and market development.
Source: VNA
Thursday, May 10, 2007
Who is the most valuable CEO?
The Refrigeration Electrical Engineering Corporation (REE) created a ‘revolution’ of salary for its CEO Nguyen Thi Mai Thanh. All shareholders attending the REE shareholders’ meeting held in late March 2007 voted to increase Ms Thanh’s wage from VND48 million (US$3,000) per month in 2006 to VND100 million ($6,200) per month this year.
REE shareholders call this a ‘revolution’ because Ms Thanh’s wage had not changed in the previous three years (under a labour contract signed on January 1, 2004, Ms Thanh’s salary is VND48 million per month) and now it has increased by more than two times.
An official of REE commented: “It is understandable to see Ms Mai Thanh’s wage rising like this because this number must be equivalent to the annual growth of REE.”
A human resources expert said that the wages of CEOs of firms listed in the Vietnamese stock market meets the current situation on the market for senior human resources of Vietnam. However, wages are only the easy-to-see part of income of CEOs because the thing that keeps them close to listed firms is that the volume of shares they and their family members own increases each time their companies issue bonus shares and new shares to increase capital.
High bonuses calculated based on the percentage of after-tax profit of the corporations are also a way to retain senior personnel.
Ms Thanh is one of the CEOs of listed companies who began as a state employee. Other CEOs of the same kind include Ms Mai Kieu Lien, Chairman and CEO of the Vietnam Dairy Product Company (Vinamilk), Mr Le Quang Doanh, Chairman and CEO of Binh Minh Plastic Company (BMP), and Ms Pham Thi Viet Nga, Chairman and CEO of the Hau Giang Pharmaceutical Company.
The common thing of those CEOs is that after equitisation they were trusted and appointed to be the representative of the State in the equitised firms. Their fast adaptation to their new working environments has also been highly praised by investors.
The CEO of a fund management company said: “I like Ms Mai Thanh’s to-the-fullest working style. Once my fund was about to issue more fund certificates, she called me at night to ask about the upcoming form of issuance so that REE could buy. I don’t know how she could work that hard, but such is the way of a businessperson who always considers the interest of his company.”
However, many shareholders are beginning to ask if it is in fact good for listed firms to have CEOs who were previously state employees and have stayed in their positions for so long. Because, according to human resources experts, one who sits in a position for a long time will become idle and lack new ideas.
Stock investors admire the group of CEOs who they call ‘two in one’ the most. These are real owners and businessmen, who are considered the richest on the Vietnamese bourse based on the volume and the value of shares they own.
Some big names are Tran Kim Thanh and Tran Le Nguyen of the Kinh Do Group, Truong Gia Binh of the Corporation for Financing and Promoting Technology (FPT), Dang Thanh Tam of the Tan Tao Industrial Zone JS Company (ITACO), Le Van Quang of Company, and Nguyen Duy Hung of the Saigon Securities Trading JS Company (SSI). Wages are no longer important to those CEOs because they are the biggest shareholders of the companies they lead.
Dang Thanh Tam, who has just left the CEO position of ITACO to assume a new post at the HCM City Hi-tech Park, is an example of this kind of CEO. But only several people know that the biggest ability of Mr Tam is designing projects. Projects of thousands of pages are always attractive to this CEO since this man wrote the first lines for the project to establish the Tan Tao Industrial Zone in HCM City.
Mr Tam is also very good at speaking English. He can directly negotiate with foreign partners without translators. He is also an ‘anonymous lawyer’ because he widely understands both Vietnamese and international laws on economics. During his foreign business trips, Ms Tam plays the role of a CEO, a translator, and a lawyer. Thus, he can make decisions very quickly and doesn’t need time to seek outside consultancy.
However, stock investors are still waiting for a new generation of young businessmen who will blow new and strong winds into listed firms. They are professional CEOs who are trained methodically and systematically and have tempered themselves in the international environment.
Phan Bich Van, CEO of Saigon Thuong Tin Bank (Sacombank), is an example. Ms Van worked for the International Finance Company (IFC) under the World Bank and won a Fulbright scholarship to study for a Master’s of Business Administration in the US before working for Sacombank.
