CEO and Co-founder of VinaCapital Don Lam, who is also the Chairman of the Vietnam Infrastructure Ltd, has denied the report that foreign investors are trying to withdraw from Vietnam.
Foreign investors have not sold shares in the last three months, they just have not bought them. This is also one of the reasons that made the market fall, Mr Don Lam said, trying to explain the fluctuations in the stock market recently under the view of a foreign investor.
Not long ago, several foreign institutions released reports which forecast the landing of a lot of foreign investment funds in Vietnam which would bring about several billion dollars. However, amid the optimistic reports, Merrill Lynch launched a controversial report, which suggested reducing foreign investment into Vietnam to zero.
Mr Don Lam said that Merrill Lynch released the report as an independent researcher. The institution may think that the stock prices in Vietnam have become overly high and advised its investors not to buy more.
“Foreign investors will absolutely not withdraw from Vietnam’s market,” he said.
It is clear that foreign investment funds are still moving ahead with their plans to march towards Vietnam’s market, which shows positive signs of high economic growth rate. However, a lot of factors, including regulations (foreign investors are allowed to hold up to 30% of total shares in local companies, and the ‘room’ for foreign investors is nearly running out), and the way of accessing investment capital of Vietnam, have kept the huge sums of capital continuing to wait.
According to Mr Don Lam, in general, new foreign investment funds will enter Vietnam after one, two or three years after the establishment. Several professional investors and funds, which have cash for investment, still are not making investments, because they find the stock prices overly expensive. They will make deposits at banks and wait for their opportunities.
In fact, in the last three months, both blue chips and penny stocks on the market were unsalable. Foreign investors did not buy shares in the last time, according to Mr Don Lam, because the P/E index was very high.
“They will buy stocks when prices go down,” Mr Don Lam said.
Regarding the recent unsuccessful auctions, he said that foreign investors offered low prices at the auctions because the stock prices were overly high at this moment. The P/Es of many share items were 30 or 40, and wise investors never accept such a high P/E level.
In fact, foreign investors aim at long-term investment; therefore, they will hold stocks and not sell out for profit.
Mr Don Lam said that the higher foreign ownership ratio in local companies was expected to help stimulate the market again. The market prices of many blue chips, like REE, SIS or VNM, have returned to their actual value after the continuous falls. However, foreigners cannot buy these shares any more because of no room.
Source: VNE
Showing posts with label Vinacapital. Show all posts
Showing posts with label Vinacapital. Show all posts
Thursday, August 16, 2007
VinaCapital launches infrastructure fund
VinaCapital officially launched Vietnam Infrastructure Limited (VNI), a US $402 million fund dedicated to investment in Vietnam’s rapidly growing infrastructure sector, at a ceremony held in Hanoi this afternoon.
The amount of money would be invested in infrastructure projects in Vietnam in field of energy, traffic system, water supply system and telecommunications, said Mr Don Lam, CEO and Co-Founder of VinaCapital.
The fund would focus its investment in such big cities as Hanoi, Ho Chi Minh City, Da Nang and Can Tho and key economic regions of Vietnam, he added.
Mr William Lean, managing director of VinaCapital said the VNI had bought 3.8% of the shares of the Tan Tao Industrial Park Joint Stock Company (ITACO), valued at nearly US $20 million.
The money was used for infrastructure in Long An province, including a 70-kilometre highway construction from Ho Chi Minh City-based Tan Son Nhat Airport to the centre of the province, a thermo-electric plant and a water supply company.
VNI has also bought 2.4% of the shares of Thac Mo Hydro-Electric Plant, equivalent to nearly US $2 million; and 5.2% of the shares of Ba Ria Thermo-Electric Plant, valued at nearly US $4 million.
Mr Lean added that VNI was also investing in projects to build a highway in Ha Tay province with an investment capital of US $80. The road is 40 metres wide and 24 kilometres long, linking the western part of Hanoi with Son Tay town of Ha Tay province.
At the launching ceremony, VNI signed two memoranda of understanding. The first is an agreement with TRANCO company for the construction of a road in the Hanoi area. The second, with ITACO, is for the development of a 600 MW power plant and supporting coal port.
VinaCapital July 5 listed its fourth fund Vietnam Infrastructure Limited on the Alternative Investment Market (AIM) which is for new and potential firms of the London Stock Exchange (LSE).
The closed-end fund has a size of US $402 million that was mobilised from overseas investors.
After listing, the fund was disbursed US $100 million to invest in hydropower and thermo-power plants. The remaining capital will be used within 12 to 18 months later to buy toll rights in big cities and participate to upgrade local airports into international ones.
With the fourth fund, VinaCapital has managed the amount of some US $1.8 billion investing mainly in Vietnam. The fund manager now also runs three other investment funds in Vietnam - the US $800-million Vietnam Opportunity Fund (VOF), the US $600-million VinaLand, and the US $50-million DFJ VinaCapital L.P. which invests in information technology. The two former funds are now listed on AIM as well.
Source: VNE
The amount of money would be invested in infrastructure projects in Vietnam in field of energy, traffic system, water supply system and telecommunications, said Mr Don Lam, CEO and Co-Founder of VinaCapital.
The fund would focus its investment in such big cities as Hanoi, Ho Chi Minh City, Da Nang and Can Tho and key economic regions of Vietnam, he added.
Mr William Lean, managing director of VinaCapital said the VNI had bought 3.8% of the shares of the Tan Tao Industrial Park Joint Stock Company (ITACO), valued at nearly US $20 million.
The money was used for infrastructure in Long An province, including a 70-kilometre highway construction from Ho Chi Minh City-based Tan Son Nhat Airport to the centre of the province, a thermo-electric plant and a water supply company.
