The plan on equitising Vietcombank was approved in principle by the government yesterday, Vietcombank’s leader confirmed this morning, saying that the official decision would be made next week.
The government has agreed to the proposals of international consultants and auditors relating to the bank’s appraisal in accordance with international standards. This means that Vietcombank’s appraisal process will be quick and in good order, while passing over some steps.
After the equitisation, the bank will be allowed to apply the corporate governance method in accordance with the best possible international standards, provided that these do not come contrary to Vietnam’s regulations. The decision by the government has helped remove investors’ worries that the equitised Vietcombank would be a ‘new decanter with old wine inside’ (i.e. Vietcombank will operate under the previously applied mechanism after the equitisation).
According to an official from Vietcombank, the government has been paying special attention to the selection of strategic partners. Under the previous plan, Vietcombank would set the timetable for making IPO first, and then define the selling prices of shares applied to strategic investors. But now the government has set higher requirements on choosing strategic investors and leaves the IPO timetable open. Vietcombank may choose strategic investors before making IPO.
The official stressed that the selling prices applied to strategic foreign investors would be independent from the IPO prices. Vietcombank will submit prices for strategic foreign investors for the government’s approval.
“Prices will not be the most important factor Vietcombank will rely on to seek foreign strategic investors. Vietcombank will highly rate the technical support, investment cooperation, and especially, the duration to hold shares after the listing,” the official said.
The government proves to be very ‘open’ when saying that if foreign investors make good commitments, the government will give preferences back to Vietcombank.
In special cases, foreign investors can hold more than the currently applied ceiling foreign ownership ratio of 15%, the official said.
Vietcombank has wrapped up the two rounds of negotiations with the short-listed bidders. It is expected that the partners will send the final offers one week after the government approves the equitisation plan. If so, Vietcombank will submit its ideas to the government on September 20, and will officially announce the foreign strategic partners in early October.
Source: VNE
Showing posts with label Vietcombank. Show all posts
Showing posts with label Vietcombank. Show all posts
Thursday, August 30, 2007
Tuesday, August 28, 2007
Vietcombank fails to keep IPO timetable
The Vietnam Bank for Foreign Trade (Vietcombank) cannot make IPO prior to August 30 as previously planned as the government has not given the green light on the IPO plan.
Vietcombank announced in February 2007, right after it signed a contract with Credit Suisse on equitisation consultancy, that it would make IPO at the end of July or August at the latest, and have its shares listed on the bourse prior to the end of October.
However, Vietcombank Deputy Director General Nguyen Thu Ha on August 24 announced that Vietcombank would not be able to make IPO in August as it had not received any instructions from the government yet.
Last year and earlier this year, the government many times urged banks to speed up the equitisation process. However, it has not been hurrying banks since June, when the stock market began falling down. Analysts have also warned about the oversupply of commodities on the stock market causing losses to the state.
Owing to these warnings, banks themselves have been hesitating to put commodities on sale while the market is quiet with few transactions. The Bank for Investment and Development of Vietnam (BIDV), which volunteered to be equitised, has asked the government to reconsider the timing of the IPOs of big state owned enterprises. As previously planned, BIDV will complete its equitisation plan to be submitted to the government before the IPO is made at the end of the fourth quarter of the year.
The Vietnam Industrial and Commercial Bank (ICB), which also volunteered for equitisation, now is considering the re-timing of its IPO. ICB Director General Pham Huy Hung said that the bank "would do what the government instructed".
It is clear that Vietcombank cannot make IPO right in August, but Mrs Ha said that the bank would run the IPO as previously planned if the government approved, despite the gloomy market.
“The market now is not as favourable as previously, but we do not plan to delay IPO and the equitisation plan because of this. No one can know for sure how the market will perform later,” said Mrs Ha.
Vietcombank has every reason to be optimistic about its IPO plan. Several tens of international financial groups have expressed their desire to become Vietcombank’s strategic partners, when Vietnam’s first state owned bank becomes equitised. The five names which have been short listed for government consideration are all big names in the world.
Le Dao Nguyen, Deputy Director General of BIDV, said that bank shares were still being hunted by investors, especially shares of profitable and prestigious banks.
“We do not intend to make IPOs at any cost. Price will be an important factor to consider when offering shares, and enterprises all want to sell shares at the moment when prices reach peaks. However, it would be even worse if the auction prices are high, but the prices later decrease and no investor wants to buy them,” said Mr Nguyen.
Mr Nguyen said that BIDV was still hectically preparing for the equitisation and IPO.
In a report released on August 1 on Vietnam’s financial situation, the Hong Kong and Shanghai Banking Corporation HSBC said there was no need to worry about the IPOs of big banks. The sale of good commodities will help stimulate the market demand and attract new foreign investors.
Source: VNE
Vietcombank announced in February 2007, right after it signed a contract with Credit Suisse on equitisation consultancy, that it would make IPO at the end of July or August at the latest, and have its shares listed on the bourse prior to the end of October.
However, Vietcombank Deputy Director General Nguyen Thu Ha on August 24 announced that Vietcombank would not be able to make IPO in August as it had not received any instructions from the government yet.
Last year and earlier this year, the government many times urged banks to speed up the equitisation process. However, it has not been hurrying banks since June, when the stock market began falling down. Analysts have also warned about the oversupply of commodities on the stock market causing losses to the state.
Owing to these warnings, banks themselves have been hesitating to put commodities on sale while the market is quiet with few transactions. The Bank for Investment and Development of Vietnam (BIDV), which volunteered to be equitised, has asked the government to reconsider the timing of the IPOs of big state owned enterprises. As previously planned, BIDV will complete its equitisation plan to be submitted to the government before the IPO is made at the end of the fourth quarter of the year.
The Vietnam Industrial and Commercial Bank (ICB), which also volunteered for equitisation, now is considering the re-timing of its IPO. ICB Director General Pham Huy Hung said that the bank "would do what the government instructed".
It is clear that Vietcombank cannot make IPO right in August, but Mrs Ha said that the bank would run the IPO as previously planned if the government approved, despite the gloomy market.
“The market now is not as favourable as previously, but we do not plan to delay IPO and the equitisation plan because of this. No one can know for sure how the market will perform later,” said Mrs Ha.
Vietcombank has every reason to be optimistic about its IPO plan. Several tens of international financial groups have expressed their desire to become Vietcombank’s strategic partners, when Vietnam’s first state owned bank becomes equitised. The five names which have been short listed for government consideration are all big names in the world.
Le Dao Nguyen, Deputy Director General of BIDV, said that bank shares were still being hunted by investors, especially shares of profitable and prestigious banks.
“We do not intend to make IPOs at any cost. Price will be an important factor to consider when offering shares, and enterprises all want to sell shares at the moment when prices reach peaks. However, it would be even worse if the auction prices are high, but the prices later decrease and no investor wants to buy them,” said Mr Nguyen.
Mr Nguyen said that BIDV was still hectically preparing for the equitisation and IPO.
