Analysts have been talking about the trend of “brand name trading”. This is when big corporations signs agreements on strategic partnership and cooperation.
A lot of cooperation agreements have been signed recently, between the Vietnam Post and Telecommunications Group (VNPT) and three corporations, Vincom (real estate developer), BIDV (bank) and Vinaconex (construction); between BIDV and the Vietnam Development Bank (VDB); between the Vietnam Coal and Mineral Industries Group (Vinacoal) and a transport works design company.
It has become a trend that big corporations cooperate with each other, which can help them share risks in doing business while allowing them to seek more profit.
VNPT, for example, is mainly a telecommunications service provider. However, with the cooperation with Vinaconex and Vincom, it is attempting to enter a new business field: construction and real estate. The enterprises that cooperate with VNPT will also benefit from having VNPT as a special partner in terms of access to its services.
The news about cooperation between corporations has brought about a lot of effects. One year ago, when the stock market was hot, news about cooperation deals helped a lot in making corporations’ shares more valuable. The shares of the companies involved in cooperation agreements skyrocketed right after mass media reported on the deals.
That explains why questions have been raised about the reasons for the partnerships.
VNPT now can establish a bank, while FPT, a software and informatics company, now can jump into other business fields, including finance and securities. Meanwhile, other enterprises have not made any moves after their hand shakings.
Vincom’s representatives stressed that the company did not intend to take advantage of VNPT to polish its image. VNPT and Vincom now have common, specific goals in capital investment, technology infrastructure for high-grade apartment areas.
According to VNPT’s representative, it will not happen that VNPT will be the sole service provider for Vincom. VNPT will have to compete with other rivals, though it has advantages as the strategic partner of Vincom.
Anyway, experts have warned that enterprises should think carefully before making cooperation deals. If the benefit the two sides can get does not satisfy enterprises, they will cheapen their brand names.
Source: VNE
Showing posts with label VNPT. Show all posts
Showing posts with label VNPT. Show all posts
Friday, August 31, 2007
Friday, August 24, 2007
VNPT signs strategic pact with Vincom
Viet Nam Post and Telecommunications Group (VNPT) and Vincom Joint Stock Company on Aug. 23 signed an agreement making them strategic partners.
The agreement involves closer cooperation between the two companies, so that they will become strategic shareholders and customers of each other’s respective enterprises.
While VNPT will become the main supplier of telecom equipment for Vincom’s real estate projects, Vincom will be awarded VNPT infrastructure development contracts.
“This is a very notable partnership as it will combine the strengths and resources of two of the country’s leading companies,” said VNPT’s vice general director Nguyen Ba Thuoc.
Thuoc stressed that the collaboration between the two large corporations would boost Viet Nam’s economy and the technology sector, in particular, during integration into the World Trade Organisation.
He also said that the collaboration would promote the competitive edge of the two firms on the international market.
Last year, VNPT, the country’s largest telecom service provider, posted a revenue of 38.3 trillion VND (2.4 billion USD), up 14.9 percent compared to 2005 and 3.4 percent higher than the company’s initial forecast.
Real estate developer Vincom ISC generated revenue of 548.4 billion VND (34 million USD) last year, four times higher than the previous year’s figure. Its after-tax profit increased five fold, reaching 343.7 billion VND (21.4 million USD). Vincom, wholly owned by Vietnamese investors, also brings Ha Noi Vincom Tower to the table, among many other properties.
Source: VNA
The agreement involves closer cooperation between the two companies, so that they will become strategic shareholders and customers of each other’s respective enterprises.
While VNPT will become the main supplier of telecom equipment for Vincom’s real estate projects, Vincom will be awarded VNPT infrastructure development contracts.
“This is a very notable partnership as it will combine the strengths and resources of two of the country’s leading companies,” said VNPT’s vice general director Nguyen Ba Thuoc.
Thuoc stressed that the collaboration between the two large corporations would boost Viet Nam’s economy and the technology sector, in particular, during integration into the World Trade Organisation.
He also said that the collaboration would promote the competitive edge of the two firms on the international market.
Last year, VNPT, the country’s largest telecom service provider, posted a revenue of 38.3 trillion VND (2.4 billion USD), up 14.9 percent compared to 2005 and 3.4 percent higher than the company’s initial forecast.
Real estate developer Vincom ISC generated revenue of 548.4 billion VND (34 million USD) last year, four times higher than the previous year’s figure. Its after-tax profit increased five fold, reaching 343.7 billion VND (21.4 million USD). Vincom, wholly owned by Vietnamese investors, also brings Ha Noi Vincom Tower to the table, among many other properties.
Source: VNA
Friday, July 13, 2007
VNPT, Vinaconex ‘synergise’ strengths
Viet Nam Post and Telecommunications Group (VNPT) on July 12 signed a strategic partnership agreement with Viet Nam Construction and Import-Export Corp (Vinaconex), forming the country’s largest cooperation deal.
”This is a very notable partnership as it will synergise the strengths and resources from two of the country’s leading companies,” said Vinaconex’s CEO Nguyen Van Tuan.
The two giants committed to using each other’s products and services.
“Partnering with the country’s biggest contractor will help VNPT expand its coverage with our products and services being used at Vinaconex projects,” said VNPT Deputy General Director Nguyen Ba Thuoc.
As Vinaconex expands globally, VNPT will also have an opportunity to reach new markets, he added.
On the other side, Vinaconex will be awarded VNPT infrastructure development contracts.
Vinaconex predicts 2007 revenue will reach 6.5 trillion VND (406 million USD), up 16.4 percent over last year. Pre-tax profit is expected to increase 49.7 percent to 350 billion VND (22 million USD).
VNPT last year posted a revenue of 38.3 trillion VND (2.4 billion USD), up 14.9 percent compared to 2005 and 3.4 percent higher than the company’s initial forecast.
Source: VNA
”This is a very notable partnership as it will synergise the strengths and resources from two of the country’s leading companies,” said Vinaconex’s CEO Nguyen Van Tuan.
The two giants committed to using each other’s products and services.
“Partnering with the country’s biggest contractor will help VNPT expand its coverage with our products and services being used at Vinaconex projects,” said VNPT Deputy General Director Nguyen Ba Thuoc.
As Vinaconex expands globally, VNPT will also have an opportunity to reach new markets, he added.
On the other side, Vinaconex will be awarded VNPT infrastructure development contracts.
Vinaconex predicts 2007 revenue will reach 6.5 trillion VND (406 million USD), up 16.4 percent over last year. Pre-tax profit is expected to increase 49.7 percent to 350 billion VND (22 million USD).
