VN-Index lost today little over 1% or 11.35 points and closes at 1054.69. 6,112110 shares were traded, 57 companies gained, 32 lost.
Today's 5 winners:
BMC +33 (4.95%), closing 699
SJS +17 (4.91%), closing 363
KDC +9 (4.61%), closing 204
NAV +9 (4.76%), closing 198
BMP +7 (3.31%), closing 218
Todays 5 losers:
FPT -28 (5.09%), closing 550
PVD -5 (2.0%), closing 250
SAM -5 (2.7%), closing 185
GMD -4 (2.38%), closing 168
REE -4 (2.32%), closing 172
HaSTC-Index closed almost 1 point or 0.29% lower than yesterday at 337.10, 1,777,900 shares were traded.
Tuesday, May 15, 2007
Japanese investors attracted by Vietnamese stock market
Vietnam’s stock market proves to attract Japanese securities investors, who hope to make high profit in the young market.
More and more foreign tourists come to Vietnam to open transaction accounts at Vietnamese securities companies, hoping to make high profit in the young market. It is estimated that 50-60% of them are Japanese.
To serve the increasingly high number of Japanese investors who come to open transaction accounts the Saigon Securities Incorporated (SSI) has set up a division specialising in dealing with Japanese investors.
Nguyen Huynh Bach Khoa, Deputy Head of the brokerage division, said that not only Japanese people who live and work in HCM City but Japanese tourists also were coming to open transaction accounts at the company.
Previously, some 5-10 accounts were opened every week, but the figure has risen to 40-50 in the last two months. SSI’s representative said that approximately 1,800 foreign investors had opened transaction accounts at SSI, including 1,500 Japanese investors.
Bao Viet Securities Company (BVSC) has also reported a sharp increase in the number of accounts opened at the company. According to Pham Thanh Hung, a staff at BVSC, the number of new foreign investor accounts has increased by 200-300% over 2006. Most Japanese investors are optimistic about their investment deals in Vietnam. They have said that they regret not coming to Vietnam sooner, and they do not want to delay their investment deals any more.
Omura, who is managing JAIC Fund in HCM City, said that Japanese investors were really very interested in Vietnam’s stock market. Previously, they just focused on four main markets, the BRIC (Brazil, Russia, India and China), but they are now shifting to make investment in Vietnam. They have realised that the said markets prove to be quite risky, while Vietnam, an emerging market, seems to bring stable profit. Making investment in Vietnam proves to be a good choice for Japanese investors, as they cannot make such a high profit margin in Japan, where the bank interest rate is very low, at 0.1-0.2% per annum.
Haru, who has just opened a transaction account at SSI, told a Nguoi lao dong reporter that she planned to make long-term investment in Vietnam, a young and developing market.
Leaders of securities companies said that most foreign investors believed that they could make high profit with their investment deals in Vietnam.
“Most of them are long-term investors, so they do not fear the ups and downs of the market. Some of them even consider the ups and downs as opportunities for investment,” they said.
Source: VNE
More and more foreign tourists come to Vietnam to open transaction accounts at Vietnamese securities companies, hoping to make high profit in the young market. It is estimated that 50-60% of them are Japanese.
To serve the increasingly high number of Japanese investors who come to open transaction accounts the Saigon Securities Incorporated (SSI) has set up a division specialising in dealing with Japanese investors.
Nguyen Huynh Bach Khoa, Deputy Head of the brokerage division, said that not only Japanese people who live and work in HCM City but Japanese tourists also were coming to open transaction accounts at the company.
Previously, some 5-10 accounts were opened every week, but the figure has risen to 40-50 in the last two months. SSI’s representative said that approximately 1,800 foreign investors had opened transaction accounts at SSI, including 1,500 Japanese investors.
Bao Viet Securities Company (BVSC) has also reported a sharp increase in the number of accounts opened at the company. According to Pham Thanh Hung, a staff at BVSC, the number of new foreign investor accounts has increased by 200-300% over 2006. Most Japanese investors are optimistic about their investment deals in Vietnam. They have said that they regret not coming to Vietnam sooner, and they do not want to delay their investment deals any more.
Omura, who is managing JAIC Fund in HCM City, said that Japanese investors were really very interested in Vietnam’s stock market. Previously, they just focused on four main markets, the BRIC (Brazil, Russia, India and China), but they are now shifting to make investment in Vietnam. They have realised that the said markets prove to be quite risky, while Vietnam, an emerging market, seems to bring stable profit. Making investment in Vietnam proves to be a good choice for Japanese investors, as they cannot make such a high profit margin in Japan, where the bank interest rate is very low, at 0.1-0.2% per annum.
Haru, who has just opened a transaction account at SSI, told a Nguoi lao dong reporter that she planned to make long-term investment in Vietnam, a young and developing market.
Leaders of securities companies said that most foreign investors believed that they could make high profit with their investment deals in Vietnam.
“Most of them are long-term investors, so they do not fear the ups and downs of the market. Some of them even consider the ups and downs as opportunities for investment,” they said.
Source: VNE
Construction material prices rising
Construction material producers all are planning to raise their selling prices to cover the higher input material prices.
Pham Chi Cuong, Chairman of the Vietnam Steel Association (VSA), said that the steel price keeps high, though the offered ingot steel has slightly decreased in the last couple of weeks. Explaining this, Mr Cuong said that steel mills now still use the ingot steel imported at high prices in the first quarter of the year.
In the north, round steel of the Thai Nguyen Cast Iron and Steel Company is selling at VND9,100/kg, while joint venture steel companies are offering at VND9,200/kg. In the south, the Southern Steel Corporation is selling round steel at VND9,150/kg, rolled steel at VND8,850/kg, while VinaKyoei at VND9,220/kg, and VND9,030/kg respectively.
The cement price has also been sharply increasing. In April, the sold volume of cement reached 3.5mil tones, according to the Vietnam Cement Association, raising the total consumed volume of cement in the first four months of the year to 11.18mil tones. The cement price stays at VND770,000-835,000/tonne in the north, and VND880,000-1mil/tonne in the south.
However, the prices of these products are bound to increase as the input material prices (coal, electricity, petrol) have increased.
Nguyen Van Nam, Director General of the Hoang Thach Cement Company, said that the higher input material prices have made the cement production cost increase by VND25-30,000/tonne. Meanwhile, the recent petrol price hike, which has caused the higher transport fee, has also put difficulties for cement producers. Hoang Thach’s cement is now selling at VND720,000/tonne (PCV 30) and VND750,000/tonne (PCV 40).
As the input material prices have increased in the last time, the HCM City People’s Committee has recently made the decision on allowing local enterprises to adjust the selling prices of steel and cement spontaneously. Local enterprises would be allowed to lower or raise the prices by 5% compared to the price levels announced by the HCM City Departments of Construction and Finance.
According to Mr Cuong from VSA, the ingot steel in stock by the end of April has reached 300,000 tonnes, enough to meet the demand for the production in May and June. The inventory finished steel is reportedly at 260,000 tonnes.
Experts said that the fact that China removes the scheme on 8% VAT refund to exporters would limit the exports of finished steel products to Vietnam. Less China-made steel would be imported to Vietnam as the product would be $35/tonne more expensive. As China-made steel would not be a big rival any more, local steel producers would be free raise the selling prices, which they have planned for a long time.
As for cement, though the inventory cement and clinker remain high at 2.1mil tones, and producers have promised to provide enough cement for the last months of the second quarter, the Taskforce on Domestic Market Monitoring has predicted that the cement price would increase in the second quarter.
According to the Vietnam Cement Corporation, the demand for cement would increase in the second quarter, the high construction season, estimated to reach 10-11mil tones. However, cement would not see sharp price increase as more cement plants will become operational in the time to come, ensuring the profuse supplies to the market.
Source: VNE
Pham Chi Cuong, Chairman of the Vietnam Steel Association (VSA), said that the steel price keeps high, though the offered ingot steel has slightly decreased in the last couple of weeks. Explaining this, Mr Cuong said that steel mills now still use the ingot steel imported at high prices in the first quarter of the year.
In the north, round steel of the Thai Nguyen Cast Iron and Steel Company is selling at VND9,100/kg, while joint venture steel companies are offering at VND9,200/kg. In the south, the Southern Steel Corporation is selling round steel at VND9,150/kg, rolled steel at VND8,850/kg, while VinaKyoei at VND9,220/kg, and VND9,030/kg respectively.
The cement price has also been sharply increasing. In April, the sold volume of cement reached 3.5mil tones, according to the Vietnam Cement Association, raising the total consumed volume of cement in the first four months of the year to 11.18mil tones. The cement price stays at VND770,000-835,000/tonne in the north, and VND880,000-1mil/tonne in the south.
However, the prices of these products are bound to increase as the input material prices (coal, electricity, petrol) have increased.
Nguyen Van Nam, Director General of the Hoang Thach Cement Company, said that the higher input material prices have made the cement production cost increase by VND25-30,000/tonne. Meanwhile, the recent petrol price hike, which has caused the higher transport fee, has also put difficulties for cement producers. Hoang Thach’s cement is now selling at VND720,000/tonne (PCV 30) and VND750,000/tonne (PCV 40).
As the input material prices have increased in the last time, the HCM City People’s Committee has recently made the decision on allowing local enterprises to adjust the selling prices of steel and cement spontaneously. Local enterprises would be allowed to lower or raise the prices by 5% compared to the price levels announced by the HCM City Departments of Construction and Finance.
According to Mr Cuong from VSA, the ingot steel in stock by the end of April has reached 300,000 tonnes, enough to meet the demand for the production in May and June. The inventory finished steel is reportedly at 260,000 tonnes.
Experts said that the fact that China removes the scheme on 8% VAT refund to exporters would limit the exports of finished steel products to Vietnam. Less China-made steel would be imported to Vietnam as the product would be $35/tonne more expensive. As China-made steel would not be a big rival any more, local steel producers would be free raise the selling prices, which they have planned for a long time.
As for cement, though the inventory cement and clinker remain high at 2.1mil tones, and producers have promised to provide enough cement for the last months of the second quarter, the Taskforce on Domestic Market Monitoring has predicted that the cement price would increase in the second quarter.
According to the Vietnam Cement Corporation, the demand for cement would increase in the second quarter, the high construction season, estimated to reach 10-11mil tones. However, cement would not see sharp price increase as more cement plants will become operational in the time to come, ensuring the profuse supplies to the market.
Source: VNE
Vietnamese stock market rife with opportunity
Asia-Pacific stock market analysts are lauding Viet Nam 's burgeoning bourses as being rife with opportunity and potential boons for foreign investors eager to clamber into South East Asia 's fastest growing markets.
Paul Masi, a Pacific Asia market specialist for global giant, Merrill Lynch, said that Viet Nam is one of the last bastions of the market place yet to be truly exploited and is home to massive potential for permanent growth.
Viet Nam 's exchanges have been in an ebullient atmosphere on the heels of sharp increases of the VN-index in particular, since 2006. The growth of the index has led all other markets in the region with more expected to come as the number of registered companies and bond and stock issuances on the exchange continues to mushroom.
Spencer White, also from Merrill Lynch shared the view of his colleague and pointed to Viet nam 's bonds markets as being highly undervalued and ripe for high returns.
Observers have credited much of the market growth to the Vietnamese government's policy of opening up over the last two decades and its continued release of its 10-15 year economic targets that have been instrumental in securing investor confidence.
Viet Nam’s GDP has been forecast to increase by 8,5 percent this year and it's presence on the international stage has been heightened thanks to its successful hosting of APEC last year and the inclusion into the world's largest trade body, the WTO early this year. Experts all point to these areas as key components that allow the country to attract greater amounts of foreign investment that in turn provides the platform for stock market growth.
Source: VNA
Paul Masi, a Pacific Asia market specialist for global giant, Merrill Lynch, said that Viet Nam is one of the last bastions of the market place yet to be truly exploited and is home to massive potential for permanent growth.
Viet Nam 's exchanges have been in an ebullient atmosphere on the heels of sharp increases of the VN-index in particular, since 2006. The growth of the index has led all other markets in the region with more expected to come as the number of registered companies and bond and stock issuances on the exchange continues to mushroom.
Spencer White, also from Merrill Lynch shared the view of his colleague and pointed to Viet nam 's bonds markets as being highly undervalued and ripe for high returns.
Observers have credited much of the market growth to the Vietnamese government's policy of opening up over the last two decades and its continued release of its 10-15 year economic targets that have been instrumental in securing investor confidence.
Viet Nam’s GDP has been forecast to increase by 8,5 percent this year and it's presence on the international stage has been heightened thanks to its successful hosting of APEC last year and the inclusion into the world's largest trade body, the WTO early this year. Experts all point to these areas as key components that allow the country to attract greater amounts of foreign investment that in turn provides the platform for stock market growth.
Source: VNA
State Bank of Vietnam intervene in AB Bank's increase of capital
The State Bank of Vietnam (SBV) has put brake on An Binh Commercial Joint Stock Bank’s (AB Bank) plan to more than triple its chartered capital to VND5 trillion from VND1.13 trillion due to the bank’s opaque dossier.
SBV required the bank to provide more sufficient information on its operations and was asked to explain the contents of a plan to expand credit policy and measures to develop human resources.
Capital expansion should be carried out in phases and approval of any capital increase phase must be based on the efficiency of the preceding phase, the central bank said.
SBV also directed the HCMC branch to verify conditions at AB Bank to issue convertible bonds before giving AB the nod.
AB Bank had earlier submitted an application to the HCMC branch of the SBV for a convertible bond issue worth VND5 trillion this year and next.
The bonds, at a face value of VND100,000, are to have two terms of 12 and 18 months, and will be converted into maturity shares.
Mobilized funds from the bond issue will be used to invest in the power sector and AB Bank.
It plans to scale up its chartered capital to VND7.5 trillion by late 2008 and VND10 trillion by late 2009 from the convertible bonds.
Source: Thanh Nien
SBV required the bank to provide more sufficient information on its operations and was asked to explain the contents of a plan to expand credit policy and measures to develop human resources.
Capital expansion should be carried out in phases and approval of any capital increase phase must be based on the efficiency of the preceding phase, the central bank said.
SBV also directed the HCMC branch to verify conditions at AB Bank to issue convertible bonds before giving AB the nod.
AB Bank had earlier submitted an application to the HCMC branch of the SBV for a convertible bond issue worth VND5 trillion this year and next.
The bonds, at a face value of VND100,000, are to have two terms of 12 and 18 months, and will be converted into maturity shares.
Mobilized funds from the bond issue will be used to invest in the power sector and AB Bank.
It plans to scale up its chartered capital to VND7.5 trillion by late 2008 and VND10 trillion by late 2009 from the convertible bonds.
Source: Thanh Nien
Monday, May 14, 2007
First rice trading first goes public
A small Vietnamese rice exporting company set on Monday a $2.8 million initial public offering, marking the first rice firm in the country to go public.
Vinh Long Import-Export Company, or Imexcuulong, planned to raise $1 million from selling 1,668,500 shares, or 37.08% of its total shares, at the May 30 auction, Acting Director Le Tuan said in a statement via the stock market.
The state will keep a 51% stake while the remaining 11.92% would be sold to employees, he said.
Imexcuulong, based in the Mekong delta province of Vinh Long, is valued at $2.8 million, based on the share's starting price set for bids at 10,100 dong (U.S. 62 cents) each.
Imexcuulong has not said when it planned a share listing.
Vietnam is the world's second-largest exporter of the grain after Thailand.
The company ships around 100,000 tonnes of rice annually to the Philippines, Indonesia, Africa and the Middle East. The volume is small when compared with 4.75 million tonnes Vietnam exported in 2006 and its target for 2007 of 5 million tonnes.
Acting director Tuan said Imexcuulong had a net profit of 2.3 billion dong ($143,000) in 2006 after facing losses in both 2004 and 2005.
The company has projected to nearly double its net profit to 4.32 billion dong ($268,000) this year, he said.
Source: Reuters
Vinh Long Import-Export Company, or Imexcuulong, planned to raise $1 million from selling 1,668,500 shares, or 37.08% of its total shares, at the May 30 auction, Acting Director Le Tuan said in a statement via the stock market.
The state will keep a 51% stake while the remaining 11.92% would be sold to employees, he said.
Imexcuulong, based in the Mekong delta province of Vinh Long, is valued at $2.8 million, based on the share's starting price set for bids at 10,100 dong (U.S. 62 cents) each.
Imexcuulong has not said when it planned a share listing.
Vietnam is the world's second-largest exporter of the grain after Thailand.
The company ships around 100,000 tonnes of rice annually to the Philippines, Indonesia, Africa and the Middle East. The volume is small when compared with 4.75 million tonnes Vietnam exported in 2006 and its target for 2007 of 5 million tonnes.
Acting director Tuan said Imexcuulong had a net profit of 2.3 billion dong ($143,000) in 2006 after facing losses in both 2004 and 2005.
The company has projected to nearly double its net profit to 4.32 billion dong ($268,000) this year, he said.
Source: Reuters
Sacombank's Jan-April profit nearly triples
Vietnam's sixth-largest lender, Saigon Thuong Tin Commercial Bank (Sacombank, STB), said its gross profit in the first four months of this year nearly tripled from a year ago to 413 billion dong ($25.6 million).
The Ho Chi Minh City-based bank said in a weekend statement seen on Monday that the four-month gross profit has risen 183% from a year earlier. It did not provide the net figure.
Sacombank raised 29.5 trillion dong ($1.83 billion) in deposits over the past four months while loans reached 18.7 trillion dong ($1.2 billion), the statement said.
