The gross profit of Sacombank (STB), Vietnam's sixth-largest lender, in the first eight months of this year was nearly double that of the whole of 2006, an executive was quoted on Thursday as saying.
The profit was 900 billion dong ($55.7 million), up from a pre-tax 543 billion dong last year, Sacombank chairman Dang Van Thanh was quoted by the Securities Investment newspaper as telling a company meeting.
Thanh did not give a net profit figure, but said the Ho Chi Minh City-based bank aimed for a full year gross profit of 1.4 trillion dong ($86.6 million).
Sacombank, whose formal name is Saigon Thuong Tin Commercial Bank, has said its seven-month profit more than doubled as loans surged 139 percent from a year earlier to $1.1 billion.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 30 percent of Sacombank, the ceiling for foreign ownership of listed banks in Vietnam.
Shares in Sacombank, the first listed bank in the communist ruled country, rose 0.92 percent to 55,000 dong ($3.4) on Thursday.
Sacombank nearly doubled its registered capital to 4.45 trillion dong last month through a share issue as it sought to expand business at home and elsewhere in Asia.
Source: Reuters
Showing posts with label SACOMBANK. Show all posts
Showing posts with label SACOMBANK. Show all posts
Thursday, September 06, 2007
Friday, August 03, 2007
Sacombank ups capital to boost finances
Saigon Thuong Tin Commercial Bank (STB, Sacombank), Vietnam's sixth-largest lender by assets, said it had raised its registered capital by 12 percent as it seeks to grow its business at home and elsewhere in Asia.
The new funds were proceeds from a first share issue as part of a plan to more than double Sacombank's registered capital to 4.45 trillion dong ($276 million) by the end of the year, the Ho Chi Minh City-based bank said in a statement on Thursday.
Sacombank said it had added $15.5 million to its registed capital, which now totalled 2.34 trillion dong from the sale of 25 million shares.
The registered capital determines the size of a bank's loans and deposits.
A total of more than 236 million shares will be sold as part of the bank's capital raising, with proceeds also going to building Sacombank's offices in Ho Chi Minh City, upgrading information technology, opening a credit card business and investing in existing subsidiaries and new subsidiaries.
Listing of the new shares is scheduled for Aug. 23.
Shares in Sacombank, the first listed bank in communist Vietnam, closed flat at 57,000 dong ($3.5) on Thursday, valuing the lender at $738 million, based on the 209 million shares currently on issue.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3 percent of Sacombank, which is fifth-largest listed firm on the Ho Chi Minh Stock Exchange.
Sacombank said last month that strong demand for mortgages helped more than double its pre-tax first half profit from a year earlier to 610 billion dong ($37.8 million).
Sacombank has planned to form a credit card venture with ANZ Bank, open 14 branches in Vietnam this year and also establish offices in China, Laos and Cambodia.
Source: Reuters
The new funds were proceeds from a first share issue as part of a plan to more than double Sacombank's registered capital to 4.45 trillion dong ($276 million) by the end of the year, the Ho Chi Minh City-based bank said in a statement on Thursday.
Sacombank said it had added $15.5 million to its registed capital, which now totalled 2.34 trillion dong from the sale of 25 million shares.
The registered capital determines the size of a bank's loans and deposits.
A total of more than 236 million shares will be sold as part of the bank's capital raising, with proceeds also going to building Sacombank's offices in Ho Chi Minh City, upgrading information technology, opening a credit card business and investing in existing subsidiaries and new subsidiaries.
Listing of the new shares is scheduled for Aug. 23.
Shares in Sacombank, the first listed bank in communist Vietnam, closed flat at 57,000 dong ($3.5) on Thursday, valuing the lender at $738 million, based on the 209 million shares currently on issue.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3 percent of Sacombank, which is fifth-largest listed firm on the Ho Chi Minh Stock Exchange.
Sacombank said last month that strong demand for mortgages helped more than double its pre-tax first half profit from a year earlier to 610 billion dong ($37.8 million).
Sacombank has planned to form a credit card venture with ANZ Bank, open 14 branches in Vietnam this year and also establish offices in China, Laos and Cambodia.
Source: Reuters
Thursday, August 02, 2007
Banks struggle to scale up charter capital
Banks, especially small-sized ones, are bidding to attract more equity funds to ensure they can survive the stiffer competition in the marketplace.
The Nam Viet Commercial Joint-Stock Bank, or Navibank, will double its charter capital to VND1tril (US$62.5mil) soon as it has already got the go-ahead from the central bank. Its target for the end of this year, however, is VND1.5tril.
Navibank will channel the new funds to its branches and offices given its plans to expand its network to 70 transaction locations by the year-end from the current 40.
Like Navibank, the Vietnam Bank for Private Enterprises, or VPBank, has almost fulfilled necessary procedures to double its charter capital to VND1.5tril. Still, it is looking to VND2tril in all this year.
VPBank will then pump more money into its securities arm to lift the broker's capital to VND300bil from the current VND50bil.
Smaller in scale the Gia Dinh Bank has registered its new capital at VND320bil-plus, up from the previous VND210bil.
Last month, the central bank's HCMC branch allowed three other lenders to double their charter capital, so the new figure at the An Binh Bank is VND2.3tril, the Viet A Bank VND1.125tril and the HCMC Housing Development Bank VND1tril.
The Asia Commercial Bank (ACB) is now Vietnam's largest join-stock lender with VND2.53tril in charter capital, followed by the Saigon Thuong Tin Commercial Bank (Sacombank) with VND2.34tril.
However, Sacombank will overtake ACB soon as it is finalizing the paperwork to register its new capital at VND4.45tril, although ACB has plans to reach VND2.63tril by the year-end.
Source: VNE
The Nam Viet Commercial Joint-Stock Bank, or Navibank, will double its charter capital to VND1tril (US$62.5mil) soon as it has already got the go-ahead from the central bank. Its target for the end of this year, however, is VND1.5tril.