As the representative for Sacombank at international workshops, Ms Van has won the hearts of participants with her charm, self-confidence, which have contributed to creating the image of young, talented and professional CEOs of Vietnam in the eyes of international investors.
According to investors, two CEOs considered the most ‘expensive’ in the Vietnamese stock market based on their annual income and success in business affairs are Don Lam, CEO of VinaCapital, and Dominic Scriven, CEO of Dragon Capital.
Don Lam graduated from Toronto University in Canada, majoring in trade and politics, in 1990. He was previously Deputy General Director of PricewaterhouseCoopers Vietnam, in charge of corporate finance consulting and management consulting and Manager in charge of corporate of the Deustche Bank Vietnam.
Dominic Scriven graduated with honours in law and social studies from Exeter University, the UK. He has 15 years of experience in the field of investment, including 13 years in Asia, particularly in Hong Kong and Vietnam. He worked for M&G Investment Management, Sun Hung Kai & Co and Citicorp Investment Bank.
REE shareholders call this a ‘revolution’ because Ms Thanh’s wage had not changed in the previous three years (under a labour contract signed on January 1, 2004, Ms Thanh’s salary is VND48 million per month) and now it has increased by more than two times.
An official of REE commented: “It is understandable to see Ms Mai Thanh’s wage rising like this because this number must be equivalent to the annual growth of REE.”
A human resources expert said that the wages of CEOs of firms listed in the Vietnamese stock market meets the current situation on the market for senior human resources of Vietnam. However, wages are only the easy-to-see part of income of CEOs because the thing that keeps them close to listed firms is that the volume of shares they and their family members own increases each time their companies issue bonus shares and new shares to increase capital.
High bonuses calculated based on the percentage of after-tax profit of the corporations are also a way to retain senior personnel.
Ms Thanh is one of the CEOs of listed companies who began as a state employee. Other CEOs of the same kind include Ms Mai Kieu Lien, Chairman and CEO of the Vietnam Dairy Product Company (Vinamilk), Mr Le Quang Doanh, Chairman and CEO of Binh Minh Plastic Company (BMP), and Ms Pham Thi Viet Nga, Chairman and CEO of the Hau Giang Pharmaceutical Company.
The common thing of those CEOs is that after equitisation they were trusted and appointed to be the representative of the State in the equitised firms. Their fast adaptation to their new working environments has also been highly praised by investors.
The CEO of a fund management company said: “I like Ms Mai Thanh’s to-the-fullest working style. Once my fund was about to issue more fund certificates, she called me at night to ask about the upcoming form of issuance so that REE could buy. I don’t know how she could work that hard, but such is the way of a businessperson who always considers the interest of his company.”
However, many shareholders are beginning to ask if it is in fact good for listed firms to have CEOs who were previously state employees and have stayed in their positions for so long. Because, according to human resources experts, one who sits in a position for a long time will become idle and lack new ideas.
Stock investors admire the group of CEOs who they call ‘two in one’ the most. These are real owners and businessmen, who are considered the richest on the Vietnamese bourse based on the volume and the value of shares they own.
Some big names are Tran Kim Thanh and Tran Le Nguyen of the Kinh Do Group, Truong Gia Binh of the Corporation for Financing and Promoting Technology (FPT), Dang Thanh Tam of the Tan Tao Industrial Zone JS Company (ITACO), Le Van Quang of Company, and Nguyen Duy Hung of the Saigon Securities Trading JS Company (SSI). Wages are no longer important to those CEOs because they are the biggest shareholders of the companies they lead.
Dang Thanh Tam, who has just left the CEO position of ITACO to assume a new post at the HCM City Hi-tech Park, is an example of this kind of CEO. But only several people know that the biggest ability of Mr Tam is designing projects. Projects of thousands of pages are always attractive to this CEO since this man wrote the first lines for the project to establish the Tan Tao Industrial Zone in HCM City.
Mr Tam is also very good at speaking English. He can directly negotiate with foreign partners without translators. He is also an ‘anonymous lawyer’ because he widely understands both Vietnamese and international laws on economics. During his foreign business trips, Ms Tam plays the role of a CEO, a translator, and a lawyer. Thus, he can make decisions very quickly and doesn’t need time to seek outside consultancy.
