Asia Commercial Bank (ACB), Vietnam's fifth largest, said on Thursday it made a gross profit of 1 trillion dong ($61.8 million) in the first seven months of this year compared with $42 million for all of 2006.
The Ho Chi Minh City-based bank also said in a statement its assets had jumped 40 percent to 62.52 trillion dong ($3.86 billion) between the end of 2006 and July 31.
ACB, which expects a 2007 gross profit of 1.5 trillion dong, did not give net profit or comparative year-ago figures for the January-July period.
It said deposits reached 56.35 trillion dong ($3.48 billion) in the first seven months, more than twice its loans in the same period, which amounted to 23.54 trillion dong.
The Hanoi-listed bank said last month that new lines of business, including gold trading and new mortgage products, had contributed to better results since the start of the year.
Shares in ACB rose 700 dong, or 0.6 percent, to close at 118,000 dong ($7.29) on the over-the-counter Hanoi stock market on Wednesday.
ACB is aiming for growth of 45 percent to 50 percent in the 2006-2010 period and to have assets of about $12 billion by the end of it.
Last month, the central bank allowed ACB to sell long-term bonds worth 6.5 trillion dong ($402 million) by the end of the year.
Demand for loans and other banking services is booming as Vietnam's economy expands rapidly. Gross domestic product grew an estimated 7.87 percent in the first half of 2007 from a year earlier, led by the industrial and construction sectors.
Four foreign shareholders have a combined 30 percent in ACB, of which Standard Chartered Plc. has the largest stake of 8.56 percent.
Source: Reuters
Showing posts with label ACB. Show all posts
Showing posts with label ACB. Show all posts
Thursday, August 16, 2007
Thursday, August 02, 2007
Banks struggle to scale up charter capital
Banks, especially small-sized ones, are bidding to attract more equity funds to ensure they can survive the stiffer competition in the marketplace.
The Nam Viet Commercial Joint-Stock Bank, or Navibank, will double its charter capital to VND1tril (US$62.5mil) soon as it has already got the go-ahead from the central bank. Its target for the end of this year, however, is VND1.5tril.
Navibank will channel the new funds to its branches and offices given its plans to expand its network to 70 transaction locations by the year-end from the current 40.
Like Navibank, the Vietnam Bank for Private Enterprises, or VPBank, has almost fulfilled necessary procedures to double its charter capital to VND1.5tril. Still, it is looking to VND2tril in all this year.
VPBank will then pump more money into its securities arm to lift the broker's capital to VND300bil from the current VND50bil.
Smaller in scale the Gia Dinh Bank has registered its new capital at VND320bil-plus, up from the previous VND210bil.
Last month, the central bank's HCMC branch allowed three other lenders to double their charter capital, so the new figure at the An Binh Bank is VND2.3tril, the Viet A Bank VND1.125tril and the HCMC Housing Development Bank VND1tril.
The Asia Commercial Bank (ACB) is now Vietnam's largest join-stock lender with VND2.53tril in charter capital, followed by the Saigon Thuong Tin Commercial Bank (Sacombank) with VND2.34tril.
However, Sacombank will overtake ACB soon as it is finalizing the paperwork to register its new capital at VND4.45tril, although ACB has plans to reach VND2.63tril by the year-end.
Source: VNE
The Nam Viet Commercial Joint-Stock Bank, or Navibank, will double its charter capital to VND1tril (US$62.5mil) soon as it has already got the go-ahead from the central bank. Its target for the end of this year, however, is VND1.5tril.
Navibank will channel the new funds to its branches and offices given its plans to expand its network to 70 transaction locations by the year-end from the current 40.
Like Navibank, the Vietnam Bank for Private Enterprises, or VPBank, has almost fulfilled necessary procedures to double its charter capital to VND1.5tril. Still, it is looking to VND2tril in all this year.
VPBank will then pump more money into its securities arm to lift the broker's capital to VND300bil from the current VND50bil.
Smaller in scale the Gia Dinh Bank has registered its new capital at VND320bil-plus, up from the previous VND210bil.
Last month, the central bank's HCMC branch allowed three other lenders to double their charter capital, so the new figure at the An Binh Bank is VND2.3tril, the Viet A Bank VND1.125tril and the HCMC Housing Development Bank VND1tril.
The Asia Commercial Bank (ACB) is now Vietnam's largest join-stock lender with VND2.53tril in charter capital, followed by the Saigon Thuong Tin Commercial Bank (Sacombank) with VND2.34tril.
However, Sacombank will overtake ACB soon as it is finalizing the paperwork to register its new capital at VND4.45tril, although ACB has plans to reach VND2.63tril by the year-end.
Source: VNE
Friday, July 27, 2007
ACB bonds to raise $402.7 million
Vietnam's central bank has allowed partly private Asia Commercial Bank (ACB) to raise 6.5 trillion dong ($402.7 million) through long-term bond issues this year on domestic markets.
The Ho Chi Minh City-based bank would sell the bonds by the end of 2007 and use the proceeds in line with a plan approved by the State Bank of Vietnam, a statement on the central bank's website said on Thursday.
ACB, Vietnam's fifth-largest lender by assets, had 58.4 trillion dong in assets at the end of June, a rise of 30.9 percent from the end of 2006.
The bank has not published details of its debt issues.
Source: VNA
The Ho Chi Minh City-based bank would sell the bonds by the end of 2007 and use the proceeds in line with a plan approved by the State Bank of Vietnam, a statement on the central bank's website said on Thursday.
ACB, Vietnam's fifth-largest lender by assets, had 58.4 trillion dong in assets at the end of June, a rise of 30.9 percent from the end of 2006.
The bank has not published details of its debt issues.
Source: VNA
Wednesday, July 25, 2007
ACB bank H1 profit exceeds all of 2006
Asia Commercial Bank (ACB), Vietnam's fifth-largest lender by assets, said on Wednesday its gross profit in the first half alone jumped nearly 30 percent from the whole of last year to 880 billion dong ($54.5 million).
The bank, which posted a gross profit of 682.4 billion dong in 2006, did not provide comparative figures for its net earnings and revenues in the same period last year.
The bank told the Hanoi stock exchange that its assets at the end of June also rose about 30 percent from the end of last year to 58.4 trillion dong ($3.6 billion).
ACB said in a statement posted on its Web site (www.acb.com.vn) that good results in the January-June period came partly from new lines of business including gold trading and new mortgage products that attracted more home buyers.
The Ho Chi Minh City-based bank, whose shares are listed on the Hanoi over-the-counter stock market, said January to June revenues totalled 2.62 trillion dong ($162 million).
ACB has said it aimed to grow at about 45 to 50 percent in the 2006-2010 period to have total assets of about $12 billion by 2010.
Demand for loans and other banking services is booming as Vietnam's economy rapidly expands. Gross domestic product (GDP) in the first half grew by an estimated 7.87 percent from a year earlier, led by the industrial and construction sectors.
Foreign investors hold a combined 30 percent in ACB. Standard Chartered Plc. owns 8.56 percent of ACB, the biggest stake of ACB's four foreign shareholders.
Shares in ACB fell 1.08 percent on Wednesday to close at 119,200 dong ($7.4) each.