VNPT last year posted a revenue of 38.3 trillion VND (2.4 billion USD), up 14.9 percent compared to 2005 and 3.4 percent higher than the company’s initial forecast.
Source: VNA
Tuesday, July 10, 2007
VNPT may form a bank
Vietnam Posts and Telecommunications group (VNPT), the country's largest telecoms firm, will look into converting a subsidiary now offering a savings service into a bank, a government official said.
VNPT needed to assess the value of its Post Savings Service Company so it could contribute funds to form a bank, Deputy Chief Administrator of the Government Office Pham Viet Muon said in a document seen on Tuesday.
Seven state-run banks, including two policy banks, and 34 partly private banks now operate in Vietnam. Apart from domestic banks, branches of 35 foreign banks and six joint venture banks also compete in the Southeast Asian country.
Several Vietnamese firms, including Sacom (SAM) and FPT, have already sought central bank permission to open new commercial banks.
Source: Reuters
VNPT needed to assess the value of its Post Savings Service Company so it could contribute funds to form a bank, Deputy Chief Administrator of the Government Office Pham Viet Muon said in a document seen on Tuesday.
Seven state-run banks, including two policy banks, and 34 partly private banks now operate in Vietnam. Apart from domestic banks, branches of 35 foreign banks and six joint venture banks also compete in the Southeast Asian country.
Several Vietnamese firms, including Sacom (SAM) and FPT, have already sought central bank permission to open new commercial banks.
Source: Reuters
Wednesday, July 04, 2007
Bao Viet avoids holding second auction
Insurance giant Bao Viet, the May 31st IPO of which fell short of expectations, will not have to hold a second share auction since the number of shares purchased in the initial auction has exceeded 70 per cent of the total shares offered, according to Bao Viet chairman Le Quang Binh.
A preliminary calculation, made three days following the June 26 deadline for winning investors to pay for the shares they had won, had indicated that unsold shares were less than 30 per cent of the issue.
Binh announced at that time that, if the proportion of unsold shares was more than 30 per cent, Bao Viet would be forced to conduct a second auction to sell the remaining shares.
Having escaped that fate, Binh said, the corporation would submit to the Ministry of Finance a specific plan for selling the abandoned stake, pursuant to regulations in Circular No 95/2006/TT-BTC dated October 12, 2006.
Under the plan, investors could negotiate to buy the remaining shares at a minimum price of VND73,910 (US$4.59) per share, the average winning price in the IPO.
If the shares fail to sell, Bao Viet would seek the ministry’s permission to adjust its charter capital and the proportion of State holdings.
The next sale would be conducted after Bao Viet has the official results of the initial auction and would not be delayed until foreign strategic partners are selected, Binh noted.
Selection of foreign strategic partners was expected this month, with many foreign financial and insurance institutions having expressed interest in investing in Bao Viet.
The criteria for selection would be partners who can offer high bids and large technical support, Binh said.
"We can lower the price at which shares will be sold for strategic partners if they can commit to give us great technical support," Binh said. "The target of Bao Viet’s equitisation is not only to enhance financial capacity but also improve management skills, technology application and operational experience."
It was likely that Bao Viet would choose only one or two foreign strategic investors, Binh stressed.
Bao Viet has chosen three domestic strategic investors so far: VNPT, which holds 3.25 per cent of shares; Vinashin, which holds 3 per cent; and the Southern Airports Services Co (Sasco), which holds 0.75 per cent.
Source: VNS
A preliminary calculation, made three days following the June 26 deadline for winning investors to pay for the shares they had won, had indicated that unsold shares were less than 30 per cent of the issue.
Binh announced at that time that, if the proportion of unsold shares was more than 30 per cent, Bao Viet would be forced to conduct a second auction to sell the remaining shares.
Having escaped that fate, Binh said, the corporation would submit to the Ministry of Finance a specific plan for selling the abandoned stake, pursuant to regulations in Circular No 95/2006/TT-BTC dated October 12, 2006.
Under the plan, investors could negotiate to buy the remaining shares at a minimum price of VND73,910 (US$4.59) per share, the average winning price in the IPO.
If the shares fail to sell, Bao Viet would seek the ministry’s permission to adjust its charter capital and the proportion of State holdings.
The next sale would be conducted after Bao Viet has the official results of the initial auction and would not be delayed until foreign strategic partners are selected, Binh noted.
Selection of foreign strategic partners was expected this month, with many foreign financial and insurance institutions having expressed interest in investing in Bao Viet.
The criteria for selection would be partners who can offer high bids and large technical support, Binh said.
"We can lower the price at which shares will be sold for strategic partners if they can commit to give us great technical support," Binh said. "The target of Bao Viet’s equitisation is not only to enhance financial capacity but also improve management skills, technology application and operational experience."
It was likely that Bao Viet would choose only one or two foreign strategic investors, Binh stressed.
Bao Viet has chosen three domestic strategic investors so far: VNPT, which holds 3.25 per cent of shares; Vinashin, which holds 3 per cent; and the Southern Airports Services Co (Sasco), which holds 0.75 per cent.
Source: VNS
Monday, July 02, 2007
Investors impatient for telecom equitisation
The equitisation of some telecom firms in Vietnam was announced by state agencies in 2005, but so far none of the telecom firms have been equitised. In the eyes of investors, the equitisation process of Vietnamese telecom companies is going at a snail’s pace.
According to sources from MobiFone, this company is completing formalities for equitisation this year, and in early 2008 it will perform IPO.
Around five partners have expressed their desire to buy MobiFone stocks to become the firm’s strategic investors. However, as it is currently selecting a consultant only, MobiFone isn’t considering this issue yet.
Le Ngoc Minh, MobiFone’s director, said that he didn’t know what the value of MobiFone was at this moment.
Once MobiFone finds its consultant, tasks related to equitisation will be quickly fulfilled within 2007 to prepare for the IPO early next year.
Also a subsidiary of the Vietnam Post and Telecommunications Group (VNPT), VinaPhone can’t immediately conduct equitisation like MobiFone. VinaPhone director Hoang Trung Hai said that there was no detailed plan about VinaPhone’s equitisation yet. VNPT is focusing on the equitisation of MobiFone and VinaPhone will be equitised after MobiFone’s equitisation is completed.
Other mobile information companies that will be equitised after MobiFone and VinaPhone are Viettel Telecom and EVN Telecom. However, they have made any moves for this task. Perhaps they want to learn something from MobiFone and VinaPhone.