VNI has also bought 2.4% of the shares of Thac Mo Hydro-Electric Plant, equivalent to nearly US $2 million; and 5.2% of the shares of Ba Ria Thermo-Electric Plant, valued at nearly US $4 million.
Mr Lean added that VNI was also investing in projects to build a highway in Ha Tay province with an investment capital of US $80. The road is 40 metres wide and 24 kilometres long, linking the western part of Hanoi with Son Tay town of Ha Tay province.
At the launching ceremony, VNI signed two memoranda of understanding. The first is an agreement with TRANCO company for the construction of a road in the Hanoi area. The second, with ITACO, is for the development of a 600 MW power plant and supporting coal port.
VinaCapital July 5 listed its fourth fund Vietnam Infrastructure Limited on the Alternative Investment Market (AIM) which is for new and potential firms of the London Stock Exchange (LSE).
The closed-end fund has a size of US $402 million that was mobilised from overseas investors.
After listing, the fund was disbursed US $100 million to invest in hydropower and thermo-power plants. The remaining capital will be used within 12 to 18 months later to buy toll rights in big cities and participate to upgrade local airports into international ones.
With the fourth fund, VinaCapital has managed the amount of some US $1.8 billion investing mainly in Vietnam. The fund manager now also runs three other investment funds in Vietnam - the US $800-million Vietnam Opportunity Fund (VOF), the US $600-million VinaLand, and the US $50-million DFJ VinaCapital L.P. which invests in information technology. The two former funds are now listed on AIM as well.
Source: VNE
Friday, August 03, 2007
VinaCapital’s $325-mln Danang urban complex gets go-ahead
London-listed fund manager VinaCapital received Thursday approval for building a US$325-million commercial-residential complex in Vietnam’s central Danang city. To be built in Son Tra district, the 9-ha VinaCapital Square complex will have two trade centers, two deluxe hotels with 600 rooms, a 25,000-sq.m exhibition and conference center, and a 42-story office block.
The largest-ever property project in the city will also have around 1,300 luxury apartments and a villa area.
But its date of commencement is not known.
With $500 million in its kitty, VinaCapital, which manages the Vietnam Opportunity Fund, is expected to invest in offices, trade centers, residential areas, industrial parks, and entertainment areas in key Vietnamese areas like HCMC, Hanoi, Nha Trang, Hoi An, and Danang.
VinaCapital also operates two other funds – the $205 million real estate fund VinaLand, and the newly set up $50 million DFJ VinaCapital L.P. which invests in information-communication technology firms.
Source: Thanh Nien
The largest-ever property project in the city will also have around 1,300 luxury apartments and a villa area.
But its date of commencement is not known.
With $500 million in its kitty, VinaCapital, which manages the Vietnam Opportunity Fund, is expected to invest in offices, trade centers, residential areas, industrial parks, and entertainment areas in key Vietnamese areas like HCMC, Hanoi, Nha Trang, Hoi An, and Danang.
VinaCapital also operates two other funds – the $205 million real estate fund VinaLand, and the newly set up $50 million DFJ VinaCapital L.P. which invests in information-communication technology firms.
Source: Thanh Nien
Friday, July 20, 2007
Wood processor takes new partners
Truong Thanh Furniture Corporation, one of Viet Nam’s largest wooden products makers and exporters, announced yesterday it has sold over 33 per cent of its shares to 10 strategic partners.
The Binh Duong Province-based company said six of them were foreign entities – Aureos South East Asia Managers Ltd., Vina Capital’s VOF Investment Ltd., Deutsche Asset Management, IFAG Institutionelle, and Asset Management Consulting AG – and the rest local, including Bao Viet Securities Joint Stock Co.
The former have together bought 2.8 million shares amounting to 18.3 per cent of the total, and the latter 2.3 million shares. But the parties refused to divulge the price.
Aureos South East Asia Managers Ltd. has picked up the largest chunk – some 1.09 million shares.
TTFC’ s general director Vo Truong Thanh said the deal was part of the company’s long-term strategy to strengthen its financial capability and expand to meet demand which was growing at over 50 per cent annually.
Thanh, also TTFC’s president, said the strategic partners would also contribute to management, particularly financial, and boosting the company’s prestige globally.
TTFC plans to build a new wood processing plant in Binh Duong’s Tan Uyen District at a cost of VND194 billion ($12.1 million). The 16ha plant, reportedly the most modern of its kind in Viet Nam, is expected to produce 40 per cent of the company’s output.
Another huge project, to set up a company that will plant forests, has received Government support in terms of policies and land issues.
The new company will undertake a 10-year, VND500 billion project to plant 50,000ha of forest that will yield of 1 million cu.m of timber a year from the seventh year onwards, ten times the company’s current timber use.
TTFC also plans to invest in expanding the Truong Thanh-Eah’ Leo industrial complex by another 100ha in the Central Highlands province of Dac Lac.
Next month it also plans to make a public issue of shares with a face value of VND75,000.
Subsequently, it will list on the HCM City stock exchange.
Source: VNE
The Binh Duong Province-based company said six of them were foreign entities – Aureos South East Asia Managers Ltd., Vina Capital’s VOF Investment Ltd., Deutsche Asset Management, IFAG Institutionelle, and Asset Management Consulting AG – and the rest local, including Bao Viet Securities Joint Stock Co.
The former have together bought 2.8 million shares amounting to 18.3 per cent of the total, and the latter 2.3 million shares. But the parties refused to divulge the price.
Aureos South East Asia Managers Ltd. has picked up the largest chunk – some 1.09 million shares.
TTFC’ s general director Vo Truong Thanh said the deal was part of the company’s long-term strategy to strengthen its financial capability and expand to meet demand which was growing at over 50 per cent annually.
Thanh, also TTFC’s president, said the strategic partners would also contribute to management, particularly financial, and boosting the company’s prestige globally.
