Arguments have been raised over the legitimacy of the Vietnam-Italia Steel Joint Venture Company’s (VIS), listed at HCMC stock exchange, plan to order Chinese steel mills to make steel under VIS trademark. The steel will be imported to Vietnam for domestic consumption.
VIS’ plan has been facing strong opposition from local steel producers, who said that this is the violation of the laws, while VIS has insisted that it is legal.
Le Ngoc Son, Head of the International Cooperation Division under VIS, said that there are four factors leading to the company’s decision to place orders with Chinese steel producers.
First, the ingot steel prices keep skyrocketing in the domestic market, at VND8,800/kg, while in China, the price is just at VND8,200-8,900/kg. With the price gap of VND500,000/tonne in ingot steel, local producers will suffer heavy losses if they make steel domestically. This has prompted VIS to find out new ways of business in order to minimise risks.
Second, the steel price in Chinese market is staying at high levels as the world has put pressure on the country, forcing Chinese producers to reduce steel output by shutting down a lot of mills in order to improve the environment pollution. As the result, the steel supplies have decreased, leading to higher prices of finished steel.
Third, according to Mr Son, there are no reasons for local producers to condemn VIS, as the company just provides only 180,000 tonnes of steel every year to the domestic market. Therefore, the VIS’ said plan would not badly affect the operation of other steel mills.
Fourth, VIS wants to order C3 steel product with big diameter, which will be provided to high-rise buildings’ investors, the big clients of VIS.
However, all local steel producers have raised strong protests against the argument. The Thai Nguyen Cast Iron and Steel Company, Nam Do, Vinakansai and Vinashin all said that they have been asked by Chinese steel mills to make and distribute steel in this way, but they have rejected.
Representative from Pomina Company said: “The order of 5,000 tonnes would not have impact in the short term, but would be the threat to the whole steel industry in the long term”.
The representative pointed out that this is a kind of counterfeiting goods, and this must be prevented right now. He stressed that this must not considered as a kind of doing outwork. If Chinese producers do outwork for VIS, they must use the material provided by VIS. Meanwhile, in this case, 100% of material and technology are Chinese and the product is made in China.
Commenting about the legitimacy of VIS’ move, Tran Anh Son, Deputy Head of the Competition Management Administration under the Ministry of Trade said that in fact, this is a 100% Chinese made product, which is labelled with VIS trademark.
Mr Son, referring to the Dispatch No 548 promulgated by the Government, said that in case a company commissions a foreign company to make a product and then imports the product back to Vietnam, only the production steps that cannot be made domestically would be allowed to be made abroad.
An official from the Ministry of Industry has warned that there latent big risks in the VIS’ plan. In the first phase of the market access, the producer will sell at low prices, and after that, when its product becomes familiar to consumers, it will raise the selling prices. As the result, the foreign made product will dominate the market and kill local production.
Source: VEN
Friday, March 16, 2007
Itaco to issue additional shares
The Tan Tao Industrial Zone JS Company (Itaco) has announced to issue an additional 20 million shares.
Ten millions shares will be sold to Itaco’s current shareholders under the 6:1 ratio (one who owns each six shares can buy one new share). The price will be 50% of the closed price of the day before the day of issuance but the price will not be lower than VND70,000 (4.375 US$) per share.
Five million shares will be sold to big investors in the form of price offerings. The rest five million shares will be allocated to strategic shareholders at the lowest price of VND85,000 (5.312 US$) per share.
The shares will be issued after 90 days since the company received the permission of the State Securities Commission.
Source: VNE
Ten millions shares will be sold to Itaco’s current shareholders under the 6:1 ratio (one who owns each six shares can buy one new share). The price will be 50% of the closed price of the day before the day of issuance but the price will not be lower than VND70,000 (4.375 US$) per share.
Five million shares will be sold to big investors in the form of price offerings. The rest five million shares will be allocated to strategic shareholders at the lowest price of VND85,000 (5.312 US$) per share.
The shares will be issued after 90 days since the company received the permission of the State Securities Commission.
Source: VNE
Chemical companies to be equitised in 2007
The Vietnam National Chemical Corporation (Vinachem) has said that its nine companies will be listed in the stock market in 2007.
They are equitised companies that the state still holds control, including: the Southern Rubber Industrial JS Company, Gold Star Rubber JS Company, Vietnam Antiseptic JS Company, Ninh Binh Phosphate JS Company, Tia Sang Battery JS Company, Phuong Dong Trade JS Company, Can Tho Fertiliser and Chemical JS Company, Viet Tri Chemical JS Company and Hanoi Detergent JS Company.
Last year two unit members of Vinachem, the Da Nang Rubber JS Company (DRC) and the Southern Battery JS Company (Pinaco), quoted their shares on the HCM City Securities Trading Centre.
The prices of DRC and Pinaco are now 2-5 times more than their face values.
Source: VNE
They are equitised companies that the state still holds control, including: the Southern Rubber Industrial JS Company, Gold Star Rubber JS Company, Vietnam Antiseptic JS Company, Ninh Binh Phosphate JS Company, Tia Sang Battery JS Company, Phuong Dong Trade JS Company, Can Tho Fertiliser and Chemical JS Company, Viet Tri Chemical JS Company and Hanoi Detergent JS Company.