Deputy Minister of Post and Telematics Tran Duc Lai doesn’t agree with the idea that mobile information firms are doing business well so they don’t want to equitisate, which is responsible for the tardiness in equitisation.
“Implementation of equitisation is different for each company and this task will be conducted suitably to their ability. Viettel Telecom and EVN Telecom are new businesses and they are designing equitisation plans that are appropriate to their actual situations,” Mr. Lai said.
While MobiFone is urgently promoting its equitisation process, equitisation seems to be not a priority of Viettel Telecom. Perhaps this company is afraid that its equitisation will attract small shareholders who will focus on short-term benefits and this will influence its strategy to build a big corporation in the long run.
Viettel Telecom’s plan in the near future is developing strongly in rural and remote areas, where benefit doesn’t come in immediately, so shareholders will not like this. The firm, thus, will equitise its subsidies firstly.
Viettel Deputy General Director Nguyen Manh Hung said that Viettel had established a joint stock company on value added services for mobile phones and this company would be equitised first. EVN Telecom has also chosen the same path of equitisation as Viettel.
The Vietnam Association of Financial Investors (VAFI) has sent many documents urging telecom companies to quickly perform equitisation, which shows how impatient investors are and how great their interest is in shares of mobile information service companies.
At the Vietnam Enterprise Forum, under the framework of the mid-term Consultative Group Meeting 2007, held on May 30 in Hanoi, Alain Cany, Chairman of the European Chamber of Commerce (Eurocham), said that foreign investors were anxious to take part in the equitisation process of a significant field like telecom.
“To help foreign investors have the best preparation for their participation into the telecom sector, Eurocham and its members hope that the Vietnamese Government will introduce an itinerary for the participation of foreign investors soon,” he said.
The Financial manager of Norway’s Telenor group said that when Telenor conducted equitisation the group faced a lot of problems. This group was afraid that it would lose control over the firm. Some said that as Telenor was known in many countries and it was a strong brand equitisation was unnecessary.
However, with his experience, the Telenor official said that Vietnamese telecom firms should speed up the equitisation process and bring their stocks to the stock market as soon as possible. However, he agreed that appraising the value of shares of telecom firms is often very complicated.
Mark Shuper, Morgan Stanley Bank’s Managing Director, said that value appraisal for telecom companies is best when they are in the development phase, so they should choose the best time for doing this task.
However, he commented that Vietnamese telecom companies would not be equitised this year. “This process will take place strongly next year or the following years and of course, we are always ready to participate in this process,” he said.
Source: VNE
According to sources from MobiFone, this company is completing formalities for equitisation this year, and in early 2008 it will perform IPO.
Around five partners have expressed their desire to buy MobiFone stocks to become the firm’s strategic investors. However, as it is currently selecting a consultant only, MobiFone isn’t considering this issue yet.
Le Ngoc Minh, MobiFone’s director, said that he didn’t know what the value of MobiFone was at this moment.
Once MobiFone finds its consultant, tasks related to equitisation will be quickly fulfilled within 2007 to prepare for the IPO early next year.
Also a subsidiary of the Vietnam Post and Telecommunications Group (VNPT), VinaPhone can’t immediately conduct equitisation like MobiFone. VinaPhone director Hoang Trung Hai said that there was no detailed plan about VinaPhone’s equitisation yet. VNPT is focusing on the equitisation of MobiFone and VinaPhone will be equitised after MobiFone’s equitisation is completed.
Other mobile information companies that will be equitised after MobiFone and VinaPhone are Viettel Telecom and EVN Telecom. However, they have made any moves for this task. Perhaps they want to learn something from MobiFone and VinaPhone.
Deputy Minister of Post and Telematics Tran Duc Lai doesn’t agree with the idea that mobile information firms are doing business well so they don’t want to equitisate, which is responsible for the tardiness in equitisation.
“Implementation of equitisation is different for each company and this task will be conducted suitably to their ability. Viettel Telecom and EVN Telecom are new businesses and they are designing equitisation plans that are appropriate to their actual situations,” Mr. Lai said.
While MobiFone is urgently promoting its equitisation process, equitisation seems to be not a priority of Viettel Telecom. Perhaps this company is afraid that its equitisation will attract small shareholders who will focus on short-term benefits and this will influence its strategy to build a big corporation in the long run.
Viettel Telecom’s plan in the near future is developing strongly in rural and remote areas, where benefit doesn’t come in immediately, so shareholders will not like this. The firm, thus, will equitise its subsidies firstly.
Viettel Deputy General Director Nguyen Manh Hung said that Viettel had established a joint stock company on value added services for mobile phones and this company would be equitised first. EVN Telecom has also chosen the same path of equitisation as Viettel.
The Vietnam Association of Financial Investors (VAFI) has sent many documents urging telecom companies to quickly perform equitisation, which shows how impatient investors are and how great their interest is in shares of mobile information service companies.
At the Vietnam Enterprise Forum, under the framework of the mid-term Consultative Group Meeting 2007, held on May 30 in Hanoi, Alain Cany, Chairman of the European Chamber of Commerce (Eurocham), said that foreign investors were anxious to take part in the equitisation process of a significant field like telecom.
“To help foreign investors have the best preparation for their participation into the telecom sector, Eurocham and its members hope that the Vietnamese Government will introduce an itinerary for the participation of foreign investors soon,” he said.
The Financial manager of Norway’s Telenor group said that when Telenor conducted equitisation the group faced a lot of problems. This group was afraid that it would lose control over the firm. Some said that as Telenor was known in many countries and it was a strong brand equitisation was unnecessary.
However, with his experience, the Telenor official said that Vietnamese telecom firms should speed up the equitisation process and bring their stocks to the stock market as soon as possible. However, he agreed that appraising the value of shares of telecom firms is often very complicated.
Mark Shuper, Morgan Stanley Bank’s Managing Director, said that value appraisal for telecom companies is best when they are in the development phase, so they should choose the best time for doing this task.
However, he commented that Vietnamese telecom companies would not be equitised this year. “This process will take place strongly next year or the following years and of course, we are always ready to participate in this process,” he said.
Source: VNE
Tuesday, June 26, 2007
VinaPhone to be equitised after MobiFone
The General Director of the Vietnam Post and Telecommunications Group (VNPT) said that the equitisation of VinaPhone information mobile network is only performed after the equitisation of MobiFone is finalised.