Source: Reuters
The bank, which posted a gross profit of 682.4 billion dong in 2006, did not provide comparative figures for its net earnings and revenues in the same period last year.
The bank told the Hanoi stock exchange that its assets at the end of June also rose about 30 percent from the end of last year to 58.4 trillion dong ($3.6 billion).
ACB said in a statement posted on its Web site (www.acb.com.vn) that good results in the January-June period came partly from new lines of business including gold trading and new mortgage products that attracted more home buyers.
The Ho Chi Minh City-based bank, whose shares are listed on the Hanoi over-the-counter stock market, said January to June revenues totalled 2.62 trillion dong ($162 million).
ACB has said it aimed to grow at about 45 to 50 percent in the 2006-2010 period to have total assets of about $12 billion by 2010.
Demand for loans and other banking services is booming as Vietnam's economy rapidly expands. Gross domestic product (GDP) in the first half grew by an estimated 7.87 percent from a year earlier, led by the industrial and construction sectors.
Foreign investors hold a combined 30 percent in ACB. Standard Chartered Plc. owns 8.56 percent of ACB, the biggest stake of ACB's four foreign shareholders.
Shares in ACB fell 1.08 percent on Wednesday to close at 119,200 dong ($7.4) each.
Source: Reuters
Monday, July 16, 2007
Vietnam fertiliser maker plans Q3 listing
State-run Petrovietnam Fertiliser and Chemicals Company (PVFCC), with a market value of $1.4 billion, plans to list on domestic markets within the third quarter, the company said on Monday.
Shareholders of PVFCC, 60.05 percent owned by state oil and gas Petrovietnam group, have asked its management board to seek a listing either on the Ho Chi Minh Stock Exchange or the over-the-counter Hanoi market, Chairman Dinh Huu Loc said in the statement.
Loc did not say how much PVFCC planned to raise from the listing.
Shares in PVFCC eased to 58,000-60,000 dong ($3.6-$3.7) on the unofficial markets late last week from 63,000-65,000 dong in late June prior to the listing decision.
Shareholders met on June 30 for the first time after PVFCC sold one third of its shares to the public at an initial public offering in April, and raised more than $430 million.
State-run Vietindebank, Vietnam's second-largest by assets, owns 19 million shares in PVFCC, or 5 percent of the company. Asia Commercial Bank (ACB), one of Vietnam's two listed banks, owns 1 percent with 3.8 million shares.
PVFCC operates Vietnam's only fertiliser plant, the Phu My Urea Plant in the southern province of Ba Ria-Vung Tau. Its urea production and the fertiliser it imports meet 40 percent of Vietnam's domestic demand.
Source: Reuters
Shareholders of PVFCC, 60.05 percent owned by state oil and gas Petrovietnam group, have asked its management board to seek a listing either on the Ho Chi Minh Stock Exchange or the over-the-counter Hanoi market, Chairman Dinh Huu Loc said in the statement.
Loc did not say how much PVFCC planned to raise from the listing.
Shares in PVFCC eased to 58,000-60,000 dong ($3.6-$3.7) on the unofficial markets late last week from 63,000-65,000 dong in late June prior to the listing decision.
Shareholders met on June 30 for the first time after PVFCC sold one third of its shares to the public at an initial public offering in April, and raised more than $430 million.
State-run Vietindebank, Vietnam's second-largest by assets, owns 19 million shares in PVFCC, or 5 percent of the company. Asia Commercial Bank (ACB), one of Vietnam's two listed banks, owns 1 percent with 3.8 million shares.
PVFCC operates Vietnam's only fertiliser plant, the Phu My Urea Plant in the southern province of Ba Ria-Vung Tau. Its urea production and the fertiliser it imports meet 40 percent of Vietnam's domestic demand.
Source: Reuters
Wednesday, July 11, 2007
Banks and a finance group lend $156 mln for hydroelectricity plant
All four state-owned banking giants in Vietnam and a financial institution have joined hands to provide VND2.5 trillion (US$156 million) for building a hydropower plant in the northern Son La province.
Following credit deals signed Tuesday, the Industrial and Commercial Bank of Vietnam, the Bank for Investment and Development of Vietnam, Asia Commercial Bank, Military Bank and PetroVietnam Finance Co will provide VND1.92 trillion in long-term loans.
The rest will be provided as working capital by the Bank for Foreign Trade of Vietnam.
The Nam Chien Hydroelectricity Plant will be built at a cost of VND4.17 trillion Nam Chien company in Muong La district.
The 200MW plant will be ready by 2009 or 2010 at the latest.
Power demand is increasing by 20 percent a year while the state-run Electricity of Vietnam has said generation will grow by less than 15 percent.
In recent years the government has adopted priority policies to attract investors in the power sector.
The Ministry of Planning and Investment said several mammoth electricity projects involving investments of billions of dollars by foreign companies were awaiting approval.
In the north, the US’s AES and Vietnam Coal and Mineral Industries Group plan to build the 1,200 MW Mong Duong 2 thermal power plant at a cost of $1.4 billion in Quang Ninh province.
While Japan’s Sumitomo Corp., which has more than 25 projects in Vietnam, is planning to build a 2,640 MW, $4 billion power plant in Khanh Hoa province, in central Vietnam.
In the south, the US’s Cannon Group is seeking to build a 1,000 MW power plant in Dong Nai province, while Singapore’s leading power and integrated utilities firm, SembCorp Utilities Pte. Ltd., looks set to invest $500 million to build a 700 MW plant in Ho Chi Minh City.
Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17 percent per year, driving the government to plan the construction of 60 additional plants by 2020.
Source: Thanh Nien
Following credit deals signed Tuesday, the Industrial and Commercial Bank of Vietnam, the Bank for Investment and Development of Vietnam, Asia Commercial Bank, Military Bank and PetroVietnam Finance Co will provide VND1.92 trillion in long-term loans.
The rest will be provided as working capital by the Bank for Foreign Trade of Vietnam.
The Nam Chien Hydroelectricity Plant will be built at a cost of VND4.17 trillion Nam Chien company in Muong La district.
The 200MW plant will be ready by 2009 or 2010 at the latest.
Power demand is increasing by 20 percent a year while the state-run Electricity of Vietnam has said generation will grow by less than 15 percent.
In recent years the government has adopted priority policies to attract investors in the power sector.
The Ministry of Planning and Investment said several mammoth electricity projects involving investments of billions of dollars by foreign companies were awaiting approval.
In the north, the US’s AES and Vietnam Coal and Mineral Industries Group plan to build the 1,200 MW Mong Duong 2 thermal power plant at a cost of $1.4 billion in Quang Ninh province.
While Japan’s Sumitomo Corp., which has more than 25 projects in Vietnam, is planning to build a 2,640 MW, $4 billion power plant in Khanh Hoa province, in central Vietnam.
In the south, the US’s Cannon Group is seeking to build a 1,000 MW power plant in Dong Nai province, while Singapore’s leading power and integrated utilities firm, SembCorp Utilities Pte. Ltd., looks set to invest $500 million to build a 700 MW plant in Ho Chi Minh City.
Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17 percent per year, driving the government to plan the construction of 60 additional plants by 2020.