Trading in Sacombank shares dominated Vietnam's main stock market on Monday with 1.25 million shares changing hands.
The stock gained 2.7% to close at 152,000 dong ($9.4) each, which valued the bank at $1.97 billion.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3% of Sacombank.
Last July Sacombank became the first bank in communist Vietnam to list on the Ho Chi Minh City stock market.
The VN Index ended up 2.54% at 1,066.04 points, up 41.8% so far this year and which is a steady rise from April 24 when it dropped to 905.53 points in a market correction.
Investor interest in the Southeast Asian country's robust economic growth of around 8% a year had driven the index up 55.7% from the end of 2006 to a lifetime high of 1,170.67 points on March 12.
Source: Reuters
The Ho Chi Minh City-based bank said in a weekend statement seen on Monday that the four-month gross profit has risen 183% from a year earlier. It did not provide the net figure.
Sacombank raised 29.5 trillion dong ($1.83 billion) in deposits over the past four months while loans reached 18.7 trillion dong ($1.2 billion), the statement said.
Trading in Sacombank shares dominated Vietnam's main stock market on Monday with 1.25 million shares changing hands.
The stock gained 2.7% to close at 152,000 dong ($9.4) each, which valued the bank at $1.97 billion.
The World Bank's International Finance Corp., Dragon Capital and ANZ Bank together own 26.3% of Sacombank.
Last July Sacombank became the first bank in communist Vietnam to list on the Ho Chi Minh City stock market.
The VN Index ended up 2.54% at 1,066.04 points, up 41.8% so far this year and which is a steady rise from April 24 when it dropped to 905.53 points in a market correction.
Investor interest in the Southeast Asian country's robust economic growth of around 8% a year had driven the index up 55.7% from the end of 2006 to a lifetime high of 1,170.67 points on March 12.
Source: Reuters
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
Exchange rates may trip economy in 2007
State Bank difficulties in managing foreign exchange rates over the past seven months could remain the biggest challenge to the economy in 2007, according to a United Nations economic survey.
The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has forecast that major currencies in the region will appreciate as a result of capital inflows. UNDP’s senior country economist Jonathan Pincus said Vietnam’s success in attracting foreign direct investment, portfolio investment, remittances and official development assistance would cause the Vietnamese dong to appreciate against the US dollar if the State Bank did not introduce appropriate checking measures.
So far this year, the dong has gained 0.3% against the US dollar, currently sitting at VND16,047 per dollar despite an earlier State Bank plan to slightly depreciate the local currency by 1% to maintain trading competitiveness.
Since September 2006, local banks have experienced US dollar surpluses for the first time with massive dollar inflows into the booming stock exchange and sharp increases in FDI attraction. This situation has put pressure on the State Bank, as the ultimate purchaser of local banks’ dollar surpluses, to revalue local currency.
“Exchange rate management has become more challenging with the massive growth of local bourses, because a minor change in the rate could have a wide-range of effects,” said Phi Dang Minh, head of the State Bank’s Foreign Exchange Department.
UNESCAP’s statistics show by 2006, with more than 200 listed joint stock companies,
Vietnam’s market capitalisation stood at just $14 billion, or 22.4% of GDP. But, according to the World Bank’s latest report, market capitalisation to date has reached $24.4 billion - 39.2% of GDP. According to estimates, from November 2006 to March 2007, foreign investors have injected about $4 billion into local bourses.
Additionally, over the first four months of 2007, Vietnam has lured $3.51 billion via foreign direct investment, recording 54.7% growth against 2006.
According to an official from Vietcombank’s Foreign Exchange department, local banks are still in dollar surpluses, resulting in banks’ lower dollar trading price than State Bank’s official rate.
In early 2007, local banks were allowed by the State Bank to trade up to 0.5% either side of the daily published official rate from a previous percentage of 0.25.
“A wider trading band for domestic transactions is a good thing to the extent that it allows minor adjustments to take place in the official market rather than in the informal market.
“But, careful supervision of banks and development of more sophisticated instruments to control the money supply are needed to ensure that financial liberalisation does not weaken the capacity of the State Bank to manage the exchange rate while keeping inflation in check,” said Pincus.
Source: VNE
The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) has forecast that major currencies in the region will appreciate as a result of capital inflows. UNDP’s senior country economist Jonathan Pincus said Vietnam’s success in attracting foreign direct investment, portfolio investment, remittances and official development assistance would cause the Vietnamese dong to appreciate against the US dollar if the State Bank did not introduce appropriate checking measures.
So far this year, the dong has gained 0.3% against the US dollar, currently sitting at VND16,047 per dollar despite an earlier State Bank plan to slightly depreciate the local currency by 1% to maintain trading competitiveness.
Since September 2006, local banks have experienced US dollar surpluses for the first time with massive dollar inflows into the booming stock exchange and sharp increases in FDI attraction. This situation has put pressure on the State Bank, as the ultimate purchaser of local banks’ dollar surpluses, to revalue local currency.
“Exchange rate management has become more challenging with the massive growth of local bourses, because a minor change in the rate could have a wide-range of effects,” said Phi Dang Minh, head of the State Bank’s Foreign Exchange Department.
UNESCAP’s statistics show by 2006, with more than 200 listed joint stock companies,
Vietnam’s market capitalisation stood at just $14 billion, or 22.4% of GDP. But, according to the World Bank’s latest report, market capitalisation to date has reached $24.4 billion - 39.2% of GDP. According to estimates, from November 2006 to March 2007, foreign investors have injected about $4 billion into local bourses.
Additionally, over the first four months of 2007, Vietnam has lured $3.51 billion via foreign direct investment, recording 54.7% growth against 2006.
According to an official from Vietcombank’s Foreign Exchange department, local banks are still in dollar surpluses, resulting in banks’ lower dollar trading price than State Bank’s official rate.
In early 2007, local banks were allowed by the State Bank to trade up to 0.5% either side of the daily published official rate from a previous percentage of 0.25.
“A wider trading band for domestic transactions is a good thing to the extent that it allows minor adjustments to take place in the official market rather than in the informal market.
“But, careful supervision of banks and development of more sophisticated instruments to control the money supply are needed to ensure that financial liberalisation does not weaken the capacity of the State Bank to manage the exchange rate while keeping inflation in check,” said Pincus.
Source: VNE
Sunday, May 13, 2007
Techcombank releases quarterly figures
The Technological Commercial Joint Stock Bank (Techcombank) earned over 721 billion VND (45 million USD) in turnover in the first four months of this year, the bank reported.
The bank said that its pretax profit had exceeded 80 billion VND in April alone, up 30% over the previous month. Four month’s pretax profits totalled 188.7 billion VND.
Total capital mobilised by April 30 reached 20.566 billion, up 85% from the same period last year, the bank said.
Source: VNA
The bank said that its pretax profit had exceeded 80 billion VND in April alone, up 30% over the previous month. Four month’s pretax profits totalled 188.7 billion VND.
Total capital mobilised by April 30 reached 20.566 billion, up 85% from the same period last year, the bank said.
Source: VNA
Friday, May 11, 2007
Vietnamese stock markets close stronger
Vietnamese stocks finished the week on a strong buying binge Friday that prompted a jump on both the Ho Chi Minh City and Hanoi indexes.
HCMC’s VN-Index gained 19.59 points, or 1.92 percent to close at 1039.63. And Hanoi’s HASTC increased 4.41 points, or 1.33 percent to close at 335.48.
There were 62 gainers and 19 losers out of the 107 stocks listed in HCMC.
Investors bid for 9.82 million shares, up 41 percent over Thursday supply fell by 23 percent to 7.2 million shares.
The bourse closed after 4.3 million shares changed hands for VND644 billion (US$29.7 million), up 15 percent and 5.7 percent respectively over Thursday.
Many blue chips were among the gainers – FPT, STB, SJS, VIP and KHA – all of which hit the 5 percent limit.
STB took the market lead in terms of both liquidity and trading value with 981,410 shares traded for VND144 billion.
Eleven big corporations including STB, REE, PPC, PVD and FPT made up 65 percent of the market’s total trading volume.
Of the two mutual funds, PRUBF1 stood still at VND13,900 while VFMVF1 gained nearly 3 percent to close at VND33,900.
Foreign investors remained active players despite their low buying volume. They invested VND123 billion, down 49 percent, in 827,110 shares. They focused their buys on heavyweights like VSH, PPC, PVD and VIP.
Up the north, the Hanoi market saw trading volume and turnover up by 40 percent and 50 percent respectively to 1.3 million shares and VND183 billion.
HCMC’s VN-Index gained 19.59 points, or 1.92 percent to close at 1039.63. And Hanoi’s HASTC increased 4.41 points, or 1.33 percent to close at 335.48.
There were 62 gainers and 19 losers out of the 107 stocks listed in HCMC.
Investors bid for 9.82 million shares, up 41 percent over Thursday supply fell by 23 percent to 7.2 million shares.
The bourse closed after 4.3 million shares changed hands for VND644 billion (US$29.7 million), up 15 percent and 5.7 percent respectively over Thursday.
Many blue chips were among the gainers – FPT, STB, SJS, VIP and KHA – all of which hit the 5 percent limit.
STB took the market lead in terms of both liquidity and trading value with 981,410 shares traded for VND144 billion.
Eleven big corporations including STB, REE, PPC, PVD and FPT made up 65 percent of the market’s total trading volume.
Of the two mutual funds, PRUBF1 stood still at VND13,900 while VFMVF1 gained nearly 3 percent to close at VND33,900.
Foreign investors remained active players despite their low buying volume. They invested VND123 billion, down 49 percent, in 827,110 shares. They focused their buys on heavyweights like VSH, PPC, PVD and VIP.
Up the north, the Hanoi market saw trading volume and turnover up by 40 percent and 50 percent respectively to 1.3 million shares and VND183 billion.
Eximbank increases equity capital
The Vietnam Export-Import Commercial Bank, or Eximbank, has acquired the nod from the central bank to scale up its chartered capital to VND2.8 trillion from the current VND1.2 trillion via share issues.
As planned, the bank will issue more than 1.58 million shares with a face value of VND1 million each.
Late this month, it will use last year’s profit and surplus equities to issue over 657,700 shares to existing shareholders who were registered before December 31. They will be allowed to buy 54 shares for every 100 already held.
In July, Eximbank will also sell 368,000 shares at the face value to existing shareholders registered by June 22 this year, allowing them to obtain one new share for every five shares held.
The bank will issue more than 495,800 shares to local strategic partners at negotiated prices on the condition that these partners must hold 20 percent of their stakes for at least one year and the remainder for at least three years.
It will also issue 56,000 shares at the face value to its staff.
The lender obtained VND215 billion in pre-tax profits in the year’s first four months, a whopping 112 percent jump over the same period last year. Its total assets were VND19.3 trillion, up 62 percent year-on-year.
Source: Thanh Nien
As planned, the bank will issue more than 1.58 million shares with a face value of VND1 million each.
Late this month, it will use last year’s profit and surplus equities to issue over 657,700 shares to existing shareholders who were registered before December 31. They will be allowed to buy 54 shares for every 100 already held.
In July, Eximbank will also sell 368,000 shares at the face value to existing shareholders registered by June 22 this year, allowing them to obtain one new share for every five shares held.
The bank will issue more than 495,800 shares to local strategic partners at negotiated prices on the condition that these partners must hold 20 percent of their stakes for at least one year and the remainder for at least three years.
It will also issue 56,000 shares at the face value to its staff.
The lender obtained VND215 billion in pre-tax profits in the year’s first four months, a whopping 112 percent jump over the same period last year. Its total assets were VND19.3 trillion, up 62 percent year-on-year.
Source: Thanh Nien
VIBank and Petrovietnam Finance start cooperation
Vietnam International Bank (VIB) has entered into a strategic partnership with a financial offshoot of the state-run oil and gas PetroVietnam.
Following the deal clinched Wednesday, VIB and PetroVietnam Finance Co., (PVFC) will assist each other with finance consulting, payment services, credit and fund settlements and investment.
The agreement sees both parties pledging to use each other’s products and services and promote joint investment projects.
VIB Bank had petitioned to withdraw its listing on the Hanoi Securities Trading Center (HASTC) late last year, citing an inability to complete necessary procedures.
No further information about the bank’s future listing has been released.
The country's 10th-largest bank by assets won central bank approval to apply for listing on the Hanoi exchange last November.
But unlike several banks which have sold shares to foreign investors, VIB has yet to take foreign investors on board.
VIB was founded in early 1996 by a number of institutions, including the state-run Agribank and Vietcombank, Vietnam's largest bank, along with private businessmen.
The bank did not say how much of VIB was owned by the two state-run banks.
A new wave of teamwork among banks has hit Vietnam as well as many recent bank-corporation collaborations. The trend generally targets the enhancement of finance power and management capacity.
It could be an effective way for domestic firms to brace against a flood of competition from foreign players.
Source: Thanh Nien
Following the deal clinched Wednesday, VIB and PetroVietnam Finance Co., (PVFC) will assist each other with finance consulting, payment services, credit and fund settlements and investment.
The agreement sees both parties pledging to use each other’s products and services and promote joint investment projects.
VIB Bank had petitioned to withdraw its listing on the Hanoi Securities Trading Center (HASTC) late last year, citing an inability to complete necessary procedures.
No further information about the bank’s future listing has been released.
The country's 10th-largest bank by assets won central bank approval to apply for listing on the Hanoi exchange last November.
But unlike several banks which have sold shares to foreign investors, VIB has yet to take foreign investors on board.
VIB was founded in early 1996 by a number of institutions, including the state-run Agribank and Vietcombank, Vietnam's largest bank, along with private businessmen.
The bank did not say how much of VIB was owned by the two state-run banks.
A new wave of teamwork among banks has hit Vietnam as well as many recent bank-corporation collaborations. The trend generally targets the enhancement of finance power and management capacity.
It could be an effective way for domestic firms to brace against a flood of competition from foreign players.
Source: Thanh Nien
SSI to open new branches
Saigon Securities Inc has announced that it would open three new branches in the coming months as the firm inaugurated its new headquarters.
In HCM City, Saigon Securities (SSI) will open a new Nguyen Thi Minh Khai Street branch this month and another will be launched on Bui Thi Xuan Street, said deputy general director Nguyen Hong Nam.
Outside of HCM City and Ha Noi, the firm's only other branch is in Hai Phong. SSI expects to expand its network to other cities and provinces beginning in 2008, said Nam.
Source: VNA
In HCM City, Saigon Securities (SSI) will open a new Nguyen Thi Minh Khai Street branch this month and another will be launched on Bui Thi Xuan Street, said deputy general director Nguyen Hong Nam.
Outside of HCM City and Ha Noi, the firm's only other branch is in Hai Phong. SSI expects to expand its network to other cities and provinces beginning in 2008, said Nam.
Source: VNA
Bao Viet Insurance to raise 112.5 mln USD in IPO
Bao Viet, Vietnam's largest insurance firm, said on Friday it expected to raise at least $112.5 million in an initial public offering this month.
The company will offer 59.44 million shares, or 8.74% of its total share capital, on May 31.
Bao Viet, formally called The Vietnam Insurance Corporation, set the starting price at 30,500 dong ($1.89) for bids at the auction on May 31 at the over-the-counter Hanoi Securities Trading Center, the exchange said in a statement.
The Hanoi-based firm, which sells both life and non-life policies, would be valued at $1.3 billion at the starting price. It has a registered capital of 6.8 trillion dong ($422 million).
Foreign investors are allowed to buy up to 13.6 million shares at the auction, but insurance firms operating in Vietnam, their related investment funds and Bao Viet subsidiaries are excluded, it said.
Communist-ruled Vietnam limits foreign ownership of a non-bank listed company to 49%.
The Finance Ministry, which controls Bao Viet, has said the insurer would sell 18% of its shares to foreign investors and the state would retain 65.34% ownership.
After the IPO, Bao Viet would also sell 0.7% to employees and the remaining 7.22% to strategic investors.
The Hanoi exchange and Bao Viet did not say why the IPO was delayed from May 17, the date announced originally, but chief executive Nguyen Thi Phuc Lam said this week Bao Viet would complete its partial privatisation by the end of May.
Bao Viet had assets of nearly 17 trillion dong ($1.05 billion) at the end of 2006.
Its revenues grew 19% per year between 1995 and 2005. Last year, it had revenues of 7 trillion dong ($434 million), of which premiums made up 5.5 trillion dong, or 37% of the premiums in Vietnam's insurance sector.
Bao Viet Securities (BVS), a Bao Viet subsidiary, listed on the Hanoi exchange in December. The securities firm is a new business as Bao Viet plans to branch out into banking, financial leasing, real estate and public health insurance.
On Monday, Bao Viet signed a strategic cooperation agreement with Vietnam Posts and Telecommunications group.
"Both sides will prioritise in contributing funds to each other's projects and could become each other's strategic shareholders in future," Lam was quoted by state media as saying at the signing ceremony.
Vietnam's insurance sector has grown rapidly in recent years, in line with an economy which the government expects to expand 8.5% this year after growth of more than 8% in 2005 and 2006.
Source: Reuters
The company will offer 59.44 million shares, or 8.74% of its total share capital, on May 31.
Bao Viet, formally called The Vietnam Insurance Corporation, set the starting price at 30,500 dong ($1.89) for bids at the auction on May 31 at the over-the-counter Hanoi Securities Trading Center, the exchange said in a statement.
The Hanoi-based firm, which sells both life and non-life policies, would be valued at $1.3 billion at the starting price. It has a registered capital of 6.8 trillion dong ($422 million).