Navibank will channel the new funds to its branches and offices given its plans to expand its network to 70 transaction locations by the year-end from the current 40.
Like Navibank, the Vietnam Bank for Private Enterprises, or VPBank, has almost fulfilled necessary procedures to double its charter capital to VND1.5tril. Still, it is looking to VND2tril in all this year.
VPBank will then pump more money into its securities arm to lift the broker's capital to VND300bil from the current VND50bil.
Smaller in scale the Gia Dinh Bank has registered its new capital at VND320bil-plus, up from the previous VND210bil.
Last month, the central bank's HCMC branch allowed three other lenders to double their charter capital, so the new figure at the An Binh Bank is VND2.3tril, the Viet A Bank VND1.125tril and the HCMC Housing Development Bank VND1tril.
The Asia Commercial Bank (ACB) is now Vietnam's largest join-stock lender with VND2.53tril in charter capital, followed by the Saigon Thuong Tin Commercial Bank (Sacombank) with VND2.34tril.
However, Sacombank will overtake ACB soon as it is finalizing the paperwork to register its new capital at VND4.45tril, although ACB has plans to reach VND2.63tril by the year-end.
Source: VNE
Friday, July 27, 2007
Banks report robust growth in deposits
Ho Chi Minh City-based banks have reported an average growth of 65.7 percent in deposits mobilised in the first seven months, recording over 377.5 trillion VND.
While deposits in VND posted a 80 percent year-on-year increase. Deposits in foreign currencies accounted for 27.2 percent of the total addition of bank deposits, and saw a year-on-year increase of 36.4 percent.
Economists attributed the recent surge to the “cooling down” period of the stock market as people have shifted to bank deposits for their iddle money.
Rising interest rates in hard currencies by a massive number of banks made another attribution to the rosy situation. The Saigon Thuong Tin Joint Stock Commercial Bank (Sacombank) has sparked the trend with its annual interest rate up to 5 percent. The An Binh Bank took the lead in this term by raising the interest rate to 5.42 percent for saving deposits of 11 month term.
As a result, savings deposits and banking certificates have brought in almost 150 trillion VND, making up 39.7 percent of the municipal banking new deposits tally and representing an increase of 43.5 percent over a year ago.
On the other hand, banks have launched a number of new services such as payment cards and expanded their offices and branches down to every corner of the city to facilitate depositing or loaning transactions.
The entire banking system in the nation’s largest economic hub has managed to disburse over 291 trillion VND in loans up to early July, representing a year-on-year increase of 48.4 percent.
Source: VNA
While deposits in VND posted a 80 percent year-on-year increase. Deposits in foreign currencies accounted for 27.2 percent of the total addition of bank deposits, and saw a year-on-year increase of 36.4 percent.
Economists attributed the recent surge to the “cooling down” period of the stock market as people have shifted to bank deposits for their iddle money.
Rising interest rates in hard currencies by a massive number of banks made another attribution to the rosy situation. The Saigon Thuong Tin Joint Stock Commercial Bank (Sacombank) has sparked the trend with its annual interest rate up to 5 percent. The An Binh Bank took the lead in this term by raising the interest rate to 5.42 percent for saving deposits of 11 month term.
As a result, savings deposits and banking certificates have brought in almost 150 trillion VND, making up 39.7 percent of the municipal banking new deposits tally and representing an increase of 43.5 percent over a year ago.
On the other hand, banks have launched a number of new services such as payment cards and expanded their offices and branches down to every corner of the city to facilitate depositing or loaning transactions.
The entire banking system in the nation’s largest economic hub has managed to disburse over 291 trillion VND in loans up to early July, representing a year-on-year increase of 48.4 percent.
Source: VNA
Sacombank to expand into China
The Ho Chi Minh City-based Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) has got the nod from the country's State Bank Governor to open its first overseas representative office in Nanning city in China's Guangxi province.
The new Sacombank office will be charged with conducting market research on Guangxi and China's economic, financial and banking markets as it looks to boost cooperation with credit organisations in the world's fastest growing economy.
Sacombank expects to reach agreements with Chinese banks on cross-border payment contracts using bills of exchange, credit letters and other payment documents as well as to provide banking products and services to customers alongside the bordering provinces.
Sacombank is considered as one of the most efficient commercial banks in Viet Nam, recording rapid growth rates and being singled out as the “Best Bank –Viet Nam 2007” by Euromoney. The award was handed out on ratings such as the bank’s sustainable development, business results, risk control, information technology applications and management quality.
Source: VNA
The new Sacombank office will be charged with conducting market research on Guangxi and China's economic, financial and banking markets as it looks to boost cooperation with credit organisations in the world's fastest growing economy.
Sacombank expects to reach agreements with Chinese banks on cross-border payment contracts using bills of exchange, credit letters and other payment documents as well as to provide banking products and services to customers alongside the bordering provinces.
Sacombank is considered as one of the most efficient commercial banks in Viet Nam, recording rapid growth rates and being singled out as the “Best Bank –Viet Nam 2007” by Euromoney. The award was handed out on ratings such as the bank’s sustainable development, business results, risk control, information technology applications and management quality.
Source: VNA
Tuesday, July 17, 2007
Sacombank earnings, SSI deal drive modest rally
The stock market rebounded, albeit slightly, this week after an abysmal start to the month, while overall activity on the bourse remained slow.
The release of solid mid-year earnings by Sacombank and the successful sale of Saigon Securities Inc (SSI) shares to ANZ Bank bolstered investor confidence in the beginning of the week. The ANZ-SSI news also spurred talk over other possible deals between foreign and local companies.
SSI shares closed the week at VND161,000 each on the Ha Noi exchange, while Sacombank ended at VND63,000 in HCM City.
Source: VNS
The release of solid mid-year earnings by Sacombank and the successful sale of Saigon Securities Inc (SSI) shares to ANZ Bank bolstered investor confidence in the beginning of the week. The ANZ-SSI news also spurred talk over other possible deals between foreign and local companies.