Source: Thanh Nien
Tuesday, July 10, 2007
Banks announce high profit for first half
Commercial banks have all announced satisfactory business results for the first six months of the year, which saw a profit level much higher than that of the previous year. However, the high profit has not prevented bank share prices from falling.
Asia Commercial Bank (ACB) announced its pre-tax profit of VND880bil ($55mil) for the first half of the year, while the figure was approximately VND700bil ($43.75mil) for 2006 as a whole. The pre-tax profit of ACB gained in the six months fulfilled 59% of its yearly plan, while the total outstanding loans up to now has fulfilled 88.4% of the plan.
Sacombank has also announced satisfactory business results. The bank now has the total assets of VND38,400bil, an increase of 55% over the beginning of the year. The pre-tax profit of the bank reached VND610bil ($38.12mil), while the profit for 2006 was VND543.2bil ($33.95mil).
An official from the State Bank of Vietnam said that commercial banks had tried to push up credit services. Some banks have attained the high credit growth rate of more than 50%, much higher than the average growth rate of 33%. This was the main reason for the high profit.
However, the official said that the heavy focus on credit services of several newly set up banks, which do not have much experience and a good risk control system, would mean high risks. Some other banks have been found as focusing on loaning for securities investments (outstanding loans for securities investments accounted for more than 50% of total outstanding loans), which, in the eyes of the central bank, is a bad thing.
In fact, these banks are aware of the risks, but they are under pressure to get more profit, while funding securities investment proves to be the main channel that can help bring fat profit in the context of the hot market.
Analysts said that banks would face big difficulties in the time to come. The fact that the central bank has tightened monetary policies in order to curb inflation will make the expenses of banking operations higher. Moreover, the profit of banks will decline when banks are not allowed to provide many loans to securities investors, and when the market falls down.
Despite the good business performance of banks, experts said that this would not help ‘rescue’ bank share prices.
In fact, banking is still considered a business field that can bring super profit. Therefore, bank shares have always been very attractive in the eyes of investors.
However, bank share prices, according to experts, will not bounce back at this moment as bank shares are in a part of the market in a gloomy period.
Bank shares all now seem to be frozen. The prices of these shares have decreased by 50% compared to those at the end of 2006 or early 2007. The shares of Phuong Nam Bank, for example, are now selling at VND36,000/share on the OTC market, while they once were sold at VND90,000/share. At the Hanoi Securities Trading Centre, ACB shares saw the price decrease of 25.7% from early June, now staying at VND120,000/share.
Source: VNE
Asia Commercial Bank (ACB) announced its pre-tax profit of VND880bil ($55mil) for the first half of the year, while the figure was approximately VND700bil ($43.75mil) for 2006 as a whole. The pre-tax profit of ACB gained in the six months fulfilled 59% of its yearly plan, while the total outstanding loans up to now has fulfilled 88.4% of the plan.
Sacombank has also announced satisfactory business results. The bank now has the total assets of VND38,400bil, an increase of 55% over the beginning of the year. The pre-tax profit of the bank reached VND610bil ($38.12mil), while the profit for 2006 was VND543.2bil ($33.95mil).
An official from the State Bank of Vietnam said that commercial banks had tried to push up credit services. Some banks have attained the high credit growth rate of more than 50%, much higher than the average growth rate of 33%. This was the main reason for the high profit.
However, the official said that the heavy focus on credit services of several newly set up banks, which do not have much experience and a good risk control system, would mean high risks. Some other banks have been found as focusing on loaning for securities investments (outstanding loans for securities investments accounted for more than 50% of total outstanding loans), which, in the eyes of the central bank, is a bad thing.
In fact, these banks are aware of the risks, but they are under pressure to get more profit, while funding securities investment proves to be the main channel that can help bring fat profit in the context of the hot market.
Analysts said that banks would face big difficulties in the time to come. The fact that the central bank has tightened monetary policies in order to curb inflation will make the expenses of banking operations higher. Moreover, the profit of banks will decline when banks are not allowed to provide many loans to securities investors, and when the market falls down.
Despite the good business performance of banks, experts said that this would not help ‘rescue’ bank share prices.
In fact, banking is still considered a business field that can bring super profit. Therefore, bank shares have always been very attractive in the eyes of investors.
However, bank share prices, according to experts, will not bounce back at this moment as bank shares are in a part of the market in a gloomy period.
Bank shares all now seem to be frozen. The prices of these shares have decreased by 50% compared to those at the end of 2006 or early 2007. The shares of Phuong Nam Bank, for example, are now selling at VND36,000/share on the OTC market, while they once were sold at VND90,000/share. At the Hanoi Securities Trading Centre, ACB shares saw the price decrease of 25.7% from early June, now staying at VND120,000/share.
Source: VNE
Monday, July 09, 2007
Asia Commercial Bank sees 55 million USD profit
The Asia Commercial Bank (ACB) announced profits of 880 billion VND (55 million USD) in the year’s first half.
The bank hopes to reach profits of 1.7 trillion VND (110 million USD) by the end of the year.
ACB had total assets of 58.4 trillion VND (3.65 billion USD), total deposits of 50.7 trillion VND (3.2 billion USD), and total outstanding loans of 22.1 trillion VND (1.4 billion USD) at the end of the first six months of the year.
Source: VNA
The bank hopes to reach profits of 1.7 trillion VND (110 million USD) by the end of the year.
ACB had total assets of 58.4 trillion VND (3.65 billion USD), total deposits of 50.7 trillion VND (3.2 billion USD), and total outstanding loans of 22.1 trillion VND (1.4 billion USD) at the end of the first six months of the year.
Source: VNA
Monday, June 25, 2007
Vietnam builder Constrexim says plans IPO
Vietnamese state-owned builder Vietnam Construction Investment and Export-Import Corporation (Constrexim Holdings) plans to sell 15 to 20% of its capital in an IPO by year-end, its chairman said on Sunday. Constrexim, one of Vietnam's top 10 building groups, hopes to raise $5 million to $8 million and would have a market capitalisation of less than $50 million after listing, Constrexim chairman Do Manh Vu told Reuters on the sidelines of the World Economic Forum in Singapore.
Vu, 53, added that the company also wants to list in Singapore in a few years and that it is setting up a subsidiary in the city-state to prepare for the listing. He said that Constrexim -- whose activities include construction, real estate development and manufacturing of building materials -- has considerable "hidden assets" that he said could be worth 10 times more than indicated in the company's books.
"The state prohibits us from accounting for our real estate as company property, as all land belongs to the state," he said.
Do said that despite intense competition in Vietnam's construction sector, the firm's sales were up 15 to 20% compared to last year. The firm employs about 1,000 permanent staff and about 7,000 contract employees and has more than 30 subsidiaries.
He said that the Vietnamese government owns about 58% of the company and that the Asia Commercial Bank (ACB), one of two listed Vietnam banks, owns 6%. ACB is listed on the Hanoi stock exchange and is Vietnam's fifth-largest by assets.
"Constrexim is one of the most powerful corporations in the country, with a long history and a strong customer base," ACB Head of Strategic Planning Dam Van Tuan told Reuters.