However, stock investors are still waiting for a new generation of young businessmen who will blow new and strong winds into listed firms. They are professional CEOs who are trained methodically and systematically and have tempered themselves in the international environment.
Phan Bich Van, CEO of Saigon Thuong Tin Bank (Sacombank), is an example. Ms Van worked for the International Finance Company (IFC) under the World Bank and won a Fulbright scholarship to study for a Master’s of Business Administration in the US before working for Sacombank.
As the representative for Sacombank at international workshops, Ms Van has won the hearts of participants with her charm, self-confidence, which have contributed to creating the image of young, talented and professional CEOs of Vietnam in the eyes of international investors.
According to investors, two CEOs considered the most ‘expensive’ in the Vietnamese stock market based on their annual income and success in business affairs are Don Lam, CEO of VinaCapital, and Dominic Scriven, CEO of Dragon Capital.
Don Lam graduated from Toronto University in Canada, majoring in trade and politics, in 1990. He was previously Deputy General Director of PricewaterhouseCoopers Vietnam, in charge of corporate finance consulting and management consulting and Manager in charge of corporate of the Deustche Bank Vietnam.
Dominic Scriven graduated with honours in law and social studies from Exeter University, the UK. He has 15 years of experience in the field of investment, including 13 years in Asia, particularly in Hong Kong and Vietnam. He worked for M&G Investment Management, Sun Hung Kai & Co and Citicorp Investment Bank.
Friday, April 27, 2007
Taiwanese firm picks 15% of TRIBECO
Taiwan’s Uni President Enterprises Corp. (UPEC) has bought a 15% stake in Ho Chi Minh’s Saigon Beverage Company (TRI, Tribeco) for US$2.2 million.
Following the deal sealed Wednesday, UPEC and Tribeco – the beverage company’s formal name – have committed to long-term cooperation for mutual growth.
Tribeco representatives have said that doing business with UPEC is a strategic move to enter Asian markets as UPEC plays a leading role in the distribution of food, beverages and retail throughout the continent.
Tribeco plans to commission a VND300 billion factory to produce soft drinks in Binh Duong Province’s Vietnam-Singapore Industrial Park in August. The company will also begin construction of a VND90 billion facility in the northern province of Hung Yen next month.
With the acquisition, the Taiwanese company has become the second strategic shareholder of Tribeco after Vietnam’s leading confectioner Kinh Do Corp with 35.4%.
UPEC moved into Vietnam in 1999 with $220 million in total pledged investment capital. The firm is active in a range of fields like animal and fish feed, wheat flour, food and drinks.
However the company’s current soft drink facilities in Binh Duong Province have not reached their potential.
UPEC spokesman said the beverages line in Binh Duong would be shut down soon to focus on Tribeco.
Source: Thanh Nien
Following the deal sealed Wednesday, UPEC and Tribeco – the beverage company’s formal name – have committed to long-term cooperation for mutual growth.
Tribeco representatives have said that doing business with UPEC is a strategic move to enter Asian markets as UPEC plays a leading role in the distribution of food, beverages and retail throughout the continent.
Tribeco plans to commission a VND300 billion factory to produce soft drinks in Binh Duong Province’s Vietnam-Singapore Industrial Park in August. The company will also begin construction of a VND90 billion facility in the northern province of Hung Yen next month.
With the acquisition, the Taiwanese company has become the second strategic shareholder of Tribeco after Vietnam’s leading confectioner Kinh Do Corp with 35.4%.
UPEC moved into Vietnam in 1999 with $220 million in total pledged investment capital. The firm is active in a range of fields like animal and fish feed, wheat flour, food and drinks.
However the company’s current soft drink facilities in Binh Duong Province have not reached their potential.
UPEC spokesman said the beverages line in Binh Duong would be shut down soon to focus on Tribeco.
Source: Thanh Nien
Wednesday, April 25, 2007
Sugar maker signs contracts with new partner group
The Bourbon Tay Ninh Sugar Company (SBT) on Monday signed contracts to sell shares to 17 local and foreign strategic partners in an effort to develop the company’s business.