Foreign investors are allowed to buy up to 13.6 million shares at the auction, but insurance firms operating in Vietnam, their related investment funds and Bao Viet subsidiaries are excluded, it said.
Communist-ruled Vietnam limits foreign ownership of a non-bank listed company to 49%.
The Finance Ministry, which controls Bao Viet, has said the insurer would sell 18% of its shares to foreign investors and the state would retain 65.34% ownership.
After the IPO, Bao Viet would also sell 0.7% to employees and the remaining 7.22% to strategic investors.
The Hanoi exchange and Bao Viet did not say why the IPO was delayed from May 17, the date announced originally, but chief executive Nguyen Thi Phuc Lam said this week Bao Viet would complete its partial privatisation by the end of May.
Bao Viet had assets of nearly 17 trillion dong ($1.05 billion) at the end of 2006.
Its revenues grew 19% per year between 1995 and 2005. Last year, it had revenues of 7 trillion dong ($434 million), of which premiums made up 5.5 trillion dong, or 37% of the premiums in Vietnam's insurance sector.
Bao Viet Securities (BVS), a Bao Viet subsidiary, listed on the Hanoi exchange in December. The securities firm is a new business as Bao Viet plans to branch out into banking, financial leasing, real estate and public health insurance.
On Monday, Bao Viet signed a strategic cooperation agreement with Vietnam Posts and Telecommunications group.
"Both sides will prioritise in contributing funds to each other's projects and could become each other's strategic shareholders in future," Lam was quoted by state media as saying at the signing ceremony.
Vietnam's insurance sector has grown rapidly in recent years, in line with an economy which the government expects to expand 8.5% this year after growth of more than 8% in 2005 and 2006.
Source: Reuters
Thursday, May 10, 2007
Bank share prices drop dramatically in OTC market
The prices of nearly all bank share items have been falling in the OTC market . Several share items have witnessed the dramatic price decrease of 50%.
To date, only ACB and Sacombank have listed their shares on the official stock market, while the other 20 bank share items are being traded in the OTC market.
In the period right after the traditional Tet, prices of all bank share items skyrocketed. VP Bank and VIB Bank shares once hit the VND140,000/share level, while SHB shares once sold at VND70,000/share, and shares of An Binh, at VND90,000/share.
Meanwhile, ACB shares, one of the blue chips, is now being traded at VND170,000 only on the official bourse, much lower than the highest peak at VND300,000/share seen in the days just after Tet.
VP Bank shares have been hovering at VND65,000 for the last week, while SHB shares are now selling at VND50-55,000/share, and ABBank, at VND60,000/share.
The stock market has entered a new stage, the stage of ‘deep adjustment’ as described by analysts, when share prices, which were abnormally high in the last time, decrease to become closer to their actual value. The sharp price decrease of bank shares is a part of the adjustment.
In fact, many share items have seen the impressive fall of 30-50% from their highest peaks.
ACB, Sacombank, Techcombank, EAB and MB shares are still leading the blue chip group, which see trading prices 10-17 fold higher than the face values of their stocks. The second group of shares includes Habubank, VIB Bank, ABBank, VPBank, Southern Bank, the market prices of which are 6-9 times higher than their face values.
Analysts have said that it is the right time to inject money in bank shares, as bank share prices are at low levels and there are signs of recovery. They said that wise investors would buy bank shares at this moment in anticipation of the new upturn in share prices.
In fact, bank shares prove to be the stocks that most investors want to inject money in. The banking sector has great potential and is an attractive destination for foreign investment. It is estimated that total outstanding loans just account for 60% of GDP, while the figure is 150% in China. Vietnam has the population of 84mil, while there are only 5mil bank accounts, several hundred thousand credit cards and some 3mil ATM cards.
Banks have reported good business performances for the first quarter of the year. The Military Bank fulfilled 50% of its yearly business plan within the first four months of the year (VND174.7bil or $10.91mil of profit). The pretax profit of Techcombank was VND188.7bil ($11.79mil), while the figure of Sacombank was VND413bil ($25.81mil).
Source: VNN
To date, only ACB and Sacombank have listed their shares on the official stock market, while the other 20 bank share items are being traded in the OTC market.
In the period right after the traditional Tet, prices of all bank share items skyrocketed. VP Bank and VIB Bank shares once hit the VND140,000/share level, while SHB shares once sold at VND70,000/share, and shares of An Binh, at VND90,000/share.
Meanwhile, ACB shares, one of the blue chips, is now being traded at VND170,000 only on the official bourse, much lower than the highest peak at VND300,000/share seen in the days just after Tet.
VP Bank shares have been hovering at VND65,000 for the last week, while SHB shares are now selling at VND50-55,000/share, and ABBank, at VND60,000/share.
The stock market has entered a new stage, the stage of ‘deep adjustment’ as described by analysts, when share prices, which were abnormally high in the last time, decrease to become closer to their actual value. The sharp price decrease of bank shares is a part of the adjustment.
In fact, many share items have seen the impressive fall of 30-50% from their highest peaks.
ACB, Sacombank, Techcombank, EAB and MB shares are still leading the blue chip group, which see trading prices 10-17 fold higher than the face values of their stocks. The second group of shares includes Habubank, VIB Bank, ABBank, VPBank, Southern Bank, the market prices of which are 6-9 times higher than their face values.
Analysts have said that it is the right time to inject money in bank shares, as bank share prices are at low levels and there are signs of recovery. They said that wise investors would buy bank shares at this moment in anticipation of the new upturn in share prices.
In fact, bank shares prove to be the stocks that most investors want to inject money in. The banking sector has great potential and is an attractive destination for foreign investment. It is estimated that total outstanding loans just account for 60% of GDP, while the figure is 150% in China. Vietnam has the population of 84mil, while there are only 5mil bank accounts, several hundred thousand credit cards and some 3mil ATM cards.
Banks have reported good business performances for the first quarter of the year. The Military Bank fulfilled 50% of its yearly business plan within the first four months of the year (VND174.7bil or $10.91mil of profit). The pretax profit of Techcombank was VND188.7bil ($11.79mil), while the figure of Sacombank was VND413bil ($25.81mil).
Source: VNN
Who is the most valuable CEO?
The Refrigeration Electrical Engineering Corporation (REE) created a ‘revolution’ of salary for its CEO Nguyen Thi Mai Thanh. All shareholders attending the REE shareholders’ meeting held in late March 2007 voted to increase Ms Thanh’s wage from VND48 million (US$3,000) per month in 2006 to VND100 million ($6,200) per month this year.
REE shareholders call this a ‘revolution’ because Ms Thanh’s wage had not changed in the previous three years (under a labour contract signed on January 1, 2004, Ms Thanh’s salary is VND48 million per month) and now it has increased by more than two times.
An official of REE commented: “It is understandable to see Ms Mai Thanh’s wage rising like this because this number must be equivalent to the annual growth of REE.”
A human resources expert said that the wages of CEOs of firms listed in the Vietnamese stock market meets the current situation on the market for senior human resources of Vietnam. However, wages are only the easy-to-see part of income of CEOs because the thing that keeps them close to listed firms is that the volume of shares they and their family members own increases each time their companies issue bonus shares and new shares to increase capital.
High bonuses calculated based on the percentage of after-tax profit of the corporations are also a way to retain senior personnel.
Ms Thanh is one of the CEOs of listed companies who began as a state employee. Other CEOs of the same kind include Ms Mai Kieu Lien, Chairman and CEO of the Vietnam Dairy Product Company (Vinamilk), Mr Le Quang Doanh, Chairman and CEO of Binh Minh Plastic Company (BMP), and Ms Pham Thi Viet Nga, Chairman and CEO of the Hau Giang Pharmaceutical Company.
The common thing of those CEOs is that after equitisation they were trusted and appointed to be the representative of the State in the equitised firms. Their fast adaptation to their new working environments has also been highly praised by investors.
The CEO of a fund management company said: “I like Ms Mai Thanh’s to-the-fullest working style. Once my fund was about to issue more fund certificates, she called me at night to ask about the upcoming form of issuance so that REE could buy. I don’t know how she could work that hard, but such is the way of a businessperson who always considers the interest of his company.”
However, many shareholders are beginning to ask if it is in fact good for listed firms to have CEOs who were previously state employees and have stayed in their positions for so long. Because, according to human resources experts, one who sits in a position for a long time will become idle and lack new ideas.
Stock investors admire the group of CEOs who they call ‘two in one’ the most. These are real owners and businessmen, who are considered the richest on the Vietnamese bourse based on the volume and the value of shares they own.
Some big names are Tran Kim Thanh and Tran Le Nguyen of the Kinh Do Group, Truong Gia Binh of the Corporation for Financing and Promoting Technology (FPT), Dang Thanh Tam of the Tan Tao Industrial Zone JS Company (ITACO), Le Van Quang of Company, and Nguyen Duy Hung of the Saigon Securities Trading JS Company (SSI). Wages are no longer important to those CEOs because they are the biggest shareholders of the companies they lead.
Dang Thanh Tam, who has just left the CEO position of ITACO to assume a new post at the HCM City Hi-tech Park, is an example of this kind of CEO. But only several people know that the biggest ability of Mr Tam is designing projects. Projects of thousands of pages are always attractive to this CEO since this man wrote the first lines for the project to establish the Tan Tao Industrial Zone in HCM City.
Mr Tam is also very good at speaking English. He can directly negotiate with foreign partners without translators. He is also an ‘anonymous lawyer’ because he widely understands both Vietnamese and international laws on economics. During his foreign business trips, Ms Tam plays the role of a CEO, a translator, and a lawyer. Thus, he can make decisions very quickly and doesn’t need time to seek outside consultancy.
However, stock investors are still waiting for a new generation of young businessmen who will blow new and strong winds into listed firms. They are professional CEOs who are trained methodically and systematically and have tempered themselves in the international environment.
Phan Bich Van, CEO of Saigon Thuong Tin Bank (Sacombank), is an example. Ms Van worked for the International Finance Company (IFC) under the World Bank and won a Fulbright scholarship to study for a Master’s of Business Administration in the US before working for Sacombank.
As the representative for Sacombank at international workshops, Ms Van has won the hearts of participants with her charm, self-confidence, which have contributed to creating the image of young, talented and professional CEOs of Vietnam in the eyes of international investors.
According to investors, two CEOs considered the most ‘expensive’ in the Vietnamese stock market based on their annual income and success in business affairs are Don Lam, CEO of VinaCapital, and Dominic Scriven, CEO of Dragon Capital.
Don Lam graduated from Toronto University in Canada, majoring in trade and politics, in 1990. He was previously Deputy General Director of PricewaterhouseCoopers Vietnam, in charge of corporate finance consulting and management consulting and Manager in charge of corporate of the Deustche Bank Vietnam.
Dominic Scriven graduated with honours in law and social studies from Exeter University, the UK. He has 15 years of experience in the field of investment, including 13 years in Asia, particularly in Hong Kong and Vietnam. He worked for M&G Investment Management, Sun Hung Kai & Co and Citicorp Investment Bank.
REE shareholders call this a ‘revolution’ because Ms Thanh’s wage had not changed in the previous three years (under a labour contract signed on January 1, 2004, Ms Thanh’s salary is VND48 million per month) and now it has increased by more than two times.
An official of REE commented: “It is understandable to see Ms Mai Thanh’s wage rising like this because this number must be equivalent to the annual growth of REE.”
A human resources expert said that the wages of CEOs of firms listed in the Vietnamese stock market meets the current situation on the market for senior human resources of Vietnam. However, wages are only the easy-to-see part of income of CEOs because the thing that keeps them close to listed firms is that the volume of shares they and their family members own increases each time their companies issue bonus shares and new shares to increase capital.
High bonuses calculated based on the percentage of after-tax profit of the corporations are also a way to retain senior personnel.
Ms Thanh is one of the CEOs of listed companies who began as a state employee. Other CEOs of the same kind include Ms Mai Kieu Lien, Chairman and CEO of the Vietnam Dairy Product Company (Vinamilk), Mr Le Quang Doanh, Chairman and CEO of Binh Minh Plastic Company (BMP), and Ms Pham Thi Viet Nga, Chairman and CEO of the Hau Giang Pharmaceutical Company.
The common thing of those CEOs is that after equitisation they were trusted and appointed to be the representative of the State in the equitised firms. Their fast adaptation to their new working environments has also been highly praised by investors.
The CEO of a fund management company said: “I like Ms Mai Thanh’s to-the-fullest working style. Once my fund was about to issue more fund certificates, she called me at night to ask about the upcoming form of issuance so that REE could buy. I don’t know how she could work that hard, but such is the way of a businessperson who always considers the interest of his company.”
However, many shareholders are beginning to ask if it is in fact good for listed firms to have CEOs who were previously state employees and have stayed in their positions for so long. Because, according to human resources experts, one who sits in a position for a long time will become idle and lack new ideas.
Stock investors admire the group of CEOs who they call ‘two in one’ the most. These are real owners and businessmen, who are considered the richest on the Vietnamese bourse based on the volume and the value of shares they own.
Some big names are Tran Kim Thanh and Tran Le Nguyen of the Kinh Do Group, Truong Gia Binh of the Corporation for Financing and Promoting Technology (FPT), Dang Thanh Tam of the Tan Tao Industrial Zone JS Company (ITACO), Le Van Quang of Company, and Nguyen Duy Hung of the Saigon Securities Trading JS Company (SSI). Wages are no longer important to those CEOs because they are the biggest shareholders of the companies they lead.
Dang Thanh Tam, who has just left the CEO position of ITACO to assume a new post at the HCM City Hi-tech Park, is an example of this kind of CEO. But only several people know that the biggest ability of Mr Tam is designing projects. Projects of thousands of pages are always attractive to this CEO since this man wrote the first lines for the project to establish the Tan Tao Industrial Zone in HCM City.
Mr Tam is also very good at speaking English. He can directly negotiate with foreign partners without translators. He is also an ‘anonymous lawyer’ because he widely understands both Vietnamese and international laws on economics. During his foreign business trips, Ms Tam plays the role of a CEO, a translator, and a lawyer. Thus, he can make decisions very quickly and doesn’t need time to seek outside consultancy.
However, stock investors are still waiting for a new generation of young businessmen who will blow new and strong winds into listed firms. They are professional CEOs who are trained methodically and systematically and have tempered themselves in the international environment.
Phan Bich Van, CEO of Saigon Thuong Tin Bank (Sacombank), is an example. Ms Van worked for the International Finance Company (IFC) under the World Bank and won a Fulbright scholarship to study for a Master’s of Business Administration in the US before working for Sacombank.
As the representative for Sacombank at international workshops, Ms Van has won the hearts of participants with her charm, self-confidence, which have contributed to creating the image of young, talented and professional CEOs of Vietnam in the eyes of international investors.
According to investors, two CEOs considered the most ‘expensive’ in the Vietnamese stock market based on their annual income and success in business affairs are Don Lam, CEO of VinaCapital, and Dominic Scriven, CEO of Dragon Capital.
Don Lam graduated from Toronto University in Canada, majoring in trade and politics, in 1990. He was previously Deputy General Director of PricewaterhouseCoopers Vietnam, in charge of corporate finance consulting and management consulting and Manager in charge of corporate of the Deustche Bank Vietnam.
Dominic Scriven graduated with honours in law and social studies from Exeter University, the UK. He has 15 years of experience in the field of investment, including 13 years in Asia, particularly in Hong Kong and Vietnam. He worked for M&G Investment Management, Sun Hung Kai & Co and Citicorp Investment Bank.
Wednesday, May 09, 2007
Procedures slow down banks' IPO
Commercial banks complain that they are facing a lot of difficulties fulfilling procedures for making public offering.
Considered a kind of special enterprise, joint stock banks are now being covered by three laws: the Law on Credit Institutions, Enterprise Law and Securities Law.
While other public companies can offer shares to the public after they get approval from the State Securities Commission (SSC), banks must do more to sell their shares to the public. Banks must follow three steps 1. get approval from the State Bank of Vietnam (SBV) to raise chartered capital; 2. get approval and a certificate of public offering from SSC; 3. register the capital increase at the local department of planning and investment.
It takes a lot of time and effort to fulfill all of these formalities.
The director of a joint stock bank said that the bank’s shareholders’ meeting ratified the chartered capital increase three months ago, but the bank still couldn’t call for capital from shareholders. The bank still needs to prepare papers as required by SSC. The official said that under the current mechanism the bank would have to wait another three months to raise capital.
Under the current regulations, commercial banks must get approval for capital raising from SBV before they can apply for the capital raising to SSC. The stock market watchdog then grants a certificate on securities issuance. The document by SBV is considered a business licence, while the document granted by SSC is considered a certificate of business registration.
Commercial banks have asked SBV and SSC to sit together to work out new regulations with more transparent and suitable procedures which can help banks save time in offering securities to the public.
Source: VET
Considered a kind of special enterprise, joint stock banks are now being covered by three laws: the Law on Credit Institutions, Enterprise Law and Securities Law.
While other public companies can offer shares to the public after they get approval from the State Securities Commission (SSC), banks must do more to sell their shares to the public. Banks must follow three steps 1. get approval from the State Bank of Vietnam (SBV) to raise chartered capital; 2. get approval and a certificate of public offering from SSC; 3. register the capital increase at the local department of planning and investment.
It takes a lot of time and effort to fulfill all of these formalities.
The director of a joint stock bank said that the bank’s shareholders’ meeting ratified the chartered capital increase three months ago, but the bank still couldn’t call for capital from shareholders. The bank still needs to prepare papers as required by SSC. The official said that under the current mechanism the bank would have to wait another three months to raise capital.