TTFC plans to build a new wood processing plant in Binh Duong’s Tan Uyen District at a cost of VND194 billion ($12.1 million). The 16ha plant, reportedly the most modern of its kind in Viet Nam, is expected to produce 40 per cent of the company’s output.
Another huge project, to set up a company that will plant forests, has received Government support in terms of policies and land issues.
The new company will undertake a 10-year, VND500 billion project to plant 50,000ha of forest that will yield of 1 million cu.m of timber a year from the seventh year onwards, ten times the company’s current timber use.
TTFC also plans to invest in expanding the Truong Thanh-Eah’ Leo industrial complex by another 100ha in the Central Highlands province of Dac Lac.
Next month it also plans to make a public issue of shares with a face value of VND75,000.
Subsequently, it will list on the HCM City stock exchange.
Source: VNE
Wednesday, July 18, 2007
M&A trend arouses monopoly fears
Economists are concerned that the growing number of merges and acquisitions (M&A) - the latest trend in the market as smaller companies learn to be lean and mean - will progress unabated, giving way to monopolies and anti-competitive behaviour.
According to First Asia Finance Group, a Hong Kong based financial advisor, more than half of the roughly 300,000 small and medium-sized enterprises (SMEs) currently in the market will either close or merge with other companies over the next six years due to stronger competition and the rich environment for M&A activity.
There have already been some major deals signed this year. The Dai-ichi Group acquired Bao Minh-CMG Life Insurance in a coup de main to quickly breach the Vietnamese market.
In addition, VinaCapital purchased a 70 per cent stake in both the Metropole Hotel and the Sai Gon Ommi earlier this year through its VinaLand fund. Executives say the fund is hunting for other high-end hotels to buy.
Don Lam, director of VinaCapital, said the recent wave of M&A in Viet Nam may be a necessary step to improve the efficiency of many poorly run companies and create better economies of scale.
M&A could also lead to improved brand recognition on a national and international scale, say experts, as companies use their combined strengths to reach more consumers.
"Mergers and acquisitions has also proven to be a new and important channel to attract foreign investment," said Nguyen Thi Bich Van, deputy director of the Ministry of Planning and Investment’s Foreign Investment Agency.
There are concerns, though, that if left unchecked M&A activity could lead to anti-competitive behaviour and the emergence of monopolies.
Legal regulations to ensure competition should, therefore, be streamlined, especially as Viet Nam opens its market under the WTO agreement to well-funded multinational corporations, says Nguyen Nhu Phat, deputy chairman of the State and Law Institute.
M&A activity is currently regulated under several laws - the Investment Law, Enterprise Law and Securities Law - which causes regulatory overlaps.
The Ministry of Trade’s Competition Administration Department will have to take a bigger role in preventing unwanted monopolies, says Phat. He also worries that regulators may be restricted given the department has three roles: administrator, investigator and executor.
Dinh Thi My Loan, director of the Competition Administration Department, says there are plans to streamline regulatory procedures for mergers and acquisitions. The department, though, will have to co-operate closely with the State Securities Commission, the Ministry of Planning and Investment.
Source: VNS
According to First Asia Finance Group, a Hong Kong based financial advisor, more than half of the roughly 300,000 small and medium-sized enterprises (SMEs) currently in the market will either close or merge with other companies over the next six years due to stronger competition and the rich environment for M&A activity.
There have already been some major deals signed this year. The Dai-ichi Group acquired Bao Minh-CMG Life Insurance in a coup de main to quickly breach the Vietnamese market.
In addition, VinaCapital purchased a 70 per cent stake in both the Metropole Hotel and the Sai Gon Ommi earlier this year through its VinaLand fund. Executives say the fund is hunting for other high-end hotels to buy.
Don Lam, director of VinaCapital, said the recent wave of M&A in Viet Nam may be a necessary step to improve the efficiency of many poorly run companies and create better economies of scale.
M&A could also lead to improved brand recognition on a national and international scale, say experts, as companies use their combined strengths to reach more consumers.
"Mergers and acquisitions has also proven to be a new and important channel to attract foreign investment," said Nguyen Thi Bich Van, deputy director of the Ministry of Planning and Investment’s Foreign Investment Agency.
There are concerns, though, that if left unchecked M&A activity could lead to anti-competitive behaviour and the emergence of monopolies.
Legal regulations to ensure competition should, therefore, be streamlined, especially as Viet Nam opens its market under the WTO agreement to well-funded multinational corporations, says Nguyen Nhu Phat, deputy chairman of the State and Law Institute.
M&A activity is currently regulated under several laws - the Investment Law, Enterprise Law and Securities Law - which causes regulatory overlaps.
The Ministry of Trade’s Competition Administration Department will have to take a bigger role in preventing unwanted monopolies, says Phat. He also worries that regulators may be restricted given the department has three roles: administrator, investigator and executor.
Dinh Thi My Loan, director of the Competition Administration Department, says there are plans to streamline regulatory procedures for mergers and acquisitions. The department, though, will have to co-operate closely with the State Securities Commission, the Ministry of Planning and Investment.
Source: VNS
Tuesday, July 10, 2007
VNI fund buys 3.8% of Itaco equity
The Viet Nam Infrastructure Limited (VNI) has purchased 3.8 percent of stake of the Tan Tao industrial park joint stock company (ITACO), worth 14.06 million USD.
ITACO, specialising in infrastructure investment and services for industrial zones, is one of the 10 largest companies listed on the Ho Chi Minh Securities Trading Centre.
The has invested in various of parks in the southern key economic region, such as Tan Tao IP in Ho Chi Minh City and Tan Duc IP in Long An province.
Meanwhile, VNI is Viet Nam's first infrastructure investor. It made its debut at the Alternative Investment Market (AIM) on the London Stock Exchange on July 5.