The General Director said that the equitisation scheme of VinaPhone is being designed. VNPT is now focusing on the equitisation of MobiFone and when this task is complete, the group will apply lessons that it learns from MobiFone equitisation to apply for VinaPhone.
“We can’t perform equitisation of the two mobile phone networks at the same time when we don’t have any experience,” he said.
The equitisation of VinaPhone and MobiFone was permitted by the Government in early 2005. But until now, MobiFone is still seeking a suitable consultant and a strategic investor. MobiFone’s shares will be listed on the bourse in 2008 at the earliest time. Thus, till late 2008, VNPT can think of the equitisation of VinaPhone.
Hoang Trung Hai, VinaPhone Director said that the difficulty for the equitisation of VinaPhone is that this network is not independent in term of finance. Its business closely depends on the system of 64 post offices of 64 provinces and cities in Vietnam. To prepare for equitisation, VinaPhone will have to consider turnover, tasks, etc. for each province, which takes time and is very complicated.
According to Mr Hai, investors are enthusiastic for stocks of telecom companies. VinaPhone has received many investors who want to buy its stocks though the firm is not been equitised yet.
“However, we can’t tell before hand because we don’t have guidance from the leaders of VNPT,” VinaPhone Director said.
Source: VNE
The General Director said that the equitisation scheme of VinaPhone is being designed. VNPT is now focusing on the equitisation of MobiFone and when this task is complete, the group will apply lessons that it learns from MobiFone equitisation to apply for VinaPhone.
“We can’t perform equitisation of the two mobile phone networks at the same time when we don’t have any experience,” he said.
The equitisation of VinaPhone and MobiFone was permitted by the Government in early 2005. But until now, MobiFone is still seeking a suitable consultant and a strategic investor. MobiFone’s shares will be listed on the bourse in 2008 at the earliest time. Thus, till late 2008, VNPT can think of the equitisation of VinaPhone.
Hoang Trung Hai, VinaPhone Director said that the difficulty for the equitisation of VinaPhone is that this network is not independent in term of finance. Its business closely depends on the system of 64 post offices of 64 provinces and cities in Vietnam. To prepare for equitisation, VinaPhone will have to consider turnover, tasks, etc. for each province, which takes time and is very complicated.
According to Mr Hai, investors are enthusiastic for stocks of telecom companies. VinaPhone has received many investors who want to buy its stocks though the firm is not been equitised yet.
“However, we can’t tell before hand because we don’t have guidance from the leaders of VNPT,” VinaPhone Director said.
Source: VNE
Wednesday, June 20, 2007
Strategic partnerships booming
Strategic partnerships have become a popular option for businesses, especially in the volatile circumstances of the growing domestic stock market and growing globalisation.
The most notable agreement is a partnership between PetroVietnam and Lilama in the energy, cement, engineering manufacturing, shipbuilding, transport, real estate, finance and banking sectors. PetroVietnam and Lilama are also considering the possibility of trading shares and sharing investment capital to become founding shareholders.
The Hua Na hydroelectric project is one result of their agreement. The company, with chartered capital of VND1.2tril, was established to own the hydropower plant.
PetroVietnam has already signed a comprehensive agreement with Vietnam Airlines to start an air taxi joint stock company, while Lilama has inked a construction and banking services agreement with Military Bank.
Two State-run groups, Bao Viet and VNPT, recently signed a strategic co-operative agreement where by the former will be responsible for insuring property, equipment, human resource and other VNPT assets, while the latter will become the post and telecom service provider to Bao Viet.
In the distribution sector, the four biggest Vietnamese retailers, Ha Noi Trade Corporation (Hapro), Sai Gon Trade Corporation (Satra); Sai Gon Co-op and Phu Thai Group, have decided to join forces to set up Viet Nam Distribution Association Network (VDA), which is hoped will become the leading distribution and logistics group in Vietnam and will pre-empt and compete effectively with large foreign distributors.
Under its WTO commitments, Vietnam will open its distribution market in 2009. Meanwhile, giant distribution groups are already present in Vietnam, including Metro, Big C and Parkson. In the future Lotte Shopping, Carefour and Wal-mart are expected.
With an investment capital of VND1.5tril ($93.75mil) in the first period of investment (March 2007-October 2008) and VND3-6tril ($187.5-375mil) in the second (November 2008-October 2011), VDA will focus on the development of modern trade centres, supermarkets and hypermarkets, which are planned to control a majority share of the distribution market.
During its debut ceremony, VDA signed three strategic co-operative agreements with Viet Nam National Shipping Lines (Vinalines), Viet Nam Association of Seafood Exporters and Producers (VSAP) and Bank for Investment and Development of Viet Nam (BIDV).
Intel Vietnam has inked a MoU on co-operation with Electricity of Viet Nam (EVN) Group to implement IT solutions in the sector and so strengthen its competitiveness.
However the record to ink strategic agreements must go to Hanaka group joint stock company based in Bac Ninh Province, which has become strategic partners with 10 local and foreign companies such as Japanese Sumitomo, Korean Golden Bridge, Vietcombank and Bach Dang Shipyard.
Source: VNE
The most notable agreement is a partnership between PetroVietnam and Lilama in the energy, cement, engineering manufacturing, shipbuilding, transport, real estate, finance and banking sectors. PetroVietnam and Lilama are also considering the possibility of trading shares and sharing investment capital to become founding shareholders.
The Hua Na hydroelectric project is one result of their agreement. The company, with chartered capital of VND1.2tril, was established to own the hydropower plant.
PetroVietnam has already signed a comprehensive agreement with Vietnam Airlines to start an air taxi joint stock company, while Lilama has inked a construction and banking services agreement with Military Bank.
Two State-run groups, Bao Viet and VNPT, recently signed a strategic co-operative agreement where by the former will be responsible for insuring property, equipment, human resource and other VNPT assets, while the latter will become the post and telecom service provider to Bao Viet.
In the distribution sector, the four biggest Vietnamese retailers, Ha Noi Trade Corporation (Hapro), Sai Gon Trade Corporation (Satra); Sai Gon Co-op and Phu Thai Group, have decided to join forces to set up Viet Nam Distribution Association Network (VDA), which is hoped will become the leading distribution and logistics group in Vietnam and will pre-empt and compete effectively with large foreign distributors.
Under its WTO commitments, Vietnam will open its distribution market in 2009. Meanwhile, giant distribution groups are already present in Vietnam, including Metro, Big C and Parkson. In the future Lotte Shopping, Carefour and Wal-mart are expected.