In a report released on August 1 on Vietnam’s financial situation, the Hong Kong and Shanghai Banking Corporation HSBC said there was no need to worry about the IPOs of big banks. The sale of good commodities will help stimulate the market demand and attract new foreign investors.
Source: VNE
Thursday, August 23, 2007
Vietcombank says H1 2007 profit drops, assets up
Bank for Foreign Trade of Vietnam, the country's third largest, said on Thursday its first-half profit fell 22.7 percent but its assets were up 9.8 percent at 183.4 trillion dong ($11.3 billion) at the end of June.
The six-month net profit was 1.02 trillion dong ($63 million), down from 1.32 trillion dong in the same period last year, the unlisted bank, also known as Vietcombank, told the Ho Chi Minh City exchange in a statement.
Hanoi-based Vietcombank, one of four state-run banks ordered to undergo partial privatisation this year, has said it handles about a quarter of Vietnam's trade payments.
The bank's statement did not give a reason for the lower profit, even though its second-quarter net profit jumped 41.6 percent from a year earlier to 726.3 billion dong. It showed operating costs surged 33 percent during the first six months from a year earlier to 586.64 billion dong.
Vietcombank aims for credit growth of 18 to 20 percent per year over the 2006-2010 period while keeping bad debts at 5-7 percent of loans by 2010.
The bank's seven-year convertible bonds are listed on the Ho Chi Minh Stock Exchange.
Source: Reuters
The six-month net profit was 1.02 trillion dong ($63 million), down from 1.32 trillion dong in the same period last year, the unlisted bank, also known as Vietcombank, told the Ho Chi Minh City exchange in a statement.
Hanoi-based Vietcombank, one of four state-run banks ordered to undergo partial privatisation this year, has said it handles about a quarter of Vietnam's trade payments.
The bank's statement did not give a reason for the lower profit, even though its second-quarter net profit jumped 41.6 percent from a year earlier to 726.3 billion dong. It showed operating costs surged 33 percent during the first six months from a year earlier to 586.64 billion dong.
Vietcombank aims for credit growth of 18 to 20 percent per year over the 2006-2010 period while keeping bad debts at 5-7 percent of loans by 2010.
The bank's seven-year convertible bonds are listed on the Ho Chi Minh Stock Exchange.
Source: Reuters
Monday, July 09, 2007
Shinhan Bank says interested in Vietcombank shares
Shinhan Bank, a unit of South Korea's Shinhan Financial Group, said on Monday it is interested in buying shares in Vietcombank of Vietnam, which plans to go public either this month or in August.
Shinhan, having completed its $7.2 billion acquisition of the country's top credit card firm LG Card in 2006, is among the South Korean banks that have been eyeing Vietnam and other parts of Asia to make up for slow domestic loan growth.
Shinhan has already set up a joint venture with Vietcombank in Vietnam.
"We are interested in the IPO of Vietcombank," said Shinhan Bank spokesman Yoon Yong-jin. "But nothing has been decided in detail."
The Maeil Business Newspaper reported on Monday, without citing a source, that Shinhan was seeking to buy a 4 percent stake in the Vietnamese bank for about $100 million, making it one of the biggest overseas investments by a South Korean bank.
State-run Vietcombank, with assets of $10.7 billion and 68 branches nationwide, accounts for 10.5 percent of the country's market lending and handled 24 percent of its trade payments.
South Korean financial services companies are keen on buying shares in Vietnamese counterparts through their public offerings.
Industrial Bank of Korea is also moving to buy a stake in a leading Vietnamese bank, a senior official told Reuters in May.
Last week, South Korean brokerage Bridge Securities Co. Ltd. said it would buy 20 percent of Vietnam's Hai Phong Securities Co. (HPC) for $13 million.
Source: Reuters
Shinhan, having completed its $7.2 billion acquisition of the country's top credit card firm LG Card in 2006, is among the South Korean banks that have been eyeing Vietnam and other parts of Asia to make up for slow domestic loan growth.
Shinhan has already set up a joint venture with Vietcombank in Vietnam.
"We are interested in the IPO of Vietcombank," said Shinhan Bank spokesman Yoon Yong-jin. "But nothing has been decided in detail."
The Maeil Business Newspaper reported on Monday, without citing a source, that Shinhan was seeking to buy a 4 percent stake in the Vietnamese bank for about $100 million, making it one of the biggest overseas investments by a South Korean bank.
State-run Vietcombank, with assets of $10.7 billion and 68 branches nationwide, accounts for 10.5 percent of the country's market lending and handled 24 percent of its trade payments.
South Korean financial services companies are keen on buying shares in Vietnamese counterparts through their public offerings.
Industrial Bank of Korea is also moving to buy a stake in a leading Vietnamese bank, a senior official told Reuters in May.
Last week, South Korean brokerage Bridge Securities Co. Ltd. said it would buy 20 percent of Vietnam's Hai Phong Securities Co. (HPC) for $13 million.
Source: Reuters
Friday, July 06, 2007
Government asks for reconsideration of equitisation plan
The Prime Minister has asked the Ministry of Finance, State Bank of Vietnam and other relevant ministries to reconsider the plan on state-owned enterprise equitisation for 2007.
The Prime Minister asked for this work to be done right in the second quarter of 2007. Special attention must be paid to big corporations, including state-owned banks, economic groups and general corporations, which have high equitisation value. This will help ensure the success of the equitisation of enterprises while positively impacting the capital market and the national economy.
Also connected to this issue, several days ago, at a meeting on investment in the first six months of the year, the Bank for Development and Investment (BIDV) officially proposed a rearrangement of the timing for the equtisations and IPOs of big corporations.
Tran Bac Ha, Director General of BIDV, said that the excess of IPOs would lead to the oversupply of commodities, harming the stock market and causing losses to the state.
Vietnam planned to equitise 26 general corporations in 2007; a series of IPOs to be made by big corporations, including Vietcombank (the Bank for Foreign Trade of Vietnam), Vietincombank (Vietnam Industrial and Commercial Bank), and BIDV were scheduled to have been made.
In the newly released instruction on implementing state-sourced capital investment, the Prime Minister has also asked ministries, economic groups and general corporations to carry out measures to push up the disbursement rate of construction projects.
The Prime Minister has asked ministries to check legal regulations relating to the implementation of projects. Ministries have been instructed to amend the regulations if necessary, and promulgate documents timely, which will help remove obstacles for investors.
According to the Ministry of Planning and Investment, the pace of the disbursement of state-sourced investment and development capital has been very slow, just fulfilling 42.6% of the yearly plan, while the disbursement of capital for key construction works has just fulfilled 30% of the plan.
The State Bank of Vietnam, the Vietnam National Administration of Tourism and Electricity of Vietnam, Vinh Long and Hau Giang provinces, had very low disbursement rates, less than 10%, while 36 ministries, branches and localities had disbursement rates of between 10-30% of the yearly plan.
Source: VNE
The Prime Minister asked for this work to be done right in the second quarter of 2007. Special attention must be paid to big corporations, including state-owned banks, economic groups and general corporations, which have high equitisation value. This will help ensure the success of the equitisation of enterprises while positively impacting the capital market and the national economy.