Source: VNA
ITACO, specialising in infrastructure investment and services for industrial zones, is one of the 10 largest companies listed on the Ho Chi Minh Securities Trading Centre.
The has invested in various of parks in the southern key economic region, such as Tan Tao IP in Ho Chi Minh City and Tan Duc IP in Long An province.
Meanwhile, VNI is Viet Nam's first infrastructure investor. It made its debut at the Alternative Investment Market (AIM) on the London Stock Exchange on July 5.
Source: VNA
Friday, July 06, 2007
New Viet Nam fund debuts at LSE
The Viet Nam Infrastructure Investment Fund (VNI) on July 5 made its debut at the Alternative Investment Market (AIM) on the London Stock Exchange (LSE).
The listing marks the first time that a Vietnamese infrastructure fund will see transactions on the AIM and will focus on the areas of energy, transportation, water and telecommunications.
Market experts have predicted that from now until 2020, Viet Nam will require close to 140 billion USD for the development of needed infrastructure projects. The VNI will focus on strategic projects in Ha Noi, Ho Chi Minh City and key economic zones nationwide, including highways, ports, airports, and power plants.
At the AIM, the VNI did earn 402,1 million USD through the issue of 402,1 million one-dollar shares.
Source: VNA
The listing marks the first time that a Vietnamese infrastructure fund will see transactions on the AIM and will focus on the areas of energy, transportation, water and telecommunications.
Market experts have predicted that from now until 2020, Viet Nam will require close to 140 billion USD for the development of needed infrastructure projects. The VNI will focus on strategic projects in Ha Noi, Ho Chi Minh City and key economic zones nationwide, including highways, ports, airports, and power plants.
At the AIM, the VNI did earn 402,1 million USD through the issue of 402,1 million one-dollar shares.
Source: VNA
Tuesday, June 26, 2007
VinaCapital to finance golf course
A 36-hole golf course will be built in the central city of Da Nang’s Ngu Hanh Son District, announced VinaCapital Group chairman Horst Geicke.
VinaCapital signed an agreeement last week with the UK’s Greg Norman Co to design the course.
"We hope to build a high-quality golf course which does not affect the traditional culture and the village atmosphere here, and we chose Gref Norman," said Geicke. "They have developed about a hundred golf courses around the world."
The golf course would be part of a high-end resort complex named Hoa Hai which VinaCapital is financing at a cost of US$130 million on a total area of 260ha, Geicke said.
Construction would be carried out in two phases, he added. The first phase, to be commenced by the end of this year and be completed within 12 months, would include a five-star, 350-unit resort, and a 10ha seaside villa complex, along with an 18-hole golf course.
The subsequent second phase will include hotels, a cultural village, a convention centre, a 30ha residential area and the second 18-holes of the golf course.
"We hope to contribute to the development of tourism in Da Nang and in the central region," Geicke said. "We aim to make the region a high-grade destination for international visitors, with leading golf courses Asia-wide."
VinaCapital currently manages two funds listed on the London Stock Exchange worth $1.4 billion and a $50 million joint venture.
The group planned to pour an additional $200-300 million into financing for infrastructure projects, Geicke said.
Source: VNS
VinaCapital signed an agreeement last week with the UK’s Greg Norman Co to design the course.
"We hope to build a high-quality golf course which does not affect the traditional culture and the village atmosphere here, and we chose Gref Norman," said Geicke. "They have developed about a hundred golf courses around the world."
The golf course would be part of a high-end resort complex named Hoa Hai which VinaCapital is financing at a cost of US$130 million on a total area of 260ha, Geicke said.
Construction would be carried out in two phases, he added. The first phase, to be commenced by the end of this year and be completed within 12 months, would include a five-star, 350-unit resort, and a 10ha seaside villa complex, along with an 18-hole golf course.
The subsequent second phase will include hotels, a cultural village, a convention centre, a 30ha residential area and the second 18-holes of the golf course.
"We hope to contribute to the development of tourism in Da Nang and in the central region," Geicke said. "We aim to make the region a high-grade destination for international visitors, with leading golf courses Asia-wide."
VinaCapital currently manages two funds listed on the London Stock Exchange worth $1.4 billion and a $50 million joint venture.
The group planned to pour an additional $200-300 million into financing for infrastructure projects, Geicke said.
Source: VNS
Thursday, June 21, 2007
Taxi operator Mai Linh sees '07 profit up 13 fold
Major Vietnam taxi firm Mai Linh Group (MLC) said on Thursday it expected its 2007 net profit to jump nearly 13-fold from last year to 173.3 billion dong ($10.7 million) due to its enlarged fleet.
The Ho Chi Minh City-based group forecast revenues would reach 3.83 trillion dong ($240 million) this year, Chairman Ho Huy said in a statement.
Huy has said Mai Linh Group, which has added around 1,000 cabs and more than 100 buses to its fleet this year to expand its operation to 50 cities and provinces, would list its shares in August next year.
The firm, which also operates bus services between Ho Chi Minh City and Cambodia, is about 25% owned by foreign investment funds, including Vinacapital and Indochina Capital.
Source: Reuters
The Ho Chi Minh City-based group forecast revenues would reach 3.83 trillion dong ($240 million) this year, Chairman Ho Huy said in a statement.
Huy has said Mai Linh Group, which has added around 1,000 cabs and more than 100 buses to its fleet this year to expand its operation to 50 cities and provinces, would list its shares in August next year.
The firm, which also operates bus services between Ho Chi Minh City and Cambodia, is about 25% owned by foreign investment funds, including Vinacapital and Indochina Capital.