Last year two unit members of Vinachem, the Da Nang Rubber JS Company (DRC) and the Southern Battery JS Company (Pinaco), quoted their shares on the HCM City Securities Trading Centre.
The prices of DRC and Pinaco are now 2-5 times more than their face values.
Source: VNE
Increase in foreign indirect investment
Augmenting foreign indirect investment is being heralded as a reason behind the heat-up of Viet Nam's fledgling stock market, with a number of foreign capital funds eyeing freshly-equitised State-owned enterprises or private companies.
By late 2006, over 20 foreign capital funds with a combined investment of 3 billion US$ have operated in Viet Nam. Economists forecast foreign investment continues fluxing in amidst a prospect that more major SOEs will become joint-stock companies and list their shares on the stock market floor.
The forecast came true at the beginning of 2007 when Jaccar, a leading French capital fund, poured money into the Hoang Anh Gia Lai Joint-Stock Company and the Southeast Asian Aureos Fund invested in the Truong Thanh Wood Processing Company in the southern province of Binh Duong.
The inauguration of the Private Equity New Markets (PNEM) fund's office and the establishment of the Viet Nam Holding were remarkable events in Viet Nam. PNEM has registered investment of 80mio US$ and the Viet Nam Holding, 112mio US$.
Foreign direct investment also saw a huge surge in 2006 with a record investment of 10.2 billion US$ registered and 4.1 billion US$ disbursed. The trend maintains in 2007 as over 1.5 billion US$ was registered in the first two months, representing an increase of 27% year on year.
In addition, a number of major projects are awaiting approval, including a 1 billion US$ scheme, from the Gamuda group of Malaysia, to build hotels, conference centres, luxury apartment and office buildings.
Taiwanese Foxcon group has also applied for a 5 billion US$ project to build two technological meccas to produce high-grade electronic appliances.
2006 also saw 1.8 billion USD in official development assistance (ODA) disbursed against the original plan of 1.75 billion USD.
The success has led to a recent record ODA commitment of 4.45 billion US$. International donors also pledged to help Viet Nam increase its per-capita incomes to the average level by 2010 and virtually become industrialised by 2020.
Source: VNA
By late 2006, over 20 foreign capital funds with a combined investment of 3 billion US$ have operated in Viet Nam. Economists forecast foreign investment continues fluxing in amidst a prospect that more major SOEs will become joint-stock companies and list their shares on the stock market floor.
The forecast came true at the beginning of 2007 when Jaccar, a leading French capital fund, poured money into the Hoang Anh Gia Lai Joint-Stock Company and the Southeast Asian Aureos Fund invested in the Truong Thanh Wood Processing Company in the southern province of Binh Duong.
The inauguration of the Private Equity New Markets (PNEM) fund's office and the establishment of the Viet Nam Holding were remarkable events in Viet Nam. PNEM has registered investment of 80mio US$ and the Viet Nam Holding, 112mio US$.
Foreign direct investment also saw a huge surge in 2006 with a record investment of 10.2 billion US$ registered and 4.1 billion US$ disbursed. The trend maintains in 2007 as over 1.5 billion US$ was registered in the first two months, representing an increase of 27% year on year.
In addition, a number of major projects are awaiting approval, including a 1 billion US$ scheme, from the Gamuda group of Malaysia, to build hotels, conference centres, luxury apartment and office buildings.
Taiwanese Foxcon group has also applied for a 5 billion US$ project to build two technological meccas to produce high-grade electronic appliances.
2006 also saw 1.8 billion USD in official development assistance (ODA) disbursed against the original plan of 1.75 billion USD.
The success has led to a recent record ODA commitment of 4.45 billion US$. International donors also pledged to help Viet Nam increase its per-capita incomes to the average level by 2010 and virtually become industrialised by 2020.
Source: VNA
Loss-making companies not allowed to issue additional shares
Loss-making companies as well as those with overdue debts will not be allowed to issue additional shares, the Ministry of Finance said in a recent circular.
These companies are also banned from buying back their shares, circular 18/2007/TT-BTC said.
Public-owned companies, which want to buy back between 10-30% of their issued shares as treasury stocks, have to receive approval from the shareholders.
In case shares buy back raise a public-owned company's treasury stocks to more than 25% of its issued shares, the buyback shares should be conducted through public transaction in accordance with the Securities Law.
Source: VNA
These companies are also banned from buying back their shares, circular 18/2007/TT-BTC said.
Public-owned companies, which want to buy back between 10-30% of their issued shares as treasury stocks, have to receive approval from the shareholders.
In case shares buy back raise a public-owned company's treasury stocks to more than 25% of its issued shares, the buyback shares should be conducted through public transaction in accordance with the Securities Law.
Source: VNA
Thursday, March 15, 2007
Vietnamese governmental bonds "Ba3"
Moody's has changed Vietnam's 'Ba3' foreign-currency government bond rating outlook to positive from stable on continued success in the country's external development policies and stable fiscal position, a report said.
The rating agency had assigned a 'Ba3' local-currency government bond rating, also with a positive outlook, the AFX news agency report added.
'The change in outlook was prompted by continued success in the country's externally oriented development policies and overall stability in the government's fiscal position even as the authorities deliberately run budget deficits to finance investment and to boost the level of national income,' said Moody's vice president Tom Byrne.