SSI shares closed the week at VND161,000 each on the Ha Noi exchange, while Sacombank ended at VND63,000 in HCM City.
Source: VNS
Wednesday, July 11, 2007
Sacombank Leasing signs 100 contracts
The financial leasing arm of the Sai Gon Thuong Tin Commercial Bank, Sacombank Leasing, signed over 100 contracts worth 195 billion VND (12.1 million USD) after one year of operation.
The company has exerted efforts to meet increasing demands of small and medium-sized enterprises and plans to expand its operation to foreign-invested enterprises and businesses in industrial and export processing zones.
Sacombank Leasing has a registered capital of 100 billion VND, involving in leasing and guarantee services, consulting and property management.
It is allowed to take bank loans, issue bonds and access other sources of capital under the central bank’s regulations.
Source: VNA
The company has exerted efforts to meet increasing demands of small and medium-sized enterprises and plans to expand its operation to foreign-invested enterprises and businesses in industrial and export processing zones.
Sacombank Leasing has a registered capital of 100 billion VND, involving in leasing and guarantee services, consulting and property management.
It is allowed to take bank loans, issue bonds and access other sources of capital under the central bank’s regulations.
Source: VNA
Tuesday, July 10, 2007
Banks announce high profit for first half
Commercial banks have all announced satisfactory business results for the first six months of the year, which saw a profit level much higher than that of the previous year. However, the high profit has not prevented bank share prices from falling.
Asia Commercial Bank (ACB) announced its pre-tax profit of VND880bil ($55mil) for the first half of the year, while the figure was approximately VND700bil ($43.75mil) for 2006 as a whole. The pre-tax profit of ACB gained in the six months fulfilled 59% of its yearly plan, while the total outstanding loans up to now has fulfilled 88.4% of the plan.
Sacombank has also announced satisfactory business results. The bank now has the total assets of VND38,400bil, an increase of 55% over the beginning of the year. The pre-tax profit of the bank reached VND610bil ($38.12mil), while the profit for 2006 was VND543.2bil ($33.95mil).
An official from the State Bank of Vietnam said that commercial banks had tried to push up credit services. Some banks have attained the high credit growth rate of more than 50%, much higher than the average growth rate of 33%. This was the main reason for the high profit.
However, the official said that the heavy focus on credit services of several newly set up banks, which do not have much experience and a good risk control system, would mean high risks. Some other banks have been found as focusing on loaning for securities investments (outstanding loans for securities investments accounted for more than 50% of total outstanding loans), which, in the eyes of the central bank, is a bad thing.
In fact, these banks are aware of the risks, but they are under pressure to get more profit, while funding securities investment proves to be the main channel that can help bring fat profit in the context of the hot market.
Analysts said that banks would face big difficulties in the time to come. The fact that the central bank has tightened monetary policies in order to curb inflation will make the expenses of banking operations higher. Moreover, the profit of banks will decline when banks are not allowed to provide many loans to securities investors, and when the market falls down.
Despite the good business performance of banks, experts said that this would not help ‘rescue’ bank share prices.
In fact, banking is still considered a business field that can bring super profit. Therefore, bank shares have always been very attractive in the eyes of investors.
However, bank share prices, according to experts, will not bounce back at this moment as bank shares are in a part of the market in a gloomy period.
Bank shares all now seem to be frozen. The prices of these shares have decreased by 50% compared to those at the end of 2006 or early 2007. The shares of Phuong Nam Bank, for example, are now selling at VND36,000/share on the OTC market, while they once were sold at VND90,000/share. At the Hanoi Securities Trading Centre, ACB shares saw the price decrease of 25.7% from early June, now staying at VND120,000/share.
Source: VNE
Asia Commercial Bank (ACB) announced its pre-tax profit of VND880bil ($55mil) for the first half of the year, while the figure was approximately VND700bil ($43.75mil) for 2006 as a whole. The pre-tax profit of ACB gained in the six months fulfilled 59% of its yearly plan, while the total outstanding loans up to now has fulfilled 88.4% of the plan.
Sacombank has also announced satisfactory business results. The bank now has the total assets of VND38,400bil, an increase of 55% over the beginning of the year. The pre-tax profit of the bank reached VND610bil ($38.12mil), while the profit for 2006 was VND543.2bil ($33.95mil).
An official from the State Bank of Vietnam said that commercial banks had tried to push up credit services. Some banks have attained the high credit growth rate of more than 50%, much higher than the average growth rate of 33%. This was the main reason for the high profit.
However, the official said that the heavy focus on credit services of several newly set up banks, which do not have much experience and a good risk control system, would mean high risks. Some other banks have been found as focusing on loaning for securities investments (outstanding loans for securities investments accounted for more than 50% of total outstanding loans), which, in the eyes of the central bank, is a bad thing.
In fact, these banks are aware of the risks, but they are under pressure to get more profit, while funding securities investment proves to be the main channel that can help bring fat profit in the context of the hot market.
Analysts said that banks would face big difficulties in the time to come. The fact that the central bank has tightened monetary policies in order to curb inflation will make the expenses of banking operations higher. Moreover, the profit of banks will decline when banks are not allowed to provide many loans to securities investors, and when the market falls down.
Despite the good business performance of banks, experts said that this would not help ‘rescue’ bank share prices.
In fact, banking is still considered a business field that can bring super profit. Therefore, bank shares have always been very attractive in the eyes of investors.
However, bank share prices, according to experts, will not bounce back at this moment as bank shares are in a part of the market in a gloomy period.
Bank shares all now seem to be frozen. The prices of these shares have decreased by 50% compared to those at the end of 2006 or early 2007. The shares of Phuong Nam Bank, for example, are now selling at VND36,000/share on the OTC market, while they once were sold at VND90,000/share. At the Hanoi Securities Trading Centre, ACB shares saw the price decrease of 25.7% from early June, now staying at VND120,000/share.
