The recent report by Merrill Lynch, which said that Vietnam did not deserve to be an investment address, has not had any impacts on the expectations of US investors in Vietnam’s stocks.
The report appeared at a time when the market was down and thought might ‘pour cold water’ on investors. But it has turned out to have had no considerable impact on US investors. The portfolio investment from the US keeps rising with more and more well-known investment funds coming to Vietnam.
Most recently, Heartland Funds announced a plan to cooperate with Lexington Langha, Vikoa Investment Consultant to set up an investment fund in Vietnam with capital directly sourced from US companies (not through third countries).
According to James Kim, a founder of Lexington Langha, the fund has the initial capital of $50-100mil, but it may be expanded if there are enough good investment opportunities.
Heartland Funds is a well-known fund in the US. It has been recognised as the leading fund in the first quarter of 2007, and Heartland Funds plans to take full advantage of its fame to make investment in the stock, real estate and capital markets in Vietnam.
Mr James said that many American investors wanted to join Vietnam’s market and they were awaiting the opportunities to inject money in.
In early July, IDG Venture, which has US-sourced capital, announced its investment in two more projects, the Goldsun Focus Media and Vega Software. It is expected that from now until the end of 2007, IDJ Venture will announce its investment in six to eight more projects.
Dragon Capital, the most long-standing fund management company in Vietnam, which is now managing $600mil worth of capital in Vietnam, has 30% of capital contribution sourced from US investors.
Indochina Land, which manages the real estate projects of the leading investment group Indochina Capital, last month signed a memorandum of understanding with Hoang Quan Group, the leading real estate group in Vietnam.
Indochina Land Holdings and Indochina Land Holdings 2 are both developing projects on apartments, offices, hotels and resorts for selling on the domestic market.
Several days ago, at a ceremony releasing the report reviewing the 5 years of the Vietnam-US Bilateral Trade Agreement (BTA), experts from the project on supporting the implementation of BTA, Star, said that US investors held from 1/3 to 1/2 of total foreign portfolio investment in Vietnam.
James Riedel, senior advisor to Star project, also said that US investors were interested in Vietnam’s market very much, and the opening of the service market in Vietnam had impacted their decisions.
Mr Riedel said that it was quite a normal thing that the market went up and down. The most important thing is that Vietnam needs to have a good system which can absorb the huge capital from foreigners, while avoiding crises.
Analysts said that Vietnam now had all the necessary conditions to attract US investors. However, American investors still want to learn about Vietnam from other US investors. Lexington Langha is an example. While following legal procedures to set up a fund in Vietnam, Mr James is now trying to make contact with several foreign funds in Vietnam like Vina Capital, Indochina Capital and Mekong Capital to discuss issues relating to investment in Vietnam.
Source: VNE
Showing posts with label Dragoncapital. Show all posts
Showing posts with label Dragoncapital. Show all posts
Monday, July 30, 2007
Tuesday, May 29, 2007
Sacombank to issue new shares
Saigon Thuong Tin Commercial Bank (STB), Vietnam's sixth-largest, said it would issue more than 236 million shares to raise at least $212 million for investing in the credit card business and new subsidiaries.
Sacombank would sell the shares to existing shareholders and key staff at 15,000 dong ($0.93) from June 26 to July 23, Deputy General Director Nguyen Quang Trung said in a statement.
The proceeds would be used to more than double the bank's registered capital to $276 million, construct its new offices in Ho Chi Minh City, upgrade its information technology and open a credit card business.
The funds would also go to existing subsidiaries and newly established subsidiaries, Trung said without elaboration.
Shares in Sacombank closed flat at 166,000 dong ($10.3) on Monday, valuing it at $2.2 billion. Listing of the new shares is scheduled for August 23.
In March, Scombank said it would establish a credit card venture with shareholder ANZ Bank in 2007. It also aims to open 14 branches in Vietnam this year and establish offices in China, Laos and Cambodia.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3 percent of Sacombank, which reported a near tripling of gross profit in the first four months of this year from the same period of 2006 to 413 billion dong ($25.6 million).