The strategic partners hold a total of 24 per cent of the company, whose capital stands at VND1.419 trillion (US$88 million).
However, the specific percentage of ownership of each of the partners was not released.
Philippe Lombard, the company’s general director, said the co-operation would help his company grow in the field of investment and production.
The 17 companies, including Vinamilk, Kinh Do, Uni President, Dai Viet Securities Company and VinaCapital were classified into three groups of trade, finance and others.
The sugar company will implement procedures to make the IPO (initial public offering) in June at the latest and list on the stock exchange this year.
SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing 70 per cent of the $28.5 million in chartered capital and its investment capital $95 million.
In 1998 the company increased its chartered capital to $39.5 million and its investment capital to $111 million.
After Bourbon acquired the two partners’ stake in 2000, capital then grew to $112 million and $113 million, respectively.
In March 2007 SBT received a licence from Tay Ninh Province to turn into a joint-stock company.
The company’s activities include making refined sugar, producing power from sugarcane waste to serve its production lines, and providing sugarcane cuttings.
Last year it netted VND193 billion, up from VND121 billion in 2005.
SBT plans to invest $55 million in a thermo-power project of 70 MW capacity, and another $10 million in an ethanol producing project capable of 100,000 litres each working day.
It will also make other investments, including developing sugar farming areas.
Source: VNS
The strategic partners hold a total of 24 per cent of the company, whose capital stands at VND1.419 trillion (US$88 million).
However, the specific percentage of ownership of each of the partners was not released.
Philippe Lombard, the company’s general director, said the co-operation would help his company grow in the field of investment and production.
The 17 companies, including Vinamilk, Kinh Do, Uni President, Dai Viet Securities Company and VinaCapital were classified into three groups of trade, finance and others.
The sugar company will implement procedures to make the IPO (initial public offering) in June at the latest and list on the stock exchange this year.
SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing 70 per cent of the $28.5 million in chartered capital and its investment capital $95 million.
In 1998 the company increased its chartered capital to $39.5 million and its investment capital to $111 million.
After Bourbon acquired the two partners’ stake in 2000, capital then grew to $112 million and $113 million, respectively.
In March 2007 SBT received a licence from Tay Ninh Province to turn into a joint-stock company.
The company’s activities include making refined sugar, producing power from sugarcane waste to serve its production lines, and providing sugarcane cuttings.
Last year it netted VND193 billion, up from VND121 billion in 2005.
SBT plans to invest $55 million in a thermo-power project of 70 MW capacity, and another $10 million in an ethanol producing project capable of 100,000 litres each working day.
It will also make other investments, including developing sugar farming areas.
Source: VNS
Friday, April 13, 2007
Kinh Do to increase equity
Vietnam’s largest confectioner, the listed Kinh Do Corp. (KDC), announced Thursday plans to raise VND110 billion (US$6.8 million) by issuing 11 million shares next quarter to fund expansion.
It will sell one million shares each to employees and strategic partners, and the rest to big investors.
Other details are not available but the issue is expected to raise VND1.3 trillion.
The company said the money mobilized would be pumped into some major property projects underway in Ho Chi Minh City.
Kinh Do was building a 45-story commercial and office complex near Ben Thanh Market at a cost of VND2.66 trillion, Tran Le Nguyen, general director of the company, said.
The 5,600 sq.m complex is expected to be completed in three years and house Kinh Do’s headquarters.
Nguyen also said the company would build two new factories this year in Binh Duong province near the city. The over VND660 billion facilities would replace Kinh Do’s existing factory in suburb HCMC and the 6ha site would be turned into a luxury apartment complex.
The company plans to invest VND1 trillion in the project.
It has also begun work on another office-apartment building in the city’s Tan Binh district. The VND911 billion project would be completed next year.
Nguyen said it was a good time for the company to invest in the real estate sector, particularly commercial complexes, because of an increase in the establishment of new offices in the city.
The confectioner posted revenues of nearly VND1 trillion last year and after-tax profit of VND176.6 billion.
They are forecast to grow to VND1.3 trillion and VND240 billion this year.