Source: Reuters
Thursday, June 07, 2007
Investment funds hunting wooden furniture companies’ shares
Investment funds are now eyeing wooden furniture companies’ shares since the wooden furniture processing industry proves to be the one which has seen the highest growth rate in the last few years.
According to the Ministry of Trade, Vietnam-made wooden furniture products are present in 120 countries throughout the world. 28% of exports go to Europe, 24% to Japan, and 20% to the US.
Tran Quoc Manh, Deputy Chairman of the HCM City Fine Arts and Wooden Furniture Processors’ Association, and Director of Sadaco, said that the industry had been witnessing the growth rate of 40-50% per annum in the last few years. Vietnamese companies can export products directly and not go through third parties.
“It is the right time for investment funds to inject money in wooden furniture companies, which have a high growth rate and low risk,” Mr Manh said.
Sadaco, for example, has signed a cooperation agreement with VinaCapital, while another fund is also seeking to buy Sadaco shares.
In February 2007, Aureos decided to make a $3mil investment in Truong Thanh Wooden Furniture Industrial Company to become the biggest strategic shareholder. Truong Thanh later received a lot of other offers from both domestic and foreign funds, including VinaCapital, Indochina Capital and Bao Viet Securities.
Truong Thanh had the total turnover of VND170bil 9$10.62mil) in 2005, and the figure rose to VND326bil ($20.37mil) in 2006. In the first quarter of 2007 alone, the turnover was VND173bil ($10.81mil).
The Denmark-based Penm has also signed an agreement on strategic cooperation with the Duc Thanh Wooden Furniture Processing Company. The deal was inked just two days after the fund set up a representative office in HCM City.
Prior to that, Duc Thanh had a foreign strategic shareholder, Mekong Enterprise Fund Ltd.
The Thuan An Wooden Furniture Processing Company, which is going to list on the bourse in June, has reported that the company has signed an agreement on investment in the company with two foreign based funds.
Source: VNE
According to the Ministry of Trade, Vietnam-made wooden furniture products are present in 120 countries throughout the world. 28% of exports go to Europe, 24% to Japan, and 20% to the US.
Tran Quoc Manh, Deputy Chairman of the HCM City Fine Arts and Wooden Furniture Processors’ Association, and Director of Sadaco, said that the industry had been witnessing the growth rate of 40-50% per annum in the last few years. Vietnamese companies can export products directly and not go through third parties.
“It is the right time for investment funds to inject money in wooden furniture companies, which have a high growth rate and low risk,” Mr Manh said.
Sadaco, for example, has signed a cooperation agreement with VinaCapital, while another fund is also seeking to buy Sadaco shares.
In February 2007, Aureos decided to make a $3mil investment in Truong Thanh Wooden Furniture Industrial Company to become the biggest strategic shareholder. Truong Thanh later received a lot of other offers from both domestic and foreign funds, including VinaCapital, Indochina Capital and Bao Viet Securities.
Truong Thanh had the total turnover of VND170bil 9$10.62mil) in 2005, and the figure rose to VND326bil ($20.37mil) in 2006. In the first quarter of 2007 alone, the turnover was VND173bil ($10.81mil).
The Denmark-based Penm has also signed an agreement on strategic cooperation with the Duc Thanh Wooden Furniture Processing Company. The deal was inked just two days after the fund set up a representative office in HCM City.
Prior to that, Duc Thanh had a foreign strategic shareholder, Mekong Enterprise Fund Ltd.
The Thuan An Wooden Furniture Processing Company, which is going to list on the bourse in June, has reported that the company has signed an agreement on investment in the company with two foreign based funds.
Source: VNE
Monday, May 28, 2007
70 investment funds queue to enter Vietnam
Vietnam’s stock market can bring super profit, and that explains why foreign investment funds are pouring their money into Vietnam’s stocks.
Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%.
The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.
There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.
A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.
The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.
In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.
After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.
Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.
Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.
BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.
Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).
Source: VNE
Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%.
The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.
There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.
A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.
The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.
In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.
After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.
Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.
Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.
BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.
Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).
Source: VNE
Saturday, May 26, 2007
VinaCapital arm gets nod for $11 mln HCMC apartment project
Proforma Asia Limited, a subsidiary of the UK-listed VinaCapital, has announced plans for two residential projects in Ho Chi Minh City.
VinaCapital Phuoc Dien, Co., Ltd, joint venture between the British Virgin Islands-registered Proforma Asia Limited and the local Dien Phuoc Long Real Estate Trading Company, will build 55 villas and a 12-storey apartment block for sale and lease in district 9 at a cost of US$11.2 million.
It has also received the license from the city government for the purpose.
Another JV Proforma has formed with a local partner, International Consultant Company, has got the nod in principle to build an apartment complex project in Phu Huu Ward also in district 9.
To comprise three 12-storey blocks with 440 apartments in all and space for shopping malls, it is estimated to cost $15.6 million. The foreign partner will contribute 84% and the local firm the rest in terms of land.
The two projects are expected to begin soon.
Established in 2003, VinaCapital now manages three funds with a total corpus of $1.4 billion: the $800 million VOF and the $600 million Vinaland – both listed on London Stock Exchange – and the $50 million DFJ VinaCapital L.P., which invests in information and communication technology firms.
It is beefing up investment in real estate via Vietnam-focused funds and overseas subsidiaries.
It is also launching a new fund for investment in Vietnam's rapidly growing infrastructure sector, seeking to raise US$200 million in the first fundraising exercise this month.
The Vietnam Infrastructure Limited will seek admission to the Alternative Investments Market on the London Stock Exchange.
VIL will invest in Vietnam's infrastructure framework through a portfolio of infrastructure assets in key economic regions. It will be Vietnam's first fund fully dedicated to investment in this rapidly growing asset class.
VIL will focus on four key industries: energy, transport, water and telecommunications.