Moody's said Vietnam's foreign-currency country ceiling for bonds and notes remains at 'Ba2', with a stable outlook.
The outlook on the country's 'B1' foreign-currency ceiling for deposits was changed to positive from stable, and the local currency bond ceiling remains at 'Ba1'.
For Vietnam's rating to move up some concern about policy capabilities will need to be allayed, namely, fiscal deficits should be contained and the increase in government debt restrained.
“Macroeconomic stability could be threatened by an unabated surge in capital inflows due to loose monetary control or an inappropriate exchange rate policy, and fiscal sustainability could be challenged by excessive increases in expenditure or a sharp fall in oil prices and petroleum sector revenues,” the report quoted Byrne as saying.
Source: Thanh Nien
The rating agency had assigned a 'Ba3' local-currency government bond rating, also with a positive outlook, the AFX news agency report added.
'The change in outlook was prompted by continued success in the country's externally oriented development policies and overall stability in the government's fiscal position even as the authorities deliberately run budget deficits to finance investment and to boost the level of national income,' said Moody's vice president Tom Byrne.
Moody's said Vietnam's foreign-currency country ceiling for bonds and notes remains at 'Ba2', with a stable outlook.
The outlook on the country's 'B1' foreign-currency ceiling for deposits was changed to positive from stable, and the local currency bond ceiling remains at 'Ba1'.
For Vietnam's rating to move up some concern about policy capabilities will need to be allayed, namely, fiscal deficits should be contained and the increase in government debt restrained.
“Macroeconomic stability could be threatened by an unabated surge in capital inflows due to loose monetary control or an inappropriate exchange rate policy, and fiscal sustainability could be challenged by excessive increases in expenditure or a sharp fall in oil prices and petroleum sector revenues,” the report quoted Byrne as saying.
Source: Thanh Nien
Four listed companies must explain stock price increases
On March 13, four listed companies had to make reports to the HCM City Securities Trading Centre (HSTC), explaining why the companies’ share price hit the ceiling levels in the last five consecutive trading sessions.
The four companies include Full Power (FPC), Chang Yih Tile Company (CYC), Binh Dinh Mineral Company (BNC) and Can Don Hydropower Company (SJD).
In the previous week, six listed companies were also requested to explain on why the share prices increased to the ceiling levels in five consecutive trading sessions.
The ceiling prices are the maximum price levels set for every share item. Under the current regulations, the ceiling price of a share item in a trading session at HSTC is 5% higher than the closing price of this share item in the previous session. Similarly, the price of a share item in a trading session at the Hanoi Securities Trading Centre must not be 10% higher than the price of the same share item in the previous trading session.
However, the listed companies just gave general explanations. They said that the high demand for shares and the information about bonus share issuance have pushed the prices up. Some of the companies even repeated the information that was released several months ago, which was completely not new to investors, considering the information the main reason for the price hike.
For example, SSC price hike was attributed to the release of the information about the issuance of bonus shares.
Only Khanh Hoa Power Joint Stock Company gave a detailed report about its production and business performance as requested by HSTC. The company’s share (KHP) hit the ceiling levels in five consecutive trading sessions. On March 6, KHP was traded at VND49,800/share, up by VND2,300/share, or 4.84% over the previous session. The company production and business performance was very good in the first two months of the year.
Source: VEN
The four companies include Full Power (FPC), Chang Yih Tile Company (CYC), Binh Dinh Mineral Company (BNC) and Can Don Hydropower Company (SJD).
In the previous week, six listed companies were also requested to explain on why the share prices increased to the ceiling levels in five consecutive trading sessions.
The ceiling prices are the maximum price levels set for every share item. Under the current regulations, the ceiling price of a share item in a trading session at HSTC is 5% higher than the closing price of this share item in the previous session. Similarly, the price of a share item in a trading session at the Hanoi Securities Trading Centre must not be 10% higher than the price of the same share item in the previous trading session.
However, the listed companies just gave general explanations. They said that the high demand for shares and the information about bonus share issuance have pushed the prices up. Some of the companies even repeated the information that was released several months ago, which was completely not new to investors, considering the information the main reason for the price hike.
For example, SSC price hike was attributed to the release of the information about the issuance of bonus shares.
Only Khanh Hoa Power Joint Stock Company gave a detailed report about its production and business performance as requested by HSTC. The company’s share (KHP) hit the ceiling levels in five consecutive trading sessions. On March 6, KHP was traded at VND49,800/share, up by VND2,300/share, or 4.84% over the previous session. The company production and business performance was very good in the first two months of the year.
Source: VEN
Draft on monitoring securities investment firms shows problems
The Vietnam Association of Financial Investors (VAFI) has expressed its concerns about the possible bad impacts on the stock market if the draft regulation on securities investment company management is approved by the Ministry of Finance.
VAFI has pointed out that the compiling committee has put forward many unsuitable provisions, which prove to be contrary to the Securities Law.
The draft regulation stipulates that only investment fund management companies and branches of foreign investment fund management companies are allowed to provide services on capital and asset mandated management and investment. Only investment fund management companies and branches of foreign investment fund management companies can act as representatives of foreign investment institutions in mandated transactions.
Provision 89 of the draft regulations states that foreign securities trading institutions that want to set up branches of fund management companies in Vietnam must meet several requirements. They must have at least three years of experience in the fields of fund and portfolio management. In addition, they must be managing assets valued at 500mio US$ at least in the current fiscal year.