Source: VNE
Vietnam Sacombank says H1 profit more than doubled
Vietnam's Sacombank said Monday strong demand for mortgages helped more than double its pre-tax first half profit from a year earlier to VND610 billion (US$37.8 million). "The growth in profit came from our lending business, especially the robust demand for loans to buy real estate," a spokeswoman for the Ho Chi Minh City-based bank said.
The first half profit accounted for 51 percent of Sacombank's profit target for 2007, she said, without giving a net profit figure.
Sacombank's assets had risen 55 percent this year to VND38.4 trillion ($2.38 billion) at the end of June, the spokeswoman said.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3 percent of Sacombank.
Shares in Sacombank, the first bank in Vietnam to list on the Ho Chi Minh Stock Exchange, were traded VND62,500 ($3.87) each at 0305 GMT Monday, up 0.81 percent from Friday.
The spokeswoman also said the bank had promoted Deputy General Director Tran Xuan Huy to chief executive, replacing Phan Bich Van who had left the bank to pursue other business.
Source: Thanh Nien
The first half profit accounted for 51 percent of Sacombank's profit target for 2007, she said, without giving a net profit figure.
Sacombank's assets had risen 55 percent this year to VND38.4 trillion ($2.38 billion) at the end of June, the spokeswoman said.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3 percent of Sacombank.
Shares in Sacombank, the first bank in Vietnam to list on the Ho Chi Minh Stock Exchange, were traded VND62,500 ($3.87) each at 0305 GMT Monday, up 0.81 percent from Friday.
The spokeswoman also said the bank had promoted Deputy General Director Tran Xuan Huy to chief executive, replacing Phan Bich Van who had left the bank to pursue other business.
Source: Thanh Nien
Wednesday, July 04, 2007
How are listed companies’ financial investments performing?
Of the 107 companies listing at the HCM City Securities Trading Centre, only five do not make financial investments, namely CYC, MCP, SAF, VGP and VPK. The other 102 companies have financial investment deals totalling several trillion VND.
Buying shares or bonds proves to be a suitable way to make temporarily idle capital produce profit, and companies always make short-term investments this way.
As for REE Corp, the Refrigeration Electrical Engineering Corporation, for example, financial investment has become a key business. As of March 31, 2007, the corporation had financial investment deals worth VND1,312bil ($82mil) comprising the investment of VND503bil ($31.43mil) in securities and VND814bil ($50.87mil) in deposits.
In 2006, the financial investments of REE brought about the profit of VND150bil ($9.37mil), and the figure was VND125bil ($7.81mil) in the first quarter of 2007.
Normally, there are three ways for a company to begin its financial investment: 1. build a division in charge of financial investment 2. cooperate with another company 3. set up a subsidiary.
The first and the second ways prove to be suitable for small companies, which do not have much capital and do not have financial experts. The third way is only for big corporations and groups.
Currently, many companies are trying to raise funds from existing shareholders and the public in order to raise their chartered capital. A part of the raised capital would be injected in production, while the remaining would be reserved for financial investments. Some companies even borrow money from banks to inject in financial investment deals though they lack capital for production activities.
Companies’ investments in each other often create links which can have impacts on share prices. For example, REE Corp now holds shares of Sacombank, and vice versa, the bank holds shares of REE (REE has 11mil Sacombank shares). Therefore, if Sacombank’s share price increased from VND60,000/share to VND100,000 and VND160,000/share, it would lead to the increase of REE shares.
In some cases, enterprises are too busy with their financial investments, ignoring their main business and production, leading to bad business performances and danger. And concerns have been raised that the danger of a company may have bad impacts on other companies that invest in this company, and become a danger for the whole system.
Analysts have said that making financial investments has become a tendency that many companies are following. In the near future, with the national economy performing well with the growth rate of more than 8% per annum, and when commodities are profuse (a lot of IPOs are to be conducted in some days), it is expected that more and more companies will be lured by financial investment deals.
Source: VNE
Buying shares or bonds proves to be a suitable way to make temporarily idle capital produce profit, and companies always make short-term investments this way.
As for REE Corp, the Refrigeration Electrical Engineering Corporation, for example, financial investment has become a key business. As of March 31, 2007, the corporation had financial investment deals worth VND1,312bil ($82mil) comprising the investment of VND503bil ($31.43mil) in securities and VND814bil ($50.87mil) in deposits.
In 2006, the financial investments of REE brought about the profit of VND150bil ($9.37mil), and the figure was VND125bil ($7.81mil) in the first quarter of 2007.
Normally, there are three ways for a company to begin its financial investment: 1. build a division in charge of financial investment 2. cooperate with another company 3. set up a subsidiary.
The first and the second ways prove to be suitable for small companies, which do not have much capital and do not have financial experts. The third way is only for big corporations and groups.
Currently, many companies are trying to raise funds from existing shareholders and the public in order to raise their chartered capital. A part of the raised capital would be injected in production, while the remaining would be reserved for financial investments. Some companies even borrow money from banks to inject in financial investment deals though they lack capital for production activities.
Companies’ investments in each other often create links which can have impacts on share prices. For example, REE Corp now holds shares of Sacombank, and vice versa, the bank holds shares of REE (REE has 11mil Sacombank shares). Therefore, if Sacombank’s share price increased from VND60,000/share to VND100,000 and VND160,000/share, it would lead to the increase of REE shares.
In some cases, enterprises are too busy with their financial investments, ignoring their main business and production, leading to bad business performances and danger. And concerns have been raised that the danger of a company may have bad impacts on other companies that invest in this company, and become a danger for the whole system.
Analysts have said that making financial investments has become a tendency that many companies are following. In the near future, with the national economy performing well with the growth rate of more than 8% per annum, and when commodities are profuse (a lot of IPOs are to be conducted in some days), it is expected that more and more companies will be lured by financial investment deals.
Source: VNE
Thursday, June 28, 2007
IFC to aid Sacombank in underwriting home loans
The International Finance Corporation (IFC) will pump 500 billion VND (31 million USD) into the Saigon Thuong Tin Commercial Bank's (Sacombank) coffers to help it underwrite home loans.