Source: Thanh Nien
It will sell one million shares each to employees and strategic partners, and the rest to big investors.
Other details are not available but the issue is expected to raise VND1.3 trillion.
The company said the money mobilized would be pumped into some major property projects underway in Ho Chi Minh City.
Kinh Do was building a 45-story commercial and office complex near Ben Thanh Market at a cost of VND2.66 trillion, Tran Le Nguyen, general director of the company, said.
The 5,600 sq.m complex is expected to be completed in three years and house Kinh Do’s headquarters.
Nguyen also said the company would build two new factories this year in Binh Duong province near the city. The over VND660 billion facilities would replace Kinh Do’s existing factory in suburb HCMC and the 6ha site would be turned into a luxury apartment complex.
The company plans to invest VND1 trillion in the project.
It has also begun work on another office-apartment building in the city’s Tan Binh district. The VND911 billion project would be completed next year.
Nguyen said it was a good time for the company to invest in the real estate sector, particularly commercial complexes, because of an increase in the establishment of new offices in the city.
The confectioner posted revenues of nearly VND1 trillion last year and after-tax profit of VND176.6 billion.
They are forecast to grow to VND1.3 trillion and VND240 billion this year.
Source: Thanh Nien
Monday, March 12, 2007
Corporations seek strategic stakes
Securities have been listed in the investment portfolio of state owned general corporations in the last time. The corporations have spent a lot of money on purchasing shares to become the strategic investors in banks and joint stock companies.
By the end of 2006, the Saigon Trade Corporation (Satra Group) had made the capital contribution of VND547 billion (34.2mio US$) to other entities. Besides, Satra has also injected 2mio US$ in Vietnam Investment Fund, purchased over 4 million shares of the Hanoi Housing Development Bank (Habubank) to become the strategic shareholder (holding 5% of total capital) of the bank. It has also been one of the founders of the Rong Viet Securities Company, and purchased shares of many other companies.
Earlier this year, Satra Group became the strategic investor of Phuong Nam Bank (Southern Bank) when it purchased 1 million shares of the bank worth VND80 billion (5mio US$).
Huynh Van Minh, Satra Group’s Director General, said that the group’s capital contribution into other entities will support the group’s operation. For example, as a shareholder of Habubank, Satra’s members will be easier to access the bank’s loans. As a shareholder of Rong Viet, Satra’s members will be assisted in listing shares on the stock market.
Also in 2006, Satra Group joined forces with the partners in Vietnam Brewery Joint Venture to buy back the whole Fosters Vietnam, a brewery company, at 105mio US$, and bought 80% of shares of the Quang Nam Brewery Company, which has the total capital of 17.6mio US$.
In 2006, the post tax profit Satra gained from the Vietnam Brewery Joint Venture alone was VND363 billion (22.7mio US$). Besides, Satra could gain the dividends of VND18.6 billion (1.2mio US$) from its shares. Mr Minh said that the dividends are expected to increase to VND300 billion (18.8mio US$) this year (many share items were just bought in the last year).
The Vietnam Rubber Group (VRG) proves to be a big investor in stocks. The rubber latex price has been increasing continuously in the last few years, which has made the investor’s pocket clinking with plenty of money for financial investment.
Le Quang Thung, Director General of VRG, said that up to now, VRG and its 18 members have injected VND1,746 billion (109.1mio US$) in shares of 42 joint stock companies.
“We have bought the shares of the companies specialising in making car and motorbike tyres, or wooden furniture, which can serve our strategy on diversifying business operation,” said Mr Thung.
At the end of 2006, VRG spent VND24 billion (1.5mio US$) to purchase 60% of the total shares of the HCM City-based Ben Thanh Rubber Company.
Mr Thung has revealed that VRG is planning to make capital contribution or hold controlling stakes in several companies belonging to the Vietnam Chemicals Corporation (Vinachem), including the Sao Vang Rubber Company, Da Nang Rubber Company or Casumina.
In order to implement this plan, VRG has pumped more capital into the VRG Finance Company and set up the VRG Securities Company.
However, the big investors have complained that they are facing a lot of difficulties. Mr Minh said that by the end of 2008, Satra Group will equitise the parent company. The group will issue more shares to the public, but the State will retain the controlling stakes.