Source: Thanh Nien
VinaCapital Phuoc Dien, Co., Ltd, joint venture between the British Virgin Islands-registered Proforma Asia Limited and the local Dien Phuoc Long Real Estate Trading Company, will build 55 villas and a 12-storey apartment block for sale and lease in district 9 at a cost of US$11.2 million.
It has also received the license from the city government for the purpose.
Another JV Proforma has formed with a local partner, International Consultant Company, has got the nod in principle to build an apartment complex project in Phu Huu Ward also in district 9.
To comprise three 12-storey blocks with 440 apartments in all and space for shopping malls, it is estimated to cost $15.6 million. The foreign partner will contribute 84% and the local firm the rest in terms of land.
The two projects are expected to begin soon.
Established in 2003, VinaCapital now manages three funds with a total corpus of $1.4 billion: the $800 million VOF and the $600 million Vinaland – both listed on London Stock Exchange – and the $50 million DFJ VinaCapital L.P., which invests in information and communication technology firms.
It is beefing up investment in real estate via Vietnam-focused funds and overseas subsidiaries.
It is also launching a new fund for investment in Vietnam's rapidly growing infrastructure sector, seeking to raise US$200 million in the first fundraising exercise this month.
The Vietnam Infrastructure Limited will seek admission to the Alternative Investments Market on the London Stock Exchange.
VIL will invest in Vietnam's infrastructure framework through a portfolio of infrastructure assets in key economic regions. It will be Vietnam's first fund fully dedicated to investment in this rapidly growing asset class.
VIL will focus on four key industries: energy, transport, water and telecommunications.
Source: Thanh Nien
Monday, May 21, 2007
Bourbon Tay Ninh Sugar Company to sell 49% of shares
The Bourbon Tay Ninh Sugar Joint Stock Company (SBT) will auction 49% of its shares next month.
3% of the total 70 million SBT shares will be sold exclusively to local cane farmers and 2%, to SBT staff, said SBT General Director Philippe Lombard.
Under the company's equitisation plan, SBT will retain 51% of the stake or 72.8 million of the total 141.9 million shares worth 1.4 trillion VND (approximately 104 million USD).
The company has so far signed contracts to transfer 24% of its chartered capital to 17 partners, including Vinamilk, Kinh Do, Bibica and VinaCapital.
SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing a 70% stake of the 28.5 million USD in chartered capital and its 95 million USD investment capital.
In 1998, the company increased its chartered capital to 39.5 million USD and its investment capital to 111 million USD.
After Bourbon acquired the two partners’ stake in 2000, capital then grew to 112 million USD and 113 million USD, respectively.
In March 2007, SBT received a licence from Tay Ninh provincial authorities to become a joint-stock company.
The company specialises in making refined sugar, producing power from sugarcane waste to serve its production lines and providing sugarcane cuttings.
It hauled in over 193 billion VND (11.8 million USD) from the 2006-07 sugarcane crop.
Source: VNA
3% of the total 70 million SBT shares will be sold exclusively to local cane farmers and 2%, to SBT staff, said SBT General Director Philippe Lombard.
Under the company's equitisation plan, SBT will retain 51% of the stake or 72.8 million of the total 141.9 million shares worth 1.4 trillion VND (approximately 104 million USD).
The company has so far signed contracts to transfer 24% of its chartered capital to 17 partners, including Vinamilk, Kinh Do, Bibica and VinaCapital.
SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing a 70% stake of the 28.5 million USD in chartered capital and its 95 million USD investment capital.
In 1998, the company increased its chartered capital to 39.5 million USD and its investment capital to 111 million USD.
After Bourbon acquired the two partners’ stake in 2000, capital then grew to 112 million USD and 113 million USD, respectively.
In March 2007, SBT received a licence from Tay Ninh provincial authorities to become a joint-stock company.
The company specialises in making refined sugar, producing power from sugarcane waste to serve its production lines and providing sugarcane cuttings.
It hauled in over 193 billion VND (11.8 million USD) from the 2006-07 sugarcane crop.
Source: VNA
Wednesday, May 16, 2007
VinaCapital buys 70 percent stake of Omni Saigon Hotel
The VinaCapital Group announced on May 15 that it has acquired a 70-percent stake of a five-star hotel in Ho Chi Minh City.
“VinaCapital acquired the stake in the Omni Saigon Hotel for 21 million USD through its subsidiary, VinaCapital Hospitality," Pham Gia Tuan, VinaCapital's financial director said, adding “this is the first hotel in the city to have been bought by the group.”
The Omni Saigon Hotel began its operations in 1992. Located on Nguyen Van Troi Str, which links the Tan Son Nhat International Airport and the city centre, the hotel, with 248 rooms and apartments, has consistently enjoyed high occupancy rates.
Stephen O’Grady, Managing Director of VinaCapital Hospitality, said his group had previously invested in a series of hotels and resorts, including Sofitel Metropole, Hilton Hanoi Opera, Novotel Hanoi, a golf court-cum-resort complex in the town of Da Lat, the VinaCapital Hoi An Royal Bay in the central coastal province of Quang Nam and other projects, which are still under construction in the central coastal city of Khanh Hoa.
Source: VNE
“VinaCapital acquired the stake in the Omni Saigon Hotel for 21 million USD through its subsidiary, VinaCapital Hospitality," Pham Gia Tuan, VinaCapital's financial director said, adding “this is the first hotel in the city to have been bought by the group.”
The Omni Saigon Hotel began its operations in 1992. Located on Nguyen Van Troi Str, which links the Tan Son Nhat International Airport and the city centre, the hotel, with 248 rooms and apartments, has consistently enjoyed high occupancy rates.