Source: Reuters
Vu, 53, added that the company also wants to list in Singapore in a few years and that it is setting up a subsidiary in the city-state to prepare for the listing. He said that Constrexim -- whose activities include construction, real estate development and manufacturing of building materials -- has considerable "hidden assets" that he said could be worth 10 times more than indicated in the company's books.
"The state prohibits us from accounting for our real estate as company property, as all land belongs to the state," he said.
Do said that despite intense competition in Vietnam's construction sector, the firm's sales were up 15 to 20% compared to last year. The firm employs about 1,000 permanent staff and about 7,000 contract employees and has more than 30 subsidiaries.
He said that the Vietnamese government owns about 58% of the company and that the Asia Commercial Bank (ACB), one of two listed Vietnam banks, owns 6%. ACB is listed on the Hanoi stock exchange and is Vietnam's fifth-largest by assets.
"Constrexim is one of the most powerful corporations in the country, with a long history and a strong customer base," ACB Head of Strategic Planning Dam Van Tuan told Reuters.
Source: Reuters
Thursday, June 21, 2007
Investors to buy stakes in Eximbank
The joint stock Viet Nam Export Import Bank (Eximbank) announced it plans to sell stakes to 16 strategic shareholders on June 20.
They include the Asia Commercial Bank (ACB), confectioner Kinh Do Group, Ban Viet Securities Investment Company, aviation service firm Sasco, and the Saigon Post and Telecommunication Company.
Together they will acquire 500,000 shares for 4 trillion VND (250 million USD), or at eight times their face value.
This strategic placement is part of the bank’s plan to increase its capital this year to 2.8 trillion VND (175 million USD) from 1.2 trillion VND (75 million USD), according to chairman Nguyen Thanh Long.
”Eximbank and its strategic partners will cooperate in various areas including products and services, clientele, and network,” he said, adding, for instance, non-banking partners would use Eximbank’s services. They would also make joint investments.
Source: VNA
They include the Asia Commercial Bank (ACB), confectioner Kinh Do Group, Ban Viet Securities Investment Company, aviation service firm Sasco, and the Saigon Post and Telecommunication Company.
Together they will acquire 500,000 shares for 4 trillion VND (250 million USD), or at eight times their face value.
This strategic placement is part of the bank’s plan to increase its capital this year to 2.8 trillion VND (175 million USD) from 1.2 trillion VND (75 million USD), according to chairman Nguyen Thanh Long.
”Eximbank and its strategic partners will cooperate in various areas including products and services, clientele, and network,” he said, adding, for instance, non-banking partners would use Eximbank’s services. They would also make joint investments.
Source: VNA
Friday, June 15, 2007
JP Morgan to advise Vietnam's Incombank IPO
State-run Industrial and Commercial Bank (Incombank), Vietnam's fourth-largest, has picked JP Morgan to advise on its partial privatisation and an IPO scheduled for October, an official said on Tuesday.
The official did not disclose the fee JP Morgan will receive from for consultation for the process, which includes evaluation of the bank and organising the initial public offering.
"We picked JP Morgan," the official said. He said the Hanoi-based bank would make an official announcement soon, but did not give a date.
The consultant would also help Incombank select a strategic partner, the bank has said. It did not make clear if the partner would be a Vietnamese or a foreign company.
Incombank, with assets of $9.2 billion, has said it will conduct the IPO in October 2007.
It is one of four state-run banks, including Vietcombank, Vietindebank and the Mekong Delta Housing Development Bank, ordered to issue shares this year.
JP Morgan was shortlisted to join the Incombank tender along with Daiwa Security SMBC, Lehman Brothers, Macquarie, Merrill Lynch, Morgan Stanley and UBS.
JP Morgan along with Merrill, Morgan Stanley and UBS also joined a tender by Vietindebank to pick its adviser by late this month for privatisation and IPO.
Vietindebank said Merrill had the highest score of 87.2 for technical proposals while JP Morgan had the lowest, at 73.9. Vietindebank plans an IPO in the fourth quarter.
Incombank has not said how much it aimed to raise in the IPO or disclosed whether it would list on the main Ho Chi Minh Stock Exchange or the over-the-counter Hanoi Securities Trading Center.
Partly-private Sacombank (STB) is the only bank listed on the Ho Chi Minh City market and Asia Commercial Bank (ACB) has listed shares on the Hanoi exchange.
On Monday, Incombank signed with Vietnam Posts and Telecommunications (VNPT) group, the country's largest telecoms firm, an agreement to boost their investment and business, using each other's services.
Incombank has arranged a syndicate loan worth 2.3 trillion dong ($143 million) which will enable the telecoms group to launch Vietnam's first telecoms satellite, Vinasat, in 2008.
The agreement also aimed "at a target that Incombank and VNPT will become each other's strategic partners during their operation and development," Incombank said.
Source: Reuters
The official did not disclose the fee JP Morgan will receive from for consultation for the process, which includes evaluation of the bank and organising the initial public offering.
"We picked JP Morgan," the official said. He said the Hanoi-based bank would make an official announcement soon, but did not give a date.
The consultant would also help Incombank select a strategic partner, the bank has said. It did not make clear if the partner would be a Vietnamese or a foreign company.
Incombank, with assets of $9.2 billion, has said it will conduct the IPO in October 2007.
It is one of four state-run banks, including Vietcombank, Vietindebank and the Mekong Delta Housing Development Bank, ordered to issue shares this year.
JP Morgan was shortlisted to join the Incombank tender along with Daiwa Security SMBC, Lehman Brothers, Macquarie, Merrill Lynch, Morgan Stanley and UBS.
JP Morgan along with Merrill, Morgan Stanley and UBS also joined a tender by Vietindebank to pick its adviser by late this month for privatisation and IPO.
Vietindebank said Merrill had the highest score of 87.2 for technical proposals while JP Morgan had the lowest, at 73.9. Vietindebank plans an IPO in the fourth quarter.
Incombank has not said how much it aimed to raise in the IPO or disclosed whether it would list on the main Ho Chi Minh Stock Exchange or the over-the-counter Hanoi Securities Trading Center.
Partly-private Sacombank (STB) is the only bank listed on the Ho Chi Minh City market and Asia Commercial Bank (ACB) has listed shares on the Hanoi exchange.
On Monday, Incombank signed with Vietnam Posts and Telecommunications (VNPT) group, the country's largest telecoms firm, an agreement to boost their investment and business, using each other's services.
Incombank has arranged a syndicate loan worth 2.3 trillion dong ($143 million) which will enable the telecoms group to launch Vietnam's first telecoms satellite, Vinasat, in 2008.
The agreement also aimed "at a target that Incombank and VNPT will become each other's strategic partners during their operation and development," Incombank said.
Source: Reuters
Vietnam Eximbank sells nearly 18% to strategic partners
The Vietnam Export-Import Bank (Eximbank) has sold 17.8% of its shares, worth VND4 trillion (US$248 million), to 17 strategic partners.
Several monster companies including Saigon Industrial Corp., PetroVietnam Finance Company, Asia Commercial Joint Stock Bank, Nguyen Kim Trade Center, the Saigon Trade Corporation, and Kinh Do Corp. were among the strategic partners.
