State-owned Vietnam Shipbuilding Industry Group, or Vinashin, has said it will set up new joint ventures with the Malaysian-based budget airline AirAsia and Lion Group to form a new carrier and build a steel mill in central Vietnam.
A Vinashin official told the Daily that a letter of intent for the establishment of a low-cost carrier in Vietnam was signed between AirAsia and Vinashin Group in the Malaysian capital last Friday.
AirAsia chief executive officer Tony Fernandes and Vinashin chairman and CEO Pham Thanh Binh signed the agreement in the Malaysian capital of Kuala Lumpur, with the participation of Vietnam's Prime Minister Nguyen Tan Dung who was there for the celebration of Malaysia's 50th nationhood.
The airline venture will also make AirAsia the second foreign investor to hold a stake in a Vietnamese airline after Australia's Qantas Airways Ltd., which spent US$50mil acquiring a 30% stake in Pacific Airlines in April this year.
The new carrier, which will be called Vina AirAsia, will initially have a fleet of nine, aircraft with the shipbuilder holding a 70% stake and AirAsia the remaining 30%.
In the letter of intent, AirAsia and Vinashin will establish a joint-venture company with total estimated capital of US$30mil. Both will establish the low-cost airline in Vietnam based on AirAsia's successful business model.
This deal is another move taken by AirAsia to further tap the increasingly lucrative civil aviation market in Vietnam.
The planned venture will include securing a license to operate the new Vietnamese airline to serve domestic, regional and international routes.
According to the letter of intent, Vinashin will help the joint venture secure regulatory approval from the aviation authority as well as concessions, permits, licenses, certificates and any other approval necessary for the working of the new airline.
Meanwhile, AirAsia will help acquire aircraft at the most competitive price and will also provide aviation and other technical expertise, technology transfer in the purchase and leasing of aircraft, engineering and maintenance services, pilot and cabin crew training, and airline marketing, distribution, franchising and branding skills.
Both two sides plan to formally sign a contract on September 20 and Vina AirAsia is planed to begin service in July 2008.
Under Vietnamese law, foreign investors are permitted to own up to 49% of a joint-stock air carrier. Currently, Vietnam is home to three airlines - Vietnam Airlines, Pacific Airlines and Vasco.
AirAsia has been successful in the Hanoi-Bangkok and the Hanoi-Kuala Lumpur services though it only launched the first route in October 2005 and the other in October last year.
The seat occupancy averages 80% for the three daily Hanoi-Bangkok flights and the two daily flights between Hanoi and Kuala Lumpur.
AirAsia is now preparing to begin the service to HCMC, hopefully this year to attract more passengers traveling between Vietnam and the two countries.
"The growth potential in Vietnam's air travel market is significant and we are very excited to be working with a colossal corporation in Vietnam to develop this opportunity," said Fernandes of AirAsia.
"We are very confident that both parties will enjoy not only a productive and profitable outcome together but also the exchange of fresher ideas, skills and technologies."
On the same day, Vinashin signed a deal with Malaysia's Lion Group to build a giant steel mill worth up to US$7.3bil in central Vietnam.
The facility will be built in Ninh Thuan Province to produce eight million tons of steel a year. Investment would be US$2.8bil for the first phase while another US$4.5bil would be spent in the second phase.
The signing of this deal was also witnessed by Prime Minister Dung.
Source: VNE
Showing posts with label Vinashin. Show all posts
Showing posts with label Vinashin. Show all posts
Wednesday, September 05, 2007
Monday, August 13, 2007
Credit Suisse, and Vinalines in $700 mln loan deal
Global bank Credit Suisse said on Monday it would arrange up to $700 million in credit for Vietnam National Shipping Lines (Vinalines), the first offshore loan for the Vietnamese firm.
Mai Van Phuc, President and CEO of the unlisted Vinalines, said the agreement was part of a memorandum under which it would get from Credit Suisse ratings advisory, fund raising and risk management services, Credit Suisse said in a statement.
The Financial Service Memorandum envisaged the bank to develop a financing programme of up to $1 billion for Vinalines, the first offshore loans for Vietnam's leading shipping firm.
In January Credit Suisse said it had linked up with Vinalines and Vinashin, a leading ship building firm, to work on financing programmes as it ramps up activity in Vietnam's fast-growing economy.
In June it was the rating adviser and sole arranger for a $600 million loan to Vinashin, the global bank said.