IFC Country Director Sin Foong Wong inked the deal with Sacombank Director General Phan Bich Van in Ho Chi Minh City on June 27. The loans will be provided to people for mortgages, property development and repairs.
The World Bank's affiliate member is currently one of Sacombank's three foreign strategic partners and has recently increased its capital in the bank to 240 billion VND.
Sacombank President Dang Van Thanh said his bank would look to the experiences and financial strength of IFC and other strategic partners to attain higher growth.
Source: VNA
IFC Country Director Sin Foong Wong inked the deal with Sacombank Director General Phan Bich Van in Ho Chi Minh City on June 27. The loans will be provided to people for mortgages, property development and repairs.
The World Bank's affiliate member is currently one of Sacombank's three foreign strategic partners and has recently increased its capital in the bank to 240 billion VND.
Sacombank President Dang Van Thanh said his bank would look to the experiences and financial strength of IFC and other strategic partners to attain higher growth.
Source: VNA
Friday, June 15, 2007
IFC to pay $15 mln for Vietnam's Sacombank shares
The World Bank's International Finance Corp. (IFC) is expected to pay $15 million for 16 million additional shares in Saigon Thuong Tin Commercial Bank (STB), Vietnam's sixth largest, the Vietnamese lender said on Tuesday.
The Ho Chi Minh City-based bank would sign an agreement later on Tuesday with IFC over the payment, part of Sacombank's issue of 236,0141,235 shares to raise $212 million for various deals, a spokeswoman of Sacombank said.
"The signing will take place when IFC vice president for Asia and Latin America visits our office in the city," she said.
IFC now holds 16 million shares, or 7.66% of Sacombank. ANZ Bank owns 10%, the largest stake among Sacombank's three foreign investors, while British fund manager Dragon Financial Holdings has 8.64%.
Shares in Sacombank, the first bank in communist Vietnam to list on the Ho Chi Minh Stock Exchange, lost 4.5% to close at 75,000 dong ($4.65) on Monday, valuing the bank at $973 million.
Last month, Sacombank said it would sell 208,941,281 shares to existing shareholders under a 1-for-1 plan and 2 million shares more to key staff at 15,000 dong ($0.93) from June 26 to July 23.
Proceeds would be used to more than double the bank's registered capital to $276 million, construct its new offices in Ho Chi Minh City, upgrade information technology, open a credit card business, and invest in existing subsidiaries and newly established subsidiaries.
The bank would also issue 25 million shares to pay its 2006 dividend. Listing of the new shares is scheduled for Aug. 23.
Sacombank said in another statement on Tuesday that it planned to issue two international credit cards this year, Sacom MasterCard and Sacom MasterCard Lady. It gave no timeframe.
In March, Sacombank said it would establish a credit card venture with ANZ Bank in 2007. It also aims to open 14 branches in Vietnam this year and establish offices in China, Laos and Cambodia.
Source: Reuters
The Ho Chi Minh City-based bank would sign an agreement later on Tuesday with IFC over the payment, part of Sacombank's issue of 236,0141,235 shares to raise $212 million for various deals, a spokeswoman of Sacombank said.
"The signing will take place when IFC vice president for Asia and Latin America visits our office in the city," she said.
IFC now holds 16 million shares, or 7.66% of Sacombank. ANZ Bank owns 10%, the largest stake among Sacombank's three foreign investors, while British fund manager Dragon Financial Holdings has 8.64%.
Shares in Sacombank, the first bank in communist Vietnam to list on the Ho Chi Minh Stock Exchange, lost 4.5% to close at 75,000 dong ($4.65) on Monday, valuing the bank at $973 million.
Last month, Sacombank said it would sell 208,941,281 shares to existing shareholders under a 1-for-1 plan and 2 million shares more to key staff at 15,000 dong ($0.93) from June 26 to July 23.
Proceeds would be used to more than double the bank's registered capital to $276 million, construct its new offices in Ho Chi Minh City, upgrade information technology, open a credit card business, and invest in existing subsidiaries and newly established subsidiaries.
The bank would also issue 25 million shares to pay its 2006 dividend. Listing of the new shares is scheduled for Aug. 23.
Sacombank said in another statement on Tuesday that it planned to issue two international credit cards this year, Sacom MasterCard and Sacom MasterCard Lady. It gave no timeframe.
In March, Sacombank said it would establish a credit card venture with ANZ Bank in 2007. It also aims to open 14 branches in Vietnam this year and establish offices in China, Laos and Cambodia.
Source: Reuters
Thursday, June 07, 2007
Property market sees new golden age
Viet Nam’s real estate market, as forecast by both domestic and foreign investors, is in its "golden age" because it still has lots of potential.
According to Dang Hong Anh, General Director of the Sacombank Real Estate Joint Stock Co. (Sacomreal), the real estate market has recovered after being frozen for a long time.
The heat of the market has been attributed to increasing housing demand in big cities, Anh said. In Ho Chi Minh City, 22,000 out of 109,000 public servants need housing. Housing demand in Ha Noi is set to rise to 26,000 apartments in 2010, a figure nearly three times higher than supply.
In addition, the process of carrying out commitments when entering the World Trade Organisation (WTO) has created more opportunities for foreign investors.
The high demand on housing of overseas Vietnamese who want to settle down and set up business in Viet Nam is also a factor heating up the market, he added.
Furthermore, fluctuation in the securities market has contributed to the warm-up of the property market. Many stock investors have shifted their money into real estate.
The Sacomreal general director said the recovery of the property market is juxtaposed to the economic situation in Viet Nam. The level of buoyancy will depend on the State’s policies of demand and supply adjustments.
Regarding housing and departments for low-income people, he said that real estate businesses should consider it a social matter rather than the demand-supply relationship between sellers and buyers.
However, real estate companies cannot deal with the matter without support from the state, he said, adding that they also need time to prepare finances, human resources and management for their investment.
Source: VNA
According to Dang Hong Anh, General Director of the Sacombank Real Estate Joint Stock Co. (Sacomreal), the real estate market has recovered after being frozen for a long time.