Also connected to this issue, several days ago, at a meeting on investment in the first six months of the year, the Bank for Development and Investment (BIDV) officially proposed a rearrangement of the timing for the equtisations and IPOs of big corporations.
Tran Bac Ha, Director General of BIDV, said that the excess of IPOs would lead to the oversupply of commodities, harming the stock market and causing losses to the state.
Vietnam planned to equitise 26 general corporations in 2007; a series of IPOs to be made by big corporations, including Vietcombank (the Bank for Foreign Trade of Vietnam), Vietincombank (Vietnam Industrial and Commercial Bank), and BIDV were scheduled to have been made.
In the newly released instruction on implementing state-sourced capital investment, the Prime Minister has also asked ministries, economic groups and general corporations to carry out measures to push up the disbursement rate of construction projects.
The Prime Minister has asked ministries to check legal regulations relating to the implementation of projects. Ministries have been instructed to amend the regulations if necessary, and promulgate documents timely, which will help remove obstacles for investors.
According to the Ministry of Planning and Investment, the pace of the disbursement of state-sourced investment and development capital has been very slow, just fulfilling 42.6% of the yearly plan, while the disbursement of capital for key construction works has just fulfilled 30% of the plan.
The State Bank of Vietnam, the Vietnam National Administration of Tourism and Electricity of Vietnam, Vinh Long and Hau Giang provinces, had very low disbursement rates, less than 10%, while 36 ministries, branches and localities had disbursement rates of between 10-30% of the yearly plan.
Source: VNE
Saturday, June 23, 2007
IPO: from Bao Viet to Vietcombank
Vietcombank’s Director General Vu Viet Ngoan asserted that the bank would still make IPO (initial public offering) in August as previously planned when he was asked if Vietcombank would delay its IPO after the Government issued a dispatch, requesting banks and corporations to reconsider the timing for issuing shares.
According to Mr Ngoan, the detailed plan on Vietcombank’s equitisation was submitted to the Government two weeks ago, and he hopes to get the approval prior to July 10. If so, Vietcombank will have one month at least to prepare for presenting itself before the public.
Mr Ngoan has declined to provide the exact figure about the value of the state owned capital in Vietcombank, but he implied that the ownership capital of the bank, estimated at VND11tril, including the value of the convertible bonds now listed at the HCM City Securities Trading Centre (HSTC), would remain unchanged.
Vietcombank will have the bank assessed in accordance with international practice, and the value will help define how much capital the state will hold and how much more will be raised. The principle element of Vietcombank’s equitisation is that it will keep intact the state contributed capital, while issuing more shares to raise funds.
The chartered capital of the bank is currently VND4,300bil (audited financial report 2006). Vietcombank will only register the new chartered capital level after all the shares are issued to the public, including to strategic shareholders.
How much will the chartered capital of Vietcombank be? It remains a secret, but it must not be lower than the current ownership capital of VND11tril.
Last year, Vietcombank gained the post-tax profit of nearly VND2,900bil ($181.25mil), and the bank’s proportion of post-tax profit to chartered capital (VND2,900bil/VND4,300bil) was one of the highest among state owned banks. However, the proportion will considerably decrease after the equitisation, once Vietcombank registers the new chartered capital.
“Our post-tax profit in 2007 is expected to reach VND3-3,200bil, or 10% higher than that of 2006,” said Mr Ngoan. The chartered capital is forecast to increase by 300%, while the profit is to increase by 10% only. However, the capital adequacy ratio will be improved once the bank has much higher chartered capital. Now Vietcombank has the total assets of VND180,000bil ($11.25bil).
Meanwhile, the IPO of Bao Viet held on May 31, 2005 seemed to be not as successful as expected. Many investors have decided to ‘give up the game’ by refusing to pay for the shares they earned the right to buy at the auction.
Nguyen Thi Phuc Lam, Director General of Bao Viet, said that the negotiations with foreign partners could not be conducted yet, as both sides were still waiting for the auction’s average final price (June 26 is the deadline for investors to make payment).
Source: VNE
According to Mr Ngoan, the detailed plan on Vietcombank’s equitisation was submitted to the Government two weeks ago, and he hopes to get the approval prior to July 10. If so, Vietcombank will have one month at least to prepare for presenting itself before the public.
Mr Ngoan has declined to provide the exact figure about the value of the state owned capital in Vietcombank, but he implied that the ownership capital of the bank, estimated at VND11tril, including the value of the convertible bonds now listed at the HCM City Securities Trading Centre (HSTC), would remain unchanged.
Vietcombank will have the bank assessed in accordance with international practice, and the value will help define how much capital the state will hold and how much more will be raised. The principle element of Vietcombank’s equitisation is that it will keep intact the state contributed capital, while issuing more shares to raise funds.
The chartered capital of the bank is currently VND4,300bil (audited financial report 2006). Vietcombank will only register the new chartered capital level after all the shares are issued to the public, including to strategic shareholders.
How much will the chartered capital of Vietcombank be? It remains a secret, but it must not be lower than the current ownership capital of VND11tril.
Last year, Vietcombank gained the post-tax profit of nearly VND2,900bil ($181.25mil), and the bank’s proportion of post-tax profit to chartered capital (VND2,900bil/VND4,300bil) was one of the highest among state owned banks. However, the proportion will considerably decrease after the equitisation, once Vietcombank registers the new chartered capital.
“Our post-tax profit in 2007 is expected to reach VND3-3,200bil, or 10% higher than that of 2006,” said Mr Ngoan. The chartered capital is forecast to increase by 300%, while the profit is to increase by 10% only. However, the capital adequacy ratio will be improved once the bank has much higher chartered capital. Now Vietcombank has the total assets of VND180,000bil ($11.25bil).
Meanwhile, the IPO of Bao Viet held on May 31, 2005 seemed to be not as successful as expected. Many investors have decided to ‘give up the game’ by refusing to pay for the shares they earned the right to buy at the auction.
Nguyen Thi Phuc Lam, Director General of Bao Viet, said that the negotiations with foreign partners could not be conducted yet, as both sides were still waiting for the auction’s average final price (June 26 is the deadline for investors to make payment).
Source: VNE
Friday, June 22, 2007
Bank equitization faces delay
Four major State-run commercial banks are seen going public later than scheduled, said Le Xuan Nghia, director of the State Bank of Vietnam's Development Strategy Department.
He told 70 EuroCham members and other participants at the Banking Equitization: Going Global" luncheon in HCMC on Tuesday that the initial public offerings (IPO) by these banks would be a little later than expected due to problems with finding strategic shareholders and sharing price.
The Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Investment and Development of Vietnam, the Industrial and Commercial Bank (Incombank) and the Mekong Delta Housing Development Bank earlier planned to launch IPOs by this October.
Tumbling blocks have also arisen as to selling shares to staff of these banks.
Nghia explained strategic investors considered the offered share prices too high. The Government has ruled prices for strategic investors are based on the average price at IPOs.