Under the current regulations, commercial banks must get approval for capital raising from SBV before they can apply for the capital raising to SSC. The stock market watchdog then grants a certificate on securities issuance. The document by SBV is considered a business licence, while the document granted by SSC is considered a certificate of business registration.
Commercial banks have asked SBV and SSC to sit together to work out new regulations with more transparent and suitable procedures which can help banks save time in offering securities to the public.
Source: VET
BIDV to trade $125 mln in bonds
Vietnamese state-run Bank for Investment and Development (BIDV) Tuesday traded more than VND2 trillion (US$125 million) in bonds on the Ho Chi Minh City Securities Center.
The BIDV bonds’ face value is VND100,000 each.
The three-year BID10106 bonds carry annual coupon of 9.36%, the five-year BID10206 bonds come at 9.5% interest, while 10.1% and 10.45% interest rates are tacked onto the 15-year BID10306 bonds, and the 20-year BID10406 bonds respectively.
BIDV was the first bank to list bonds on the stock exchange in November 2000. The lender has traded more than VND4 trillion worth of bonds with face values of VND100,000 each.
BIDV CEO Tran Bac Ha said the bank is expected to issue US$1 billion worth of bonds this year with the first VND5 trillion to be issued in Vietnam dong.
The bank would pick up an international financial consulting institution for the issue.
The bank has put its equitization plan on the fast track to launch an initial public offering (IPO) in the fourth quarter this year.
The country’s second-largest bank is entering the process to pick up an international consultant among five potential consultants including Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS for its IPO.
BIDV also expected to select two multinational financial institutions as strategic investors prior to mounting its IPO in the fourth quarter.
Tran Bac Ha said the bank would hire the Ministry of Finance’s auditing firm to calculate the
bank’s tangible assets while the bank would hire an international auditor for intangible assets.
After the state injected VND3.4 trillion (US$212 million) into the bank in February, the bank now has a total chartered capital of VND7.5 trillion ($470 million) and its equities have amounted to nearly VND10.2 trillion.
Under 2006 auditing reports by Ernst & Young based on International Financial Ratio Standards, the bank’s total assets as of late last year were VND161.3 trillion (tangible) and VND158.22 trillion (intangible), up 33% and 34% over the previous year.
Its after tax-profits last year were VND1.1 trillion ($68.6 million) under the Vietnam Accounting System and VND613 billion ($38.2 million) under the International Financial Reporting Standards.
The bank’s bad debt ratio has been drastically reduced to 6.44% and this ratio would fall further to less than 5% in the third quarter of this year, according to Ha.
Revenue from investment banking including securities and money dealing has increased substantially, while revenue from interest sums has been reduced to 63.6% last year from 77% the previous year.
Moody's Investors Service has raised the credit capacity outlook of BIDV from ‘E’ to ‘E+’. Last year, Moody ranked the bank's creditworthiness as Ba1 for an issuer of Vietnamese dong with a stable outlook.
Source: Thanh Nien
The BIDV bonds’ face value is VND100,000 each.
The three-year BID10106 bonds carry annual coupon of 9.36%, the five-year BID10206 bonds come at 9.5% interest, while 10.1% and 10.45% interest rates are tacked onto the 15-year BID10306 bonds, and the 20-year BID10406 bonds respectively.
BIDV was the first bank to list bonds on the stock exchange in November 2000. The lender has traded more than VND4 trillion worth of bonds with face values of VND100,000 each.
BIDV CEO Tran Bac Ha said the bank is expected to issue US$1 billion worth of bonds this year with the first VND5 trillion to be issued in Vietnam dong.
The bank would pick up an international financial consulting institution for the issue.
The bank has put its equitization plan on the fast track to launch an initial public offering (IPO) in the fourth quarter this year.
The country’s second-largest bank is entering the process to pick up an international consultant among five potential consultants including Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley and UBS for its IPO.
BIDV also expected to select two multinational financial institutions as strategic investors prior to mounting its IPO in the fourth quarter.
Tran Bac Ha said the bank would hire the Ministry of Finance’s auditing firm to calculate the
bank’s tangible assets while the bank would hire an international auditor for intangible assets.
After the state injected VND3.4 trillion (US$212 million) into the bank in February, the bank now has a total chartered capital of VND7.5 trillion ($470 million) and its equities have amounted to nearly VND10.2 trillion.
Under 2006 auditing reports by Ernst & Young based on International Financial Ratio Standards, the bank’s total assets as of late last year were VND161.3 trillion (tangible) and VND158.22 trillion (intangible), up 33% and 34% over the previous year.
Its after tax-profits last year were VND1.1 trillion ($68.6 million) under the Vietnam Accounting System and VND613 billion ($38.2 million) under the International Financial Reporting Standards.
The bank’s bad debt ratio has been drastically reduced to 6.44% and this ratio would fall further to less than 5% in the third quarter of this year, according to Ha.
Revenue from investment banking including securities and money dealing has increased substantially, while revenue from interest sums has been reduced to 63.6% last year from 77% the previous year.
Moody's Investors Service has raised the credit capacity outlook of BIDV from ‘E’ to ‘E+’. Last year, Moody ranked the bank's creditworthiness as Ba1 for an issuer of Vietnamese dong with a stable outlook.
Source: Thanh Nien
Prudential sets up Vietnam funds
Prudential aims to launch two new Vietnam funds and an Asian infrastructure fund before July, a senior executive with its asset management arm in Asia said Monday.
The Vietnam funds would include one focused on private equity, which the firm hopes will start with at least US$50 million in assets, said Guy Strapp, regional head of investment management in Asia for Prudential Asset Management.
"There's two [Vietnam] funds that we're looking to do. One would be private equity only. And one would be a mix, like the one we launched last year," he said.
The asset management arm of Britain's second-largest listed insurer raised US$282.6 million last year with the November launch of its Vietnam Segregated Portfolio fund. The fund includes a combination of public and private equity, as well as fixed income.
With one of the region's fastest-growing economies, Vietnam has become wildly popular with investors. The country's main stock index rose almost 145 percent last year and is up more than 30 percent since the end of 2006.
A Vietnam-focused fund launched in November by JF Asset Management for Hong Kong investors was fully subscribed on its first day, raising almost US$50 million.
Prudential is also looking to launch a fund investing in infrastructure-related stocks in Asian markets outside of Japan. The fund would use an open-ended structure which would allow it to be sold in a range of markets.
"We don't like doing really any of these funds with less than US$100 million. That doesn't mean you have to have US$100 million at launch. But you want to have expectations of growing to that," he said.
Strapp said that while Vietnam has been a particularly popular theme with retail investors in Japan and South Korea, the firm takes a longer-term view when launching its products.
"When we do these themes we try not to have them so topical that they're in favor today, and out of favor tomorrow," he said.
"When we do something like an infrastructure fund, we do it on that basis that there are very sound macro factors and its a sustainable investment opportunity."
Prudential, which started its funds business in Asia in 1998, now operates in 10 markets in the region.
The Asian fund operation's 29.2 billion in assets at the end of last year made it one of the region's largest fund managers. About 43 percent came from retail investors, with the remainder from institutions and Prudential's own insurance operations.
Strapp said the group is also looking to tap the region's pool of experienced emerging market fund managers by building a small team to run a portfolio of Latin American equities from Singapore. Prudential is also looking at expanding its private equity investment beyond Vietnam.
Source: Thanh Nien
The Vietnam funds would include one focused on private equity, which the firm hopes will start with at least US$50 million in assets, said Guy Strapp, regional head of investment management in Asia for Prudential Asset Management.
"There's two [Vietnam] funds that we're looking to do. One would be private equity only. And one would be a mix, like the one we launched last year," he said.
The asset management arm of Britain's second-largest listed insurer raised US$282.6 million last year with the November launch of its Vietnam Segregated Portfolio fund. The fund includes a combination of public and private equity, as well as fixed income.
With one of the region's fastest-growing economies, Vietnam has become wildly popular with investors. The country's main stock index rose almost 145 percent last year and is up more than 30 percent since the end of 2006.
A Vietnam-focused fund launched in November by JF Asset Management for Hong Kong investors was fully subscribed on its first day, raising almost US$50 million.
Prudential is also looking to launch a fund investing in infrastructure-related stocks in Asian markets outside of Japan. The fund would use an open-ended structure which would allow it to be sold in a range of markets.
"We don't like doing really any of these funds with less than US$100 million. That doesn't mean you have to have US$100 million at launch. But you want to have expectations of growing to that," he said.
Strapp said that while Vietnam has been a particularly popular theme with retail investors in Japan and South Korea, the firm takes a longer-term view when launching its products.
"When we do these themes we try not to have them so topical that they're in favor today, and out of favor tomorrow," he said.
"When we do something like an infrastructure fund, we do it on that basis that there are very sound macro factors and its a sustainable investment opportunity."
Prudential, which started its funds business in Asia in 1998, now operates in 10 markets in the region.
The Asian fund operation's 29.2 billion in assets at the end of last year made it one of the region's largest fund managers. About 43 percent came from retail investors, with the remainder from institutions and Prudential's own insurance operations.
Strapp said the group is also looking to tap the region's pool of experienced emerging market fund managers by building a small team to run a portfolio of Latin American equities from Singapore. Prudential is also looking at expanding its private equity investment beyond Vietnam.
Source: Thanh Nien
Sacombank and Saigon Jewelry cooperate
The Ho Chi Minh City-based Sacombank has entered into a cooperation deal with the Saigon Jewelry Company (SJC) to boost both enterprises’ gold business.
Under the deal signed Tuesday the two sides will increase cooperation in gold trade bank accounts, a new trading device in Vietnam.
They will work together to grab gold price fluctuation opportunities on both the international and domestic markets for the highest profits.
SJC is set to open the first gold bonded warehouse next month, facilitating the two sides’ cooperation.
In a recent meeting, the listed-bank mulled cooperative opportunities in trading and manufacturing gold bullion with the Singapore-based United Overseas Bank (UOB).
The two parties discussed the possibility of UOB providing the local bank with software programs to trade gold through bank accounts.
Sacombank has projected pre-tax profits of VND845 billion ($52.6 million) this year, up 55% from last year.
Its outstanding loans at the end of last year were 73% higher than 2005 at VND14.54 trillion ($905 million). Deposits increased 75% to VND21.52 trillion ($1.3 billion).
Sacombank shares started trading on July 12, 2006 in the Ho Chi Minh City Securities Trading Center, making the lender the country's largest listed company at the time and boosting Vietnam's stock market value by 53%.
The bank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank, which altogether hold 26.3% of company.
Sources said the central bank might lift the cap on foreign investors’ holdings in the bank.
Earlier this year, the UOB acquired a 10% stake in Sacombank for US$30 million in cash. The Singaporean bank expected to up these holdings to 20%.
According to one UOB representative, its 20% ownership in the VND1.29 trillion-local bank would not be the final target.
Source: Thanh Nien
Under the deal signed Tuesday the two sides will increase cooperation in gold trade bank accounts, a new trading device in Vietnam.
They will work together to grab gold price fluctuation opportunities on both the international and domestic markets for the highest profits.
SJC is set to open the first gold bonded warehouse next month, facilitating the two sides’ cooperation.
In a recent meeting, the listed-bank mulled cooperative opportunities in trading and manufacturing gold bullion with the Singapore-based United Overseas Bank (UOB).
The two parties discussed the possibility of UOB providing the local bank with software programs to trade gold through bank accounts.
Sacombank has projected pre-tax profits of VND845 billion ($52.6 million) this year, up 55% from last year.
Its outstanding loans at the end of last year were 73% higher than 2005 at VND14.54 trillion ($905 million). Deposits increased 75% to VND21.52 trillion ($1.3 billion).
Sacombank shares started trading on July 12, 2006 in the Ho Chi Minh City Securities Trading Center, making the lender the country's largest listed company at the time and boosting Vietnam's stock market value by 53%.
The bank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank, which altogether hold 26.3% of company.
Sources said the central bank might lift the cap on foreign investors’ holdings in the bank.
Earlier this year, the UOB acquired a 10% stake in Sacombank for US$30 million in cash. The Singaporean bank expected to up these holdings to 20%.
According to one UOB representative, its 20% ownership in the VND1.29 trillion-local bank would not be the final target.
Source: Thanh Nien
May's auction schedule set at HoSTC
The HCMC trading center said nearly VND40 billion worth of shares would be offered to outsiders via auctions by three companies this month.
The city-based Cotec Construction Joint Stock Company, or Coteccons will auction its 9.11% stake, or 54,200 shares at a face value of VND100,000 each, on May 14.
The opening price will be VND1.4 million each.
The auction will increase outside ownership to nearly 31.5% of the company’s VND59.5 billion chartered capital.
The Lam Dong Housing Development and Trading Company is set to sell some 2.3 million shares to outsiders on May 15 at the starting price of VND11,000 each.
The VND45 billion company in the Central Highlands Lam Dong Province runs businesses in real estate and industrial park development.
The Bao Loc Water Supply Sewerage and Construction Joint Stock Company will go public by selling 1.2 million shares at the starting price of VND10,100 each on May 22.
After equitization, the Lam Dong-based water supply plant will have a 44.5% stake held by outsiders, 40% by state and the remainder by staff.
Source: Thanh Nien
Tuesday, May 08, 2007
VF1 adjusts certificate issuance price
The decisions by VF1 (listed at VSE) in the last few days relating to the pricing of the certificates to be issued in order to raise chartered capital have been facing strong opposition from investors.
On May 2, 2007, Vietnam Fund Management (VFM) unexpectedly announced the adjustment of the price of the fund certificates to be issued to serve the plan on raising chartered capital from VND500bil ($31.25mil) to VND1tril ($62.5mil). The certificate price would be VND23,700/unit instead of VND33,164/unit as announced previously by VFM on March 26.
The decision on adjusting the fund certificate price faced strong protests from investors.
Ngo Minh Duc, an investor, in his letter to Thoi bao Kinh te Vietnam, wrote that as the legal framework was gradually being perfected, creating a fair playing fields for investors, what VFM and the State Securities Commission (SSC) had done (SSC approved the decision to adjust the certificate price) proved to be contrary to what the country was striving for: fairness and transparency.”
The fact that VFM spontaneously adjusted the certificate price caused many investors to suffer, especially the investors who made transactions on and after the ex-dividend day, March 27. According to Mr Duc, every investor who made transactions on the ex-dividend day, suffered the loss of VND4,700 for every fund certificate.
A lot of questions have been raised over the certificate issuance and the guarantee services provided by Bao Viet Securities Company (BVSC). In fact, BVSC can only guarantee the issuance of securities worth 30% of its capital or lower. According to the financial report released by BVSC, the ownership capital of the company is VND421.7bil ($26.35mil), while it has accepted providing the guaranteeing service of the issuance of up to one trillion dong ($62.5mil).
VFM said that it decided to adjust the certificate price in order to ensure the success of the new certificate issuance, which aims to raise its chartered capital. In addition, it said that it had the right to set the certificate price
Nguyen Hoang Hai, Secretary General of the Vietnam Association of Financial Investors (VAFI), said that he had a meeting with Chairman of SSC Vu Bang and Deputy Chairwoman of SSC Vu Thi Kiem Lien to discuss the issue. Mrs Lien said that the spontaneous adjustment of the certificate price was not legal, and promised to reconsider the case.
At 8 pm on May 4, VFM decided to cancel the decision to adjust the certificate price after facing the protest from investors.
VF1 certificate prices declined dramatically due to response from investors.
On May 3, investors had tried to sell out VF1 fund certificates: 2.392mil VF1 were offered for sale, three-fold higher than the offer for purchasing. Though the VF1’s price dropped to the ceiling level, more than 1.8mil VF1 remained unsold.
The sale continuously took place on May 4, while 4mil VF1 certificates could not find buyers. All investors who bought VF1 at VND40-45,000/unit early in March (on March 23, VF1 were traded at VND45,000) have incurred severe losses.
Though VF1 has decided to keep the initially set price at VND33,164/unit, it is too late to help investors who sold VF1 at VND30,700/unit.
Source: VNE
On May 2, 2007, Vietnam Fund Management (VFM) unexpectedly announced the adjustment of the price of the fund certificates to be issued to serve the plan on raising chartered capital from VND500bil ($31.25mil) to VND1tril ($62.5mil). The certificate price would be VND23,700/unit instead of VND33,164/unit as announced previously by VFM on March 26.
The decision on adjusting the fund certificate price faced strong protests from investors.
Ngo Minh Duc, an investor, in his letter to Thoi bao Kinh te Vietnam, wrote that as the legal framework was gradually being perfected, creating a fair playing fields for investors, what VFM and the State Securities Commission (SSC) had done (SSC approved the decision to adjust the certificate price) proved to be contrary to what the country was striving for: fairness and transparency.”
The fact that VFM spontaneously adjusted the certificate price caused many investors to suffer, especially the investors who made transactions on and after the ex-dividend day, March 27. According to Mr Duc, every investor who made transactions on the ex-dividend day, suffered the loss of VND4,700 for every fund certificate.
A lot of questions have been raised over the certificate issuance and the guarantee services provided by Bao Viet Securities Company (BVSC). In fact, BVSC can only guarantee the issuance of securities worth 30% of its capital or lower. According to the financial report released by BVSC, the ownership capital of the company is VND421.7bil ($26.35mil), while it has accepted providing the guaranteeing service of the issuance of up to one trillion dong ($62.5mil).