The heat of the market has been attributed to increasing housing demand in big cities, Anh said. In Ho Chi Minh City, 22,000 out of 109,000 public servants need housing. Housing demand in Ha Noi is set to rise to 26,000 apartments in 2010, a figure nearly three times higher than supply.
In addition, the process of carrying out commitments when entering the World Trade Organisation (WTO) has created more opportunities for foreign investors.
The high demand on housing of overseas Vietnamese who want to settle down and set up business in Viet Nam is also a factor heating up the market, he added.
Furthermore, fluctuation in the securities market has contributed to the warm-up of the property market. Many stock investors have shifted their money into real estate.
The Sacomreal general director said the recovery of the property market is juxtaposed to the economic situation in Viet Nam. The level of buoyancy will depend on the State’s policies of demand and supply adjustments.
Regarding housing and departments for low-income people, he said that real estate businesses should consider it a social matter rather than the demand-supply relationship between sellers and buyers.
However, real estate companies cannot deal with the matter without support from the state, he said, adding that they also need time to prepare finances, human resources and management for their investment.
Source: VNA
Tuesday, May 29, 2007
Sacombank to issue new shares
Saigon Thuong Tin Commercial Bank (STB), Vietnam's sixth-largest, said it would issue more than 236 million shares to raise at least $212 million for investing in the credit card business and new subsidiaries.
Sacombank would sell the shares to existing shareholders and key staff at 15,000 dong ($0.93) from June 26 to July 23, Deputy General Director Nguyen Quang Trung said in a statement.
The proceeds would be used to more than double the bank's registered capital to $276 million, construct its new offices in Ho Chi Minh City, upgrade its information technology and open a credit card business.
The funds would also go to existing subsidiaries and newly established subsidiaries, Trung said without elaboration.
Shares in Sacombank closed flat at 166,000 dong ($10.3) on Monday, valuing it at $2.2 billion. Listing of the new shares is scheduled for August 23.
In March, Scombank said it would establish a credit card venture with shareholder ANZ Bank in 2007. It also aims to open 14 branches in Vietnam this year and establish offices in China, Laos and Cambodia.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3 percent of Sacombank, which reported a near tripling of gross profit in the first four months of this year from the same period of 2006 to 413 billion dong ($25.6 million).
Source: Reuters
Sacombank would sell the shares to existing shareholders and key staff at 15,000 dong ($0.93) from June 26 to July 23, Deputy General Director Nguyen Quang Trung said in a statement.
The proceeds would be used to more than double the bank's registered capital to $276 million, construct its new offices in Ho Chi Minh City, upgrade its information technology and open a credit card business.
The funds would also go to existing subsidiaries and newly established subsidiaries, Trung said without elaboration.
Shares in Sacombank closed flat at 166,000 dong ($10.3) on Monday, valuing it at $2.2 billion. Listing of the new shares is scheduled for August 23.
In March, Scombank said it would establish a credit card venture with shareholder ANZ Bank in 2007. It also aims to open 14 branches in Vietnam this year and establish offices in China, Laos and Cambodia.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3 percent of Sacombank, which reported a near tripling of gross profit in the first four months of this year from the same period of 2006 to 413 billion dong ($25.6 million).
Source: Reuters
Friday, May 25, 2007
Petrovietnam and Lilama to build hydroelectric power plant
Two State-owned giants, PetroVietnam and Lilama, will join forces to build the Hua Na hydroelectric facility in the central province of Nghe An, under an agreement signed on May 24.
Hua Na Hydropower Co Ltd will complete the joint venture, which will be formed with total capital of 1.2 trillion VND (75 million USD). PetroViet nam and Lilama shall each hold 14%, with addition stakes held by Military Bank, Sai Gon Securities Incorporation, Sai Gon Commercial Bank, Lilama 10 and Financial Investment and Consulting Co.
The combined facility and reservoir, covering a total area of 20.6sq.km, will be built at a cost of 4.3 trillion VND (270.8 million USD). Construction of the 180MW plant is expected to start in the first quarter of next year, with the plant to go on line in the first quarter of 2011.
Apart from the power project, the new joint venture will outfit other power plant and mining facilities and expand into real estate development.
The Do Luong Cement Plant is one project on the drawing board.
PetroVietnam and Lilama have also agreed to form a stronger strategic partnership. Lilama will become a supplier to Petro Vietnam construction projects, while PetroVietnam will provide financing and insurance services for the projects in which Lilama is a primary investor.
Source: VNA
Hua Na Hydropower Co Ltd will complete the joint venture, which will be formed with total capital of 1.2 trillion VND (75 million USD). PetroViet nam and Lilama shall each hold 14%, with addition stakes held by Military Bank, Sai Gon Securities Incorporation, Sai Gon Commercial Bank, Lilama 10 and Financial Investment and Consulting Co.
The combined facility and reservoir, covering a total area of 20.6sq.km, will be built at a cost of 4.3 trillion VND (270.8 million USD). Construction of the 180MW plant is expected to start in the first quarter of next year, with the plant to go on line in the first quarter of 2011.
Apart from the power project, the new joint venture will outfit other power plant and mining facilities and expand into real estate development.
The Do Luong Cement Plant is one project on the drawing board.
PetroVietnam and Lilama have also agreed to form a stronger strategic partnership. Lilama will become a supplier to Petro Vietnam construction projects, while PetroVietnam will provide financing and insurance services for the projects in which Lilama is a primary investor.
Source: VNA
Gold exchange debuts in Vietnam
Vietnam’s first gold trading market opened Friday in Ho Chi Minh City.
It is jointly initiated by the Asia Commercial Joint Stock Bank (ACB), the Vietnam Export-Import Bank, Saigon Commercial Bank, and Saigon Jewelry Holding Co.
The bourse, based in the ACB office in district 10, will have a maximum 12 institutional members, all banks or firms licensed to trade gold.