According to the State Securities Commission (SSC), more than 200 foreign institutions have invested in the stock market in Vietnam. Of this number, according to VAFI, some 50 institutions operate in close connection with foreign fund management companies which have representative offices in Vietnam. The remaining 150 foreign institutions do not have relations in mandated asset management with domestic fund management companies or with foreign fund management companies which have representative offices in Vietnam.
A half of the 150 institutions has just opened transaction accounts in Vietnam and has not had any investment activities. These include big names like Citigroup, Morgan Stanley and JP Morgan. These institutions are managing the assets of several hundred overseas investors.
If the draft regulation becomes effective, the foreign institutions that wants to provide asset mandated management and investment fund management services in Vietnam’s stock market must set up branches of foreign fund management companies or join hands with domestic partners to set up joint ventures to manage investment funds. If not, they will have to re-mandate the asset management to domestic companies.
This regulation, according to VAFI, is unfeasible for several reasons.
First, leading foreign financial institutions still consider Vietnam a small market which does not have many opportunities. Therefore, they would not think of opening branches of fund management companies in Vietnam. Moreover, the institutions would not trust smaller foreign institutions as they are very big names.
Second, the suggested regulation will narrow the range of choices of investors. What will happen if investors cannot decide to whom they should mandate their investment, but have to rely upon institutions they do not like?
Third, the regulation will make many foreign institutions leave Vietnam’s stock market. On their leaving, they will have to transfer capital abroad as they do not have the legal status to manage the capital. As a result, the foreign capital inflow into Vietnam will decline considerably.
Fourth, the requirement for foreign institutions that want to set up branches of fund management companies in Vietnam (having three years of experience in the fields of fund and portfolio management; managing assets valued at $500mil at least in the current fiscal year) will force 80% of the investment institutions present in Vietnam to stop operating as they cannot meet the requirements.
Finally, the regulation will not help create an attractive investment environment. This proves to be not a good path for management, and does not come in line with international practice.
Source: VEN
VAFI has pointed out that the compiling committee has put forward many unsuitable provisions, which prove to be contrary to the Securities Law.
The draft regulation stipulates that only investment fund management companies and branches of foreign investment fund management companies are allowed to provide services on capital and asset mandated management and investment. Only investment fund management companies and branches of foreign investment fund management companies can act as representatives of foreign investment institutions in mandated transactions.
Provision 89 of the draft regulations states that foreign securities trading institutions that want to set up branches of fund management companies in Vietnam must meet several requirements. They must have at least three years of experience in the fields of fund and portfolio management. In addition, they must be managing assets valued at 500mio US$ at least in the current fiscal year.
According to the State Securities Commission (SSC), more than 200 foreign institutions have invested in the stock market in Vietnam. Of this number, according to VAFI, some 50 institutions operate in close connection with foreign fund management companies which have representative offices in Vietnam. The remaining 150 foreign institutions do not have relations in mandated asset management with domestic fund management companies or with foreign fund management companies which have representative offices in Vietnam.
A half of the 150 institutions has just opened transaction accounts in Vietnam and has not had any investment activities. These include big names like Citigroup, Morgan Stanley and JP Morgan. These institutions are managing the assets of several hundred overseas investors.
If the draft regulation becomes effective, the foreign institutions that wants to provide asset mandated management and investment fund management services in Vietnam’s stock market must set up branches of foreign fund management companies or join hands with domestic partners to set up joint ventures to manage investment funds. If not, they will have to re-mandate the asset management to domestic companies.
This regulation, according to VAFI, is unfeasible for several reasons.
First, leading foreign financial institutions still consider Vietnam a small market which does not have many opportunities. Therefore, they would not think of opening branches of fund management companies in Vietnam. Moreover, the institutions would not trust smaller foreign institutions as they are very big names.
Second, the suggested regulation will narrow the range of choices of investors. What will happen if investors cannot decide to whom they should mandate their investment, but have to rely upon institutions they do not like?
Third, the regulation will make many foreign institutions leave Vietnam’s stock market. On their leaving, they will have to transfer capital abroad as they do not have the legal status to manage the capital. As a result, the foreign capital inflow into Vietnam will decline considerably.
Fourth, the requirement for foreign institutions that want to set up branches of fund management companies in Vietnam (having three years of experience in the fields of fund and portfolio management; managing assets valued at $500mil at least in the current fiscal year) will force 80% of the investment institutions present in Vietnam to stop operating as they cannot meet the requirements.
Finally, the regulation will not help create an attractive investment environment. This proves to be not a good path for management, and does not come in line with international practice.
Source: VEN
VinaCapital fund oversubscribed
A mutual fund issue on the London stock market by Vietnam-dedicated property fund VinaCapital has been oversubscribed by three times.
Applications were received for 600mio US$ but VinaCapital said Wednesday it would accept between 300 and 400mio US$. The issue had originally targeted 200mio US$.
Don Lam, VinaCapital’s general director, said the board would meet this month-end for a final decision.
Half the applications were received from the EU, 40% from the US, and the rest from Asia.
The Vietnam Real Estate Fund (Vinaland), an existing fund which invests in resorts and other property projects, will receive the remaining amount.