The acquisition details were unavailable.
Before this acquisition, Vietnam’s largest confectioner Kinh Do Corp was Eximbank’s largest shareholder, holding a 6.42% stake, which the listed-confectioner had paid $90 million for.
The unlisted bank is considering selling a 30% stake under the central bank’s cap to foreign investors.
An Eximbank representative said the bank was targeting suitable foreign partners, placing a high priority on technology assistance and human resources that could help the bank achieve its goal of becoming the leading credit organization in Vietnam.
Temasek Holdings, an investment arm of Singapore government, has proposed to buy a 10% stake in the bank.
Founded in1989, the Eximbank has established correspondent banking relationship with more than 424 foreign banks in 49 countries enabling it to play an instrumental role in developing commercial financing and international trade.
It has a chartered capital of VND2.8 trillion ($175 million).
The bank has total assets of VND18.33 trillion ($1.1 billion), deposits of VND13.47 trillion, and a pre-tax profit last year of VND258.6 billion ($16 million).
Source: Thanh Nien
Several monster companies including Saigon Industrial Corp., PetroVietnam Finance Company, Asia Commercial Joint Stock Bank, Nguyen Kim Trade Center, the Saigon Trade Corporation, and Kinh Do Corp. were among the strategic partners.
The acquisition details were unavailable.
Before this acquisition, Vietnam’s largest confectioner Kinh Do Corp was Eximbank’s largest shareholder, holding a 6.42% stake, which the listed-confectioner had paid $90 million for.
The unlisted bank is considering selling a 30% stake under the central bank’s cap to foreign investors.
An Eximbank representative said the bank was targeting suitable foreign partners, placing a high priority on technology assistance and human resources that could help the bank achieve its goal of becoming the leading credit organization in Vietnam.
Temasek Holdings, an investment arm of Singapore government, has proposed to buy a 10% stake in the bank.
Founded in1989, the Eximbank has established correspondent banking relationship with more than 424 foreign banks in 49 countries enabling it to play an instrumental role in developing commercial financing and international trade.
It has a chartered capital of VND2.8 trillion ($175 million).
The bank has total assets of VND18.33 trillion ($1.1 billion), deposits of VND13.47 trillion, and a pre-tax profit last year of VND258.6 billion ($16 million).
Source: Thanh Nien
Thursday, June 07, 2007
Is the Vietnamese stock market poised to sink?
Despite the sell-off by some foreign investors last week, the VN-Index escaped relatively unscathed which showed how mature local investors have become by avoiding the herd mentality previously seen in similar situations. The market zigzagged as investors resisted the sell-off pressure.
May also was a good month for the market compared to April; the VN-Index did well from April 25 to May 15, though it did not pass the 1,070 level as predicted by many analysts.
Moreover, the unprecedented number of people who registered for the recent Bao Viet IPO has raised hopes that the market will pick up steam in June, which might mark the beginning of a bull run through the end of the year.
Nevertheless, I do not share the optimism. In the short run, one to three months, I do not think the market will enter an uptrend, especially in June as many people hope. Contrarily, the market may experience a downtrend during this period due to the following reasons:
First, there are now growing indications that the State Bank of Viet Nam (SBV) could soon move to impose capital controls on foreign-equity investors, including a one-year lock-up on portfolio investment inflows.
Although SBV officials have tried to relieve foreign investors, Phung Khac Ke, central bank deputy governor, said that every country applies certain technical barriers to monitor the market and allow it to develop along the right track, or the track the Government wants.
Every country wants prestigious and capable investors, who can ensure the sustainable growth of the market.
"These are technical barriers, not policy barriers," Ke stressed.
When asked if the majority of investment funds would withdraw from the market under such a policy, Ke said the regulation, if enacted, would not be retroactive, which means that funds in operation that cannot meet the new regulations would still be allowed to conduct business in Viet Nam.
Foreign investors, however, remain uneasy about the new restrictions. Foreign investment banks operating in Viet Nam, including Credit Suisse and ANZ Bank, have already issued warnings to their clients about the possible introduction of new restrictions.
In fact, this might put a brake on foreign funds pouring into the Vietnamese stock market, or even worse encourage foreign investors to sell their domestic holdings in the short run, and wait to see how the new regulations will affect investments.
The second factor that could force the VN-Index lower is the central bank letter instructing credit institutes to limit outstanding loans funding securities trading deals to 3 per cent of their total outstanding loans.
On May 28, the central bank released Instruction No 03 on controlling the scale and quality of credit loans given to securities investors.
The central bank has asked commercial banks to follow the current regulations on loans for securities investment deals promulgated by the SBV, which say that all loans for securities trading deals must be guaranteed by mortgaged assets.
If the instruction by the central bank to place a 3 per cent cap on loans is enacted, the stock market will suffer as cash flows will decline dramatically.
Loans to fund securities trading deals have been booming for the last two years.
The Asia Commercial Bank (ACB), for example, has reported an increase of 30 per cent in loans to securities investors in the first quarter of 2007 compared to the fourth quarter of 2006.
According to Bui Tan Tai, ACB deputy director general, the limit at 3 per cent of total outstanding loans is nearly used up.
Tai said that though the stock market had declined in recent days, the number of clients asking for securities loans was still rising.
Other commercial banks did not reveal the exact figures of their outstanding loans funding securities trading, but said their outstanding loans had also nearly hit the bar.
The fact of the matter is commercial banks find providing such loans a lucrative business and do not want to miss out.
The third factor to negatively impact the market over the next month is the upcoming IPOs of large companies from now until the end of the year, starting with Dam Phu My and Bao Viet and followed by some of the big Government banks such as Vietcombank and Incombank.
If all these IPOs hit the market on time as planned, then they will draw huge cash flows from the market and have a major impact on share prices.
In order to participate in these new IPOs, players must find a way to fund their new investments, either by selling shares in their existing portfolios or borrowing money from the banks by using their assets as collateral.
To ensure their outstanding loans are within a margin of safety, investors will have to sell shares to pay off their debts at the banks, and this will affect market cash flows.
Though the three-above mentioned factors could pressure the market lower, I personally hope the VN-Index stays within the 1000–1100 band because there are still some good pieces of news on the market.
For examples, during the recent meeting among financial sponsor countries, the majority of delegates were confident about the economic progress Viet Nam has recently achieved. In addition, the World Bank (WB) is optimistic that the Vietnamese economy could maintain a high economic growth rate in the coming years.
Another positive factor is the growing list of new foreign funds now awaiting licenses to enter the local stock market.
We also have to consider a few large Vietnamese brokerages entering the short-term trading game for profit. The brokerages may cause a herd mentality among individual investors in short-term trading, but they can also keep the index trading in the tighter band. Therefore, the VN-Index may not fluctuate much.
If it can stay within the 1000-1100-point range through June, it will be a good sign for the market and could stimulate a bull run in the fourth quarter.
Source: VNS
May also was a good month for the market compared to April; the VN-Index did well from April 25 to May 15, though it did not pass the 1,070 level as predicted by many analysts.
Moreover, the unprecedented number of people who registered for the recent Bao Viet IPO has raised hopes that the market will pick up steam in June, which might mark the beginning of a bull run through the end of the year.