With an investment capital of VND1.5tril ($93.75mil) in the first period of investment (March 2007-October 2008) and VND3-6tril ($187.5-375mil) in the second (November 2008-October 2011), VDA will focus on the development of modern trade centres, supermarkets and hypermarkets, which are planned to control a majority share of the distribution market.
During its debut ceremony, VDA signed three strategic co-operative agreements with Viet Nam National Shipping Lines (Vinalines), Viet Nam Association of Seafood Exporters and Producers (VSAP) and Bank for Investment and Development of Viet Nam (BIDV).
Intel Vietnam has inked a MoU on co-operation with Electricity of Viet Nam (EVN) Group to implement IT solutions in the sector and so strengthen its competitiveness.
However the record to ink strategic agreements must go to Hanaka group joint stock company based in Bac Ninh Province, which has become strategic partners with 10 local and foreign companies such as Japanese Sumitomo, Korean Golden Bridge, Vietcombank and Bach Dang Shipyard.
Source: VNE
Tuesday, June 19, 2007
Burning race to invest in telecom
Foreign telecom firms have made some moves in Vietnam: investing in Vietnamese telecom companies by purchasing stocks. However, it is said to be difficult because the supply is limited.
In September 2006, in a press conference before the Vietnam Telecom 2006 exhibition in HCM City, the chief representative of France Telecom, frankly stated: “We want to buy stocks of some Vietnamese telecom companies, for example stocks of mobile information companies like MobiFone, VinaPhone…”
Ten months have passed and many moves have been made, perhaps including clandestine negotiations among related sites, and the ‘faces of giants’ have gradually appeared.
In early May 2007, Norway’s Telenor, the biggest mobile information and television service provider in northern Europe, sponsored the “Mobile Vietnam 2007” event in Hanoi and expressed its plan to invest in Vietnamese mobile information firms.
On May 29, in a press conference in HCM City on its social charity programmes in Vietnam, a representative of SK Telecom said that the firm wanted to equitise the CDMA technology-based S-Fone mobile information network, a business cooperation project with Vietnam’s Saigon Telecom JS Company.
On June 13, at the press conference to introduce the Vietnam Comm 2007 exhibition in HCM City, Bui Quoc Viet, Director of the Postal Information Centre of the Vietnam Post and Telecommunications Group (VNPT), said: “Many foreign telecom groups have opened representative offices in Vietnam to wait for opportunities to invest in mobile information companies.”
According to some sources, American telecom groups want to buy stocks of Vietnam’s mobile information companies through Korean and Taiwanese firms.
Three mobile information firms that are targeted by foreign telecom groups – MobiFone, VinaPhone and Viettel Mobile – will sell stocks in the near future.
Bui Quoc Viet, Director of the VNPT’s Postal Information Centre, said that under the current rules, foreign investors couldn’t buy more than 49% of the stocks of Vietnamese mobile information firms. By the end of 2008 or early 2009, foreign investors will be allowed to make joint ventures with Vietnamese partners and after 2010 they can establish wholly foreign-owned firms in the telecom field in Vietnam.
In the race to invest in Vietnam’s mobile information companies, France Telecom has the advantage of being an early comer. It is now the second largest mobile information service provider in Europe, with 88 million mobile phone subscribers, 48 million fixed phone subscribers and 11 million Internet subscribers in 220 countries and territories. Its revenue was Eur49 billion in 2005.
Another big rival is NTT-DoCoMo from Japan, which has more than 50 million mobile phone subscribers and 135 million Internet subscribers. This group began its world expansion strategy in 2005 through modern value added services for mobile phone subscribers.
Norway’s Telenor has opened a representative office in Vietnam but its name is not popular. This group has more than 40 million customers in Asia and in the first quarter of 2007, Telenor boosted its investment in this region with more than $350 million of investment capital, up 40% over the same period of 2006.
Other big names that have opened representative offices in Vietnam are VodaPhone of the UK and Lucent of France.
The participation of big names in the race to invest in mobile information companies in Vietnam has made the competition fiercer but they still have to wait till Vietnamese companies announce the names of their foreign partners.
Source: VNE
In September 2006, in a press conference before the Vietnam Telecom 2006 exhibition in HCM City, the chief representative of France Telecom, frankly stated: “We want to buy stocks of some Vietnamese telecom companies, for example stocks of mobile information companies like MobiFone, VinaPhone…”
Ten months have passed and many moves have been made, perhaps including clandestine negotiations among related sites, and the ‘faces of giants’ have gradually appeared.
In early May 2007, Norway’s Telenor, the biggest mobile information and television service provider in northern Europe, sponsored the “Mobile Vietnam 2007” event in Hanoi and expressed its plan to invest in Vietnamese mobile information firms.
On May 29, in a press conference in HCM City on its social charity programmes in Vietnam, a representative of SK Telecom said that the firm wanted to equitise the CDMA technology-based S-Fone mobile information network, a business cooperation project with Vietnam’s Saigon Telecom JS Company.
On June 13, at the press conference to introduce the Vietnam Comm 2007 exhibition in HCM City, Bui Quoc Viet, Director of the Postal Information Centre of the Vietnam Post and Telecommunications Group (VNPT), said: “Many foreign telecom groups have opened representative offices in Vietnam to wait for opportunities to invest in mobile information companies.”
According to some sources, American telecom groups want to buy stocks of Vietnam’s mobile information companies through Korean and Taiwanese firms.
Three mobile information firms that are targeted by foreign telecom groups – MobiFone, VinaPhone and Viettel Mobile – will sell stocks in the near future.
Bui Quoc Viet, Director of the VNPT’s Postal Information Centre, said that under the current rules, foreign investors couldn’t buy more than 49% of the stocks of Vietnamese mobile information firms. By the end of 2008 or early 2009, foreign investors will be allowed to make joint ventures with Vietnamese partners and after 2010 they can establish wholly foreign-owned firms in the telecom field in Vietnam.
In the race to invest in Vietnam’s mobile information companies, France Telecom has the advantage of being an early comer. It is now the second largest mobile information service provider in Europe, with 88 million mobile phone subscribers, 48 million fixed phone subscribers and 11 million Internet subscribers in 220 countries and territories. Its revenue was Eur49 billion in 2005.
Another big rival is NTT-DoCoMo from Japan, which has more than 50 million mobile phone subscribers and 135 million Internet subscribers. This group began its world expansion strategy in 2005 through modern value added services for mobile phone subscribers.