JSC gold will be used for trading in the initial stages. The minimum trading volume is 10 taels (1 tael = 37.5 gm) and price changes are capped at VND5,000 per tael.
Initially, it will be limited to Vietnamese investors who must pay a security deposit of 10 percent of transaction value.
Globally gold slumped to a 10-week low and finished down nearly $10 an ounce in heavy trade Thursday, as a rising US dollar prompted funds and central banks to sell.
Analysts said larger-than-usual gold sales by global banks, particularly the European Central Bank, also weighed on gold prices besides sparking off selling pressure from funds and institutional investors.
Gold futures for June delivery on the New York Mercantile Exchange settled down $9.3, or 1.4 percent, at $653.3 an ounce, after touching a session low of $651.5, the weakest level since March 15.
In Vietnam too the price fell marginally to close at VND12.9 million Thursday.
Earlier this year international gold traders had estimated that gold would end up averaging around $753 in 2007 due to geopolitical tensions and high energy prices. Gold is a traditional hedge.
Nguyen Thanh Truc, deputy chairman of the Vietnam Association of Gold Trading, said the domestic gold market had seen unexpected volatility since mid-April on the back of global movements.
He forecast the precious metal to tumble in the near term as the International Monetary Fund planned to sell 400 tons.
Another 250 tons would be injected into the market by September by EU central banks.
He warned investors to be prudent while investing in gold.
The association has asked the central bank set up a gold bank to keep the country’s gold market in tune with the international bullion business.
The bank would provide support and consultancy for local gold businesses
Vietnam’s demand for bullion, used to produce jewelry, and some other forms of gold, is estimated at some 60 tons this year, up 20 percent against last year.
The central bank has permitted a total of 13 local banks to date to open accounts based overseas for the sole purpose of trading in gold .
Many domestic banks have shown an interest in gold trading as a means to diversify their services to retain a competitive edge as foreign rivals increasingly enter the Vietnamese market.
Source: Thanh Nien
It is jointly initiated by the Asia Commercial Joint Stock Bank (ACB), the Vietnam Export-Import Bank, Saigon Commercial Bank, and Saigon Jewelry Holding Co.
The bourse, based in the ACB office in district 10, will have a maximum 12 institutional members, all banks or firms licensed to trade gold.
JSC gold will be used for trading in the initial stages. The minimum trading volume is 10 taels (1 tael = 37.5 gm) and price changes are capped at VND5,000 per tael.
Initially, it will be limited to Vietnamese investors who must pay a security deposit of 10 percent of transaction value.
Globally gold slumped to a 10-week low and finished down nearly $10 an ounce in heavy trade Thursday, as a rising US dollar prompted funds and central banks to sell.
Analysts said larger-than-usual gold sales by global banks, particularly the European Central Bank, also weighed on gold prices besides sparking off selling pressure from funds and institutional investors.
Gold futures for June delivery on the New York Mercantile Exchange settled down $9.3, or 1.4 percent, at $653.3 an ounce, after touching a session low of $651.5, the weakest level since March 15.
In Vietnam too the price fell marginally to close at VND12.9 million Thursday.
Earlier this year international gold traders had estimated that gold would end up averaging around $753 in 2007 due to geopolitical tensions and high energy prices. Gold is a traditional hedge.
Nguyen Thanh Truc, deputy chairman of the Vietnam Association of Gold Trading, said the domestic gold market had seen unexpected volatility since mid-April on the back of global movements.
He forecast the precious metal to tumble in the near term as the International Monetary Fund planned to sell 400 tons.
Another 250 tons would be injected into the market by September by EU central banks.
He warned investors to be prudent while investing in gold.
The association has asked the central bank set up a gold bank to keep the country’s gold market in tune with the international bullion business.
The bank would provide support and consultancy for local gold businesses
Vietnam’s demand for bullion, used to produce jewelry, and some other forms of gold, is estimated at some 60 tons this year, up 20 percent against last year.
The central bank has permitted a total of 13 local banks to date to open accounts based overseas for the sole purpose of trading in gold .
Many domestic banks have shown an interest in gold trading as a means to diversify their services to retain a competitive edge as foreign rivals increasingly enter the Vietnamese market.
Source: Thanh Nien
Monday, May 14, 2007
Sacombank's Jan-April profit nearly triples
Vietnam's sixth-largest lender, Saigon Thuong Tin Commercial Bank (Sacombank, STB), said its gross profit in the first four months of this year nearly tripled from a year ago to 413 billion dong ($25.6 million).
The Ho Chi Minh City-based bank said in a weekend statement seen on Monday that the four-month gross profit has risen 183% from a year earlier. It did not provide the net figure.
Sacombank raised 29.5 trillion dong ($1.83 billion) in deposits over the past four months while loans reached 18.7 trillion dong ($1.2 billion), the statement said.
Trading in Sacombank shares dominated Vietnam's main stock market on Monday with 1.25 million shares changing hands.
The stock gained 2.7% to close at 152,000 dong ($9.4) each, which valued the bank at $1.97 billion.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3% of Sacombank.
Last July Sacombank became the first bank in communist Vietnam to list on the Ho Chi Minh City stock market.
The VN Index ended up 2.54% at 1,066.04 points, up 41.8% so far this year and which is a steady rise from April 24 when it dropped to 905.53 points in a market correction.
Investor interest in the Southeast Asian country's robust economic growth of around 8% a year had driven the index up 55.7% from the end of 2006 to a lifetime high of 1,170.67 points on March 12.
Source: Reuters
The Ho Chi Minh City-based bank said in a weekend statement seen on Monday that the four-month gross profit has risen 183% from a year earlier. It did not provide the net figure.
Sacombank raised 29.5 trillion dong ($1.83 billion) in deposits over the past four months while loans reached 18.7 trillion dong ($1.2 billion), the statement said.
Trading in Sacombank shares dominated Vietnam's main stock market on Monday with 1.25 million shares changing hands.
The stock gained 2.7% to close at 152,000 dong ($9.4) each, which valued the bank at $1.97 billion.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3% of Sacombank.