Nevertheless, I do not share the optimism. In the short run, one to three months, I do not think the market will enter an uptrend, especially in June as many people hope. Contrarily, the market may experience a downtrend during this period due to the following reasons:
First, there are now growing indications that the State Bank of Viet Nam (SBV) could soon move to impose capital controls on foreign-equity investors, including a one-year lock-up on portfolio investment inflows.
Although SBV officials have tried to relieve foreign investors, Phung Khac Ke, central bank deputy governor, said that every country applies certain technical barriers to monitor the market and allow it to develop along the right track, or the track the Government wants.
Every country wants prestigious and capable investors, who can ensure the sustainable growth of the market.
"These are technical barriers, not policy barriers," Ke stressed.
When asked if the majority of investment funds would withdraw from the market under such a policy, Ke said the regulation, if enacted, would not be retroactive, which means that funds in operation that cannot meet the new regulations would still be allowed to conduct business in Viet Nam.
Foreign investors, however, remain uneasy about the new restrictions. Foreign investment banks operating in Viet Nam, including Credit Suisse and ANZ Bank, have already issued warnings to their clients about the possible introduction of new restrictions.
In fact, this might put a brake on foreign funds pouring into the Vietnamese stock market, or even worse encourage foreign investors to sell their domestic holdings in the short run, and wait to see how the new regulations will affect investments.
The second factor that could force the VN-Index lower is the central bank letter instructing credit institutes to limit outstanding loans funding securities trading deals to 3 per cent of their total outstanding loans.
On May 28, the central bank released Instruction No 03 on controlling the scale and quality of credit loans given to securities investors.
The central bank has asked commercial banks to follow the current regulations on loans for securities investment deals promulgated by the SBV, which say that all loans for securities trading deals must be guaranteed by mortgaged assets.
If the instruction by the central bank to place a 3 per cent cap on loans is enacted, the stock market will suffer as cash flows will decline dramatically.
Loans to fund securities trading deals have been booming for the last two years.
The Asia Commercial Bank (ACB), for example, has reported an increase of 30 per cent in loans to securities investors in the first quarter of 2007 compared to the fourth quarter of 2006.
According to Bui Tan Tai, ACB deputy director general, the limit at 3 per cent of total outstanding loans is nearly used up.
Tai said that though the stock market had declined in recent days, the number of clients asking for securities loans was still rising.
Other commercial banks did not reveal the exact figures of their outstanding loans funding securities trading, but said their outstanding loans had also nearly hit the bar.
The fact of the matter is commercial banks find providing such loans a lucrative business and do not want to miss out.
The third factor to negatively impact the market over the next month is the upcoming IPOs of large companies from now until the end of the year, starting with Dam Phu My and Bao Viet and followed by some of the big Government banks such as Vietcombank and Incombank.
If all these IPOs hit the market on time as planned, then they will draw huge cash flows from the market and have a major impact on share prices.
In order to participate in these new IPOs, players must find a way to fund their new investments, either by selling shares in their existing portfolios or borrowing money from the banks by using their assets as collateral.
To ensure their outstanding loans are within a margin of safety, investors will have to sell shares to pay off their debts at the banks, and this will affect market cash flows.
Though the three-above mentioned factors could pressure the market lower, I personally hope the VN-Index stays within the 1000–1100 band because there are still some good pieces of news on the market.
For examples, during the recent meeting among financial sponsor countries, the majority of delegates were confident about the economic progress Viet Nam has recently achieved. In addition, the World Bank (WB) is optimistic that the Vietnamese economy could maintain a high economic growth rate in the coming years.
Another positive factor is the growing list of new foreign funds now awaiting licenses to enter the local stock market.
We also have to consider a few large Vietnamese brokerages entering the short-term trading game for profit. The brokerages may cause a herd mentality among individual investors in short-term trading, but they can also keep the index trading in the tighter band. Therefore, the VN-Index may not fluctuate much.
If it can stay within the 1000-1100-point range through June, it will be a good sign for the market and could stimulate a bull run in the fourth quarter.
Source: VNS
Wednesday, June 06, 2007
Kien Long Bank to get expansion boost with deals
The Asia Commercial Bank (ACB) and Saigontourist on June 5 signed cooperation agreements to support Kien Long Bank’s nationwide expansion.
Under the deal, ACB will provide Kien Long Bank credit support and financial tools such as e-payment and US dollar deposit services.
ACB and Saigontourist will also provide financial support for Kien Long Bank to expand its banking activities nationwide by opening new branches.
The tourism agency will introduce Kien Long Bank products and services to their customers, while in return the bank will provide credit and payment options for Saigontourist travellers.
Nguyen Hong Ky, director of the State Bank of Viet Nam in Ha Noi, said that the cooperation between the three partners was a major step forward in helping Kien Long Bank improve its competitiveness in the WTO era.
On the same day, Kien Long Bank, which is based in southern Kien Giang province, officially opened its Ha Noi branch, the first step in its nationwide expansion.
The bank plans to open more branches and transaction offices next month, bringing new services and products to a wider ranger of customers, said Kien Long executives.
Kien Long Bank, established in 1995, has 290 billion VND (18.1 million USD) in chartered capital and was restructured as an urban joint stock bank last year.
Source: VNA
Under the deal, ACB will provide Kien Long Bank credit support and financial tools such as e-payment and US dollar deposit services.
ACB and Saigontourist will also provide financial support for Kien Long Bank to expand its banking activities nationwide by opening new branches.
The tourism agency will introduce Kien Long Bank products and services to their customers, while in return the bank will provide credit and payment options for Saigontourist travellers.
Nguyen Hong Ky, director of the State Bank of Viet Nam in Ha Noi, said that the cooperation between the three partners was a major step forward in helping Kien Long Bank improve its competitiveness in the WTO era.
On the same day, Kien Long Bank, which is based in southern Kien Giang province, officially opened its Ha Noi branch, the first step in its nationwide expansion.
The bank plans to open more branches and transaction offices next month, bringing new services and products to a wider ranger of customers, said Kien Long executives.
Kien Long Bank, established in 1995, has 290 billion VND (18.1 million USD) in chartered capital and was restructured as an urban joint stock bank last year.
Source: VNA
Friday, June 01, 2007
ACB raises chartered capital to over 2.5 trillion VND
The State Bank of Viet Nam has given the nod to the Asia Commercial Bank (ACB) to increase its chartered capital from over 1.1 trillion VND (68.7 million USD) to more than 2.53 trillion VND (158.1 million USD).
ACB leaders said that the capital readjustment would aid the bank to fulfil its 2006-2011 action plan, maintain its balanced and safe financial indexes and invest in effective state-owned enterprises that are being equitised.
By the end of May, ACB’s assets value was estimated at 55 trillion VND (3.4 billion USD), deposits at more than 50 trillion VND (3.1 billion USD) and pre-tax profit at over 700 billion VND (43.7 million USD).
ACB became the first commercial bank in Viet Nam to win a prestigious award from the world’s leading bank JP Morgan Chase for providing high-quality international payment services, particularly the high level of rapidity and accuracy of international e-payment service.