Credit Suisse expects Vietnam's economy to grow 9.2 percent this year, after estimated growth of 8.2 percent in 2006.
The forecast is above a Vietnamese government growth projection of 8.5 percent for the whole of 2007.
Source: Reuters
Mai Van Phuc, President and CEO of the unlisted Vinalines, said the agreement was part of a memorandum under which it would get from Credit Suisse ratings advisory, fund raising and risk management services, Credit Suisse said in a statement.
The Financial Service Memorandum envisaged the bank to develop a financing programme of up to $1 billion for Vinalines, the first offshore loans for Vietnam's leading shipping firm.
In January Credit Suisse said it had linked up with Vinalines and Vinashin, a leading ship building firm, to work on financing programmes as it ramps up activity in Vietnam's fast-growing economy.
In June it was the rating adviser and sole arranger for a $600 million loan to Vinashin, the global bank said.
Credit Suisse expects Vietnam's economy to grow 9.2 percent this year, after estimated growth of 8.2 percent in 2006.
The forecast is above a Vietnamese government growth projection of 8.5 percent for the whole of 2007.
Source: Reuters
POSCO plans $4.5 bln-steel mill in Vietnam
POSCO, the world's third-largest steel maker, is seeking approval from the Vietnamese government to build a $4.5 billion steel mill with a local partner, state media reported on Monday.
The Dau Tu (Investment) newspaper quoted a POSCO proposal to the Vietnamese government as saying it would form a venture with dominant state shipbuilder Vinashin in which Vinashin will hold a 30 percent stake in the mill.
The hot-rolled steel mill, located in Van Phong Bay in the south central coastal province of Khanh Hoa, adjacent to a key transhipment port project, will be completed by 2010, the report said.
The group has already started construction of a $1.13 billion cold-rolled steel plant, which is scheduled to begin production in 2009 in the southern coastal province of Ba Ria-Vung Tau.
Source: Reuters
The Dau Tu (Investment) newspaper quoted a POSCO proposal to the Vietnamese government as saying it would form a venture with dominant state shipbuilder Vinashin in which Vinashin will hold a 30 percent stake in the mill.
The hot-rolled steel mill, located in Van Phong Bay in the south central coastal province of Khanh Hoa, adjacent to a key transhipment port project, will be completed by 2010, the report said.
The group has already started construction of a $1.13 billion cold-rolled steel plant, which is scheduled to begin production in 2009 in the southern coastal province of Ba Ria-Vung Tau.
Source: Reuters
Monday, August 06, 2007
Vinashin nets 2.6 million USD in profit in first half
The national shipbuilding group Vinashin reported after-tax profits of 42.3 billion VND (2.6 million USD) for the first six months of the year.
Vinashin plans to increase its charter capital from 40 billion VND to 138 billion VND and issue 9.8 million additional shares.
It will pay its 2006 dividend in additional shares to existing stockholders at a ratio of 10.3, offer 6.4 million shares for sale to strategic shareholders, and award 200,000 shares to employees.
Source: VNA
Vinashin plans to increase its charter capital from 40 billion VND to 138 billion VND and issue 9.8 million additional shares.
It will pay its 2006 dividend in additional shares to existing stockholders at a ratio of 10.3, offer 6.4 million shares for sale to strategic shareholders, and award 200,000 shares to employees.
Source: VNA
Tuesday, July 17, 2007
PVI insures offloading unit building
PetroVietnam Insurance (PVI) decided to enter a 120 million USD insurance contract for construction of the floating storage and offloading unit 5 (FSO-5) by the Viet Nam Shipbuilding Industry Corporation (Vinashin).
The contract was signed by PVI and Vinashin in Ha Noi on July 16.
FSO-5 is the biggest ever shipbuilding project in the country currently carried out by Vinashin.
According to Vinashin, FSOs are commonly used in oil fields where piplines linking the drilling platform with onshore facilities are either impossible or inefficient. The platform will transfer oil to the FSO where it will be stored until a tanker arrives.
Once completed after 14 months of construction, the FSO will be handed over to the Viet Nam-Russian Oil and Gas Joint Venture (VietsovPetro) for operation at Bach Ho (White Tiger) and Rong (Dragon) oil fields off southern coastal province of Ba Ria-Vung Tau.
PVI is an insurer that provides package insurance programmes to all projects from equipment and goods transportation to warranty and responsibility for the third party, said its General Director Nguyen Anh Tuan.