This rule might undergo change, Nghia said at the luncheon organized by the European Chamber of Commerce in Vietnam (EuroCham). Therefore, there will be share auctions for only strategic investors before the IPOs.
However, he pointed out selling shares to staff of the four banks as a complicated issue that remains to be solved. He said there had been heated discussions about the staff's interests regarding to the number of their working years and shares for them as well as the interests of staff at the parent companies and subsidiaries.
He acknowledged that all the "humanitarian" issues were a hard nut to crack.
The Government permits the price of shares for staff to be 60% of the price set at public auctions.
There is a plan to equitize the Bank for Agriculture and Rural Development from 2008 and this job should be done by 2009, he said.
Nghia said the Government wanted to improve corporate governance for the banking sector through the equitization of the State-run banks.
Nghia stressed that Vietnam was implementing its commitments to the World Trade Organization and that the bilateral trade agreement with the US, under which the financial market will be opened up to foreign investors.
The Government allows foreign banks with total assets of at least US$20bil to open branches in Vietnam, and those with US$10bil or more to establish 100% foreign-owned banks and joint ventures with local banks.
Nghia said there were now six applications for opening, 100% foreign-owned banks but around 33 applications for new local banks.
Source: VNE
He told 70 EuroCham members and other participants at the Banking Equitization: Going Global" luncheon in HCMC on Tuesday that the initial public offerings (IPO) by these banks would be a little later than expected due to problems with finding strategic shareholders and sharing price.
The Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Investment and Development of Vietnam, the Industrial and Commercial Bank (Incombank) and the Mekong Delta Housing Development Bank earlier planned to launch IPOs by this October.
Tumbling blocks have also arisen as to selling shares to staff of these banks.
Nghia explained strategic investors considered the offered share prices too high. The Government has ruled prices for strategic investors are based on the average price at IPOs.
This rule might undergo change, Nghia said at the luncheon organized by the European Chamber of Commerce in Vietnam (EuroCham). Therefore, there will be share auctions for only strategic investors before the IPOs.
However, he pointed out selling shares to staff of the four banks as a complicated issue that remains to be solved. He said there had been heated discussions about the staff's interests regarding to the number of their working years and shares for them as well as the interests of staff at the parent companies and subsidiaries.
He acknowledged that all the "humanitarian" issues were a hard nut to crack.
The Government permits the price of shares for staff to be 60% of the price set at public auctions.
There is a plan to equitize the Bank for Agriculture and Rural Development from 2008 and this job should be done by 2009, he said.
Nghia said the Government wanted to improve corporate governance for the banking sector through the equitization of the State-run banks.
Nghia stressed that Vietnam was implementing its commitments to the World Trade Organization and that the bilateral trade agreement with the US, under which the financial market will be opened up to foreign investors.
The Government allows foreign banks with total assets of at least US$20bil to open branches in Vietnam, and those with US$10bil or more to establish 100% foreign-owned banks and joint ventures with local banks.
Nghia said there were now six applications for opening, 100% foreign-owned banks but around 33 applications for new local banks.
Source: VNE
Wednesday, June 20, 2007
Strategic partnerships booming
Strategic partnerships have become a popular option for businesses, especially in the volatile circumstances of the growing domestic stock market and growing globalisation.
The most notable agreement is a partnership between PetroVietnam and Lilama in the energy, cement, engineering manufacturing, shipbuilding, transport, real estate, finance and banking sectors. PetroVietnam and Lilama are also considering the possibility of trading shares and sharing investment capital to become founding shareholders.
The Hua Na hydroelectric project is one result of their agreement. The company, with chartered capital of VND1.2tril, was established to own the hydropower plant.
PetroVietnam has already signed a comprehensive agreement with Vietnam Airlines to start an air taxi joint stock company, while Lilama has inked a construction and banking services agreement with Military Bank.
Two State-run groups, Bao Viet and VNPT, recently signed a strategic co-operative agreement where by the former will be responsible for insuring property, equipment, human resource and other VNPT assets, while the latter will become the post and telecom service provider to Bao Viet.
In the distribution sector, the four biggest Vietnamese retailers, Ha Noi Trade Corporation (Hapro), Sai Gon Trade Corporation (Satra); Sai Gon Co-op and Phu Thai Group, have decided to join forces to set up Viet Nam Distribution Association Network (VDA), which is hoped will become the leading distribution and logistics group in Vietnam and will pre-empt and compete effectively with large foreign distributors.
Under its WTO commitments, Vietnam will open its distribution market in 2009. Meanwhile, giant distribution groups are already present in Vietnam, including Metro, Big C and Parkson. In the future Lotte Shopping, Carefour and Wal-mart are expected.
With an investment capital of VND1.5tril ($93.75mil) in the first period of investment (March 2007-October 2008) and VND3-6tril ($187.5-375mil) in the second (November 2008-October 2011), VDA will focus on the development of modern trade centres, supermarkets and hypermarkets, which are planned to control a majority share of the distribution market.
During its debut ceremony, VDA signed three strategic co-operative agreements with Viet Nam National Shipping Lines (Vinalines), Viet Nam Association of Seafood Exporters and Producers (VSAP) and Bank for Investment and Development of Viet Nam (BIDV).
Intel Vietnam has inked a MoU on co-operation with Electricity of Viet Nam (EVN) Group to implement IT solutions in the sector and so strengthen its competitiveness.
However the record to ink strategic agreements must go to Hanaka group joint stock company based in Bac Ninh Province, which has become strategic partners with 10 local and foreign companies such as Japanese Sumitomo, Korean Golden Bridge, Vietcombank and Bach Dang Shipyard.
Source: VNE
The most notable agreement is a partnership between PetroVietnam and Lilama in the energy, cement, engineering manufacturing, shipbuilding, transport, real estate, finance and banking sectors. PetroVietnam and Lilama are also considering the possibility of trading shares and sharing investment capital to become founding shareholders.
The Hua Na hydroelectric project is one result of their agreement. The company, with chartered capital of VND1.2tril, was established to own the hydropower plant.
PetroVietnam has already signed a comprehensive agreement with Vietnam Airlines to start an air taxi joint stock company, while Lilama has inked a construction and banking services agreement with Military Bank.
Two State-run groups, Bao Viet and VNPT, recently signed a strategic co-operative agreement where by the former will be responsible for insuring property, equipment, human resource and other VNPT assets, while the latter will become the post and telecom service provider to Bao Viet.
In the distribution sector, the four biggest Vietnamese retailers, Ha Noi Trade Corporation (Hapro), Sai Gon Trade Corporation (Satra); Sai Gon Co-op and Phu Thai Group, have decided to join forces to set up Viet Nam Distribution Association Network (VDA), which is hoped will become the leading distribution and logistics group in Vietnam and will pre-empt and compete effectively with large foreign distributors.
Under its WTO commitments, Vietnam will open its distribution market in 2009. Meanwhile, giant distribution groups are already present in Vietnam, including Metro, Big C and Parkson. In the future Lotte Shopping, Carefour and Wal-mart are expected.