At present, ACB has transactions with over 500 agents in more than 100 countries worldwide.
Source: VNA
ACB leaders said that the capital readjustment would aid the bank to fulfil its 2006-2011 action plan, maintain its balanced and safe financial indexes and invest in effective state-owned enterprises that are being equitised.
By the end of May, ACB’s assets value was estimated at 55 trillion VND (3.4 billion USD), deposits at more than 50 trillion VND (3.1 billion USD) and pre-tax profit at over 700 billion VND (43.7 million USD).
ACB became the first commercial bank in Viet Nam to win a prestigious award from the world’s leading bank JP Morgan Chase for providing high-quality international payment services, particularly the high level of rapidity and accuracy of international e-payment service.
At present, ACB has transactions with over 500 agents in more than 100 countries worldwide.
Source: VNA
Wednesday, May 30, 2007
Banks want to trade gold via accounts
Commercial banks are trying to persuade the State Bank of Vietnam to allow them to make payments for gold trading in the domestic market via accounts instead of paying in cash and real gold as at present.
Gold trading has become one of the most lucrative businesses, which explains why more and more commercial banks are getting involved in this kind of business.
Banks now want to make payments for trading deals through accounts instead of cash, and trade virtual gold (gold on account) instead of real gold. The banks say this will help prevent risks for both sellers and buyers, while the State can control the money flow on the gold market.
Currently, gold trading deals all are being carried out in material gold and payments are not made through banks; therefore, no management authorities can control the trading volume. Gold traders may take unfair advantage of the loopholes in the law to evade tax, while the profit from gold trading proves to be very big.
Moreover, transactions with actual gold prove to be inconvenient for both sellers and buyers, and can lead to risks during the transportation process.
The Saigon Jewellery Company (SJC) has been allowed by the central bank to trade gold with foreign partners through offshore accounts. However, in Vietnam, SJC, which has its head office just several tens of metres from Vietcombank, cannot make payments through accounts when dealing with clients.
“It is illogical that gold is considered a kind of currency, but transactions via accounts are not allowed,” an official said.
SJC said that the company might apply to open transaction accounts at two banks, ACB and Eximbank, which will serve the company’s gold trading. However, one of the two banks said that it had not got permission from the central bank to accept SJC’s account.
Commercial banks insist that paying through accounts will benefit both banks and State management authorities. This will provide a tool which can ensure safety in trading deals, while the central bank can easily control the money flow.
However, financiers have warned that private gold trading companies may protest the plan to make payments via accounts. If the scheme on making payments via accounts is applied, the companies will have no way to evade tax.
Source: VNE
Gold trading has become one of the most lucrative businesses, which explains why more and more commercial banks are getting involved in this kind of business.
Banks now want to make payments for trading deals through accounts instead of cash, and trade virtual gold (gold on account) instead of real gold. The banks say this will help prevent risks for both sellers and buyers, while the State can control the money flow on the gold market.
Currently, gold trading deals all are being carried out in material gold and payments are not made through banks; therefore, no management authorities can control the trading volume. Gold traders may take unfair advantage of the loopholes in the law to evade tax, while the profit from gold trading proves to be very big.
Moreover, transactions with actual gold prove to be inconvenient for both sellers and buyers, and can lead to risks during the transportation process.
The Saigon Jewellery Company (SJC) has been allowed by the central bank to trade gold with foreign partners through offshore accounts. However, in Vietnam, SJC, which has its head office just several tens of metres from Vietcombank, cannot make payments through accounts when dealing with clients.
“It is illogical that gold is considered a kind of currency, but transactions via accounts are not allowed,” an official said.
SJC said that the company might apply to open transaction accounts at two banks, ACB and Eximbank, which will serve the company’s gold trading. However, one of the two banks said that it had not got permission from the central bank to accept SJC’s account.
Commercial banks insist that paying through accounts will benefit both banks and State management authorities. This will provide a tool which can ensure safety in trading deals, while the central bank can easily control the money flow.
However, financiers have warned that private gold trading companies may protest the plan to make payments via accounts. If the scheme on making payments via accounts is applied, the companies will have no way to evade tax.
Source: VNE
Friday, May 25, 2007
Gold exchange debuts in Vietnam
Vietnam’s first gold trading market opened Friday in Ho Chi Minh City.
It is jointly initiated by the Asia Commercial Joint Stock Bank (ACB), the Vietnam Export-Import Bank, Saigon Commercial Bank, and Saigon Jewelry Holding Co.
The bourse, based in the ACB office in district 10, will have a maximum 12 institutional members, all banks or firms licensed to trade gold.
JSC gold will be used for trading in the initial stages. The minimum trading volume is 10 taels (1 tael = 37.5 gm) and price changes are capped at VND5,000 per tael.
Initially, it will be limited to Vietnamese investors who must pay a security deposit of 10 percent of transaction value.
Globally gold slumped to a 10-week low and finished down nearly $10 an ounce in heavy trade Thursday, as a rising US dollar prompted funds and central banks to sell.
Analysts said larger-than-usual gold sales by global banks, particularly the European Central Bank, also weighed on gold prices besides sparking off selling pressure from funds and institutional investors.
Gold futures for June delivery on the New York Mercantile Exchange settled down $9.3, or 1.4 percent, at $653.3 an ounce, after touching a session low of $651.5, the weakest level since March 15.
In Vietnam too the price fell marginally to close at VND12.9 million Thursday.
Earlier this year international gold traders had estimated that gold would end up averaging around $753 in 2007 due to geopolitical tensions and high energy prices. Gold is a traditional hedge.
Nguyen Thanh Truc, deputy chairman of the Vietnam Association of Gold Trading, said the domestic gold market had seen unexpected volatility since mid-April on the back of global movements.
He forecast the precious metal to tumble in the near term as the International Monetary Fund planned to sell 400 tons.
Another 250 tons would be injected into the market by September by EU central banks.
He warned investors to be prudent while investing in gold.
The association has asked the central bank set up a gold bank to keep the country’s gold market in tune with the international bullion business.
The bank would provide support and consultancy for local gold businesses
Vietnam’s demand for bullion, used to produce jewelry, and some other forms of gold, is estimated at some 60 tons this year, up 20 percent against last year.
The central bank has permitted a total of 13 local banks to date to open accounts based overseas for the sole purpose of trading in gold .
Many domestic banks have shown an interest in gold trading as a means to diversify their services to retain a competitive edge as foreign rivals increasingly enter the Vietnamese market.
Source: Thanh Nien
It is jointly initiated by the Asia Commercial Joint Stock Bank (ACB), the Vietnam Export-Import Bank, Saigon Commercial Bank, and Saigon Jewelry Holding Co.
The bourse, based in the ACB office in district 10, will have a maximum 12 institutional members, all banks or firms licensed to trade gold.
JSC gold will be used for trading in the initial stages. The minimum trading volume is 10 taels (1 tael = 37.5 gm) and price changes are capped at VND5,000 per tael.
Initially, it will be limited to Vietnamese investors who must pay a security deposit of 10 percent of transaction value.
Globally gold slumped to a 10-week low and finished down nearly $10 an ounce in heavy trade Thursday, as a rising US dollar prompted funds and central banks to sell.