VinaLand plans to invest 350-400mio US$ this year.
Established in 2003, VinaCapital now manages three funds with a total corpus of nearly 1 billion US$: the 600mio US$, London-listed Vietnam Opportunity Fund; $205 million Vinaland; and 50mio US$ DFJ VinaCapital L.P. which invests in information and communication technology firms.
Source: Thanh Nien
Applications were received for 600mio US$ but VinaCapital said Wednesday it would accept between 300 and 400mio US$. The issue had originally targeted 200mio US$.
Don Lam, VinaCapital’s general director, said the board would meet this month-end for a final decision.
Half the applications were received from the EU, 40% from the US, and the rest from Asia.
The Vietnam Real Estate Fund (Vinaland), an existing fund which invests in resorts and other property projects, will receive the remaining amount.
VinaLand plans to invest 350-400mio US$ this year.
Established in 2003, VinaCapital now manages three funds with a total corpus of nearly 1 billion US$: the 600mio US$, London-listed Vietnam Opportunity Fund; $205 million Vinaland; and 50mio US$ DFJ VinaCapital L.P. which invests in information and communication technology firms.
Source: Thanh Nien
Call for investment in securities market
Trade Minister Truong Dinh Tuyen called on Hong Kong businesspeople to invest in the Vietnamese securities market, affirming that the Vietnamese Government, at present, has no intentions to use administrative measures to control the market.
The Trade Minister made the remarks at the seminar entitled " Viet Nam : a new dynamo in Southeast Asia" jointly organised by the Hong Kong Trade Development Council and the Vietnamese consulate general in Hong Kong on Mar. 13. The seminar brought together 400 local businesspeople.
He told Hong Kong businesspeople that their indirect investment into the Vietnamese securities market will be no more than 49% but the rate will be increased gradually five years after they join the market.
Regarding the banking industry, Minister Tuyen affirmed that foreign investors will be treated like local investors, being permitted to buy less than 10% of shares issued by a local bank.
The minister also spoke of the possibility of employing several measures to help the securities markets avoid 'bubble' development and risks.
These measures include standardising criterion required for the participants in the securities market; gradually limiting informal markets, such as OTC, while at the same time listing more companies in the official market.
Investors are encouraged to study operation of listed companies so as they can make right decisions.
Source: VNA
BIDV sets up financial company
A financial company under the Bank for Investment and Development of Viet Nam (BIDV) officially opened in Ha Noi on March 14.
The company, with a registered capital of 500 billion VND (31.3mio US$), will operate in energy, financial and banking, telecommunications, mining, tourism, seaport and construction sectors.
The companies co-shareholders include BIDV's Insurance Company, BIDV's Securities Company, Binh Minh Import-Export Ltd. Company, An Vien Joint Stock Company and Vien Dong Consulting Company for Investment and Technology Transfer, in which BIDV's affiliates hold 51% of shares.
Source: VNA
The company, with a registered capital of 500 billion VND (31.3mio US$), will operate in energy, financial and banking, telecommunications, mining, tourism, seaport and construction sectors.
The companies co-shareholders include BIDV's Insurance Company, BIDV's Securities Company, Binh Minh Import-Export Ltd. Company, An Vien Joint Stock Company and Vien Dong Consulting Company for Investment and Technology Transfer, in which BIDV's affiliates hold 51% of shares.
Source: VNA
VinaCapital plans infrastructure fund
VinaCapital said it will establish a fund specialising in infrastructure development investment in May.
Don Lam, Managing Partner of the VinaCapital Group, said on Mar. 14 that the new 200mio US$ fund will invest in bridges, roads and ports in the form of stake purchases, loan provisions or build-operate-transfers.
E stablished in 2003, VinaCapital manages the 790mio US$ Viet Nam Opportunity Fund (VOF), which was Viet Nam ’s best-performing fund in 2004, the 205mio US$ VinaLand Fund (VNL) and the DFJ VinaCapital L.P. VOF and VinaLand are currently listed on the London Stock Exchange.
According to Peter Dinning, Managing Director of the VinaCapital Group, VinaLand has invested in 30 projects in Ho Chi Minh City, Ha Noi, Nha Trang and Da Nang. It plans to infuse 350-400 million USD into projects this year.
In 2006, VinaCapital provided 1.5mio US$ as charitable funding for the construction of a hospital for poor women in Da Nang and the organisation of a trade promotion forum in Ha Noi, as well as for disabled children and typhoon victims. It will establish a charitable fund, with a total investment of 2mio US$, this year.
Source: VNA
Don Lam, Managing Partner of the VinaCapital Group, said on Mar. 14 that the new 200mio US$ fund will invest in bridges, roads and ports in the form of stake purchases, loan provisions or build-operate-transfers.
E stablished in 2003, VinaCapital manages the 790mio US$ Viet Nam Opportunity Fund (VOF), which was Viet Nam ’s best-performing fund in 2004, the 205mio US$ VinaLand Fund (VNL) and the DFJ VinaCapital L.P. VOF and VinaLand are currently listed on the London Stock Exchange.
According to Peter Dinning, Managing Director of the VinaCapital Group, VinaLand has invested in 30 projects in Ho Chi Minh City, Ha Noi, Nha Trang and Da Nang. It plans to infuse 350-400 million USD into projects this year.