The biggest problem lies in the defining the value of financial investment items as it remains unclear the nominal value or market value of shares will be the basis for the calculation. If the assets are valued based on the nominal value, it would cause losses to the State. Meanwhile, it is very difficult to value the assets based on the market value as the prices always fluctuate. Mr Minh said that he has consulted state management authorities on the issue but no suitable solution has been found.
Not only aiming to join hands with foreign investors, local banks have also been intensively seeking domestic strategic partners.
Right before Tet, the market witnessed five big affairs between banks and powerful groups. The Vietnam Oil and Gas Group (PetroVietnam) now holds VND100 billion (6.3mio US$) worth of shares of G-Bank. The bank was just established in 2006, but it has successfully raised the chartered capital to VND500 billion (31.25mio US$) and total assets of VND2 trillion (125mio US$).
The Vietnam Shipbuilding Industry Corporation (Vinashin) has become the shareholder of the Hanoi Housing Development Bank (Habubank), which holds 10% of the bank. Prior to that, Lilama Corporation and Satra Group have also become Habubank’s shareholders (each of them holds 5% of shares).
The Saigon – Hanoi Joint Stock Bank, which once was the Nhon Ai Rural Joint Stock bank, has signed the agreement on strategic cooperation with the Vietnam Rubber Group and the Coal and Mineral Industries Group.
Most recently, Kinh Do Group spent US$90 million to purchase the shares of Eximbank (worth VND180 billion or 11.3mio US$ in nominal value). This is the biggest ever assignment deal which has been made by the domestic investors.
Source: VEN
By the end of 2006, the Saigon Trade Corporation (Satra Group) had made the capital contribution of VND547 billion (34.2mio US$) to other entities. Besides, Satra has also injected 2mio US$ in Vietnam Investment Fund, purchased over 4 million shares of the Hanoi Housing Development Bank (Habubank) to become the strategic shareholder (holding 5% of total capital) of the bank. It has also been one of the founders of the Rong Viet Securities Company, and purchased shares of many other companies.
Earlier this year, Satra Group became the strategic investor of Phuong Nam Bank (Southern Bank) when it purchased 1 million shares of the bank worth VND80 billion (5mio US$).
Huynh Van Minh, Satra Group’s Director General, said that the group’s capital contribution into other entities will support the group’s operation. For example, as a shareholder of Habubank, Satra’s members will be easier to access the bank’s loans. As a shareholder of Rong Viet, Satra’s members will be assisted in listing shares on the stock market.
Also in 2006, Satra Group joined forces with the partners in Vietnam Brewery Joint Venture to buy back the whole Fosters Vietnam, a brewery company, at 105mio US$, and bought 80% of shares of the Quang Nam Brewery Company, which has the total capital of 17.6mio US$.
In 2006, the post tax profit Satra gained from the Vietnam Brewery Joint Venture alone was VND363 billion (22.7mio US$). Besides, Satra could gain the dividends of VND18.6 billion (1.2mio US$) from its shares. Mr Minh said that the dividends are expected to increase to VND300 billion (18.8mio US$) this year (many share items were just bought in the last year).
The Vietnam Rubber Group (VRG) proves to be a big investor in stocks. The rubber latex price has been increasing continuously in the last few years, which has made the investor’s pocket clinking with plenty of money for financial investment.
Le Quang Thung, Director General of VRG, said that up to now, VRG and its 18 members have injected VND1,746 billion (109.1mio US$) in shares of 42 joint stock companies.
“We have bought the shares of the companies specialising in making car and motorbike tyres, or wooden furniture, which can serve our strategy on diversifying business operation,” said Mr Thung.
At the end of 2006, VRG spent VND24 billion (1.5mio US$) to purchase 60% of the total shares of the HCM City-based Ben Thanh Rubber Company.
Mr Thung has revealed that VRG is planning to make capital contribution or hold controlling stakes in several companies belonging to the Vietnam Chemicals Corporation (Vinachem), including the Sao Vang Rubber Company, Da Nang Rubber Company or Casumina.