Analysts said larger-than-usual gold sales by global banks, particularly the European Central Bank, also weighed on gold prices besides sparking off selling pressure from funds and institutional investors.
Gold futures for June delivery on the New York Mercantile Exchange settled down $9.3, or 1.4 percent, at $653.3 an ounce, after touching a session low of $651.5, the weakest level since March 15.
In Vietnam too the price fell marginally to close at VND12.9 million Thursday.
Earlier this year international gold traders had estimated that gold would end up averaging around $753 in 2007 due to geopolitical tensions and high energy prices. Gold is a traditional hedge.
Nguyen Thanh Truc, deputy chairman of the Vietnam Association of Gold Trading, said the domestic gold market had seen unexpected volatility since mid-April on the back of global movements.
He forecast the precious metal to tumble in the near term as the International Monetary Fund planned to sell 400 tons.
Another 250 tons would be injected into the market by September by EU central banks.
He warned investors to be prudent while investing in gold.
The association has asked the central bank set up a gold bank to keep the country’s gold market in tune with the international bullion business.
The bank would provide support and consultancy for local gold businesses
Vietnam’s demand for bullion, used to produce jewelry, and some other forms of gold, is estimated at some 60 tons this year, up 20 percent against last year.
The central bank has permitted a total of 13 local banks to date to open accounts based overseas for the sole purpose of trading in gold .
Many domestic banks have shown an interest in gold trading as a means to diversify their services to retain a competitive edge as foreign rivals increasingly enter the Vietnamese market.
Source: Thanh Nien
ACB more than doubles registered capital
Asia Commercial Bank (ACB), Vietnam's fifth-largest bank by assets, said on Friday it had more than doubled its registered capital to 2.53 trillion dong ($157 million).
The Ho Chi Minh City-based bank said the new capital came into effect from May 11 and raised its registered capital, which determines the size of the bank's loans and deposits, from 1.1 trillion dong.
ACB said last week it was due to open Vietnam's first gold trading floor in Ho Chi Minh City on Friday to boost and streamline transactions of the precious metal.
ACB shares closed down 0.53% at 167,500 dong on Friday with 56,300 shares changing hands.
Shares in the bank, Vietnam's second listed lender after Sacombank (STB), have been trading on the over-the-counter Hanoi stock market since November.
Standard Chartered Plc. owns 8.56% of ACB and three other foreign investors own smaller stakes.
Source: Reuters
The Ho Chi Minh City-based bank said the new capital came into effect from May 11 and raised its registered capital, which determines the size of the bank's loans and deposits, from 1.1 trillion dong.
ACB said last week it was due to open Vietnam's first gold trading floor in Ho Chi Minh City on Friday to boost and streamline transactions of the precious metal.
ACB shares closed down 0.53% at 167,500 dong on Friday with 56,300 shares changing hands.
Shares in the bank, Vietnam's second listed lender after Sacombank (STB), have been trading on the over-the-counter Hanoi stock market since November.
Standard Chartered Plc. owns 8.56% of ACB and three other foreign investors own smaller stakes.
Source: Reuters
Tuesday, May 22, 2007
Oligopolistic structures securities brokers' market
People think that securities companies, like geese that lay golden eggs, can bring huge profit to their owners. However, many of them are facing big difficulties.
There are more than 50 securities companies that are the members of the HCM City Securities Trading Centre, which are running some 100 trading floors. When the stock market boomed late last year, and many clients were refused service, many new securities companies were set up at that time to attract clients from senior companies.
The new companies tried to attract clients by impressive launching ceremonies, offering attractive gifts to first clients and preferential service fees at 0.15%.
It is quite strange that even when there are more choices with many newly set up securities companies, clients still want to make transactions at senior companies. More and more new accounts have been opened at big companies like SSI, BSC, VCBS, ACBS, even when the market is quiet.
According to Le Hai Duong, Head of BSC’s Brokerage Division, in March, the company had 1,000 new accounts, and the same number was seen in April. Meanwhile, Horizon Company, which made its debut in mid April, only has 300 accounts so far.
Analysts said that the ‘big four’ in the market, SSI, VCBS, BIDVS and ACBS, now hold up to 80% of the market share, while other new companies compete fiercely with each other for the remaining 20%.
However, despite the fierce competition, securities companies are still mushrooming. A lot of groups and corporations plan to set up financial and securities companies. At shareholders’ meetings of Pha Lai Thermo Power Plant, Hanaka, Vincom, Minh Phu, Techcombank, Bao Minh, all have approved plans to enter the financial market.
According to Nguyen Ngoc Thanh, Managing Director of VNDirect, the fierce competition will force securities companies to improve the quality of their services in order to retain clients. However, in several years, small companies will disappear from the market.
She said that the scenario occurred in Thailand and Taiwan in the past, where a series of securities companies were established at high tide, but smaller companies then merged with each other to form bigger and more competitive companies.
Source: VNE
There are more than 50 securities companies that are the members of the HCM City Securities Trading Centre, which are running some 100 trading floors. When the stock market boomed late last year, and many clients were refused service, many new securities companies were set up at that time to attract clients from senior companies.
The new companies tried to attract clients by impressive launching ceremonies, offering attractive gifts to first clients and preferential service fees at 0.15%.
It is quite strange that even when there are more choices with many newly set up securities companies, clients still want to make transactions at senior companies. More and more new accounts have been opened at big companies like SSI, BSC, VCBS, ACBS, even when the market is quiet.
According to Le Hai Duong, Head of BSC’s Brokerage Division, in March, the company had 1,000 new accounts, and the same number was seen in April. Meanwhile, Horizon Company, which made its debut in mid April, only has 300 accounts so far.
Analysts said that the ‘big four’ in the market, SSI, VCBS, BIDVS and ACBS, now hold up to 80% of the market share, while other new companies compete fiercely with each other for the remaining 20%.
However, despite the fierce competition, securities companies are still mushrooming. A lot of groups and corporations plan to set up financial and securities companies. At shareholders’ meetings of Pha Lai Thermo Power Plant, Hanaka, Vincom, Minh Phu, Techcombank, Bao Minh, all have approved plans to enter the financial market.
According to Nguyen Ngoc Thanh, Managing Director of VNDirect, the fierce competition will force securities companies to improve the quality of their services in order to retain clients. However, in several years, small companies will disappear from the market.
She said that the scenario occurred in Thailand and Taiwan in the past, where a series of securities companies were established at high tide, but smaller companies then merged with each other to form bigger and more competitive companies.
Source: VNE
Saturday, May 19, 2007
Securities broker VIS opens branch in Ho Chi Minh City
The Hanoi-based Vietnam International Securities Joint Stock Company, or VIS, has opened a branch in HCMC.
Established last November, the firm has total assets of VND800 billion.
Vietnam has over 50 registered securities firms but four of them – Saigon Securities Inc, Bao Viet Securities Company, Asia Commercial Bank Securities Company, and the Bank for Investment and Development of Vietnam Securities Company – account for 71% of all trade.
The State Securities Commission received more than 30 applications for setting up securities firms in the first quarter.
It is considering a temporary halt to new licenses due to the poor quality of services at existing brokerages.
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