In 2006, VinaCapital provided 1.5mio US$ as charitable funding for the construction of a hospital for poor women in Da Nang and the organisation of a trade promotion forum in Ha Noi, as well as for disabled children and typhoon victims. It will establish a charitable fund, with a total investment of 2mio US$, this year.
Source: VNA
Plans to equitise agricultural businesses
The Ministry of Agriculture and Rural Development (MARD) will equitise an additional 39 businesses in 2007 and 2008, according to a decision issued recently by the Prime Minister.
The State will hold dominant stakes in three of the targeted enterprises which include major corporations engaging in natural silk, sugar and tea production, vegetable and fruit, forest product processing and animal breeding.
By the end of 2006, as many as 353 businesses under MARD had been re-organised, including 202 enterprises equitised.
The restructuring has helped the businesses improve their ways of management and raise the efficiency of operation and competitiveness.
The ministry has coordinated with relevant ministries and agencies to remove financial difficulties for businesses in an effort to speed up the rearranging and equitisation of enterprises.
Source: VNA
The State will hold dominant stakes in three of the targeted enterprises which include major corporations engaging in natural silk, sugar and tea production, vegetable and fruit, forest product processing and animal breeding.
By the end of 2006, as many as 353 businesses under MARD had been re-organised, including 202 enterprises equitised.
The restructuring has helped the businesses improve their ways of management and raise the efficiency of operation and competitiveness.
The ministry has coordinated with relevant ministries and agencies to remove financial difficulties for businesses in an effort to speed up the rearranging and equitisation of enterprises.
Source: VNA
Wednesday, March 14, 2007
Vinamilk to issue more shares in Singapore
The Viet Nam Dairy Products Joint Stock Company (Vinamilk) plans to issue almost 9 million shares on the Singapore Exchange this year, according to Vinamilk's Board of Directors.
The plan will be high on the agenda of the company's shareholders meeting slated for the end of this month.
Vinamilk is scheduled to float more than 8.85 million shares, worth about 5% of the company's chartered capital, on the Singapore Exchange within this year under permission granted by the State Securities Commission of Viet Nam on Nov. 15, 2006.
Founded in 1976, Vinamilk has become a leading business in the country's milk processing industry. It now occupies 75% of the country's milk market share and its products are exported to the US, France, Canada, Poland, Germany, Southeast Asia and many countries worldwide
Source: VNA
The plan will be high on the agenda of the company's shareholders meeting slated for the end of this month.
Vinamilk is scheduled to float more than 8.85 million shares, worth about 5% of the company's chartered capital, on the Singapore Exchange within this year under permission granted by the State Securities Commission of Viet Nam on Nov. 15, 2006.
Founded in 1976, Vinamilk has become a leading business in the country's milk processing industry. It now occupies 75% of the country's milk market share and its products are exported to the US, France, Canada, Poland, Germany, Southeast Asia and many countries worldwide
Source: VNA
Gas pipeline overhauls re-scheduled
British Petroleum and PetroVietnam – major gas distributors for electricity supplier EVN – have agreed to reschedule pipeline overhauls in Nam Con Son oil field to avert major power shortages.
The major gas distributors were planning a two-week halt in supply from the Nam Con Son oil field offshore Ba Ria – Vung Tau in southern Vietnam in June for pipeline overhauls.
But the work has been rescheduled to September for fear of exacerbating ongoing power shortages after BP, PetroVietnam, EVN and other agencies met Tuesday to discuss the issue.
EVN utilizes some 13 million cubic meters of gas daily from Nam Con Son to produce 3,500 MW – about 30% of the nation’s power supply.
Tran Minh Nga, head of BP Vietnam, said the stoppage was aimed at increasing capacity to 15 million cubic meters per day.
Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17% per year, driving the government to plan the construction of 60 additional plants by 2020.
BP and its partners plan to build more gas pipeline systems worth US$2 billion to carry natural gas ashore.
In its plan submitted to the Ministry of Industry, BP Vietnam said it and partners planned to invest up to $2 billion for a major investment expansion in gas and power development in Vietnam over the next decade.
The pipeline system off Vietnam's south coast is to deliver gas to power plants onshore from two new gas fields, Moc Tinh and Hai Thach in the Nam Con Son basin.
The scheme also comprised the development of a power plant in Nhon Trach in southern Dong Nai Province.
The new project targets to increase the gas supply capacity to meet the high demand on gas production in the country between now and 2010, and the next 10 years.
BP is the operator of Vietnam's only operational pipeline, Nam Con Son, which carries 13.2 million cu.m of gas a day from the offshore Lan Tay-Lan Do gas field to feed the Phu My power complex in the Ba Ria – Vung Tau, a fertilizer plant and a liquefied gas factory.
Hai Thach and Moc Tinh gas fields were discovered in 1996 with total recoverable reserves of about 31 billion cu.m.
Last year, BP, PetroVietnam and EVN inked a strategic agreement to harmonize the development of gas-fired power plants in Nhon Trach power complex with the provision of fuel gas from Blocks 5.2 and 5.3, which are home to two gas fields.
Source: Thanh Nien
The major gas distributors were planning a two-week halt in supply from the Nam Con Son oil field offshore Ba Ria – Vung Tau in southern Vietnam in June for pipeline overhauls.