Source: VNA
The contract was signed by PVI and Vinashin in Ha Noi on July 16.
FSO-5 is the biggest ever shipbuilding project in the country currently carried out by Vinashin.
According to Vinashin, FSOs are commonly used in oil fields where piplines linking the drilling platform with onshore facilities are either impossible or inefficient. The platform will transfer oil to the FSO where it will be stored until a tanker arrives.
Once completed after 14 months of construction, the FSO will be handed over to the Viet Nam-Russian Oil and Gas Joint Venture (VietsovPetro) for operation at Bach Ho (White Tiger) and Rong (Dragon) oil fields off southern coastal province of Ba Ria-Vung Tau.
PVI is an insurer that provides package insurance programmes to all projects from equipment and goods transportation to warranty and responsibility for the third party, said its General Director Nguyen Anh Tuan.
Source: VNA
Monday, July 16, 2007
Vietnam shipbuilder gets nod for $81 mln shipyard
Vietnam’s largest shipbuilder, Vinashin, has been greenlighted to build a VND1.3 trillion (US$81 million) shipyard in the northern port city of Hai Phong, according to Vietnam News Agency. Work on the 70-ha Vinashin An Duong in Thuy Nguyen district is due to begin late this year and slated for completion by 2009.
The complex will house a 40-ha factory and 20-ha wharf.
Vinashin is also set to spend VND1.5 trillion (US$94 million) on rebuilding the Cua Viet seaport in the central Quang Tri province.
It will turn Cua Viet into a 300-400 ha port complex with a shipyard, ecotourism facilities, a golf course, and a wharf to accommodate 100,000-ton ships.
Established in 1996, state-run Vinashin (Vietnam National Shipbuilding Corporation) and its 20 subsidiaries aim to transform Vietnam into the world’s 11th largest shipbuilder, four spots up higher than its current standing, in the near future.
They aim to earn revenues of $1 billion this year, up from $690 million in 2005.
Source: Thanh Nien
The complex will house a 40-ha factory and 20-ha wharf.
Vinashin is also set to spend VND1.5 trillion (US$94 million) on rebuilding the Cua Viet seaport in the central Quang Tri province.
It will turn Cua Viet into a 300-400 ha port complex with a shipyard, ecotourism facilities, a golf course, and a wharf to accommodate 100,000-ton ships.
Established in 1996, state-run Vinashin (Vietnam National Shipbuilding Corporation) and its 20 subsidiaries aim to transform Vietnam into the world’s 11th largest shipbuilder, four spots up higher than its current standing, in the near future.
They aim to earn revenues of $1 billion this year, up from $690 million in 2005.
Source: Thanh Nien
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
Thursday, May 31, 2007
Excess of steel production capacity drawing near
Investors seem to consider Vietnam an ideal place for steel mill projects, which explains why they have brought big projects worth several billion dollars each to Vietnam. However, experts have warned that too many steel mills will lead to waste.
According to the Vietnam Steel Association (VSA), Vietnam now has to import 3.5mil tonnes of steel a year. It is estimated that the total demand for plate steel will be some 4.7mil tonnes by 2010, 7.2mil tonnes by 2015, and 10.2mil tonnes by 2020. The demand for plate steel accounts for 50% of the total demand in Vietnam.
If counting the demand for construction steel, which is expected to see the same growth rate in demand as plate steel, Vietnam will need 10mil tonnes of steel of different kinds by 2010, 15mil tonnes by 2015 and 20mil tonnes by 2020.
Such a big demand can be seen as a big opportunity for investors and the steel industry, which explains why foreign investors are rushing to set up steel mills in Vietnam. However, experts have warned that too heavy of investment in the steel industry will cause waste as supply will exceed demand.
The Vietnam Steel Corporation (VSC) on May 29 signed a memorandum of understanding on the implementation of the $3.5-4bil Ha Tinh steel complex project with India’s Tata group, the sixth-biggest steel group in the world. Once operational, the steel mill will churn out 4.5-5mil tonnes a year.
Another big steel project is waiting for licencing – the one to be run by the joint venture between Korea’s Posco and Vietnam’s Vinashin. The $5bil steel project, expected to be located in Khanh Hoa province, will put out 5mil tonnes a year.
The two projects alone will have the total capacity of 10mil tonnes a year by 2015. If considering the current capacity of 6mil tonnes a year of operational steel mills, and another 6mil tonnes able to be produced by that time, Vietnam will be able to produce 20mil tonnes of steel of different kinds by 2015.