Source: Reuters
Sacombank would sell the shares to existing shareholders and key staff at 15,000 dong ($0.93) from June 26 to July 23, Deputy General Director Nguyen Quang Trung said in a statement.
The proceeds would be used to more than double the bank's registered capital to $276 million, construct its new offices in Ho Chi Minh City, upgrade its information technology and open a credit card business.
The funds would also go to existing subsidiaries and newly established subsidiaries, Trung said without elaboration.
Shares in Sacombank closed flat at 166,000 dong ($10.3) on Monday, valuing it at $2.2 billion. Listing of the new shares is scheduled for August 23.
In March, Scombank said it would establish a credit card venture with shareholder ANZ Bank in 2007. It also aims to open 14 branches in Vietnam this year and establish offices in China, Laos and Cambodia.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3 percent of Sacombank, which reported a near tripling of gross profit in the first four months of this year from the same period of 2006 to 413 billion dong ($25.6 million).
Source: Reuters
Monday, May 28, 2007
70 investment funds queue to enter Vietnam
Vietnam’s stock market can bring super profit, and that explains why foreign investment funds are pouring their money into Vietnam’s stocks.
Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%.
The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.
There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.
A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.
The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.
In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.
After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.
Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.
Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.
BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.
Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).
Source: VNE
Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%.
The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.
There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.
A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.
The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.
In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.
After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.
Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.
Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.
BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.
Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).
Source: VNE
Thursday, May 17, 2007
Dragoncapital wins auction
British fund manager Dragon Capital won most shares in the auction earlier this week of HCMC-based Cotec Construction Joint Stock Company, or Coteccons, at a price 22 times higher than face value, according to the market regulator.
Coteccons auctioned its 9.11% stake of the state, or 54,200 shares at a face value of VND100,000 each on the HCMC bourse.
The fund manager bought more than 53,000 shares at VND2.2 million each while an individual investor claimed 1,000 shares at VND2.3 million per stock.
The auction attracted 20 institutions and 174 individuals registering to buy 332,000 shares – which were oversubscribed by six times.
After the auction the state still holds a 10% stake of the firm, while 60% is held by staff, and the balance by outsiders.
Coteccons plans to increase its chartered capital to VND120 billion this year from the current VND59.5 billion and to VND500 billion by 2010.
It also expects to list on the stock market this year.
The company is cooperating with partners to implement two projects, namely VND800 billion residential buildings in Saigon South and the VND1.5 trillion complex of a trade complex near the Tan Son Nhat International Airport.
Dragon Capital Group is an investment banking institution with an exclusive focus on Vietnam’s capital markets. Established in 1994, the group is now the largest and most experienced asset manager in Vietnam with total group assets in excess of US$2 billion.
Source: Thanh Nien
Coteccons auctioned its 9.11% stake of the state, or 54,200 shares at a face value of VND100,000 each on the HCMC bourse.
The fund manager bought more than 53,000 shares at VND2.2 million each while an individual investor claimed 1,000 shares at VND2.3 million per stock.
The auction attracted 20 institutions and 174 individuals registering to buy 332,000 shares – which were oversubscribed by six times.
After the auction the state still holds a 10% stake of the firm, while 60% is held by staff, and the balance by outsiders.
Coteccons plans to increase its chartered capital to VND120 billion this year from the current VND59.5 billion and to VND500 billion by 2010.
It also expects to list on the stock market this year.
The company is cooperating with partners to implement two projects, namely VND800 billion residential buildings in Saigon South and the VND1.5 trillion complex of a trade complex near the Tan Son Nhat International Airport.
Dragon Capital Group is an investment banking institution with an exclusive focus on Vietnam’s capital markets. Established in 1994, the group is now the largest and most experienced asset manager in Vietnam with total group assets in excess of US$2 billion.
Source: Thanh Nien
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