VFM said that it decided to adjust the certificate price in order to ensure the success of the new certificate issuance, which aims to raise its chartered capital. In addition, it said that it had the right to set the certificate price
Nguyen Hoang Hai, Secretary General of the Vietnam Association of Financial Investors (VAFI), said that he had a meeting with Chairman of SSC Vu Bang and Deputy Chairwoman of SSC Vu Thi Kiem Lien to discuss the issue. Mrs Lien said that the spontaneous adjustment of the certificate price was not legal, and promised to reconsider the case.
At 8 pm on May 4, VFM decided to cancel the decision to adjust the certificate price after facing the protest from investors.
VF1 certificate prices declined dramatically due to response from investors.
On May 3, investors had tried to sell out VF1 fund certificates: 2.392mil VF1 were offered for sale, three-fold higher than the offer for purchasing. Though the VF1’s price dropped to the ceiling level, more than 1.8mil VF1 remained unsold.
The sale continuously took place on May 4, while 4mil VF1 certificates could not find buyers. All investors who bought VF1 at VND40-45,000/unit early in March (on March 23, VF1 were traded at VND45,000) have incurred severe losses.
Though VF1 has decided to keep the initially set price at VND33,164/unit, it is too late to help investors who sold VF1 at VND30,700/unit.
Source: VNE
Portfolio investment capital in Vietnam reaches 1bil USD
The State Bank of Vietnam (SBV) has announced that total portfolio investment in Vietnam has reached $1bil. The figure proves to coincide with the one declared by the Central Institute of Economic Management (CIEM) several days ago.
The figure about foreign portfolio investment was released by SBV at a workshop on financial liberalisation recently held in Hanoi. Domestic institutions have agreed that portfolio investment is capitalised at $1bil, while the World Bank, in its recent report, said that portfolio investment capital in Vietnam had reached $4bil.
Dr Nguyen Dai Lai, Deputy Director of the Banking Development Department under SBV, said at the workshop that Vietnam was witnessing a new wave of portfolio investment. Kicked off by the issuance of Government bonds worth $750mil one year ago on the international market, portfolio investment capital keeps flowing into Vietnam.
Currently, Vietnam allows foreign investors to make limited investment in bonds and shares of local companies: they can hold up to 49% of shares in listing companies and 30% in unlisted companies.
Most recently, the Government decided to raise the ceiling foreign ownership proportion in local joint stock banks to 30%, which is believed will pave the way for additional foreign portfolio capital to flow into Vietnam, especially into Vietnamese banks.
The current regulations on capital contribution and share buying are considered very flexible, and SBV controls the capital flow through the portfolio investment accounts in VND. However, experts have warned that once regulations on capital transfer limitation are not applied, the stock market could suffer when it falls.
According to Nguyen Thi Nhung from the Forex Management Department under SBV, with foreign investment worth $4-5bil and the VN index hovering at 1,000-1,100 points, big difficulties will arise if the stock market falls and foreign investors transfer capital abroad massively as there is no limitation on capital transfer; especially, Vietnam’s foreign exchange reserve remains modest, equivalent to only 12 weeks of imports.
Mrs Nhung has urged the following of a cautious management scheme, under which, regulations must ensure the selective absorption of capital and risk prevention while still being flexible enough to attract foreign investors.
Source: VNE
The figure about foreign portfolio investment was released by SBV at a workshop on financial liberalisation recently held in Hanoi. Domestic institutions have agreed that portfolio investment is capitalised at $1bil, while the World Bank, in its recent report, said that portfolio investment capital in Vietnam had reached $4bil.
Dr Nguyen Dai Lai, Deputy Director of the Banking Development Department under SBV, said at the workshop that Vietnam was witnessing a new wave of portfolio investment. Kicked off by the issuance of Government bonds worth $750mil one year ago on the international market, portfolio investment capital keeps flowing into Vietnam.
Currently, Vietnam allows foreign investors to make limited investment in bonds and shares of local companies: they can hold up to 49% of shares in listing companies and 30% in unlisted companies.
Most recently, the Government decided to raise the ceiling foreign ownership proportion in local joint stock banks to 30%, which is believed will pave the way for additional foreign portfolio capital to flow into Vietnam, especially into Vietnamese banks.
The current regulations on capital contribution and share buying are considered very flexible, and SBV controls the capital flow through the portfolio investment accounts in VND. However, experts have warned that once regulations on capital transfer limitation are not applied, the stock market could suffer when it falls.
According to Nguyen Thi Nhung from the Forex Management Department under SBV, with foreign investment worth $4-5bil and the VN index hovering at 1,000-1,100 points, big difficulties will arise if the stock market falls and foreign investors transfer capital abroad massively as there is no limitation on capital transfer; especially, Vietnam’s foreign exchange reserve remains modest, equivalent to only 12 weeks of imports.
Mrs Nhung has urged the following of a cautious management scheme, under which, regulations must ensure the selective absorption of capital and risk prevention while still being flexible enough to attract foreign investors.
Source: VNE
WTO brings more imports than exports
Imports have increased by 50% while exports have seen a modest increase of 18% in the three months since Vietnam joined the WTO, according to Nguyen Van Lich from the Trade Research Institute.
Mr Lich said that the trade gap in the last few years was 15% – within the safety line. However, as Vietnam has joined the WTO and had to cut tariffs, paving the way for more imports into Vietnam, the trade gap is likely to increase sharply if Vietnam cannot find ways to boost exports.
In principle, the trade balance will improve thanks to higher exports to be brought about by the expanded export markets during international economic integration. However, this will not become reality if Vietnam-made products are not competitive and Vietnamese enterprises cannot find ways to reduce raw material exports and increase value added products.
According to the Ministry of Trade (MoT), import turnover in the first quarter of the year reached $11.79bil, an increase of 33.6% over the same period last year. With the import increases, the excess of imports over exports has increased to VND1.316bil, or 12.5% of the total export turnover in the first quarter, and 28% of the 2007’s forecast trade gap at $4.66bil. This proves to be a worrying sign, as Vietnam saw a trade surplus in the first quarter of 2006.
According to MoT, the increase of $2.97bil worth of import turnover in the first quarter of 2007 over the first quarter of 2006 included $889mil worth of machinery and equipment imports. The biggest import deal was the import of three A321s worth $306mil.
Statistics show that the import items which saw the biggest import turnover were all input materials for domestic production, such as steel, ingot steel, fibre and wood materials. Meanwhile, consumer product imports did not see a sharp increase.
Therefore, while experts see the big trade gap of the first quarter of the year a worrying sign, MoT does not think this way, saying that the trade gap mainly served investment and local production.
The ministry has stressed that the excess of imports over exports should not be seen as the result of the market opening and the implementation of the tax cuts under WTO commitments. The increased trade gap is the indispensable result of increased domestic investment and production as Vietnam has joined the WTO.
Source: VNE
Mr Lich said that the trade gap in the last few years was 15% – within the safety line. However, as Vietnam has joined the WTO and had to cut tariffs, paving the way for more imports into Vietnam, the trade gap is likely to increase sharply if Vietnam cannot find ways to boost exports.
In principle, the trade balance will improve thanks to higher exports to be brought about by the expanded export markets during international economic integration. However, this will not become reality if Vietnam-made products are not competitive and Vietnamese enterprises cannot find ways to reduce raw material exports and increase value added products.
According to the Ministry of Trade (MoT), import turnover in the first quarter of the year reached $11.79bil, an increase of 33.6% over the same period last year. With the import increases, the excess of imports over exports has increased to VND1.316bil, or 12.5% of the total export turnover in the first quarter, and 28% of the 2007’s forecast trade gap at $4.66bil. This proves to be a worrying sign, as Vietnam saw a trade surplus in the first quarter of 2006.
According to MoT, the increase of $2.97bil worth of import turnover in the first quarter of 2007 over the first quarter of 2006 included $889mil worth of machinery and equipment imports. The biggest import deal was the import of three A321s worth $306mil.
Statistics show that the import items which saw the biggest import turnover were all input materials for domestic production, such as steel, ingot steel, fibre and wood materials. Meanwhile, consumer product imports did not see a sharp increase.
Therefore, while experts see the big trade gap of the first quarter of the year a worrying sign, MoT does not think this way, saying that the trade gap mainly served investment and local production.
The ministry has stressed that the excess of imports over exports should not be seen as the result of the market opening and the implementation of the tax cuts under WTO commitments. The increased trade gap is the indispensable result of increased domestic investment and production as Vietnam has joined the WTO.
Source: VNE
Securities trading floor must be over 150 sq m
The regulation on the organisation and operation of securities companies will become effective on May 10. Companies which cannot meet the requirements stipulated by the regulation will have their operation licences revoked.
Under the new regulation, securities companies must have the right to use their head office for one year at least, while the total surface area for the trading floor must be 150 sq m large at least.
They also must have facilities that ensure normal operations, including a trading floor, office equipment, a computer system with software serving securities trading transactions, and other equipment.
The founding shareholders of securities companies must hold at least 20% of the real initial capital of the companies. The initial capital contribution cannot be transferred within three years of the date of the establishment certificate. Their capital contribution can then only be transferred to other founding shareholders.
Securities companies will be forced to stop operating if they provide false information when applying to establish companies or changing the contents of their licences. In addition, companies will have to stop operating if they suffer the cumulative loss of 50% of chartered capital and cannot raise enough capital as required. Any companies which do not initiate operations within 12 months of the day their licences are granted will also have their licences revoked.
The new regulation stipulates that officers working for securities companies can only open personal transaction accounts at the securities companies which they work for.
Source: VNE
Under the new regulation, securities companies must have the right to use their head office for one year at least, while the total surface area for the trading floor must be 150 sq m large at least.
They also must have facilities that ensure normal operations, including a trading floor, office equipment, a computer system with software serving securities trading transactions, and other equipment.
The founding shareholders of securities companies must hold at least 20% of the real initial capital of the companies. The initial capital contribution cannot be transferred within three years of the date of the establishment certificate. Their capital contribution can then only be transferred to other founding shareholders.
Securities companies will be forced to stop operating if they provide false information when applying to establish companies or changing the contents of their licences. In addition, companies will have to stop operating if they suffer the cumulative loss of 50% of chartered capital and cannot raise enough capital as required. Any companies which do not initiate operations within 12 months of the day their licences are granted will also have their licences revoked.
The new regulation stipulates that officers working for securities companies can only open personal transaction accounts at the securities companies which they work for.
Source: VNE
Tax revenues below expectations
State tax revenues in the first quarter of the year fell below expectations, reaching 86% of the target set for the quarter, according to the General Department of Taxation.
The department has targeted to collect VND200 trillion (US$12.4 billion) in taxes this year, of which VND150 trillion ($9.3 billion) would come from domestic business taxes. However, tax collections in the first three months were only VND42 trillion ($2.6 billion), or 21% of the year’s target.
The shortfall was largely attributable to increased business costs, rising costs of energy, raw materials and equipment, which ate into corporate profits by causing an overall rise in input costs nationwide of VND1.3 trillion (nearly $81 million). As a consequence, corporate income tax collections were off VND370 billion ($23 million).
In early March, petrol prices went up VND900 per litre, raising costs for goods and services such as transportation.
Industrial sectors dependent on coal were greeted with costs for coal 20% higher than last year’s, and costs for thermoelectric generation grew VND730 billion ($45 million).
The higher costs of transportation, coal and electricity drove up the costs of steel, iron and fertiliser accordingly.
The tax deparment calculated that recent upswings in the prices of many goods would raise industrial input costs by VND5.2 trillion ($324 million) for the year.
Meanwhile, the prices of some consumer goods such as household electronics, appliances and motorbikes fell under the competitive pressures of international integration, causing a further reduction in tax collections estimated at VND100 billion ($6.2 million).
In particular, motorbike prices fell an average of VND348,000 ($22) generating a loss in tax revenues of VND68 billion ($4.2 million).
Source: VNS
The department has targeted to collect VND200 trillion (US$12.4 billion) in taxes this year, of which VND150 trillion ($9.3 billion) would come from domestic business taxes. However, tax collections in the first three months were only VND42 trillion ($2.6 billion), or 21% of the year’s target.
The shortfall was largely attributable to increased business costs, rising costs of energy, raw materials and equipment, which ate into corporate profits by causing an overall rise in input costs nationwide of VND1.3 trillion (nearly $81 million). As a consequence, corporate income tax collections were off VND370 billion ($23 million).
In early March, petrol prices went up VND900 per litre, raising costs for goods and services such as transportation.
Industrial sectors dependent on coal were greeted with costs for coal 20% higher than last year’s, and costs for thermoelectric generation grew VND730 billion ($45 million).
The higher costs of transportation, coal and electricity drove up the costs of steel, iron and fertiliser accordingly.
The tax deparment calculated that recent upswings in the prices of many goods would raise industrial input costs by VND5.2 trillion ($324 million) for the year.
Meanwhile, the prices of some consumer goods such as household electronics, appliances and motorbikes fell under the competitive pressures of international integration, causing a further reduction in tax collections estimated at VND100 billion ($6.2 million).
In particular, motorbike prices fell an average of VND348,000 ($22) generating a loss in tax revenues of VND68 billion ($4.2 million).
Source: VNS
Monday, May 07, 2007
VNPT and Bao Viet cooperate
The Vietnam Post and Telecom Group (VNPT) has entered into a cooperative deal with Vietnam's largest insurance firm Bao Viet to support mutual development.
Under the deal signed Monday in Hanoi, VNPT and Bao Viet Insurance Corp will work together as strategic partners, each reserving a major chunk of shares for the other to purchase on a mutual basis.
The leading telecom provider will support Bao Viet to develop advanced IT applications in the top insurer as well as its affiliates.
In return, the insurer would provide insurance services for VNPT’s business activities.
The new formal strategic cooperation with a leading insurer will enable VNPT to expand services and develop financial operations with the telecom business.
They will also assist each other in training staff, according to the agreement.
VNPT is in talks with the Bank for Development of Vietnam (BIDV) as a strategic partner to either set up or control a major portion of stakes in companies involved in the country’s forthcoming key mega projects.
These comprise the express way connecting the Ho Chi Minh City – Long Thanh – Dau Giay, the Vietnam-Laos Hydropower plant, Vietnam – Cambodia Hydropower plant, and a bank for trade, industry and services of Vietnam.
VNPT, last year, became a member of the ASEAN Telecom Holding Company (ATH/ACASIA), one of the Association of Southeast Asian Nations (ASEAN)'s leading primary network service providers, made up of the six leading telecom providers in the region, namely CAT, Indosat, JTB, PLDT, Singtel and Telekom Malaysia.
Bao Viet is set to offer an 18% stake to foreign investors while the state will retain 65.34% of ownership.
The top insurer will auction more than 59.4 million shares or 8.74% of the firm's total to the public and 0.7% to employees and the remaining 7.22% to strategic investors.
Further details on the auction were not available.
Bao Viet group has a registered capital of VND6.8 trillion (US$422) million.
Bao Viet Securities, a subsidiary of Bao Viet, listed on the Hanoi exchange last December.
The securities firm is a new business of Bao Viet which has said it would diversify into banking, financial leasing, real estate and public health insurance.
Vietnam's insurance sector has grown rapidly in recent years in line with the economy, which is targeted to expand 8.5% this year after growth of more than 8% in 2005 and 2006.
Source: Thanh Nien
Under the deal signed Monday in Hanoi, VNPT and Bao Viet Insurance Corp will work together as strategic partners, each reserving a major chunk of shares for the other to purchase on a mutual basis.
The leading telecom provider will support Bao Viet to develop advanced IT applications in the top insurer as well as its affiliates.
In return, the insurer would provide insurance services for VNPT’s business activities.
The new formal strategic cooperation with a leading insurer will enable VNPT to expand services and develop financial operations with the telecom business.
They will also assist each other in training staff, according to the agreement.
VNPT is in talks with the Bank for Development of Vietnam (BIDV) as a strategic partner to either set up or control a major portion of stakes in companies involved in the country’s forthcoming key mega projects.
These comprise the express way connecting the Ho Chi Minh City – Long Thanh – Dau Giay, the Vietnam-Laos Hydropower plant, Vietnam – Cambodia Hydropower plant, and a bank for trade, industry and services of Vietnam.
VNPT, last year, became a member of the ASEAN Telecom Holding Company (ATH/ACASIA), one of the Association of Southeast Asian Nations (ASEAN)'s leading primary network service providers, made up of the six leading telecom providers in the region, namely CAT, Indosat, JTB, PLDT, Singtel and Telekom Malaysia.
Bao Viet is set to offer an 18% stake to foreign investors while the state will retain 65.34% of ownership.
The top insurer will auction more than 59.4 million shares or 8.74% of the firm's total to the public and 0.7% to employees and the remaining 7.22% to strategic investors.
Further details on the auction were not available.
Bao Viet group has a registered capital of VND6.8 trillion (US$422) million.
Bao Viet Securities, a subsidiary of Bao Viet, listed on the Hanoi exchange last December.
The securities firm is a new business of Bao Viet which has said it would diversify into banking, financial leasing, real estate and public health insurance.
Vietnam's insurance sector has grown rapidly in recent years in line with the economy, which is targeted to expand 8.5% this year after growth of more than 8% in 2005 and 2006.
Source: Thanh Nien
Vietnamese stock indices increase
Both of Viet Nam's bourses in Ho Chi Minh City and Ha Noi recorded increases by the end of trading on May 7.
Ho Chi Minh City's VN-Index rose 36.43 points to 983.62 points in a session that witnessed a total of 5,034,870 shares worth 653 billion VND, change hands.