Norway’s Telenor has opened a representative office in Vietnam but its name is not popular. This group has more than 40 million customers in Asia and in the first quarter of 2007, Telenor boosted its investment in this region with more than $350 million of investment capital, up 40% over the same period of 2006.
Other big names that have opened representative offices in Vietnam are VodaPhone of the UK and Lucent of France.
The participation of big names in the race to invest in mobile information companies in Vietnam has made the competition fiercer but they still have to wait till Vietnamese companies announce the names of their foreign partners.
Source: VNE
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
JP Morgan to advise Vietnam's Incombank IPO
State-run Industrial and Commercial Bank (Incombank), Vietnam's fourth-largest, has picked JP Morgan to advise on its partial privatisation and an IPO scheduled for October, an official said on Tuesday.
The official did not disclose the fee JP Morgan will receive from for consultation for the process, which includes evaluation of the bank and organising the initial public offering.
"We picked JP Morgan," the official said. He said the Hanoi-based bank would make an official announcement soon, but did not give a date.
The consultant would also help Incombank select a strategic partner, the bank has said. It did not make clear if the partner would be a Vietnamese or a foreign company.
Incombank, with assets of $9.2 billion, has said it will conduct the IPO in October 2007.
It is one of four state-run banks, including Vietcombank, Vietindebank and the Mekong Delta Housing Development Bank, ordered to issue shares this year.
JP Morgan was shortlisted to join the Incombank tender along with Daiwa Security SMBC, Lehman Brothers, Macquarie, Merrill Lynch, Morgan Stanley and UBS.
JP Morgan along with Merrill, Morgan Stanley and UBS also joined a tender by Vietindebank to pick its adviser by late this month for privatisation and IPO.
Vietindebank said Merrill had the highest score of 87.2 for technical proposals while JP Morgan had the lowest, at 73.9. Vietindebank plans an IPO in the fourth quarter.
Incombank has not said how much it aimed to raise in the IPO or disclosed whether it would list on the main Ho Chi Minh Stock Exchange or the over-the-counter Hanoi Securities Trading Center.
Partly-private Sacombank (STB) is the only bank listed on the Ho Chi Minh City market and Asia Commercial Bank (ACB) has listed shares on the Hanoi exchange.
On Monday, Incombank signed with Vietnam Posts and Telecommunications (VNPT) group, the country's largest telecoms firm, an agreement to boost their investment and business, using each other's services.
Incombank has arranged a syndicate loan worth 2.3 trillion dong ($143 million) which will enable the telecoms group to launch Vietnam's first telecoms satellite, Vinasat, in 2008.
The agreement also aimed "at a target that Incombank and VNPT will become each other's strategic partners during their operation and development," Incombank said.
Source: Reuters
The official did not disclose the fee JP Morgan will receive from for consultation for the process, which includes evaluation of the bank and organising the initial public offering.
"We picked JP Morgan," the official said. He said the Hanoi-based bank would make an official announcement soon, but did not give a date.
The consultant would also help Incombank select a strategic partner, the bank has said. It did not make clear if the partner would be a Vietnamese or a foreign company.
Incombank, with assets of $9.2 billion, has said it will conduct the IPO in October 2007.
It is one of four state-run banks, including Vietcombank, Vietindebank and the Mekong Delta Housing Development Bank, ordered to issue shares this year.
JP Morgan was shortlisted to join the Incombank tender along with Daiwa Security SMBC, Lehman Brothers, Macquarie, Merrill Lynch, Morgan Stanley and UBS.
JP Morgan along with Merrill, Morgan Stanley and UBS also joined a tender by Vietindebank to pick its adviser by late this month for privatisation and IPO.
Vietindebank said Merrill had the highest score of 87.2 for technical proposals while JP Morgan had the lowest, at 73.9. Vietindebank plans an IPO in the fourth quarter.
Incombank has not said how much it aimed to raise in the IPO or disclosed whether it would list on the main Ho Chi Minh Stock Exchange or the over-the-counter Hanoi Securities Trading Center.
Partly-private Sacombank (STB) is the only bank listed on the Ho Chi Minh City market and Asia Commercial Bank (ACB) has listed shares on the Hanoi exchange.
On Monday, Incombank signed with Vietnam Posts and Telecommunications (VNPT) group, the country's largest telecoms firm, an agreement to boost their investment and business, using each other's services.
Incombank has arranged a syndicate loan worth 2.3 trillion dong ($143 million) which will enable the telecoms group to launch Vietnam's first telecoms satellite, Vinasat, in 2008.
The agreement also aimed "at a target that Incombank and VNPT will become each other's strategic partners during their operation and development," Incombank said.
Source: Reuters
Tuesday, June 05, 2007
State-owned enterprises: strong or weak?
Looking at data of the General Department of Statistics and the Ministry of Finance on State-owned enterprises (SOEs), some noteworthy things can be seen.
In terms of quantity, by early 2006, Vietnam had 4,086 operating SOEs, accounting for only 3.6% of the total active enterprises in Vietnam, and equivalent to less than one-third of the total SOEs in the pre-renovation period. As the equitisation process is accelerated, this ratio will decrease more quickly.
Of the total number of SOEs, the number of SOEs that are managed by provincial and municipal governments is higher than that of those controlled by the central government (55.3% and 44.7%, respectively). The SOEs of the first kind have smaller scale and less modern equipment and technology as well as lower business effectiveness than the second, so the number of SOEs of this kind is high.
Moreover, the mechanism in which SOEs are managed by ministries and provincial People’s Committees is unsuitable to the market economy, which Vietnam is building because in the market economy, all businesses compete equally. This fact requires higher speed of equitisation.
Though the average labour scale of SOEs is higher than private and foreign-invested ones (499.5 workers compared to 28.2 and 330.2 people, respectively) the number of workers in SOEs is gradually declining in total number (from over 4.114 million in early 2002 to nearly 2.041 million in early 2006) and percentage of total number of workers in all kinds of businesses (from 53.8% to 32.7% in the same period).
Though the average capital of SOEs is higher than that of private and foreign-invested ones (VND327.5 billion compared to VND5.8 billion and VND132.5 billion), the percentage of capital of SOEs of the total capital of enterprises has declined, from 55.9% in 2001 to 54.9% in 2005, while that of private businesses has increased, from 12% to 25% in those same years.
According to the Finance Ministry, the total assets of SOEs reached VND747.4 trillion in early 2006. However, debts accounted for 22.2% and 76% of the volume were bank loans.
Except for SOEs that benefit from business advantages and enjoy special preferential policies, the business effectiveness of other SOEs is low.