With an investment capital of VND1.5tril ($93.75mil) in the first period of investment (March 2007-October 2008) and VND3-6tril ($187.5-375mil) in the second (November 2008-October 2011), VDA will focus on the development of modern trade centres, supermarkets and hypermarkets, which are planned to control a majority share of the distribution market.
During its debut ceremony, VDA signed three strategic co-operative agreements with Viet Nam National Shipping Lines (Vinalines), Viet Nam Association of Seafood Exporters and Producers (VSAP) and Bank for Investment and Development of Viet Nam (BIDV).
Intel Vietnam has inked a MoU on co-operation with Electricity of Viet Nam (EVN) Group to implement IT solutions in the sector and so strengthen its competitiveness.
However the record to ink strategic agreements must go to Hanaka group joint stock company based in Bac Ninh Province, which has become strategic partners with 10 local and foreign companies such as Japanese Sumitomo, Korean Golden Bridge, Vietcombank and Bach Dang Shipyard.
Source: VNE
Saturday, June 16, 2007
Vietnam bank, shipyard join hands to diversify
The state-run Vietcombank and major shipbuilder Vinalines inked a deal Tuesday to make joint investments.
Vietcombank, as the bank is known commonly, agreed to invest in Vinalines’s shipbuilding and seaport construction projects.
Vinalines plans to build two mammoth port complexes in the central Khanh Hoa province and northern Hai Phong city.
The two sides are also looking for more partners for the two projects.
In Khanh Hoa they will build a modern international port at an estimated cost of $169 million. Work is set to start on the first two berths later this year.
Van Phong Port plays a crucial role in the economic zone of the same name covering 150,000ha of land and water surface in the bay.
The other project, the Lach Huyen International Seaport, is expected to cost VND27 trillion ($1.6 billion) for infrastructure and berths. It will serve as an international gateway and a large transit port for the whole of northern Vietnam.
It is designed to accommodate vessels of between 60,000 and 80,000 TEUs (twenty-foot-equivalent units) and have annual cargo throughput of between 50 and 60 million tons when in full perform.
The first two berths are expected to be ready in 2010.
Duong Tri Dung, Vinalines chairman, said the tie-up with the bank was part of the corporation’s diversification strategy as well as equitization process. It planned to enter finance, banking, insurance, securities, electricity, infrastructure, real estate, and tourism.
The group was set to become one of the region’s top maritime groups by 2010 with revenues of more than VND20 trillion ($1.2 billion).
It plans to raise VND51 trillion ($3.2 billion) between 2006 and 2010 to invest in its shipping fleet and upgrade its ports.
This year it targeted to transport 24.8 million tons of cargo – a year-on-year jump of 8%, a record revenue of VND12 trillion ($750 million).
The company plans to purchase 29 more vessels with total capacity of 692,000 DWT (dead-weight-tons).
Vietcombank – the country’s second largest by assets is set to launch its IPO in July or August at the latest and list on the stock market by October, with the second shares auction to be conducted overseas next year. It is in the process to source out strategic foreign investors to participate in managing the structure of the bank.
After going public, the state will hold a 70% stake in the bank and the remaining 30% will go to investors via domestic and overseas IPOs. The bank plans to launch an IPO in Hong Kong or Singapore next year, where stock exchanges have recognized Vietcombank as qualifying under their basic requirements.
By the end of 2006, Vietcombank had assets of VND169.46 trillion ($10.06 billion), up 23.9% on year.
It made a net profit of VND2.47 trillion during the year, up 91.5% year on year, bank figures showed.
Source: Thanh Nien
Vietcombank, as the bank is known commonly, agreed to invest in Vinalines’s shipbuilding and seaport construction projects.
Vinalines plans to build two mammoth port complexes in the central Khanh Hoa province and northern Hai Phong city.
The two sides are also looking for more partners for the two projects.
In Khanh Hoa they will build a modern international port at an estimated cost of $169 million. Work is set to start on the first two berths later this year.
Van Phong Port plays a crucial role in the economic zone of the same name covering 150,000ha of land and water surface in the bay.
The other project, the Lach Huyen International Seaport, is expected to cost VND27 trillion ($1.6 billion) for infrastructure and berths. It will serve as an international gateway and a large transit port for the whole of northern Vietnam.
It is designed to accommodate vessels of between 60,000 and 80,000 TEUs (twenty-foot-equivalent units) and have annual cargo throughput of between 50 and 60 million tons when in full perform.
The first two berths are expected to be ready in 2010.
Duong Tri Dung, Vinalines chairman, said the tie-up with the bank was part of the corporation’s diversification strategy as well as equitization process. It planned to enter finance, banking, insurance, securities, electricity, infrastructure, real estate, and tourism.
The group was set to become one of the region’s top maritime groups by 2010 with revenues of more than VND20 trillion ($1.2 billion).
It plans to raise VND51 trillion ($3.2 billion) between 2006 and 2010 to invest in its shipping fleet and upgrade its ports.
This year it targeted to transport 24.8 million tons of cargo – a year-on-year jump of 8%, a record revenue of VND12 trillion ($750 million).
The company plans to purchase 29 more vessels with total capacity of 692,000 DWT (dead-weight-tons).
Vietcombank – the country’s second largest by assets is set to launch its IPO in July or August at the latest and list on the stock market by October, with the second shares auction to be conducted overseas next year. It is in the process to source out strategic foreign investors to participate in managing the structure of the bank.
After going public, the state will hold a 70% stake in the bank and the remaining 30% will go to investors via domestic and overseas IPOs. The bank plans to launch an IPO in Hong Kong or Singapore next year, where stock exchanges have recognized Vietcombank as qualifying under their basic requirements.
By the end of 2006, Vietcombank had assets of VND169.46 trillion ($10.06 billion), up 23.9% on year.
It made a net profit of VND2.47 trillion during the year, up 91.5% year on year, bank figures showed.
Source: Thanh Nien
Friday, June 15, 2007
US dollar appreciates in Viet Nam
The domestic market has seen some consolidation of the US dollar against the Vietnamese dong in recent days, running counter to the trend of decreasing prices in the gold market.
On June 14, the US dollar hit a peak of almost 16.125 VND on the unofficial market. The dollar was bought at 16,085 VND and sold at 16,120 VND by the Bank for Foreign Trade of Viet nam.
The situation has forced banks to increase savings interest rates on the US dollar.
The Ha Noi Housing Bank (Habubank) raised the annual rates by between 0.05% and 0.5% for all terms of savings deposits.
The Vietcombank branch in HCM City has also adjusted its savings interest rates to 5% a year for the 12-month term, which normally stood at between 4.6 and 4.9% before the recent surge in the US dollar value.
Source: VNA
On June 14, the US dollar hit a peak of almost 16.125 VND on the unofficial market. The dollar was bought at 16,085 VND and sold at 16,120 VND by the Bank for Foreign Trade of Viet nam.
The situation has forced banks to increase savings interest rates on the US dollar.
The Ha Noi Housing Bank (Habubank) raised the annual rates by between 0.05% and 0.5% for all terms of savings deposits.