Last July Sacombank became the first bank in communist Vietnam to list on the Ho Chi Minh City stock market.
The VN Index ended up 2.54% at 1,066.04 points, up 41.8% so far this year and which is a steady rise from April 24 when it dropped to 905.53 points in a market correction.
Investor interest in the Southeast Asian country's robust economic growth of around 8% a year had driven the index up 55.7% from the end of 2006 to a lifetime high of 1,170.67 points on March 12.
Source: Reuters
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.
Wednesday, May 09, 2007
Sacombank and Saigon Jewelry cooperate
The Ho Chi Minh City-based Sacombank has entered into a cooperation deal with the Saigon Jewelry Company (SJC) to boost both enterprises’ gold business.
Under the deal signed Tuesday the two sides will increase cooperation in gold trade bank accounts, a new trading device in Vietnam.
They will work together to grab gold price fluctuation opportunities on both the international and domestic markets for the highest profits.
SJC is set to open the first gold bonded warehouse next month, facilitating the two sides’ cooperation.
In a recent meeting, the listed-bank mulled cooperative opportunities in trading and manufacturing gold bullion with the Singapore-based United Overseas Bank (UOB).
The two parties discussed the possibility of UOB providing the local bank with software programs to trade gold through bank accounts.
Sacombank has projected pre-tax profits of VND845 billion ($52.6 million) this year, up 55% from last year.
Its outstanding loans at the end of last year were 73% higher than 2005 at VND14.54 trillion ($905 million). Deposits increased 75% to VND21.52 trillion ($1.3 billion).
Sacombank shares started trading on July 12, 2006 in the Ho Chi Minh City Securities Trading Center, making the lender the country's largest listed company at the time and boosting Vietnam's stock market value by 53%.
The bank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank, which altogether hold 26.3% of company.
Sources said the central bank might lift the cap on foreign investors’ holdings in the bank.
Earlier this year, the UOB acquired a 10% stake in Sacombank for US$30 million in cash. The Singaporean bank expected to up these holdings to 20%.
According to one UOB representative, its 20% ownership in the VND1.29 trillion-local bank would not be the final target.
Source: Thanh Nien
Under the deal signed Tuesday the two sides will increase cooperation in gold trade bank accounts, a new trading device in Vietnam.
They will work together to grab gold price fluctuation opportunities on both the international and domestic markets for the highest profits.
SJC is set to open the first gold bonded warehouse next month, facilitating the two sides’ cooperation.
In a recent meeting, the listed-bank mulled cooperative opportunities in trading and manufacturing gold bullion with the Singapore-based United Overseas Bank (UOB).
The two parties discussed the possibility of UOB providing the local bank with software programs to trade gold through bank accounts.
Sacombank has projected pre-tax profits of VND845 billion ($52.6 million) this year, up 55% from last year.
Its outstanding loans at the end of last year were 73% higher than 2005 at VND14.54 trillion ($905 million). Deposits increased 75% to VND21.52 trillion ($1.3 billion).
Sacombank shares started trading on July 12, 2006 in the Ho Chi Minh City Securities Trading Center, making the lender the country's largest listed company at the time and boosting Vietnam's stock market value by 53%.
The bank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank, which altogether hold 26.3% of company.
Sources said the central bank might lift the cap on foreign investors’ holdings in the bank.
Earlier this year, the UOB acquired a 10% stake in Sacombank for US$30 million in cash. The Singaporean bank expected to up these holdings to 20%.
According to one UOB representative, its 20% ownership in the VND1.29 trillion-local bank would not be the final target.
Source: Thanh Nien
Monday, April 30, 2007
Sacombank begins laying foundation for $5 mln data center
The Ho Chi Minh City-based Sacombank has begun work on a US$5 million data center to house the lender’s southern server system and technology network.
The center, located in Binh Duong Province’s Thuan An District, will cost the bank an estimated $2 million for basic infrastructure and US$3 million for IT facilities.
It is scheduled to begin operation by the year’s end.
The bank has recently sealed a deal with leading software producer Microsoft to modernize its IT system.
In the last four years, Sacombank has spent US$4 million on technology and plans to invest more.
The HCMC bourse-listed bank experienced high growth in the year’s first quarter with gross profits soaring 88 percent to reach VND302 billion.
Sacombank also posted total assets of VND30 trillion, a surge of 68 percent against the same period last year.
Earlier this year Fitch Ratings has affirmed Sacombank’s Individual and Support ratings of 'D' and '5', respectively, reflecting its adequate balance sheet strength and good profitability.
It is set to make a 1:2 rights issue this year to raise VND1.45 trillion (US$90 million), increasing its chartered capital to VND3.55 trillion ($221 million).
Sacombank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank , which altogether held 26.3 percent of stake.
The bank reportedly might lift the cap on foreign investors’ holdings in the bank.
Source: Thanh Nien
The center, located in Binh Duong Province’s Thuan An District, will cost the bank an estimated $2 million for basic infrastructure and US$3 million for IT facilities.
It is scheduled to begin operation by the year’s end.
The bank has recently sealed a deal with leading software producer Microsoft to modernize its IT system.
In the last four years, Sacombank has spent US$4 million on technology and plans to invest more.
The HCMC bourse-listed bank experienced high growth in the year’s first quarter with gross profits soaring 88 percent to reach VND302 billion.
Sacombank also posted total assets of VND30 trillion, a surge of 68 percent against the same period last year.
Earlier this year Fitch Ratings has affirmed Sacombank’s Individual and Support ratings of 'D' and '5', respectively, reflecting its adequate balance sheet strength and good profitability.
It is set to make a 1:2 rights issue this year to raise VND1.45 trillion (US$90 million), increasing its chartered capital to VND3.55 trillion ($221 million).
Sacombank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank , which altogether held 26.3 percent of stake.
The bank reportedly might lift the cap on foreign investors’ holdings in the bank.
Source: Thanh Nien
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