Other big steel projects are to be kicked off in some days. These include the one invested in by Tycoons Group International ($1bil), which was licenced in September 2006. The 2mil tonne/year steel mill invested in by India’s Essar and VSC in Ba Ria-Vung Tau is awaiting a licence. The construction of a series of smaller projects, capitalised at $30-60mil, is to start in some days
Source: VNE
According to the Vietnam Steel Association (VSA), Vietnam now has to import 3.5mil tonnes of steel a year. It is estimated that the total demand for plate steel will be some 4.7mil tonnes by 2010, 7.2mil tonnes by 2015, and 10.2mil tonnes by 2020. The demand for plate steel accounts for 50% of the total demand in Vietnam.
If counting the demand for construction steel, which is expected to see the same growth rate in demand as plate steel, Vietnam will need 10mil tonnes of steel of different kinds by 2010, 15mil tonnes by 2015 and 20mil tonnes by 2020.
Such a big demand can be seen as a big opportunity for investors and the steel industry, which explains why foreign investors are rushing to set up steel mills in Vietnam. However, experts have warned that too heavy of investment in the steel industry will cause waste as supply will exceed demand.
The Vietnam Steel Corporation (VSC) on May 29 signed a memorandum of understanding on the implementation of the $3.5-4bil Ha Tinh steel complex project with India’s Tata group, the sixth-biggest steel group in the world. Once operational, the steel mill will churn out 4.5-5mil tonnes a year.
Another big steel project is waiting for licencing – the one to be run by the joint venture between Korea’s Posco and Vietnam’s Vinashin. The $5bil steel project, expected to be located in Khanh Hoa province, will put out 5mil tonnes a year.
The two projects alone will have the total capacity of 10mil tonnes a year by 2015. If considering the current capacity of 6mil tonnes a year of operational steel mills, and another 6mil tonnes able to be produced by that time, Vietnam will be able to produce 20mil tonnes of steel of different kinds by 2015.
Other big steel projects are to be kicked off in some days. These include the one invested in by Tycoons Group International ($1bil), which was licenced in September 2006. The 2mil tonne/year steel mill invested in by India’s Essar and VSC in Ba Ria-Vung Tau is awaiting a licence. The construction of a series of smaller projects, capitalised at $30-60mil, is to start in some days
Source: VNE
Thursday, May 24, 2007
BIDV finances Vinashin brewery
The Bank for Investment and Development of Viet Nam (BIDV) signed a contract yesterday to provide 20 million euros (US$27 million) in financing for a new Vinashin Beer JSC plant in the northern province of Ha Nam.
The project has a total investment capital of 95 million euros ($130 million) - of which the Czech Export Bank (CEB) is contributing 50 per cent.
CEB did not request guarantees from the Vietnamese Government as part of the agreement.
"BIDV will offer a fixed interest rate for the loan," said BIDV general director Tran Bac Ha.
The CEB and BIDV loans are repayable over a 10-year period.
"The establishment of the plant is quite timely and promises to bring much profit to Viet Nam right now, despite the fact that there are many beer plants nationwide. As far as I know, each Vietnamese person drinks 16 litres of beer per year - compared to countries in Europe where the figure is 170 litres annually," Ha said.
Meanwhile, Czech company ZVU Potez, which manufactures food products and chemical equipment, signed a contract to supply the plant with hi-tech beer-making equipment.
The company said the project had great potential and that Czech beer was sure to be popular with Vietnamese consumers.
Source: VNN
The project has a total investment capital of 95 million euros ($130 million) - of which the Czech Export Bank (CEB) is contributing 50 per cent.
CEB did not request guarantees from the Vietnamese Government as part of the agreement.
"BIDV will offer a fixed interest rate for the loan," said BIDV general director Tran Bac Ha.
The CEB and BIDV loans are repayable over a 10-year period.
"The establishment of the plant is quite timely and promises to bring much profit to Viet Nam right now, despite the fact that there are many beer plants nationwide. As far as I know, each Vietnamese person drinks 16 litres of beer per year - compared to countries in Europe where the figure is 170 litres annually," Ha said.
Meanwhile, Czech company ZVU Potez, which manufactures food products and chemical equipment, signed a contract to supply the plant with hi-tech beer-making equipment.
The company said the project had great potential and that Czech beer was sure to be popular with Vietnamese consumers.