The Vietcombank branch in HCM City has also adjusted its savings interest rates to 5% a year for the 12-month term, which normally stood at between 4.6 and 4.9% before the recent surge in the US dollar value.
Source: VNA
Saturday, May 26, 2007
Banks becoming multi-purpose financial groups
Many of the country's formerly state owned banks have been working hard to diversify their financial products and services range after completing their equitisation process.
Two in particular, the Bank for Foreign Trade of Viet Nam (Vietcombank) and the Bank for Investment and Development of Viet Nam (BIDV) have been aggressive in seeking out local strategic partnerships and investments in a multitude of areas, including large-scale infrastructure projects.
As a first step into infrastructure investment, Vietcombank - one of the largest commercial banks in the country - has followed suit by announcing that it would invest in the multi-billion USD Ha Noi-Hai Phong expressway project.
The bank has publicly stated that along with partners more cooperative agreements worth billions of USD are on the way.
BIDV has also found itself to be a major player by coming onboard with the Dak Drinh Hydro-electric Power Company, Sai Gon-Long Thanh-Dau Giay highway and Viet Nam-Laos hydroelectric plant projects.
Scheduled to be equitised by August 2008, the Bank for Agriculture and Rural Development (Agribank) has now completed all needed procedures to turn itself into a multi-ownership financial group.
Agribank is planning to become a holding firm with at least 11 subordinate joint stock companies that will operate in the fields of insurance, securities, finance leasing, trade services, financial investment, real estate and jewellery trading.
However, experts from the State Bank of Viet Nam have warned that it is imperative that the banks rapid expansion be met by increased managerial professionalism.
Source: VNA
Two in particular, the Bank for Foreign Trade of Viet Nam (Vietcombank) and the Bank for Investment and Development of Viet Nam (BIDV) have been aggressive in seeking out local strategic partnerships and investments in a multitude of areas, including large-scale infrastructure projects.
As a first step into infrastructure investment, Vietcombank - one of the largest commercial banks in the country - has followed suit by announcing that it would invest in the multi-billion USD Ha Noi-Hai Phong expressway project.
The bank has publicly stated that along with partners more cooperative agreements worth billions of USD are on the way.
BIDV has also found itself to be a major player by coming onboard with the Dak Drinh Hydro-electric Power Company, Sai Gon-Long Thanh-Dau Giay highway and Viet Nam-Laos hydroelectric plant projects.
Scheduled to be equitised by August 2008, the Bank for Agriculture and Rural Development (Agribank) has now completed all needed procedures to turn itself into a multi-ownership financial group.
Agribank is planning to become a holding firm with at least 11 subordinate joint stock companies that will operate in the fields of insurance, securities, finance leasing, trade services, financial investment, real estate and jewellery trading.
However, experts from the State Bank of Viet Nam have warned that it is imperative that the banks rapid expansion be met by increased managerial professionalism.
Source: VNA
Friday, May 25, 2007
Vietcombank to raise $435 mln in 2007
Vietnam's central bank has allowed state-run Bank for Foreign Trade (Vietcombank) to raise 7 trillion dong ($435 million) this year, state media reported on Friday.
The unlisted bank, Vietnam's third-largest by assets, would issue long-term debt, the Lao Dong (Labour) newspaper quoted a central bank directive as saying.
Hanoi-based Vietcombank, which had assets of $10.7 billion at the end of March, is expected to offer shares to the public for the first time in July or August and list six to eight weeks later.
Source: Reuters
The unlisted bank, Vietnam's third-largest by assets, would issue long-term debt, the Lao Dong (Labour) newspaper quoted a central bank directive as saying.
Hanoi-based Vietcombank, which had assets of $10.7 billion at the end of March, is expected to offer shares to the public for the first time in July or August and list six to eight weeks later.
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
Blue chip firms speculate in real estate
Vietnamese companies are increasingly moving from their traditional business platforms into real estate speculation and development in a bid to boost corporate values on the stock market.
High-profile firms like REE are widening their portfolios to include real estate speculation and property development
The shift has become order of the day for many firms eager to tap into a red hot real estate market that is generating huge profits for investors as demand currently heavily outweighs supply.
Refrigeration and Engineering Corporation (REE) is one company known for its mechanical and engineering business. The firm is now a high-profile real estate developer with five successful office projects in Ho Chi Minh City on the books and more on the way.
Last year, REE pocketed over $3 million from the lease of company-owned office space and expects to double that figure this year after opening a further 27,000 square metres in area two months ago.
REE has plans to increase its forays into the market with a $25 million investment that will see the company increase its leased floor space by an additional 65,000sqm.
Confectionery maker Kinh Do Corporation recently announced that it would invest 30% of its operating profits into property development with an office and residential complex for Ho Chi Minh City.
Battery producer Pinaco and the Saigon Garment Company (SGC) are other cases in point. Pinaco is preparing a share issuance to raise capital to build a new factory in Dong Nai province and is looking for partners to develop its current 20,000sqm site in Ho Chi Minh City's District 6. SGC also plans to build a small industrial complex and move its facilities out of town. The company will rebuild residential and office blocks on its current site.
Other firms, which are preparing for initial public offerings (IPO), are also building large offices to boost corporate values. Vietcombank is due for an IPO in October and has stated it will put up a 77,000sqm office block in the country's second city, while Bank for Investment and Development of Vietnam, Electricity of Vietnam, Bao Viet and Bao Minh are all building their own office buildings.
Real estate investments are not only boosting corporate profiles but are also bringing in tidy profits for companies not afraid to step away from their traditional business models. Grade A office monthly rental rates in Hanoi and Ho Chi Minh City now reach $38 per square metre and are expected to fetch up to $46 by next year. Housing and retail space demand is also strong with rents set to increase across the board.
Source: VNE
High-profile firms like REE are widening their portfolios to include real estate speculation and property development
The shift has become order of the day for many firms eager to tap into a red hot real estate market that is generating huge profits for investors as demand currently heavily outweighs supply.
Refrigeration and Engineering Corporation (REE) is one company known for its mechanical and engineering business. The firm is now a high-profile real estate developer with five successful office projects in Ho Chi Minh City on the books and more on the way.
Last year, REE pocketed over $3 million from the lease of company-owned office space and expects to double that figure this year after opening a further 27,000 square metres in area two months ago.
REE has plans to increase its forays into the market with a $25 million investment that will see the company increase its leased floor space by an additional 65,000sqm.
Confectionery maker Kinh Do Corporation recently announced that it would invest 30% of its operating profits into property development with an office and residential complex for Ho Chi Minh City.
Battery producer Pinaco and the Saigon Garment Company (SGC) are other cases in point. Pinaco is preparing a share issuance to raise capital to build a new factory in Dong Nai province and is looking for partners to develop its current 20,000sqm site in Ho Chi Minh City's District 6. SGC also plans to build a small industrial complex and move its facilities out of town. The company will rebuild residential and office blocks on its current site.