The day saw an overwhelming number of companies recording increases in their listed stock prices, 84 stocks made gains, including blue chips like FPT, BMC, SJS, DHG and REE, while 10 company stocks dipped.
In Ha Noi, the HaSTC surged over 2 percent or 7.78 points to finish up at 327.15.
More than 1.24 million stocks were traded on the day, worth over 148.84 billion VND.
Ho Chi Minh City's VN-Index rose 36.43 points to 983.62 points in a session that witnessed a total of 5,034,870 shares worth 653 billion VND, change hands.
The day saw an overwhelming number of companies recording increases in their listed stock prices, 84 stocks made gains, including blue chips like FPT, BMC, SJS, DHG and REE, while 10 company stocks dipped.
In Ha Noi, the HaSTC surged over 2 percent or 7.78 points to finish up at 327.15.
More than 1.24 million stocks were traded on the day, worth over 148.84 billion VND.
Banking sector reaping profits from securities market
Vietnam's banking sector has been flourishing thanks to the major role it has been playing in the domestic securities market, say financial experts.
Commercial banks in Vietnam have been recording massive growth and now lead all economic sectors in the remittance of taxes to the State budget.
The Sai Gon Join Stock Bank (Sacombank) led the charge by posting profits of 544 billion VND (34 million USD) in 2006, the highest recorded profit ratio of its 15 years in operation. In the first quarter of this year alone, the bank earned 302 billion VND (18.87 million USD), up a staggering 188 percent on the year.
The Vietnam International Bank (VIBank) also joined in by racking up profits of over 200 billion VND (12.5 million USD) last year, doubling its 2005 total and 64 billion VND (4 million USD) for the first quarter of 2007.
Market experts said that the banks were piggybacking to profits on the red-hot securities markets, which allowed banks to generate revenue from other services, particularly in investments, credit cards and financial management.
The surging securities markets have also enabled banks to attract larger amounts of capital.
According to the State Bank of Vietnam (SBV), almost all commercial banks by the end of the first quarter this year had at least 1 trillion VND in chartered capital, outstripping set government targets.
Combinations of the growth of the bourses, high bank dividends and investor confidence have allowed share issuances by banks to become blue chip buys for investors.
However, industry insiders have called for strict monitoring of the financial sector as increased banking profits have emboldened investors to attempt to establish more banks, with the number of banking licence applications pending at the SBV mushrooming over the last year.
In order to deal with the situation, the Securities Committee and the SBV have put in place a new framework to restrict capital flows from banks to the securities market. New regulations have been issued to restrict banks in handing out loans to their own securities companies and tighten the management of mortgage-backed securities.
Source: VNE
Commercial banks in Vietnam have been recording massive growth and now lead all economic sectors in the remittance of taxes to the State budget.
The Sai Gon Join Stock Bank (Sacombank) led the charge by posting profits of 544 billion VND (34 million USD) in 2006, the highest recorded profit ratio of its 15 years in operation. In the first quarter of this year alone, the bank earned 302 billion VND (18.87 million USD), up a staggering 188 percent on the year.
The Vietnam International Bank (VIBank) also joined in by racking up profits of over 200 billion VND (12.5 million USD) last year, doubling its 2005 total and 64 billion VND (4 million USD) for the first quarter of 2007.
Market experts said that the banks were piggybacking to profits on the red-hot securities markets, which allowed banks to generate revenue from other services, particularly in investments, credit cards and financial management.
The surging securities markets have also enabled banks to attract larger amounts of capital.
According to the State Bank of Vietnam (SBV), almost all commercial banks by the end of the first quarter this year had at least 1 trillion VND in chartered capital, outstripping set government targets.
Combinations of the growth of the bourses, high bank dividends and investor confidence have allowed share issuances by banks to become blue chip buys for investors.
However, industry insiders have called for strict monitoring of the financial sector as increased banking profits have emboldened investors to attempt to establish more banks, with the number of banking licence applications pending at the SBV mushrooming over the last year.
In order to deal with the situation, the Securities Committee and the SBV have put in place a new framework to restrict capital flows from banks to the securities market. New regulations have been issued to restrict banks in handing out loans to their own securities companies and tighten the management of mortgage-backed securities.
Source: VNE
Friday, May 04, 2007
Vietnamese tilemaker expects massive profit increase this year
Vietnam tile maker Vitaly (VTA) said on Friday it expected a 256% rise in net profit to 8.2 billion dong ($500,000) this year.
The Ho Chi Minh City-based company also said in a statement to the stock exchange which gave no reason for the expected profit leap, its revenues should rise 3.3% rise from the same period of 2006 to 327.6 billion dong ($20.3 million).
Source: Reuters
The Ho Chi Minh City-based company also said in a statement to the stock exchange which gave no reason for the expected profit leap, its revenues should rise 3.3% rise from the same period of 2006 to 327.6 billion dong ($20.3 million).
Source: Reuters
Vietnamese net maker Det Luoi Saigon expects a revenue increase this year
Vietnam's fishing net maker Det Luoi Saigon Joint Stock Co. (SFN) said on Friday it expected an 18.5% rise in revenues to 130 billion dong ($8 million) this year.
The Ho Chi Minh City-based company also said in a statement to the stock exchange it expected its gross profit to edge up nearly 1% from 2006 to 9.3 billion dong ($570,000).
Source: Reuters
The Ho Chi Minh City-based company also said in a statement to the stock exchange it expected its gross profit to edge up nearly 1% from 2006 to 9.3 billion dong ($570,000).
Source: Reuters
Industrial output surges in first 4 months
Viet Nam's industrial production value reached 176.8 trillion VND (11.4 billion USD) in the first four months of this year, marking a year-on-year increase of 16.7%, according to the Ministry of Industry (MoI).
In April alone, the country’s industrial output surpassed the 47 trillion VND mark, representing a 4.3% increase over March.
Industrial output of domestic private enterprises grew by 20.6% and the foreign-invested sector recorded a 19.4% expansion. The State-owned sector posted an industrial growth rate of 7.4%.
Most of the MoI's enterprises saw increases in industrial production value from the same period in the previous year, including industry giants, the Viet Nam Steel Corporation, 25.1%; the Electricity of Viet Nam; 12.3%; and the Viet Nam Garment and Textile Group, 12%.
The cities and provinces of Vinh Phuc , Dong Nai, Binh Duong, Hai Duong, Ha Noi and Hai Phong enjoyed particularly high expansion rates over the first four months of the year.
Source: VNA
In April alone, the country’s industrial output surpassed the 47 trillion VND mark, representing a 4.3% increase over March.
Industrial output of domestic private enterprises grew by 20.6% and the foreign-invested sector recorded a 19.4% expansion. The State-owned sector posted an industrial growth rate of 7.4%.
Most of the MoI's enterprises saw increases in industrial production value from the same period in the previous year, including industry giants, the Viet Nam Steel Corporation, 25.1%; the Electricity of Viet Nam; 12.3%; and the Viet Nam Garment and Textile Group, 12%.
The cities and provinces of Vinh Phuc , Dong Nai, Binh Duong, Hai Duong, Ha Noi and Hai Phong enjoyed particularly high expansion rates over the first four months of the year.
Source: VNA
Bourse suspends trading of Intimex shares
The Ha Noi Securities Trading Centre has suspended trading of Intimex shares and has announced that it will audit the results of the retail distributor’s intitial public offering last month.
The suspension is pursuant to an order from the Ministry of Trade, the centre said, in order to give the centre time to clarify some irregularities that appear to have occurred in the share auction.
On April 12, Intimex made an IPO on the Ha Noi bourse of 1.6 million shares, with an offering price of VND10,200 each. At the close of trading, bids had risen to VND160,000 (US$10), 16 times higher than face value.
Of note, according to the centre, is that the winning bids came from 11 investors, all Vietnamese, who each placed an exact order for 1.6 million shares at VND160,000.
Financial statements issued by Intimex prior to the IPO suggested the shares were overpriced. During 2004-06 period, the ratio of gross profits to capital fell markedly, a trend that would normally make investors wary.
Furthermore, in the third quarter of last year, Intimex posted losses of VND8.3 billion ($518,750) and carried a debt load of VND312 billion ($19.5 million).
Some market experts suggested that the total value of land use rights the company holds were a countervailing factor driving up the price of shares during the IPO.
At present, Intimex owes 19 parcels of land across the country with a total area of 2.3 million sq.m, including a valuable area of 2,871 sq.m near Ha Noi’s Hoan Kiem Lake, one of three lots in
Ha Noi issued to Intimex under decision of the Ha Noi’s People Committee.
Other irregularities in the IPO include Intimex’s failure to publish a list of shares would be held by the company’s top executives following the IPO.
One expert suggested that the failure to disclose indicated a plan by these major investors to hold onto a controlling interest, excluding outside investors and winning all the shares in the auction.
Under Government regulations, employees of a company are entitled to purchase shares at 60% of market cost when the company equitises. However, the share prices were pushed so high that few staff within the company could afford to buy, even at the discounted price.
All of these ambiguities would be clarified soon, promised Minister of Trade Truong Dinh Tuyen.
Last Tuesday, prior to the suspension of trading, Intimex issued additional shares to raise its charter capital from VND14.4 billion ($900 million) to VND28.8 billion ($1.8 billion). 94% of the 1.4 million new shares were earmarked for existing shareholders at a face value of VND10,000 each.
Source: VNS
The suspension is pursuant to an order from the Ministry of Trade, the centre said, in order to give the centre time to clarify some irregularities that appear to have occurred in the share auction.
On April 12, Intimex made an IPO on the Ha Noi bourse of 1.6 million shares, with an offering price of VND10,200 each. At the close of trading, bids had risen to VND160,000 (US$10), 16 times higher than face value.
Of note, according to the centre, is that the winning bids came from 11 investors, all Vietnamese, who each placed an exact order for 1.6 million shares at VND160,000.
Financial statements issued by Intimex prior to the IPO suggested the shares were overpriced. During 2004-06 period, the ratio of gross profits to capital fell markedly, a trend that would normally make investors wary.
Furthermore, in the third quarter of last year, Intimex posted losses of VND8.3 billion ($518,750) and carried a debt load of VND312 billion ($19.5 million).
Some market experts suggested that the total value of land use rights the company holds were a countervailing factor driving up the price of shares during the IPO.
At present, Intimex owes 19 parcels of land across the country with a total area of 2.3 million sq.m, including a valuable area of 2,871 sq.m near Ha Noi’s Hoan Kiem Lake, one of three lots in
Ha Noi issued to Intimex under decision of the Ha Noi’s People Committee.
Other irregularities in the IPO include Intimex’s failure to publish a list of shares would be held by the company’s top executives following the IPO.
One expert suggested that the failure to disclose indicated a plan by these major investors to hold onto a controlling interest, excluding outside investors and winning all the shares in the auction.
Under Government regulations, employees of a company are entitled to purchase shares at 60% of market cost when the company equitises. However, the share prices were pushed so high that few staff within the company could afford to buy, even at the discounted price.
All of these ambiguities would be clarified soon, promised Minister of Trade Truong Dinh Tuyen.
Last Tuesday, prior to the suspension of trading, Intimex issued additional shares to raise its charter capital from VND14.4 billion ($900 million) to VND28.8 billion ($1.8 billion). 94% of the 1.4 million new shares were earmarked for existing shareholders at a face value of VND10,000 each.
Source: VNS
Private bank weighs into stock market
The Technological and Commercial Joint-Stock Bank, Techcombank, has announced its plans to establish a securities company and a capital fund.
The new 18.75 million USD company and 2.5 million USD capital management fund were approved by shareholders at their annual meeting.
In addition to the new companies, Techcombank said it would focus investment in risk-management and product-promotion technology such as payment and credit cards, internet banking and mobile banking.
Individual depositors, medium and small sized enterprises are traditional customers of the giant, which is in the top three commercial joint stock banks in the country.
Source: VNA
The new 18.75 million USD company and 2.5 million USD capital management fund were approved by shareholders at their annual meeting.
In addition to the new companies, Techcombank said it would focus investment in risk-management and product-promotion technology such as payment and credit cards, internet banking and mobile banking.
Individual depositors, medium and small sized enterprises are traditional customers of the giant, which is in the top three commercial joint stock banks in the country.
Source: VNA
Vietnam Steel raises 25 million US$ by selling bonds
State-owned Vietnam Steel Corp. aims to raise 400 billion dong (nearly $25 million) in a dong bond issue scheduled for May 10, bond underwriter Vietcombank said on Friday.
The 5-year bonds, with a face value of 100,000 dong, would carry an annual coupon of 9.5%, Vietcombank said in a statement.
Vietnamese companies have been switching to bonds as bank loans usually carry an annual interest of 12 to 15%.
Source: Reuters
The 5-year bonds, with a face value of 100,000 dong, would carry an annual coupon of 9.5%, Vietcombank said in a statement.
Vietnamese companies have been switching to bonds as bank loans usually carry an annual interest of 12 to 15%.
Source: Reuters
Thursday, May 03, 2007
Sagimexco expects this year's revenue to increase by 11%
Vietnam's shrimp-flavoured cake maker Sagimexco (SGC) said on Thursday it expected its revenues to rise nearly 11% to 98 billion dong ($6.1 million) this year.
The Dong Thap province-based company said in a statement published by the Ho Chi Minh City Securities Trading Center its gross profit this year should be 18 billion dong ($1.1 million), unchanged from 2006.
On Thursday, shares in Sagimexco closed unchanged at 46,000 dong ($2.85), or 34.8% below their year high of 70,500 dong.
Source: Reuters
The Dong Thap province-based company said in a statement published by the Ho Chi Minh City Securities Trading Center its gross profit this year should be 18 billion dong ($1.1 million), unchanged from 2006.
On Thursday, shares in Sagimexco closed unchanged at 46,000 dong ($2.85), or 34.8% below their year high of 70,500 dong.
Source: Reuters
SSI first quarter profit up fourfold
Top Vietnam stock brokerage Saigon Securities Inc. said on Thursday its first quarter net profit jumped four times from a year earlier to 465.3 billion dong ($28.8 million).
Its quarterly revenues rose 245% to 573 billion dong ($35.5 million), the Ho Chi Minh City-based company said in a statement published by the Hanoi over-the-counter market <.HASTCI>.
SSI also advises state-owned companies on privatisation as well as underwriting share and debt issues. It is among about 45 companies offering such services in Hanoi and Ho Chi Minh City.
Shares in the company edged up 0.3% on Thursday to 218,000 dong ($13.5), but are 21% down from their year high of 276,700 dong ($17.2).
Source: Reuters
Its quarterly revenues rose 245% to 573 billion dong ($35.5 million), the Ho Chi Minh City-based company said in a statement published by the Hanoi over-the-counter market <.HASTCI>.
SSI also advises state-owned companies on privatisation as well as underwriting share and debt issues. It is among about 45 companies offering such services in Hanoi and Ho Chi Minh City.
Shares in the company edged up 0.3% on Thursday to 218,000 dong ($13.5), but are 21% down from their year high of 276,700 dong ($17.2).
Source: Reuters
Software industry aims at 800 million US$ revenue
Though obtaining satisfactory results recently, the software industry of Vietnam has not demonstrated its full ability yet.
The expectations for this key industry have been raised again since the government approved the programme to develop the software industry of Vietnam to 2010 in mid April.
The most important point of this programme is identifying the goals, policies, specific measures and the expenses for the programme. According to many IT experts, those goals are appropriate to the country’s ability if solutions are performed seriously.
According to the government’s viewpoint, the software industry is a knowledge-based, hi-tech economic sector, with high added value and export revenue, significantly contributing to modernisation and industrialisation. Vietnam especially encourages and creates favourable conditions for drawing investment and developing this industry as a core economic sector of the national economy.
Developing human resources is considered the key to the success of the software industry. Information services will be a focus, firstly outsourcing services for foreign clients, along with expanding the local market and developing some major software to replace imported products.
The programme aims to obtain an average growth rate of 35-40% a year, total revenue of over US$800 million, including at least 40% from exports. The workforce for the software sector will be around 55,000-60,000, with average production value of US$15,000/person/year. By 2010, Vietnam must have around 10 software companies which have over 1,000 employees and 200 companies with over 100 employees.
Vietnam has also set the goal of becoming one of the leading countries in attracting foreign investment in the software industry and one of the top 15 nations providing software outsourcing service in the world. Another goal is reducing the rate of software infringement to the average of the region.
To realise those targets, the Software Industry Development Programme proposes some policies and solutions, including the improvement of the legal environment and State management capability. The programme also proposes measures to develop human resources for the software industry.
Accordingly, software companies that meet conditions on human resources and infrastructure, especially companies in Hanoi, Da Nang and HCM City, will be helped to raise their competitiveness. Some software parks will be also developed in the three above cities.
The programme also lays out many projects and schemes to develop the software industry in various aspects like human resources, trademarks, trade promotion, market development, software export.
One of the most important points of the programme is that in 2010 the State will give priority to the programme. Accordingly, US$70 million will be invested in the programme: 30% from the State budget, 30% from local budgets, and 40% from enterprises, associations, ODA sources and other sources.
The Ministry of Post and Telematics will coordinate with ministries, government agencies, and local authorities to implement this programme.
Source: VET
The expectations for this key industry have been raised again since the government approved the programme to develop the software industry of Vietnam to 2010 in mid April.
The most important point of this programme is identifying the goals, policies, specific measures and the expenses for the programme. According to many IT experts, those goals are appropriate to the country’s ability if solutions are performed seriously.
According to the government’s viewpoint, the software industry is a knowledge-based, hi-tech economic sector, with high added value and export revenue, significantly contributing to modernisation and industrialisation. Vietnam especially encourages and creates favourable conditions for drawing investment and developing this industry as a core economic sector of the national economy.