But the work has been rescheduled to September for fear of exacerbating ongoing power shortages after BP, PetroVietnam, EVN and other agencies met Tuesday to discuss the issue.
EVN utilizes some 13 million cubic meters of gas daily from Nam Con Son to produce 3,500 MW – about 30% of the nation’s power supply.
Tran Minh Nga, head of BP Vietnam, said the stoppage was aimed at increasing capacity to 15 million cubic meters per day.
Power demand in Vietnam's economy, the world's fastest growing after China, is forecast to grow up to 17% per year, driving the government to plan the construction of 60 additional plants by 2020.
BP and its partners plan to build more gas pipeline systems worth US$2 billion to carry natural gas ashore.
In its plan submitted to the Ministry of Industry, BP Vietnam said it and partners planned to invest up to $2 billion for a major investment expansion in gas and power development in Vietnam over the next decade.
The pipeline system off Vietnam's south coast is to deliver gas to power plants onshore from two new gas fields, Moc Tinh and Hai Thach in the Nam Con Son basin.
The scheme also comprised the development of a power plant in Nhon Trach in southern Dong Nai Province.
The new project targets to increase the gas supply capacity to meet the high demand on gas production in the country between now and 2010, and the next 10 years.
BP is the operator of Vietnam's only operational pipeline, Nam Con Son, which carries 13.2 million cu.m of gas a day from the offshore Lan Tay-Lan Do gas field to feed the Phu My power complex in the Ba Ria – Vung Tau, a fertilizer plant and a liquefied gas factory.
Hai Thach and Moc Tinh gas fields were discovered in 1996 with total recoverable reserves of about 31 billion cu.m.
Last year, BP, PetroVietnam and EVN inked a strategic agreement to harmonize the development of gas-fired power plants in Nhon Trach power complex with the provision of fuel gas from Blocks 5.2 and 5.3, which are home to two gas fields.
Source: Thanh Nien
Bourses to get new trading system
Despite complaints of an overloaded system that manages electronic trading on the securities market, investors will have to wait a little loner for capacity expansion, says State Securities Commission (SSC) Deputy Chairman Nguyen Doan Hung.
An upgraded system for both the HCM City and Ha Noi exchange can be in place as early as 2008, says Hung, which will cover all depository, clearing and trading activities.
"The market has grown so quickly that the existing infrastructure cannot fully cater [to demand],' says Hung.
In HCM City, the bourse can only handle batches of orders, which creates the "bottleneck" in the system.
"However, in building infrastructure, the bourses and in particularly securities companies should also take into account their own capabilities as well as the rate of growth of the market," he says.
The SSC is concerned that brokerages may not agree with the extra costs they will have to bear in order to expand their own trading capacity beyond the market's current growth rate.
Forced by limited space, some securities have adopted measures to screen out small clients. Sai Gon Securities Incorporated, the nation's leading brokerage, now requires clients seeking to open new accounts to place at least 100 million VND (6,260 US$) in deposit.
Hung says while waiting for the upgraded system, the SSC is working with concerned organisations to make it possible for brokerages to send orders directly to the bourses by mid-2006. This would speed up the time it takes to execute a trade by foregoing the additional step of securities companies sending orders to brokers at the trading centres who then submit the transaction.
Hung also says the HCM City Securities Trading Centre aims to begin order-matching in a continuous fashion by the second quarter. Currently, there is only a morning trading session with orders executed in three large batches.
The SSC is also preparing legal documents to allow investors to place orders via the internet and telephone. A draft decree will be submitted to the Government and is set to take effect this year, says Hung.
Source: VNA
ACB to issue shares
The Asia Commercial Bank, Viet Nam's second largest joint stock bank, will issue 153 million shares this year to raise 1.53 trillion VND in chartered capital.
ACB management released the decision, which aims to raise the bank's chartered capital from 1.1 trillion VND (68.5mio US$) to 2.63 trillion VND (164.4mio US$), at a shareholders' meeting on March 9.
The shares, each worth 10,000 at face value, will be released in three phases.
During the first wave, the release of 33 million shares is expected to add 330 billion VND to ACB's chartered capital this month. Shareholders will be given three bonus shares for every 10 they buy.
During the second wave in April, 110 million shares will be issued to boost ACB's chartered capital by 1.1 trillion VND. Two thirds of these shares will come from convertible bonds valued at 1 million VND to be converted into 100 shares worth 10,000 VND each.
The third wave, the time frame of which has yet to be decided, will aim to add an extra 100 billion VND to the bank's capital by the end of the year.
The bank's management is tasked with issuing bidding regulations and deciding upon bidding prices.
ACB management board chairman, Tran Mong Hung, said that the share issuance aims to ensure the bank's capital adequacy ratio while the extra capital will benefit ACB's affiliates, including the ACB Securities Company, the Financial Leasing Company and the Fund Management Company. The latter two companies will be set up this year.
The capital hike will also enable the bank to modernise and expand its operational network, he said.
ACB's total asset value has reached over 65 trillion VND (4.06 billion US$) while its outstanding loans have gained 25 trillion VND (1.57 billion US$) this year. The bank's pre-tax profit this year has amounted to 1.5 trillion VND (93.8mio US$).
Last year, ACB became the second commercial bank, after the Sai Gon Thuong Tin (Sacombank), to trade shares on the domestic stock market while it was the first on the Ha Noi bourse.