Source: VNN
Monday, March 12, 2007
Corporations seek strategic stakes
Securities have been listed in the investment portfolio of state owned general corporations in the last time. The corporations have spent a lot of money on purchasing shares to become the strategic investors in banks and joint stock companies.
By the end of 2006, the Saigon Trade Corporation (Satra Group) had made the capital contribution of VND547 billion (34.2mio US$) to other entities. Besides, Satra has also injected 2mio US$ in Vietnam Investment Fund, purchased over 4 million shares of the Hanoi Housing Development Bank (Habubank) to become the strategic shareholder (holding 5% of total capital) of the bank. It has also been one of the founders of the Rong Viet Securities Company, and purchased shares of many other companies.
Earlier this year, Satra Group became the strategic investor of Phuong Nam Bank (Southern Bank) when it purchased 1 million shares of the bank worth VND80 billion (5mio US$).
Huynh Van Minh, Satra Group’s Director General, said that the group’s capital contribution into other entities will support the group’s operation. For example, as a shareholder of Habubank, Satra’s members will be easier to access the bank’s loans. As a shareholder of Rong Viet, Satra’s members will be assisted in listing shares on the stock market.
Also in 2006, Satra Group joined forces with the partners in Vietnam Brewery Joint Venture to buy back the whole Fosters Vietnam, a brewery company, at 105mio US$, and bought 80% of shares of the Quang Nam Brewery Company, which has the total capital of 17.6mio US$.
In 2006, the post tax profit Satra gained from the Vietnam Brewery Joint Venture alone was VND363 billion (22.7mio US$). Besides, Satra could gain the dividends of VND18.6 billion (1.2mio US$) from its shares. Mr Minh said that the dividends are expected to increase to VND300 billion (18.8mio US$) this year (many share items were just bought in the last year).
The Vietnam Rubber Group (VRG) proves to be a big investor in stocks. The rubber latex price has been increasing continuously in the last few years, which has made the investor’s pocket clinking with plenty of money for financial investment.
Le Quang Thung, Director General of VRG, said that up to now, VRG and its 18 members have injected VND1,746 billion (109.1mio US$) in shares of 42 joint stock companies.
“We have bought the shares of the companies specialising in making car and motorbike tyres, or wooden furniture, which can serve our strategy on diversifying business operation,” said Mr Thung.
At the end of 2006, VRG spent VND24 billion (1.5mio US$) to purchase 60% of the total shares of the HCM City-based Ben Thanh Rubber Company.
Mr Thung has revealed that VRG is planning to make capital contribution or hold controlling stakes in several companies belonging to the Vietnam Chemicals Corporation (Vinachem), including the Sao Vang Rubber Company, Da Nang Rubber Company or Casumina.
In order to implement this plan, VRG has pumped more capital into the VRG Finance Company and set up the VRG Securities Company.
However, the big investors have complained that they are facing a lot of difficulties. Mr Minh said that by the end of 2008, Satra Group will equitise the parent company. The group will issue more shares to the public, but the State will retain the controlling stakes.
The biggest problem lies in the defining the value of financial investment items as it remains unclear the nominal value or market value of shares will be the basis for the calculation. If the assets are valued based on the nominal value, it would cause losses to the State. Meanwhile, it is very difficult to value the assets based on the market value as the prices always fluctuate. Mr Minh said that he has consulted state management authorities on the issue but no suitable solution has been found.
Not only aiming to join hands with foreign investors, local banks have also been intensively seeking domestic strategic partners.
Right before Tet, the market witnessed five big affairs between banks and powerful groups. The Vietnam Oil and Gas Group (PetroVietnam) now holds VND100 billion (6.3mio US$) worth of shares of G-Bank. The bank was just established in 2006, but it has successfully raised the chartered capital to VND500 billion (31.25mio US$) and total assets of VND2 trillion (125mio US$).
The Vietnam Shipbuilding Industry Corporation (Vinashin) has become the shareholder of the Hanoi Housing Development Bank (Habubank), which holds 10% of the bank. Prior to that, Lilama Corporation and Satra Group have also become Habubank’s shareholders (each of them holds 5% of shares).
The Saigon – Hanoi Joint Stock Bank, which once was the Nhon Ai Rural Joint Stock bank, has signed the agreement on strategic cooperation with the Vietnam Rubber Group and the Coal and Mineral Industries Group.
Most recently, Kinh Do Group spent US$90 million to purchase the shares of Eximbank (worth VND180 billion or 11.3mio US$ in nominal value). This is the biggest ever assignment deal which has been made by the domestic investors.