In order to implement this plan, VRG has pumped more capital into the VRG Finance Company and set up the VRG Securities Company.
However, the big investors have complained that they are facing a lot of difficulties. Mr Minh said that by the end of 2008, Satra Group will equitise the parent company. The group will issue more shares to the public, but the State will retain the controlling stakes.
The biggest problem lies in the defining the value of financial investment items as it remains unclear the nominal value or market value of shares will be the basis for the calculation. If the assets are valued based on the nominal value, it would cause losses to the State. Meanwhile, it is very difficult to value the assets based on the market value as the prices always fluctuate. Mr Minh said that he has consulted state management authorities on the issue but no suitable solution has been found.
Not only aiming to join hands with foreign investors, local banks have also been intensively seeking domestic strategic partners.
Right before Tet, the market witnessed five big affairs between banks and powerful groups. The Vietnam Oil and Gas Group (PetroVietnam) now holds VND100 billion (6.3mio US$) worth of shares of G-Bank. The bank was just established in 2006, but it has successfully raised the chartered capital to VND500 billion (31.25mio US$) and total assets of VND2 trillion (125mio US$).
The Vietnam Shipbuilding Industry Corporation (Vinashin) has become the shareholder of the Hanoi Housing Development Bank (Habubank), which holds 10% of the bank. Prior to that, Lilama Corporation and Satra Group have also become Habubank’s shareholders (each of them holds 5% of shares).
The Saigon – Hanoi Joint Stock Bank, which once was the Nhon Ai Rural Joint Stock bank, has signed the agreement on strategic cooperation with the Vietnam Rubber Group and the Coal and Mineral Industries Group.
Most recently, Kinh Do Group spent US$90 million to purchase the shares of Eximbank (worth VND180 billion or 11.3mio US$ in nominal value). This is the biggest ever assignment deal which has been made by the domestic investors.
Source: VEN
Saturday, February 10, 2007
Kinh Do becomes Eximbank's shareholder
Confectionery and property company Kinh Do Group signed a deal to pick up 6.42% stake in Viet Nam Export Import Bank (Eximbank) for 90mio US$.
The strategic cooperation agreement means Kinh Do will pay a premium since the bank's chartered capital is only 2.8 trillion VND (175mio US$).
"The cooperation will allow us to share our networks in selling products and services," Le Phung Hao, Kinh Do depute general director, said. The two will also support each other's investment projects.
Viet Nam Eximbank is a leading joint stock commercial bank with total assets of 18.332 trillion VND. By the end of 2006 it had outstanding loans of more than 10 trillion VND. Its import-export payments during the year amounted to 2.3 billion USD and gross profit to VND 359 billion VND. It has agency relationships with 650 banks in 65 countries.
This year the bank expects to increase its assets to 31.7 trillion VND, outstanding loans to 15 trillion VND, and profits to 605 billion VND, Deputy General Director Nguyen Quoc Huong said.
Kinh Do Group comprises of nine companies, three of them listed, and has interests in confectionery, beverages, ice cream, and real estate. It holds almost 40% of the country's confectionery market besides exporting to over 30 foreign markets.
Source: VNA
The strategic cooperation agreement means Kinh Do will pay a premium since the bank's chartered capital is only 2.8 trillion VND (175mio US$).
"The cooperation will allow us to share our networks in selling products and services," Le Phung Hao, Kinh Do depute general director, said. The two will also support each other's investment projects.
Viet Nam Eximbank is a leading joint stock commercial bank with total assets of 18.332 trillion VND. By the end of 2006 it had outstanding loans of more than 10 trillion VND. Its import-export payments during the year amounted to 2.3 billion USD and gross profit to VND 359 billion VND. It has agency relationships with 650 banks in 65 countries.
This year the bank expects to increase its assets to 31.7 trillion VND, outstanding loans to 15 trillion VND, and profits to 605 billion VND, Deputy General Director Nguyen Quoc Huong said.
Kinh Do Group comprises of nine companies, three of them listed, and has interests in confectionery, beverages, ice cream, and real estate. It holds almost 40% of the country's confectionery market besides exporting to over 30 foreign markets.
Source: VNA
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