Stephen O’Grady, Managing Director of VinaCapital Hospitality, said his group had previously invested in a series of hotels and resorts, including Sofitel Metropole, Hilton Hanoi Opera, Novotel Hanoi, a golf court-cum-resort complex in the town of Da Lat, the VinaCapital Hoi An Royal Bay in the central coastal province of Quang Nam and other projects, which are still under construction in the central coastal city of Khanh Hoa.
Source: VNE
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.
Thursday, May 03, 2007
VinaCapital launches new Vietnam fund
VinaCapital is launching a new fund for investment in Vietnam's rapidly growing infrastructure sector, seeking to raise US$200 million in first fundraising exercise in May 2007.
The Vietnam Infrastructure Limited (VIL) will also seek admission to the Alternative Investments Market (AIM) of the London Stock Exchange, a VinaCapital press release said.
VIL will invest in Vietnam's infrastructure framework, through a portfolio of infrastructure assets in key economic regions. It will be Vietnam's first, fully dedicated fund to invest in this rapidly growing asset class.
VIL will focus on four key industries: energy, transport, water and telecommunications.
The company seeks to achieve target total net returns of approximately 20% per annum from investment to exit. It has already identified a number of potential investments.
Vietnam’s rapid growth over the last decade has placed increasing strain on its ageing infrastructure with demand fast outstripping supply.
According to the World Bank, Vietnam will need a projected $140 billion in infrastructure investment over the next five years.
William Lean, Managing Director of VinaCapital's Infrastructure Group, said the demand for infrastructure investment had created attractive opportunities for the private sector to become strategic investors in this field.
As the Vietnamese government has established necessary framework for the private sector’s participation, “We are very excited … and we look forward to investing in this rapidly growing asset class”, Lean said.
Source: Thanh Nien
The Vietnam Infrastructure Limited (VIL) will also seek admission to the Alternative Investments Market (AIM) of the London Stock Exchange, a VinaCapital press release said.
VIL will invest in Vietnam's infrastructure framework, through a portfolio of infrastructure assets in key economic regions. It will be Vietnam's first, fully dedicated fund to invest in this rapidly growing asset class.
VIL will focus on four key industries: energy, transport, water and telecommunications.
The company seeks to achieve target total net returns of approximately 20% per annum from investment to exit. It has already identified a number of potential investments.
Vietnam’s rapid growth over the last decade has placed increasing strain on its ageing infrastructure with demand fast outstripping supply.
According to the World Bank, Vietnam will need a projected $140 billion in infrastructure investment over the next five years.
William Lean, Managing Director of VinaCapital's Infrastructure Group, said the demand for infrastructure investment had created attractive opportunities for the private sector to become strategic investors in this field.
As the Vietnamese government has established necessary framework for the private sector’s participation, “We are very excited … and we look forward to investing in this rapidly growing asset class”, Lean said.
Source: Thanh Nien
Wednesday, April 25, 2007
Sugar maker signs contracts with new partner group
The Bourbon Tay Ninh Sugar Company (SBT) on Monday signed contracts to sell shares to 17 local and foreign strategic partners in an effort to develop the company’s business.
The strategic partners hold a total of 24 per cent of the company, whose capital stands at VND1.419 trillion (US$88 million).
However, the specific percentage of ownership of each of the partners was not released.
Philippe Lombard, the company’s general director, said the co-operation would help his company grow in the field of investment and production.
The 17 companies, including Vinamilk, Kinh Do, Uni President, Dai Viet Securities Company and VinaCapital were classified into three groups of trade, finance and others.
The sugar company will implement procedures to make the IPO (initial public offering) in June at the latest and list on the stock exchange this year.
SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing 70 per cent of the $28.5 million in chartered capital and its investment capital $95 million.
In 1998 the company increased its chartered capital to $39.5 million and its investment capital to $111 million.
After Bourbon acquired the two partners’ stake in 2000, capital then grew to $112 million and $113 million, respectively.
In March 2007 SBT received a licence from Tay Ninh Province to turn into a joint-stock company.
The company’s activities include making refined sugar, producing power from sugarcane waste to serve its production lines, and providing sugarcane cuttings.
Last year it netted VND193 billion, up from VND121 billion in 2005.
SBT plans to invest $55 million in a thermo-power project of 70 MW capacity, and another $10 million in an ethanol producing project capable of 100,000 litres each working day.
It will also make other investments, including developing sugar farming areas.
Source: VNS
The strategic partners hold a total of 24 per cent of the company, whose capital stands at VND1.419 trillion (US$88 million).
However, the specific percentage of ownership of each of the partners was not released.
Philippe Lombard, the company’s general director, said the co-operation would help his company grow in the field of investment and production.
The 17 companies, including Vinamilk, Kinh Do, Uni President, Dai Viet Securities Company and VinaCapital were classified into three groups of trade, finance and others.
The sugar company will implement procedures to make the IPO (initial public offering) in June at the latest and list on the stock exchange this year.
SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing 70 per cent of the $28.5 million in chartered capital and its investment capital $95 million.
In 1998 the company increased its chartered capital to $39.5 million and its investment capital to $111 million.
After Bourbon acquired the two partners’ stake in 2000, capital then grew to $112 million and $113 million, respectively.
In March 2007 SBT received a licence from Tay Ninh Province to turn into a joint-stock company.
The company’s activities include making refined sugar, producing power from sugarcane waste to serve its production lines, and providing sugarcane cuttings.
Last year it netted VND193 billion, up from VND121 billion in 2005.
SBT plans to invest $55 million in a thermo-power project of 70 MW capacity, and another $10 million in an ethanol producing project capable of 100,000 litres each working day.
It will also make other investments, including developing sugar farming areas.
Source: VNS
Thursday, April 19, 2007
VinaCapital to build resort in Hoi An
VinaCapital Hoi An Resort, a company that was just launched last Saturday, announced plans to build the US$16-million Hoi An Royal Bay Resort.