Source: VEN
By the end of 2006, the Saigon Trade Corporation (Satra Group) had made the capital contribution of VND547 billion (34.2mio US$) to other entities. Besides, Satra has also injected 2mio US$ in Vietnam Investment Fund, purchased over 4 million shares of the Hanoi Housing Development Bank (Habubank) to become the strategic shareholder (holding 5% of total capital) of the bank. It has also been one of the founders of the Rong Viet Securities Company, and purchased shares of many other companies.
Earlier this year, Satra Group became the strategic investor of Phuong Nam Bank (Southern Bank) when it purchased 1 million shares of the bank worth VND80 billion (5mio US$).
Huynh Van Minh, Satra Group’s Director General, said that the group’s capital contribution into other entities will support the group’s operation. For example, as a shareholder of Habubank, Satra’s members will be easier to access the bank’s loans. As a shareholder of Rong Viet, Satra’s members will be assisted in listing shares on the stock market.
Also in 2006, Satra Group joined forces with the partners in Vietnam Brewery Joint Venture to buy back the whole Fosters Vietnam, a brewery company, at 105mio US$, and bought 80% of shares of the Quang Nam Brewery Company, which has the total capital of 17.6mio US$.
In 2006, the post tax profit Satra gained from the Vietnam Brewery Joint Venture alone was VND363 billion (22.7mio US$). Besides, Satra could gain the dividends of VND18.6 billion (1.2mio US$) from its shares. Mr Minh said that the dividends are expected to increase to VND300 billion (18.8mio US$) this year (many share items were just bought in the last year).
The Vietnam Rubber Group (VRG) proves to be a big investor in stocks. The rubber latex price has been increasing continuously in the last few years, which has made the investor’s pocket clinking with plenty of money for financial investment.
Le Quang Thung, Director General of VRG, said that up to now, VRG and its 18 members have injected VND1,746 billion (109.1mio US$) in shares of 42 joint stock companies.
“We have bought the shares of the companies specialising in making car and motorbike tyres, or wooden furniture, which can serve our strategy on diversifying business operation,” said Mr Thung.
At the end of 2006, VRG spent VND24 billion (1.5mio US$) to purchase 60% of the total shares of the HCM City-based Ben Thanh Rubber Company.
Mr Thung has revealed that VRG is planning to make capital contribution or hold controlling stakes in several companies belonging to the Vietnam Chemicals Corporation (Vinachem), including the Sao Vang Rubber Company, Da Nang Rubber Company or Casumina.
In order to implement this plan, VRG has pumped more capital into the VRG Finance Company and set up the VRG Securities Company.
However, the big investors have complained that they are facing a lot of difficulties. Mr Minh said that by the end of 2008, Satra Group will equitise the parent company. The group will issue more shares to the public, but the State will retain the controlling stakes.
The biggest problem lies in the defining the value of financial investment items as it remains unclear the nominal value or market value of shares will be the basis for the calculation. If the assets are valued based on the nominal value, it would cause losses to the State. Meanwhile, it is very difficult to value the assets based on the market value as the prices always fluctuate. Mr Minh said that he has consulted state management authorities on the issue but no suitable solution has been found.
Not only aiming to join hands with foreign investors, local banks have also been intensively seeking domestic strategic partners.
Right before Tet, the market witnessed five big affairs between banks and powerful groups. The Vietnam Oil and Gas Group (PetroVietnam) now holds VND100 billion (6.3mio US$) worth of shares of G-Bank. The bank was just established in 2006, but it has successfully raised the chartered capital to VND500 billion (31.25mio US$) and total assets of VND2 trillion (125mio US$).
The Vietnam Shipbuilding Industry Corporation (Vinashin) has become the shareholder of the Hanoi Housing Development Bank (Habubank), which holds 10% of the bank. Prior to that, Lilama Corporation and Satra Group have also become Habubank’s shareholders (each of them holds 5% of shares).
The Saigon – Hanoi Joint Stock Bank, which once was the Nhon Ai Rural Joint Stock bank, has signed the agreement on strategic cooperation with the Vietnam Rubber Group and the Coal and Mineral Industries Group.
Most recently, Kinh Do Group spent US$90 million to purchase the shares of Eximbank (worth VND180 billion or 11.3mio US$ in nominal value). This is the biggest ever assignment deal which has been made by the domestic investors.
Source: VEN
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