Developing human resources is considered the key to the success of the software industry. Information services will be a focus, firstly outsourcing services for foreign clients, along with expanding the local market and developing some major software to replace imported products.
The programme aims to obtain an average growth rate of 35-40% a year, total revenue of over US$800 million, including at least 40% from exports. The workforce for the software sector will be around 55,000-60,000, with average production value of US$15,000/person/year. By 2010, Vietnam must have around 10 software companies which have over 1,000 employees and 200 companies with over 100 employees.
Vietnam has also set the goal of becoming one of the leading countries in attracting foreign investment in the software industry and one of the top 15 nations providing software outsourcing service in the world. Another goal is reducing the rate of software infringement to the average of the region.
To realise those targets, the Software Industry Development Programme proposes some policies and solutions, including the improvement of the legal environment and State management capability. The programme also proposes measures to develop human resources for the software industry.
Accordingly, software companies that meet conditions on human resources and infrastructure, especially companies in Hanoi, Da Nang and HCM City, will be helped to raise their competitiveness. Some software parks will be also developed in the three above cities.
The programme also lays out many projects and schemes to develop the software industry in various aspects like human resources, trademarks, trade promotion, market development, software export.
One of the most important points of the programme is that in 2010 the State will give priority to the programme. Accordingly, US$70 million will be invested in the programme: 30% from the State budget, 30% from local budgets, and 40% from enterprises, associations, ODA sources and other sources.
The Ministry of Post and Telematics will coordinate with ministries, government agencies, and local authorities to implement this programme.
Source: VET
Reorganised SSI to expand service range
The Saigon Securities Inc (SSI) plans to restructure itself as a parent company to a group of enterprises offering various services to investors.
SSI will act as the umbrella organisation to companies providing services such as securities and fund management, investment banking and market research.
SSI managing director Nguyen Hong Nam said that SSI plans to join hands with a major international fund management company to establish its new fund management company, which is expected to open in May.
"We’re negotiating with a Japanese firm to set up a market research company," he said.
SSI shareholders have authorised the executive board to select an appropriate time this year to increase SSI capital to VND1.5 trillion (US$93 million) from VND500 billion.
The board will select one from two foreign institutions, currently in negotiations, to whom it will sell 10 per cent of SSI.
The company is now listed at the Ha Noi Securities Trading Center but is expected to move to the HCM City centre in May.
SSI is also in the process of selecting a consultant to assist in listing and raising capital overseas.
This year, SSI targets VND800 billion in net profits and a dividend of 30 per cent. In the first quarter the company has already netted VND465 billion in profits. Last year, it achieved a VND242 billion profit with a 25 per cent dividend.
Source: VNS
SSI will act as the umbrella organisation to companies providing services such as securities and fund management, investment banking and market research.
SSI managing director Nguyen Hong Nam said that SSI plans to join hands with a major international fund management company to establish its new fund management company, which is expected to open in May.
"We’re negotiating with a Japanese firm to set up a market research company," he said.
SSI shareholders have authorised the executive board to select an appropriate time this year to increase SSI capital to VND1.5 trillion (US$93 million) from VND500 billion.
The board will select one from two foreign institutions, currently in negotiations, to whom it will sell 10 per cent of SSI.
The company is now listed at the Ha Noi Securities Trading Center but is expected to move to the HCM City centre in May.
SSI is also in the process of selecting a consultant to assist in listing and raising capital overseas.
This year, SSI targets VND800 billion in net profits and a dividend of 30 per cent. In the first quarter the company has already netted VND465 billion in profits. Last year, it achieved a VND242 billion profit with a 25 per cent dividend.
Source: VNS
VinaCapital launches new Vietnam fund
VinaCapital is launching a new fund for investment in Vietnam's rapidly growing infrastructure sector, seeking to raise US$200 million in first fundraising exercise in May 2007.
The Vietnam Infrastructure Limited (VIL) will also seek admission to the Alternative Investments Market (AIM) of the London Stock Exchange, a VinaCapital press release said.
VIL will invest in Vietnam's infrastructure framework, through a portfolio of infrastructure assets in key economic regions. It will be Vietnam's first, fully dedicated fund to invest in this rapidly growing asset class.
VIL will focus on four key industries: energy, transport, water and telecommunications.
The company seeks to achieve target total net returns of approximately 20% per annum from investment to exit. It has already identified a number of potential investments.
Vietnam’s rapid growth over the last decade has placed increasing strain on its ageing infrastructure with demand fast outstripping supply.
According to the World Bank, Vietnam will need a projected $140 billion in infrastructure investment over the next five years.
William Lean, Managing Director of VinaCapital's Infrastructure Group, said the demand for infrastructure investment had created attractive opportunities for the private sector to become strategic investors in this field.
As the Vietnamese government has established necessary framework for the private sector’s participation, “We are very excited … and we look forward to investing in this rapidly growing asset class”, Lean said.
Source: Thanh Nien
The Vietnam Infrastructure Limited (VIL) will also seek admission to the Alternative Investments Market (AIM) of the London Stock Exchange, a VinaCapital press release said.
VIL will invest in Vietnam's infrastructure framework, through a portfolio of infrastructure assets in key economic regions. It will be Vietnam's first, fully dedicated fund to invest in this rapidly growing asset class.
VIL will focus on four key industries: energy, transport, water and telecommunications.
The company seeks to achieve target total net returns of approximately 20% per annum from investment to exit. It has already identified a number of potential investments.
Vietnam’s rapid growth over the last decade has placed increasing strain on its ageing infrastructure with demand fast outstripping supply.
According to the World Bank, Vietnam will need a projected $140 billion in infrastructure investment over the next five years.
William Lean, Managing Director of VinaCapital's Infrastructure Group, said the demand for infrastructure investment had created attractive opportunities for the private sector to become strategic investors in this field.
As the Vietnamese government has established necessary framework for the private sector’s participation, “We are very excited … and we look forward to investing in this rapidly growing asset class”, Lean said.
Source: Thanh Nien
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
Wednesday, May 02, 2007
Problems with new order-matching solution
HCMC Securities Trading Center (HoSTC) announced it would indefinitely postpone applying the continuous order-matching forms originally set for release on May 7. The delay was issued because many securities firms are not ready to handle the new mode.
Le Hai Tra, deputy director of HoSTC, said half of the securities companies had not readied their human resources and technology to deploy the non-stop order matching forms as planned.The center was consulting with the State Securities Commission on the future application but have yet to decide an exact date to apply the new form.Tra added that after a one-month trial on the new mode, only 20 brokerages out of 45 performed well.
Some securities firms said that software solutions for the new form did not work.The HCMC stock exchange was originally set to apply daily the non-stop order matching next Monday.Non-stop matching aims to minimize transaction jams, distinguish small investors from big ones and prevent insider trading, according to HoSTC director Tran Dac Sinh.
The new practice will comprise two periods of timed order matching and one period of non-stop order matching.The first timed order matching session will be held between 8.30 am and 9 am to determine the opening price.Between 9 am and 10 am continuous order matching session will take place, meaning that investors’ order will be matched immediately after it is placed.
Then between 10 am and 10.30 am, a timed order matching session would again be carried out to define the closing price.The current mechanism involvs three time order matching sessions and no continuous sessions.
Source: Thanh Nien
Le Hai Tra, deputy director of HoSTC, said half of the securities companies had not readied their human resources and technology to deploy the non-stop order matching forms as planned.The center was consulting with the State Securities Commission on the future application but have yet to decide an exact date to apply the new form.Tra added that after a one-month trial on the new mode, only 20 brokerages out of 45 performed well.
Some securities firms said that software solutions for the new form did not work.The HCMC stock exchange was originally set to apply daily the non-stop order matching next Monday.Non-stop matching aims to minimize transaction jams, distinguish small investors from big ones and prevent insider trading, according to HoSTC director Tran Dac Sinh.
The new practice will comprise two periods of timed order matching and one period of non-stop order matching.The first timed order matching session will be held between 8.30 am and 9 am to determine the opening price.Between 9 am and 10 am continuous order matching session will take place, meaning that investors’ order will be matched immediately after it is placed.
Then between 10 am and 10.30 am, a timed order matching session would again be carried out to define the closing price.The current mechanism involvs three time order matching sessions and no continuous sessions.
Source: Thanh Nien
Vietnamese stocks recover on economic prospects
Vietnamese stocks bounced back Wednesday after a six-day holiday on the back of increasing blue chips and positive economic reports from government and the Central Institute of Economic Management.
Ho Chi Minh City’s VN-Index gained 11.59 points, or 1.25% to close at 935.48.
The bourse closed with 4.7 million shares changing hands for VND564 billion (US$35 million).
There were 54 gainers and 37 losers out of the total 109 stocks.
Blue chips like GMD, REE, NKD, VNM and SGH were among gainers, all of which hit the ceiling price 5% limit.
The mutual funds, PRUBF1 and VFMVF1, gained 0.72% and 1.80% respectively, to close at VND14,000 and VND34,000.
The market recovery has been attributed to a forecast from The Central Institute of Economic Management that said that Vietnam is likely to attract foreign investment worth $35 billion this year. The government also expects the country’s economy to expand by 8.5% this year.
Source: Thanh Nien
Ho Chi Minh City’s VN-Index gained 11.59 points, or 1.25% to close at 935.48.
The bourse closed with 4.7 million shares changing hands for VND564 billion (US$35 million).
There were 54 gainers and 37 losers out of the total 109 stocks.
Blue chips like GMD, REE, NKD, VNM and SGH were among gainers, all of which hit the ceiling price 5% limit.
The mutual funds, PRUBF1 and VFMVF1, gained 0.72% and 1.80% respectively, to close at VND14,000 and VND34,000.
The market recovery has been attributed to a forecast from The Central Institute of Economic Management that said that Vietnam is likely to attract foreign investment worth $35 billion this year. The government also expects the country’s economy to expand by 8.5% this year.
Source: Thanh Nien
Vietnam’s life insurance market a potential goldmine
Vietnam's accession to the World Trade Organisation (WTO) in 2006 and steady recorded economic growth rates hovering around 8%, have foreign insurance multi nationals eying the market.
Under Vietnam’s WTO commitments foreign insurers have the right to open branch offices within the country and are permitted to offer a plethora of non-life insurance options after 5 years in operation.
To date only 6.5 million people out of the country’s population of over 84 million own life insurance and we believe due to this, Vietnam’s life insurance market is set to be a boon for foreign insurers, said David L Fried, regional director of the HSBC Insurance (Asia-Pacific).
Keen to tap into the future potential of what is seen as a young market, big global players such as Daiichi Life Insurance Company of Japan and the Hong Kong and Shanghai Banking Corporation (HSBC) have already opened representative offices in the country.
In a bid to increase their profile within the domestic marketplace, foreign companies are coming up with novel ways to introduce new services to attract customers. UK based Prudential have begun to offer an educational insurance package that insures a family's breadwinner, in the event of death or illness the children of the family's principle will have their educational development provided for by the company.
With new foreign firms entering the market, there has been fierce competition amongst insurers, said Phung Dac Loc, General Secretary of the Vietnam Insurance Association. Competition will be further heightened if the Ministry of Finance gives the go ahead for a new product that links insurance, savings and investment, he noted.
Vietnam's insurance industry has been running hot since the start of the millennium with a growth rate of 29% a year on average. Revenues from insurance have accounted for 2% of the country's gross domestic product (GDP).
Observers highlight the need to further open up the industry by pointing to the 110 trillion VND (6.87 billion USD) insurance has pumped into the country's economic development since 2001.
Source: VNE
Under Vietnam’s WTO commitments foreign insurers have the right to open branch offices within the country and are permitted to offer a plethora of non-life insurance options after 5 years in operation.
To date only 6.5 million people out of the country’s population of over 84 million own life insurance and we believe due to this, Vietnam’s life insurance market is set to be a boon for foreign insurers, said David L Fried, regional director of the HSBC Insurance (Asia-Pacific).
Keen to tap into the future potential of what is seen as a young market, big global players such as Daiichi Life Insurance Company of Japan and the Hong Kong and Shanghai Banking Corporation (HSBC) have already opened representative offices in the country.
In a bid to increase their profile within the domestic marketplace, foreign companies are coming up with novel ways to introduce new services to attract customers. UK based Prudential have begun to offer an educational insurance package that insures a family's breadwinner, in the event of death or illness the children of the family's principle will have their educational development provided for by the company.
With new foreign firms entering the market, there has been fierce competition amongst insurers, said Phung Dac Loc, General Secretary of the Vietnam Insurance Association. Competition will be further heightened if the Ministry of Finance gives the go ahead for a new product that links insurance, savings and investment, he noted.
Vietnam's insurance industry has been running hot since the start of the millennium with a growth rate of 29% a year on average. Revenues from insurance have accounted for 2% of the country's gross domestic product (GDP).
Observers highlight the need to further open up the industry by pointing to the 110 trillion VND (6.87 billion USD) insurance has pumped into the country's economic development since 2001.
Source: VNE
Vietnam needs Chinese electricity
Vietnam’s import of electricity from China will jump to 2.5 billion kilowatt-hours this year, according to Vietnam’s state-owned power utility, Electricity of Vietnam Corp. (EVN).
According to Chinese statistics, China exported 1.84 billion kilowatt-hours worth some US$80.7 million to Vietnam from September 2004 to March 2007.
EVN CEO Pham Le Thanh said EVN was building more transmission lines to bring the electricity to other provinces to cope with ongoing shortages expected to continue next month.
Under a contract with the China Southern Power Grid Company, EVN is to buy electricity for use in northern Vietnam for at least 10 years. Thanh said he hoped new power plants would come into operation as scheduled so EVN could stop buying Chinese electricity when the contract is up.
EVN plans to supply 67 kilowatts of electricity this year, including 18 billion kilowatts bought from other sources, said Thanh.
He added that EVN was selling electricity at lower prices than it had to pay and would thus suffer some VND4 trillion ($250 million) in losses this year.
Source: Thanh Nien
According to Chinese statistics, China exported 1.84 billion kilowatt-hours worth some US$80.7 million to Vietnam from September 2004 to March 2007.
EVN CEO Pham Le Thanh said EVN was building more transmission lines to bring the electricity to other provinces to cope with ongoing shortages expected to continue next month.
Under a contract with the China Southern Power Grid Company, EVN is to buy electricity for use in northern Vietnam for at least 10 years. Thanh said he hoped new power plants would come into operation as scheduled so EVN could stop buying Chinese electricity when the contract is up.
EVN plans to supply 67 kilowatts of electricity this year, including 18 billion kilowatts bought from other sources, said Thanh.
He added that EVN was selling electricity at lower prices than it had to pay and would thus suffer some VND4 trillion ($250 million) in losses this year.
Source: Thanh Nien
Tuesday, May 01, 2007
VN-Index: April 2007
Open: 1055.01
Close: 923.89
Change: -131.12 (12.43%)
Maximum: 1055.01 (April 2)
Minimum: 905.53 (April 23)
HaSTC-Index: April 2007
Open: 391.77
Close: 332.51
Change: -59.26 (15.13%)
Maximum: 405.17 (April 10)
Minimum: 319.51 (April 24)
Monday, April 30, 2007
Advertising company sues FPT
A Ho Chi Minh City-based advertising firm has sued its internet service provider, FPT Telecom, for a malfunction that caused the loss of hundreds of emails. The plaintiff is demanding US$1 mln in compensation.
The Viet My Advertising Company said it filed the case against FPT Telecom at the Ho Chi Minh City People’s Court.
Viet My said it had contracted FPT Telecom, a subsidiary of the blue-chip FPT group, to host its web site and emails since 2005.
The email service broke down on February 6 this year and when it worked again the next day, all information and data of the emails from the company’s 10 accounts were lost, according to Viet My.
Viet My Director Phan Quy Nga said the lost emails caused great financial losses to his company.
Nga said the contract had stated that FPT Telecom was responsible for the system’s security and the safety of data.
He said Viet My had contacted FPT Telecom many times to solve the problem but the service provider seemed to “lack good will.”
But FPT said the problem was caused by technical hardware problem beyond its responsibility.
Mai Xuan Khoi, an FPT Telecom senior official, said Viet My’s demands were “unreasonable.”
He said service providers only made sure the emails arrived in the users’ mailboxes, and it was the users’ responsibility to keep their emails.
FPT Telecom has offered several favorable service packages for Viet My in compensation for the incident, which were all turned down, Khoi said.
Khoi said the email hosting system breakdown on February 6 was caused by physical errors in the mail server’s hard drive, which affected over 100 other companies.
“This is a rare, unexpected and unwanted problem,” he said.
However, the Thuong Mai (Trade) newspaper quoted Khoi as saying that the hard drive had been used for over a year while it had been technically advised for use for less than 6 months.
Khoi also said FPT Telecom was trying to recover the loss date, but the chance was minor.
Source: Thanh Nien
The Viet My Advertising Company said it filed the case against FPT Telecom at the Ho Chi Minh City People’s Court.
Viet My said it had contracted FPT Telecom, a subsidiary of the blue-chip FPT group, to host its web site and emails since 2005.
The email service broke down on February 6 this year and when it worked again the next day, all information and data of the emails from the company’s 10 accounts were lost, according to Viet My.
Viet My Director Phan Quy Nga said the lost emails caused great financial losses to his company.
Nga said the contract had stated that FPT Telecom was responsible for the system’s security and the safety of data.
He said Viet My had contacted FPT Telecom many times to solve the problem but the service provider seemed to “lack good will.”