The Vietnam Oil and Gas Group (PetroVietnam) earned revenue of VND42.31 trillion and VND24.924 trillion of profit; VND38.818 trillion and VND3.2 trillion for the Electricity of Vietnam (EVN) group; VND32.76 trillion and VND11.56 trillion for the Vietnam Post and Telecommunications Group (VNPT); VND22.788 and VND3.130 trillion for the Coal and Minerals Group.
SOEs that contributed greatly to the State Budget were the Vietnam Petroleum Import Export Corporation (VND8.252 trillion), the Vietnam National Tobacco Corporation (VND3.13 trillion), and the Saigon Beverage Corporation (VND2.13 trillion).
In the 2001-2005 period, the revenue of SOEs rose by 9.1% per annum only and it was just 7.2% in 2005, just a little bit higher than the increase of the consumer price index.
There were many ineffective SOEs and most of them operate in the fields of agriculture, paper, textiles, sericulture, sugar and sugarcane, and seafood. The total losses of SOEs in 2005 were VND1.919 trillion. Loss-making SOEs accounted for 19.5% and 8.8% broke even.
Big loss-making SOEs were the Vietnam Cement Corporation, Coffee Corporation, Transport Work Construction Companies 5 and 6, Thang Long Construction Corporation, Sericulture Corporation with losses from VND220 to VND1,352 billion, 13 times more than the average capital of SOEs.
Major reasons for the weakness of SOEs include backward equipment and technology; poor use of modern equipment (if possessed at all); total investment too big, leading to high deductions and loan interest in production costs; waste in production processes; and higher expenses for salary.
The above analysis shows that it is necessary to speed up equitisation while improving the quality of operations of SOEs so they can compete with foreign rivals when Vietnam opens its door more widely.
Source: VNE
In terms of quantity, by early 2006, Vietnam had 4,086 operating SOEs, accounting for only 3.6% of the total active enterprises in Vietnam, and equivalent to less than one-third of the total SOEs in the pre-renovation period. As the equitisation process is accelerated, this ratio will decrease more quickly.
Of the total number of SOEs, the number of SOEs that are managed by provincial and municipal governments is higher than that of those controlled by the central government (55.3% and 44.7%, respectively). The SOEs of the first kind have smaller scale and less modern equipment and technology as well as lower business effectiveness than the second, so the number of SOEs of this kind is high.
Moreover, the mechanism in which SOEs are managed by ministries and provincial People’s Committees is unsuitable to the market economy, which Vietnam is building because in the market economy, all businesses compete equally. This fact requires higher speed of equitisation.
Though the average labour scale of SOEs is higher than private and foreign-invested ones (499.5 workers compared to 28.2 and 330.2 people, respectively) the number of workers in SOEs is gradually declining in total number (from over 4.114 million in early 2002 to nearly 2.041 million in early 2006) and percentage of total number of workers in all kinds of businesses (from 53.8% to 32.7% in the same period).
Though the average capital of SOEs is higher than that of private and foreign-invested ones (VND327.5 billion compared to VND5.8 billion and VND132.5 billion), the percentage of capital of SOEs of the total capital of enterprises has declined, from 55.9% in 2001 to 54.9% in 2005, while that of private businesses has increased, from 12% to 25% in those same years.
According to the Finance Ministry, the total assets of SOEs reached VND747.4 trillion in early 2006. However, debts accounted for 22.2% and 76% of the volume were bank loans.
Except for SOEs that benefit from business advantages and enjoy special preferential policies, the business effectiveness of other SOEs is low.
The Vietnam Oil and Gas Group (PetroVietnam) earned revenue of VND42.31 trillion and VND24.924 trillion of profit; VND38.818 trillion and VND3.2 trillion for the Electricity of Vietnam (EVN) group; VND32.76 trillion and VND11.56 trillion for the Vietnam Post and Telecommunications Group (VNPT); VND22.788 and VND3.130 trillion for the Coal and Minerals Group.
SOEs that contributed greatly to the State Budget were the Vietnam Petroleum Import Export Corporation (VND8.252 trillion), the Vietnam National Tobacco Corporation (VND3.13 trillion), and the Saigon Beverage Corporation (VND2.13 trillion).
In the 2001-2005 period, the revenue of SOEs rose by 9.1% per annum only and it was just 7.2% in 2005, just a little bit higher than the increase of the consumer price index.
There were many ineffective SOEs and most of them operate in the fields of agriculture, paper, textiles, sericulture, sugar and sugarcane, and seafood. The total losses of SOEs in 2005 were VND1.919 trillion. Loss-making SOEs accounted for 19.5% and 8.8% broke even.
Big loss-making SOEs were the Vietnam Cement Corporation, Coffee Corporation, Transport Work Construction Companies 5 and 6, Thang Long Construction Corporation, Sericulture Corporation with losses from VND220 to VND1,352 billion, 13 times more than the average capital of SOEs.
Major reasons for the weakness of SOEs include backward equipment and technology; poor use of modern equipment (if possessed at all); total investment too big, leading to high deductions and loan interest in production costs; waste in production processes; and higher expenses for salary.
The above analysis shows that it is necessary to speed up equitisation while improving the quality of operations of SOEs so they can compete with foreign rivals when Vietnam opens its door more widely.
Source: VNE
Thursday, May 24, 2007
EVN to establish electricity trading arm
State monopoly Electricity of Vietnam is set to launch an electricity trading company that will buy from various producers to sell to power distributors, all of them belonging to EVN.
EVN hosted a meeting Tuesday in Hanoi to announce the plan which envisages setting up the company with a registered capital of VND1 trillion (US$62 million) later this year.
It would be joint venture between seven giant state corporations – PetroVietnam, Vietnam Coal and Minerals Group, Song Da Construction Corp., Vietnam Post and Telecommunication Group; Vietnam Cement Corp., Vietnam Steel Corp., and Vietnam Machinery Installation Corp.
They will jointly contribute 49% of the capital with EVN holding the rest.
The company will buy from 34 power plants around the country – both EVN’s and others’ – and sell to 11 distribution companies.
The unlisted EVN is expected to go public by the end of 2008, two years earlier than scheduled under a plan approved by the government.
Its 24 subsidiaries are set to equitize this year, including major players like the Ba Ria and Uong Bi thermal plants, and the Da Nhim – Ham Thuan – Da My Hydropower Plant.
The remaining six subsidiaries, namely the Nghi Son and Mong Duong thermal plants, Telecom Co, Hanoi and Ho Chi Minh Electric companies, and Electric Finance Co, are scheduled to go public by the end of 2008.