Other firms, which are preparing for initial public offerings (IPO), are also building large offices to boost corporate values. Vietcombank is due for an IPO in October and has stated it will put up a 77,000sqm office block in the country's second city, while Bank for Investment and Development of Vietnam, Electricity of Vietnam, Bao Viet and Bao Minh are all building their own office buildings.
Real estate investments are not only boosting corporate profiles but are also bringing in tidy profits for companies not afraid to step away from their traditional business models. Grade A office monthly rental rates in Hanoi and Ho Chi Minh City now reach $38 per square metre and are expected to fetch up to $46 by next year. Housing and retail space demand is also strong with rents set to increase across the board.
Source: VNE
Monday, May 14, 2007
Vietcombank's Q1 assets rise to $10.7 bln
Vietnamese state-run Bank for Foreign Trade (Vietcombank), which plans a domestic listing this year, said on Monday its assets at the end of March edged up 1.5% from the end of 2006 to 171.92 trillion dong ($10.7 billion).
In terms of assets, the Hanoi-based lender is Vietnam's third-largest bank after Agribank and Vietindebank.
Outstanding loans at the end of March rose 13.5% from the end of 2006 to 74.6 trillion dong ($4.6 billion), while corporate and individual deposits in the bank firmed 5.4% to 118 trillion dong ($7.3 billion), its financial report said.
The report released by the bank's stockbroking arm, Vietcombank Securities, did not give net profit for the first quarter.
In March Vietcombank Chief Executive Officer Vu Viet Ngoan told Reuters the bank's gross profit growth would slow to 10% this year due to rising competition.
Last year Vietcombank's gross profit nearly doubled from 2005 to 3.43 trillion dong ($213 million) and assets surged 24%.
Vietcombank has hired global investment bank Credit Suisse to advise on its partial privatisation. The IPO is expected in July or August, with a listing on the Ho Chi Minh City stock market following within six to eight weeks.
Source: Reuters
In terms of assets, the Hanoi-based lender is Vietnam's third-largest bank after Agribank and Vietindebank.
Outstanding loans at the end of March rose 13.5% from the end of 2006 to 74.6 trillion dong ($4.6 billion), while corporate and individual deposits in the bank firmed 5.4% to 118 trillion dong ($7.3 billion), its financial report said.
The report released by the bank's stockbroking arm, Vietcombank Securities, did not give net profit for the first quarter.
In March Vietcombank Chief Executive Officer Vu Viet Ngoan told Reuters the bank's gross profit growth would slow to 10% this year due to rising competition.
Last year Vietcombank's gross profit nearly doubled from 2005 to 3.43 trillion dong ($213 million) and assets surged 24%.
Vietcombank has hired global investment bank Credit Suisse to advise on its partial privatisation. The IPO is expected in July or August, with a listing on the Ho Chi Minh City stock market following within six to eight weeks.
Source: Reuters
Thursday, May 03, 2007
State-owned banks' rating upgraded
Fitch Ratings has upgraded the ratings of Vietnam's four leading state-owned commercial banks.
The ratings agency cited reasons for the upgrade as “better underlying profitability due to higher margins resulting from a higher interest rate and a shift towards more private-sector lending,” the report said.
The ratings for Bank for Investment and Development of Vietnam (BIDV) , Industrial and Commercial Bank (Incombank) of Vietnam and Vietnam Bank for Agriculture and Rural Development (Agribank) have been raised to ‘D/E’ from ‘E’, while the rating for the Bank for Foreign Trade of Vietnam's (Vietcombank) has been raised to ‘D’ from ‘D/E’.
The support ratings of the “big four” banks, which together account for about 75% of system-wide assets in Vietnam, remain unchanged at ‘4’.
The agency said though the Vietnamese government is willing to support the banks, its ability to do so could be constrained due to its own limited financial capacity as per its sovereign rating of 'BB-'.
In the case of all the banks' ratings, further upside potential could be limited, and indeed downside pressure could arise, if there was any deterioration in Vietnam's economy, Fitch said.
Source: Thanh Nien
The ratings agency cited reasons for the upgrade as “better underlying profitability due to higher margins resulting from a higher interest rate and a shift towards more private-sector lending,” the report said.
The ratings for Bank for Investment and Development of Vietnam (BIDV) , Industrial and Commercial Bank (Incombank) of Vietnam and Vietnam Bank for Agriculture and Rural Development (Agribank) have been raised to ‘D/E’ from ‘E’, while the rating for the Bank for Foreign Trade of Vietnam's (Vietcombank) has been raised to ‘D’ from ‘D/E’.
The support ratings of the “big four” banks, which together account for about 75% of system-wide assets in Vietnam, remain unchanged at ‘4’.
The agency said though the Vietnamese government is willing to support the banks, its ability to do so could be constrained due to its own limited financial capacity as per its sovereign rating of 'BB-'.
In the case of all the banks' ratings, further upside potential could be limited, and indeed downside pressure could arise, if there was any deterioration in Vietnam's economy, Fitch said.
Source: Thanh Nien
Tuesday, April 24, 2007
Government urges Vietcombank to maintain IPO schedule
The Vietnamese government has instructed State-owned Vietcombank, Vietnam’s second largest bank by assets to strictly adhere to the schedule for its initial public offering this year.
In a dispatch Monday, Deputy Prime Minister Nguyen Sinh Hung asked the bank to source out strategic foreign investors to participate in managing the structure of the bank.
Vietcombank is set to launch its IPO in July or August at the latest and list on the stock market by October, with the second shares auction to be conducted overseas next year.
The government will consult relevant agencies over the next four to five weeks, with the plan expected to receive final approval in June.
After going public, the state will hold a 70% stake in the bank and the remaining 30% will go to investors via domestic and overseas IPOs.
The bank plans to launch an IPO in Hong Kong or Singapore next year, where stock exchanges have recognized Vietcombank as qualifying under their basic requirements.
By the end of 2006, Vietcombank had assets of VND169.46 trillion ($10.06 billion), up 23.9% on year.
It made a net profit of VND2.47 trillion during the year, up 91.5% year on year, bank figures showed.
The bank has been rated BB/B by Standard & Poor’s, indicating prospects and internal capacity at D level, the highest rating for a financial institution in Vietnam.
Vietcombank is one of the four state-run banks ordered by the government to offer shares to the public this year.
The other three include Vietnam's third-largest bank Incombank and the Mekong Delta Housing Development Bank and the Bank for Agriculture and Rural Development , will follow in 2008.
Source: Thanh Nien equity mekong capital vinacapital
In a dispatch Monday, Deputy Prime Minister Nguyen Sinh Hung asked the bank to source out strategic foreign investors to participate in managing the structure of the bank.
Vietcombank is set to launch its IPO in July or August at the latest and list on the stock market by October, with the second shares auction to be conducted overseas next year.
The government will consult relevant agencies over the next four to five weeks, with the plan expected to receive final approval in June.
After going public, the state will hold a 70% stake in the bank and the remaining 30% will go to investors via domestic and overseas IPOs.