But FPT said the problem was caused by technical hardware problem beyond its responsibility.
Mai Xuan Khoi, an FPT Telecom senior official, said Viet My’s demands were “unreasonable.”
He said service providers only made sure the emails arrived in the users’ mailboxes, and it was the users’ responsibility to keep their emails.
FPT Telecom has offered several favorable service packages for Viet My in compensation for the incident, which were all turned down, Khoi said.
Khoi said the email hosting system breakdown on February 6 was caused by physical errors in the mail server’s hard drive, which affected over 100 other companies.
“This is a rare, unexpected and unwanted problem,” he said.
However, the Thuong Mai (Trade) newspaper quoted Khoi as saying that the hard drive had been used for over a year while it had been technically advised for use for less than 6 months.
Khoi also said FPT Telecom was trying to recover the loss date, but the chance was minor.
Source: Thanh Nien
Sacombank begins laying foundation for $5 mln data center
The Ho Chi Minh City-based Sacombank has begun work on a US$5 million data center to house the lender’s southern server system and technology network.
The center, located in Binh Duong Province’s Thuan An District, will cost the bank an estimated $2 million for basic infrastructure and US$3 million for IT facilities.
It is scheduled to begin operation by the year’s end.
The bank has recently sealed a deal with leading software producer Microsoft to modernize its IT system.
In the last four years, Sacombank has spent US$4 million on technology and plans to invest more.
The HCMC bourse-listed bank experienced high growth in the year’s first quarter with gross profits soaring 88 percent to reach VND302 billion.
Sacombank also posted total assets of VND30 trillion, a surge of 68 percent against the same period last year.
Earlier this year Fitch Ratings has affirmed Sacombank’s Individual and Support ratings of 'D' and '5', respectively, reflecting its adequate balance sheet strength and good profitability.
It is set to make a 1:2 rights issue this year to raise VND1.45 trillion (US$90 million), increasing its chartered capital to VND3.55 trillion ($221 million).
Sacombank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank , which altogether held 26.3 percent of stake.
The bank reportedly might lift the cap on foreign investors’ holdings in the bank.
Source: Thanh Nien
The center, located in Binh Duong Province’s Thuan An District, will cost the bank an estimated $2 million for basic infrastructure and US$3 million for IT facilities.
It is scheduled to begin operation by the year’s end.
The bank has recently sealed a deal with leading software producer Microsoft to modernize its IT system.
In the last four years, Sacombank has spent US$4 million on technology and plans to invest more.
The HCMC bourse-listed bank experienced high growth in the year’s first quarter with gross profits soaring 88 percent to reach VND302 billion.
Sacombank also posted total assets of VND30 trillion, a surge of 68 percent against the same period last year.
Earlier this year Fitch Ratings has affirmed Sacombank’s Individual and Support ratings of 'D' and '5', respectively, reflecting its adequate balance sheet strength and good profitability.
It is set to make a 1:2 rights issue this year to raise VND1.45 trillion (US$90 million), increasing its chartered capital to VND3.55 trillion ($221 million).
Sacombank has three foreign strategic shareholders, the World Bank's International Finance Corp., Dragon Capital and ANZ Bank , which altogether held 26.3 percent of stake.
The bank reportedly might lift the cap on foreign investors’ holdings in the bank.
Source: Thanh Nien
Saturday, April 28, 2007
SSI to sell 10% stake to foreigner partner
Saigon Securities Inc, (SSI, Hanoi Stock Exchange) Vietnam’s biggest brokerage house, is set to sell 10% of its stake to a foreign investor and triple its chartered capital to VND1.5 trillion this year.
A spokesman for the market-listed brokerage said the firm was in negotiations to sell the stake to a strategic partner at US$90 million.
But it is not known if the 10% will be in the expanded capital or existing capital.
According to another source, interested parties include Goldman Sachs, JP Morgan Stanley, and UBS.
SSI plans to issue fresh shares and convertible bonds this year, with a detailed plan to be presented to shareholders in September.
It is also mulling listing in Ho Chi Minh City and in foreign exchanges like Hong Kong and Singapore.
In other plans, SSI is seeking to become a holding company, spinning off independent offshoots specializing in securities and investment banking services.
In the first quarter, its after-tax profit was VND465 billion (US$29 million) on revenues of VND579 billion.
Source: Thanh Nien vietnam equity fund
A spokesman for the market-listed brokerage said the firm was in negotiations to sell the stake to a strategic partner at US$90 million.
But it is not known if the 10% will be in the expanded capital or existing capital.
According to another source, interested parties include Goldman Sachs, JP Morgan Stanley, and UBS.
SSI plans to issue fresh shares and convertible bonds this year, with a detailed plan to be presented to shareholders in September.
It is also mulling listing in Ho Chi Minh City and in foreign exchanges like Hong Kong and Singapore.
In other plans, SSI is seeking to become a holding company, spinning off independent offshoots specializing in securities and investment banking services.
In the first quarter, its after-tax profit was VND465 billion (US$29 million) on revenues of VND579 billion.
Source: Thanh Nien vietnam equity fund
Friday, April 27, 2007
Taiwanese firm picks 15% of TRIBECO
Taiwan’s Uni President Enterprises Corp. (UPEC) has bought a 15% stake in Ho Chi Minh’s Saigon Beverage Company (TRI, Tribeco) for US$2.2 million.
Following the deal sealed Wednesday, UPEC and Tribeco – the beverage company’s formal name – have committed to long-term cooperation for mutual growth.
Tribeco representatives have said that doing business with UPEC is a strategic move to enter Asian markets as UPEC plays a leading role in the distribution of food, beverages and retail throughout the continent.
Tribeco plans to commission a VND300 billion factory to produce soft drinks in Binh Duong Province’s Vietnam-Singapore Industrial Park in August. The company will also begin construction of a VND90 billion facility in the northern province of Hung Yen next month.
With the acquisition, the Taiwanese company has become the second strategic shareholder of Tribeco after Vietnam’s leading confectioner Kinh Do Corp with 35.4%.
UPEC moved into Vietnam in 1999 with $220 million in total pledged investment capital. The firm is active in a range of fields like animal and fish feed, wheat flour, food and drinks.
However the company’s current soft drink facilities in Binh Duong Province have not reached their potential.
UPEC spokesman said the beverages line in Binh Duong would be shut down soon to focus on Tribeco.
Source: Thanh Nien
Following the deal sealed Wednesday, UPEC and Tribeco – the beverage company’s formal name – have committed to long-term cooperation for mutual growth.
Tribeco representatives have said that doing business with UPEC is a strategic move to enter Asian markets as UPEC plays a leading role in the distribution of food, beverages and retail throughout the continent.
Tribeco plans to commission a VND300 billion factory to produce soft drinks in Binh Duong Province’s Vietnam-Singapore Industrial Park in August. The company will also begin construction of a VND90 billion facility in the northern province of Hung Yen next month.
With the acquisition, the Taiwanese company has become the second strategic shareholder of Tribeco after Vietnam’s leading confectioner Kinh Do Corp with 35.4%.
UPEC moved into Vietnam in 1999 with $220 million in total pledged investment capital. The firm is active in a range of fields like animal and fish feed, wheat flour, food and drinks.
However the company’s current soft drink facilities in Binh Duong Province have not reached their potential.
UPEC spokesman said the beverages line in Binh Duong would be shut down soon to focus on Tribeco.
Source: Thanh Nien
BIDV sets up energy and industry fund
A fund management company that will focus on financing industrial and energy projects within the country will become operational by the second quarter of this year.
The Energy and Industry Fund Management Company was designed to manage a fund of the same name worth 10 trillion VND (625 million USD), said BIDV General Director Tran Bac Ha at a press briefing in Ha Noi on April 25.
According to Ha, the fund, the largest of its kind in Viet Nam, will prioritise investment in energy and industrial projects carried out by its founding members.
The fund is to be jointly set up by the Bank for Investment and Development of Viet Nam (BIDV) and the Viet Nam National Oil and Gas Group (PVN), the Viet Nam Coal and Mineral Industry Group (Vinacomin), the Viet Nam Post and Telecommunications Group (VNPT), the Song Da Corporation and the Urban and Industrial Zones Development Investment Corporation (IDICO).
The portfolio will initially focus on projects to build power plants in Viet Nam, Laos and Cambodia and explore mineral deposits both within and outside the country.
Ha said the fund will allow for investments of more than 7.36 trillion VND in total (460 million USD) for 82 projects during the period between 2007-2009.
BIDV, one of Viet Nam’s largest commercial banks, had previously established two fund management companies, which currently manages over 12 trillion VND (750 million USD).
Source: VNA
The Energy and Industry Fund Management Company was designed to manage a fund of the same name worth 10 trillion VND (625 million USD), said BIDV General Director Tran Bac Ha at a press briefing in Ha Noi on April 25.
According to Ha, the fund, the largest of its kind in Viet Nam, will prioritise investment in energy and industrial projects carried out by its founding members.
The fund is to be jointly set up by the Bank for Investment and Development of Viet Nam (BIDV) and the Viet Nam National Oil and Gas Group (PVN), the Viet Nam Coal and Mineral Industry Group (Vinacomin), the Viet Nam Post and Telecommunications Group (VNPT), the Song Da Corporation and the Urban and Industrial Zones Development Investment Corporation (IDICO).
The portfolio will initially focus on projects to build power plants in Viet Nam, Laos and Cambodia and explore mineral deposits both within and outside the country.
Ha said the fund will allow for investments of more than 7.36 trillion VND in total (460 million USD) for 82 projects during the period between 2007-2009.
BIDV, one of Viet Nam’s largest commercial banks, had previously established two fund management companies, which currently manages over 12 trillion VND (750 million USD).
Source: VNA
Thursday, April 26, 2007
Vietnamese stocks bounced ahead of a six-day holiday
n Ho Chi Minh City, the VN-Index gained 18.36 points to close at 923.89. Hanoi’s HASTC-Index rose by 13.28 points to 332.79.
Turnover in HCMC was VND578 billion (US$36 million), over 25% higher than the previous session.
There were 100 gainers and only two losers out of the total 109 stocks.
While many blue chips gained strongly, analysts said the market was dragged down by two heavyweights, VSH and FPT, which respectively remained unchanged and lost 2%.
They attributed the smart recovery to good news coming in about the economy.
The Central Institute of Economic Management has forecast that the economy will expand by 8.5% this year; the government has said Vietnam is likely to attract foreign investment worth $35 billion this year.
The mutual funds, PRUBF1 and VFMVF1, both gained 1.5% to close at VND13,900 and VND33,400.
Foreign investors were net buyers, snapping up shares of blue chips like VNM, GMD, PVD,VSH, and PPC for VND153 billion.
The bourse reopens after the holidays on May 2.
Source: Thanh Nien
Turnover in HCMC was VND578 billion (US$36 million), over 25% higher than the previous session.
There were 100 gainers and only two losers out of the total 109 stocks.
While many blue chips gained strongly, analysts said the market was dragged down by two heavyweights, VSH and FPT, which respectively remained unchanged and lost 2%.
They attributed the smart recovery to good news coming in about the economy.
The Central Institute of Economic Management has forecast that the economy will expand by 8.5% this year; the government has said Vietnam is likely to attract foreign investment worth $35 billion this year.
The mutual funds, PRUBF1 and VFMVF1, both gained 1.5% to close at VND13,900 and VND33,400.
Foreign investors were net buyers, snapping up shares of blue chips like VNM, GMD, PVD,VSH, and PPC for VND153 billion.
The bourse reopens after the holidays on May 2.
Source: Thanh Nien
1st quarter FDI doubled
Viet Nam attracted 3.51 billion USD in foreign investment in the first four months of this year, a two-fold increase from 2006.
Minister of Planning and Investment, Vo Hong Phuc, said that a further 20 billion USD in foreign invested projects are waiting for his ministry’s approval.
The Minister said that last year's entire foreign investment to the country amounted to 10.2 billion USD and that investment incentives and simplified administrative procedures were the primary reasons behind the surge in investment from overseas.
Viet Nam also exported nearly 4 billion USD worth of products in April, the highest monthly level so far this year, said the General Statistics Office.
The number brought the country’s total exports to over 14.5 billion USD for the first four months, up 22% over the same period last year.
Big movers in export fields included, crude oil and garments that generated revenues exceeding 2 billion USD and seafood products and footwear that totalled in excess of 1 billion USD.
In the first four months of this year, Viet Nam’s industrial valued surged 16.7% to nearly 176.9 trillion VND, with non-state, foreign-invested and state-owned sectors registered rises of 20.6%, 19.4% and 7.4%, respectively.
Source: VNA
Minister of Planning and Investment, Vo Hong Phuc, said that a further 20 billion USD in foreign invested projects are waiting for his ministry’s approval.
The Minister said that last year's entire foreign investment to the country amounted to 10.2 billion USD and that investment incentives and simplified administrative procedures were the primary reasons behind the surge in investment from overseas.
Viet Nam also exported nearly 4 billion USD worth of products in April, the highest monthly level so far this year, said the General Statistics Office.
The number brought the country’s total exports to over 14.5 billion USD for the first four months, up 22% over the same period last year.
Big movers in export fields included, crude oil and garments that generated revenues exceeding 2 billion USD and seafood products and footwear that totalled in excess of 1 billion USD.
In the first four months of this year, Viet Nam’s industrial valued surged 16.7% to nearly 176.9 trillion VND, with non-state, foreign-invested and state-owned sectors registered rises of 20.6%, 19.4% and 7.4%, respectively.
Source: VNA
Wednesday, April 25, 2007
FPT shareholders approve dividend plan
Shareholders of software giant FPT approved the payment of dividends in 2006 and 2007 in the firm’s annual shareholders meeting on Sunday.
Under the plan, each FPT shareholder would receive a 12% of dividend in cash and one additional share from two existing share already held.
Employees who have been with the company for at least two years would also be eligible to buy preferential shares at their face value of VND10,000 ($0.63) so long as the total value of such shares accounted for no more than 0.5% of FPT’s charter capital.
Those who buy preferential shares would have to make a contractual commitment to work for FPT for at least three more years and, during that time, not to transfer their shares.
FPT would also award common shares with a face value of VND10,000 to staff who have performed well and contributed to the company’s growth. The total value of such shares would not be able to exceed 0.75% of charter capital.
The company announced that, to fund business expansion, it would increase its charter capital by releasing additional common shares with a total value not to exceeding 10% of total capital.
Nguyen Diep Tung, a member of the FPT management board, said that the company in 2006 met its target for the year of a turnover of nearly VND11.7 trillion ($730 million), representing a year-on-year increase of 42.4%. Net profits rose 60.5%.
Source: VNS
Under the plan, each FPT shareholder would receive a 12% of dividend in cash and one additional share from two existing share already held.
Employees who have been with the company for at least two years would also be eligible to buy preferential shares at their face value of VND10,000 ($0.63) so long as the total value of such shares accounted for no more than 0.5% of FPT’s charter capital.
Those who buy preferential shares would have to make a contractual commitment to work for FPT for at least three more years and, during that time, not to transfer their shares.
FPT would also award common shares with a face value of VND10,000 to staff who have performed well and contributed to the company’s growth. The total value of such shares would not be able to exceed 0.75% of charter capital.
The company announced that, to fund business expansion, it would increase its charter capital by releasing additional common shares with a total value not to exceeding 10% of total capital.
Nguyen Diep Tung, a member of the FPT management board, said that the company in 2006 met its target for the year of a turnover of nearly VND11.7 trillion ($730 million), representing a year-on-year increase of 42.4%. Net profits rose 60.5%.
Source: VNS
FPT pens deal to provide bank software
FPT Information System (FPT-IS) has won a US$500,000 contract to provide banking software to Banque Pour Le Commerce Exterieur (BCEL).
The deal is the largest supply contract to a foreign financial institute that the FPT-IS has ever signed, and includes rights to Smartbank, E-banking and ATM software for BCEL’s head office and branches.
"The contract represents the rapid development of FPT and the local software industry in the region and world," said FPT-IS deputy director Nguyen Dung Trieu.
FPT-IS is a subsidiary of market leader Corporation for Financing and Promoting Technology, or simply FPT.
According to Trieu, Smartbank will help BCEL, Laos’s biggest commercial bank, quickly and accurately check customer information and execute transactions, while E-banking provides web based services.
Smartbank software has already been deployed in a number of domestic and foreign banks such as the LaoViet Bank, Cambodia Public Bank and VID-Public Bank.
According to the Viet Nam Software Association, FPT-IS is one of the largest providers of system platform integration and other software solutions in the region.
In 2006, FPT reported $517 million in revenue, up 70% over five years ago.
Source: VNS
The deal is the largest supply contract to a foreign financial institute that the FPT-IS has ever signed, and includes rights to Smartbank, E-banking and ATM software for BCEL’s head office and branches.
"The contract represents the rapid development of FPT and the local software industry in the region and world," said FPT-IS deputy director Nguyen Dung Trieu.
FPT-IS is a subsidiary of market leader Corporation for Financing and Promoting Technology, or simply FPT.
According to Trieu, Smartbank will help BCEL, Laos’s biggest commercial bank, quickly and accurately check customer information and execute transactions, while E-banking provides web based services.
Smartbank software has already been deployed in a number of domestic and foreign banks such as the LaoViet Bank, Cambodia Public Bank and VID-Public Bank.
According to the Viet Nam Software Association, FPT-IS is one of the largest providers of system platform integration and other software solutions in the region.
In 2006, FPT reported $517 million in revenue, up 70% over five years ago.
Source: VNS
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