It has obtained the nod from the government to sell corporate bonds overseas next year, expecting to raise US$300 million to $500 million off the first phase.
Along with preparation for the forthcoming issue of overseas corporate bonds, the group planned to issue VND8 trillion ($502 million) in bonds for Q2 this year for infrastructure development.
The Hanoi-based utility said it needed VND250 trillion ($15.6 billion) in 2006-2010 to complete all its planned power projects.
Power demand in booming Vietnam is forecast to grow by 17% per year, prompting the government to plan 60 additional plants by 2020.
Source: Thanh Nien
EVN hosted a meeting Tuesday in Hanoi to announce the plan which envisages setting up the company with a registered capital of VND1 trillion (US$62 million) later this year.
It would be joint venture between seven giant state corporations – PetroVietnam, Vietnam Coal and Minerals Group, Song Da Construction Corp., Vietnam Post and Telecommunication Group; Vietnam Cement Corp., Vietnam Steel Corp., and Vietnam Machinery Installation Corp.
They will jointly contribute 49% of the capital with EVN holding the rest.
The company will buy from 34 power plants around the country – both EVN’s and others’ – and sell to 11 distribution companies.
The unlisted EVN is expected to go public by the end of 2008, two years earlier than scheduled under a plan approved by the government.
Its 24 subsidiaries are set to equitize this year, including major players like the Ba Ria and Uong Bi thermal plants, and the Da Nhim – Ham Thuan – Da My Hydropower Plant.
The remaining six subsidiaries, namely the Nghi Son and Mong Duong thermal plants, Telecom Co, Hanoi and Ho Chi Minh Electric companies, and Electric Finance Co, are scheduled to go public by the end of 2008.
It has obtained the nod from the government to sell corporate bonds overseas next year, expecting to raise US$300 million to $500 million off the first phase.
Along with preparation for the forthcoming issue of overseas corporate bonds, the group planned to issue VND8 trillion ($502 million) in bonds for Q2 this year for infrastructure development.
The Hanoi-based utility said it needed VND250 trillion ($15.6 billion) in 2006-2010 to complete all its planned power projects.
Power demand in booming Vietnam is forecast to grow by 17% per year, prompting the government to plan 60 additional plants by 2020.
Source: Thanh Nien
Monday, May 07, 2007
VNPT and Bao Viet cooperate
The Vietnam Post and Telecom Group (VNPT) has entered into a cooperative deal with Vietnam's largest insurance firm Bao Viet to support mutual development.
Under the deal signed Monday in Hanoi, VNPT and Bao Viet Insurance Corp will work together as strategic partners, each reserving a major chunk of shares for the other to purchase on a mutual basis.
The leading telecom provider will support Bao Viet to develop advanced IT applications in the top insurer as well as its affiliates.
In return, the insurer would provide insurance services for VNPT’s business activities.
The new formal strategic cooperation with a leading insurer will enable VNPT to expand services and develop financial operations with the telecom business.
They will also assist each other in training staff, according to the agreement.
VNPT is in talks with the Bank for Development of Vietnam (BIDV) as a strategic partner to either set up or control a major portion of stakes in companies involved in the country’s forthcoming key mega projects.
These comprise the express way connecting the Ho Chi Minh City – Long Thanh – Dau Giay, the Vietnam-Laos Hydropower plant, Vietnam – Cambodia Hydropower plant, and a bank for trade, industry and services of Vietnam.
VNPT, last year, became a member of the ASEAN Telecom Holding Company (ATH/ACASIA), one of the Association of Southeast Asian Nations (ASEAN)'s leading primary network service providers, made up of the six leading telecom providers in the region, namely CAT, Indosat, JTB, PLDT, Singtel and Telekom Malaysia.
Bao Viet is set to offer an 18% stake to foreign investors while the state will retain 65.34% of ownership.
The top insurer will auction more than 59.4 million shares or 8.74% of the firm's total to the public and 0.7% to employees and the remaining 7.22% to strategic investors.
Further details on the auction were not available.
Bao Viet group has a registered capital of VND6.8 trillion (US$422) million.
Bao Viet Securities, a subsidiary of Bao Viet, listed on the Hanoi exchange last December.
The securities firm is a new business of Bao Viet which has said it would diversify into banking, financial leasing, real estate and public health insurance.
Vietnam's insurance sector has grown rapidly in recent years in line with the economy, which is targeted to expand 8.5% this year after growth of more than 8% in 2005 and 2006.
Source: Thanh Nien
Under the deal signed Monday in Hanoi, VNPT and Bao Viet Insurance Corp will work together as strategic partners, each reserving a major chunk of shares for the other to purchase on a mutual basis.
The leading telecom provider will support Bao Viet to develop advanced IT applications in the top insurer as well as its affiliates.
In return, the insurer would provide insurance services for VNPT’s business activities.
The new formal strategic cooperation with a leading insurer will enable VNPT to expand services and develop financial operations with the telecom business.
They will also assist each other in training staff, according to the agreement.
VNPT is in talks with the Bank for Development of Vietnam (BIDV) as a strategic partner to either set up or control a major portion of stakes in companies involved in the country’s forthcoming key mega projects.
These comprise the express way connecting the Ho Chi Minh City – Long Thanh – Dau Giay, the Vietnam-Laos Hydropower plant, Vietnam – Cambodia Hydropower plant, and a bank for trade, industry and services of Vietnam.
VNPT, last year, became a member of the ASEAN Telecom Holding Company (ATH/ACASIA), one of the Association of Southeast Asian Nations (ASEAN)'s leading primary network service providers, made up of the six leading telecom providers in the region, namely CAT, Indosat, JTB, PLDT, Singtel and Telekom Malaysia.
Bao Viet is set to offer an 18% stake to foreign investors while the state will retain 65.34% of ownership.
The top insurer will auction more than 59.4 million shares or 8.74% of the firm's total to the public and 0.7% to employees and the remaining 7.22% to strategic investors.
Further details on the auction were not available.
Bao Viet group has a registered capital of VND6.8 trillion (US$422) million.
Bao Viet Securities, a subsidiary of Bao Viet, listed on the Hanoi exchange last December.
The securities firm is a new business of Bao Viet which has said it would diversify into banking, financial leasing, real estate and public health insurance.
Vietnam's insurance sector has grown rapidly in recent years in line with the economy, which is targeted to expand 8.5% this year after growth of more than 8% in 2005 and 2006.
Source: Thanh Nien
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