The company is a joint venture between Onshine Investment Ltd under the VinaCapital Group and Sai Thanh International Investment and Tourism JSC (STI).
The developers hope to turn the resort into a five-star facility, covering 7.3ha in Dien Ban District, Quang Nam Province.
The resort will have 100 small villas, swimming pools, restaurants, clubs and offer an array of services.
Nguyen Duc Tri, STI general director, said that three-months after receiving an investment licence, the project was approved by the Quang Nam Construction Department, opening the way for the company to begin clearing land for construction.
Le Minh Phuc, VinaCapital Hoi An general director, said construction of the resort will begin this year and be completed within 30 months. Executives hope to begin welcoming guests in 2009.
On Saturday, VinaCapital also signed a management service agreement for the Hoi An Royal Bay Resort with Accor, a leading international hotel management company.
Source: VNS
The company is a joint venture between Onshine Investment Ltd under the VinaCapital Group and Sai Thanh International Investment and Tourism JSC (STI).
The developers hope to turn the resort into a five-star facility, covering 7.3ha in Dien Ban District, Quang Nam Province.
The resort will have 100 small villas, swimming pools, restaurants, clubs and offer an array of services.
Nguyen Duc Tri, STI general director, said that three-months after receiving an investment licence, the project was approved by the Quang Nam Construction Department, opening the way for the company to begin clearing land for construction.
Le Minh Phuc, VinaCapital Hoi An general director, said construction of the resort will begin this year and be completed within 30 months. Executives hope to begin welcoming guests in 2009.
On Saturday, VinaCapital also signed a management service agreement for the Hoi An Royal Bay Resort with Accor, a leading international hotel management company.
Source: VNS
Tuesday, March 20, 2007
VinaCapital buys Omni Saigon Hotel
The London-listed VinaCapital has bought a 70% stake in Ho Chi Minh City’s Omni Saigon Hotel for 22mio US$ as part of its strategy to invest in the country’s property market.
VinaCapital said on its website that its two London-listed funds, VinaLand and the Vietnam Opportunity Fund (VOF), had picked up respectively 52.5% and 17.5% of the shares.
The remaining stakes are owned by local company Vietnam YouthCo but it is not known who sold the 70% stake to VinaCapital.
At a recent news briefing in HCMC, VinaCapital’s director, Don Lam, said VinaLand had invested in the parent company of Omni Saigon but refused to provide further details.
In August last year, the two funds paid a combined 43mio US$ to acquire a 70% stake in the Hilton Opera Hanoi, which is among the most profitable hotels in the capital.
VinaCapital also holds a 29% stake in the century-old Sofitel Metropole Hanoi, another top hotel in the Vietnamese capital.
Established in 2003, VinaCapital now manages three funds with a total corpus of nearly 1 billion US$: the $600 million, London-listed VOF; 205mio US$ Vinaland; and 50mio US$ DFJ VinaCapital L.P. which invests in information and communication technology firms.
Source: Thanh Nien
VinaCapital said on its website that its two London-listed funds, VinaLand and the Vietnam Opportunity Fund (VOF), had picked up respectively 52.5% and 17.5% of the shares.
The remaining stakes are owned by local company Vietnam YouthCo but it is not known who sold the 70% stake to VinaCapital.
At a recent news briefing in HCMC, VinaCapital’s director, Don Lam, said VinaLand had invested in the parent company of Omni Saigon but refused to provide further details.
In August last year, the two funds paid a combined 43mio US$ to acquire a 70% stake in the Hilton Opera Hanoi, which is among the most profitable hotels in the capital.
VinaCapital also holds a 29% stake in the century-old Sofitel Metropole Hanoi, another top hotel in the Vietnamese capital.
Established in 2003, VinaCapital now manages three funds with a total corpus of nearly 1 billion US$: the $600 million, London-listed VOF; 205mio US$ Vinaland; and 50mio US$ DFJ VinaCapital L.P. which invests in information and communication technology firms.
Source: Thanh Nien
Thursday, March 15, 2007
VinaCapital fund oversubscribed
A mutual fund issue on the London stock market by Vietnam-dedicated property fund VinaCapital has been oversubscribed by three times.
Applications were received for 600mio US$ but VinaCapital said Wednesday it would accept between 300 and 400mio US$. The issue had originally targeted 200mio US$.
Don Lam, VinaCapital’s general director, said the board would meet this month-end for a final decision.
Half the applications were received from the EU, 40% from the US, and the rest from Asia.
The Vietnam Real Estate Fund (Vinaland), an existing fund which invests in resorts and other property projects, will receive the remaining amount.
VinaLand plans to invest 350-400mio US$ this year.
Established in 2003, VinaCapital now manages three funds with a total corpus of nearly 1 billion US$: the 600mio US$, London-listed Vietnam Opportunity Fund; $205 million Vinaland; and 50mio US$ DFJ VinaCapital L.P. which invests in information and communication technology firms.
Source: Thanh Nien
Applications were received for 600mio US$ but VinaCapital said Wednesday it would accept between 300 and 400mio US$. The issue had originally targeted 200mio US$.
Don Lam, VinaCapital’s general director, said the board would meet this month-end for a final decision.
Half the applications were received from the EU, 40% from the US, and the rest from Asia.
The Vietnam Real Estate Fund (Vinaland), an existing fund which invests in resorts and other property projects, will receive the remaining amount.
VinaLand plans to invest 350-400mio US$ this year.
Established in 2003, VinaCapital now manages three funds with a total corpus of nearly 1 billion US$: the 600mio US$, London-listed Vietnam Opportunity Fund; $205 million Vinaland; and 50mio US$ DFJ VinaCapital L.P. which invests in information and communication technology firms.
Source: Thanh Nien
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