The bank plans to launch an IPO in Hong Kong or Singapore next year, where stock exchanges have recognized Vietcombank as qualifying under their basic requirements.
By the end of 2006, Vietcombank had assets of VND169.46 trillion ($10.06 billion), up 23.9% on year.
It made a net profit of VND2.47 trillion during the year, up 91.5% year on year, bank figures showed.
The bank has been rated BB/B by Standard & Poor’s, indicating prospects and internal capacity at D level, the highest rating for a financial institution in Vietnam.
Vietcombank is one of the four state-run banks ordered by the government to offer shares to the public this year.
The other three include Vietnam's third-largest bank Incombank and the Mekong Delta Housing Development Bank and the Bank for Agriculture and Rural Development , will follow in 2008.
Source: Thanh Nien equity mekong capital vinacapital
Monday, April 16, 2007
Vietcombank buys stake of Gia Dinh Commercial Bank
The Gia Dinh Commercial Joint Stock Bank plans to sell 30% of its stock to the Bank for Foreign Trade of Vietnam (Vietcombank) in late April.
Gia Dinh’s chartered capital, VND210 billion (US$13.125 million), is lowest among urban commercial joint stock banks in Vietnam at present. This bank has applied to the State Bank of Vietnam (SBV) to increase its chartered capital to VND500 billion ($31.25 million) by issuing shares. It has proposed selling shares worth VND150 billion ($.375 million) to Vietcombank, VND105 billion ($6.56 million) to its current shareholders and VND35 billion ($2.187 million) to the public in the form of auction.
Gia Dinh Bank’s network is quite modest, comprising its head office, three branches in HCM City and one in Hanoi. However, the involvement of Vietcombank would benefit the bank.
Source: VNE
Gia Dinh’s chartered capital, VND210 billion (US$13.125 million), is lowest among urban commercial joint stock banks in Vietnam at present. This bank has applied to the State Bank of Vietnam (SBV) to increase its chartered capital to VND500 billion ($31.25 million) by issuing shares. It has proposed selling shares worth VND150 billion ($.375 million) to Vietcombank, VND105 billion ($6.56 million) to its current shareholders and VND35 billion ($2.187 million) to the public in the form of auction.
Gia Dinh Bank’s network is quite modest, comprising its head office, three branches in HCM City and one in Hanoi. However, the involvement of Vietcombank would benefit the bank.
Source: VNE
Wednesday, April 04, 2007
Vietcombank and UBS sign strategic partnership
The Bank for Foreign Trade of Viet Nam (Vietcombank) has joined a strategic partnership with UBS Global Asset Management of Switzerland.
The agreement on cooperation in asset management, inked in Ha Noi on April 2, is expected to facilitate Vietnamese investment abroad.
UBS Global Asset Management President and CEO John Fraser said that Vietnamese individuals, businesses and organisations will be able to make investment in other markets through Vietcombank in various forms of bonds, shares or mandatory investment.
He also said Viet Nam is the 25th country that his company has chosen for cooperation in asset management, citing reasons for its choice as Viet Nam's improved role in the Asia-Pacific region as well as the country's more open and transparent policies.
Vietcombank will become an exclusive agent of UBS Asset Management in Viet Nam and will be assisted in personnel training and technology transfer related to asset management field.
An official from the Ministry of Planning and Investment (MPI) also said the cooperation will help boost services related to property management in Viet Nam. According to Phan Huu Thang, head of the MPI's Foreign Investment Department, with the surging of the economy and the stock market, a "golden chance" for the service will come in near future.
Source: VNA mekong capital equity vinacapital
The agreement on cooperation in asset management, inked in Ha Noi on April 2, is expected to facilitate Vietnamese investment abroad.
UBS Global Asset Management President and CEO John Fraser said that Vietnamese individuals, businesses and organisations will be able to make investment in other markets through Vietcombank in various forms of bonds, shares or mandatory investment.
He also said Viet Nam is the 25th country that his company has chosen for cooperation in asset management, citing reasons for its choice as Viet Nam's improved role in the Asia-Pacific region as well as the country's more open and transparent policies.
Vietcombank will become an exclusive agent of UBS Asset Management in Viet Nam and will be assisted in personnel training and technology transfer related to asset management field.
An official from the Ministry of Planning and Investment (MPI) also said the cooperation will help boost services related to property management in Viet Nam. According to Phan Huu Thang, head of the MPI's Foreign Investment Department, with the surging of the economy and the stock market, a "golden chance" for the service will come in near future.
Source: VNA mekong capital equity vinacapital
Tuesday, February 27, 2007
Vietcombank rated by Standard & Poor
The world’s leading credit rating firm Standard & Poor’s (S&P) has announced it gave BB/B to the Bank for Foreign Trade of Vietnam (Vietcombank).
According to the announcement, Vietcombank’s credit rating is at BB/B, outlook ‘stable’ and inner ability at ‘D’. The rating given by S&P to Vietcombank is equal to the national rating given by the same institution. This is the highest ranking S&P has given to a Vietnamese financial institution.
The ranking has well inflected the position of Vietcombank in Vietnam’s banking market and the outlook on possible support by the Government of Vietnam when necessary.
In the report about the rating, S&P emphasized the role and influence of the bank in the Vietnam’s banking system with its big competitiveness, big market share in capital mobilization, payment and card services. S&P thinks that in the future, Vietcomabank will retain its leading role in the domestic market if the bank strengthens its operation after the equitisation slated for this year.
S&P has suggested that Vietcombank should improve the operation in several fields, like diversifying clients, restructuring the turnover by raising the earnings from service fees.
Like other banks in Vietnam, the ranking given to Vietcombank could not exceed the ceiling ranking given to the national economy. Vietcombank is the third bank in Vietnam which apply international standardized credit rating, after the Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Technological and Commercial Joint Stock Bank (Techcombank).
S&P is also the insitution that gave a credit rating to the Government of Vietnam.
Source: VNE
According to the announcement, Vietcombank’s credit rating is at BB/B, outlook ‘stable’ and inner ability at ‘D’. The rating given by S&P to Vietcombank is equal to the national rating given by the same institution. This is the highest ranking S&P has given to a Vietnamese financial institution.
The ranking has well inflected the position of Vietcombank in Vietnam’s banking market and the outlook on possible support by the Government of Vietnam when necessary.
In the report about the rating, S&P emphasized the role and influence of the bank in the Vietnam’s banking system with its big competitiveness, big market share in capital mobilization, payment and card services. S&P thinks that in the future, Vietcomabank will retain its leading role in the domestic market if the bank strengthens its operation after the equitisation slated for this year.
S&P has suggested that Vietcombank should improve the operation in several fields, like diversifying clients, restructuring the turnover by raising the earnings from service fees.
Like other banks in Vietnam, the ranking given to Vietcombank could not exceed the ceiling ranking given to the national economy. Vietcombank is the third bank in Vietnam which apply international standardized credit rating, after the Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Technological and Commercial Joint Stock Bank (Techcombank).
S&P is also the insitution that gave a credit rating to the Government of Vietnam.
Source: VNE
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