Source: VNA
ACB management released the decision, which aims to raise the bank's chartered capital from 1.1 trillion VND (68.5mio US$) to 2.63 trillion VND (164.4mio US$), at a shareholders' meeting on March 9.
The shares, each worth 10,000 at face value, will be released in three phases.
During the first wave, the release of 33 million shares is expected to add 330 billion VND to ACB's chartered capital this month. Shareholders will be given three bonus shares for every 10 they buy.
During the second wave in April, 110 million shares will be issued to boost ACB's chartered capital by 1.1 trillion VND. Two thirds of these shares will come from convertible bonds valued at 1 million VND to be converted into 100 shares worth 10,000 VND each.
The third wave, the time frame of which has yet to be decided, will aim to add an extra 100 billion VND to the bank's capital by the end of the year.
The bank's management is tasked with issuing bidding regulations and deciding upon bidding prices.
ACB management board chairman, Tran Mong Hung, said that the share issuance aims to ensure the bank's capital adequacy ratio while the extra capital will benefit ACB's affiliates, including the ACB Securities Company, the Financial Leasing Company and the Fund Management Company. The latter two companies will be set up this year.
The capital hike will also enable the bank to modernise and expand its operational network, he said.
ACB's total asset value has reached over 65 trillion VND (4.06 billion US$) while its outstanding loans have gained 25 trillion VND (1.57 billion US$) this year. The bank's pre-tax profit this year has amounted to 1.5 trillion VND (93.8mio US$).
Last year, ACB became the second commercial bank, after the Sai Gon Thuong Tin (Sacombank), to trade shares on the domestic stock market while it was the first on the Ha Noi bourse.
Source: VNA
Thac Mo power company to auction shares
Thac Mo Hydro Power Company will sell 14 million shares or 20% of its total shares via auctions at the Ha Noi and Ho Chi Minh City securities trading centres on March 29.
The shares will be offered at an initial price of 20,000 VND each and the company is expected to raise 280 billion VND from the share sale, said its Director Nguyen Thanh Phu.
Founded on June 11, 1994, Thac Mo Hydro Power Company is a member of the Electricity of Viet Nam Group (EVN) with a chartered capital of 700 billion VND.
At present, the company is using the official development assistance from Japan to invest into the 75MW Thac Mo hydro power plant which is close to its existing power plant.
Once put into operation in 2011, the two plants' capacity will be raised to 225 MW. They can generate 739 million kWh per year to the national power grid.
Source: VNA
The shares will be offered at an initial price of 20,000 VND each and the company is expected to raise 280 billion VND from the share sale, said its Director Nguyen Thanh Phu.
Founded on June 11, 1994, Thac Mo Hydro Power Company is a member of the Electricity of Viet Nam Group (EVN) with a chartered capital of 700 billion VND.
At present, the company is using the official development assistance from Japan to invest into the 75MW Thac Mo hydro power plant which is close to its existing power plant.
Once put into operation in 2011, the two plants' capacity will be raised to 225 MW. They can generate 739 million kWh per year to the national power grid.
Source: VNA
Tuesday, March 13, 2007
Viet Dragon Securities starts at stock exchange
The Viet Dragon Securities Corporation (VDSC) opened for business on March 12 as the HCM City Securities Trading Centre's 34th member.
VDSC offers all services including brokerage, underwriting and consulting.
Viet Dragon plans to boost its equity capital from 100 billion VND (6.6 million USD) to 200 billion VND this month, according to general director Nguyen Mien Tuan. Viet Nam Eximbank is one of the corporation's major shareholders.
Source: VNA
VDSC offers all services including brokerage, underwriting and consulting.
Viet Dragon plans to boost its equity capital from 100 billion VND (6.6 million USD) to 200 billion VND this month, according to general director Nguyen Mien Tuan. Viet Nam Eximbank is one of the corporation's major shareholders.
Source: VNA
Investment funds discover Vietnam
In early 2007, Jaccar, a well-known French investment fund, decided to inject money in Hoang Anh Gia Lai Company. At the same time, Aureous in Southeast Asia also pumped capital into Truong Thanh Wooden Furniture Company.
Prior to that, Draper Fisher Juvervetson (DFJ), the leading US venture investment company, joined hands with VinaCapital to set up a new investment fund in Vietnam. Experts’ forecasts given before about the new wave of portfolio investment flow into Vietnam have become true.
“We will move our head office from Europe to Vietnam.” The statement that surprised everybody was made by the president of Jaccar, Jacques De Chateugvieux, at the signing ceremony of the agreement on strategic partnership with Hoang Anh Gia Lai Joint Stock Company.
The president said that he did not speak prematurely when saying so, stressing that it was the company's actual plan. “Vietnam proves to be a very good destination for doing business. Vietnamese staffs are both clever and diligent. Besides the good business opportunities, I find the labour force here very competitive,” he said.
Several months ago, during his official visit to Vietnam, the Danish Prime Minister cut the ribbon to inaugurate Private Equity New Markets (PRNM), an investment fund managed by BankInvest, which manages the total assets of 23 billion US$, including 3 billion US$ to be injected in developing countries. PENM is managing the capital sum of 80mio US$, which is expected to be injected in unlisted companies in the fields of finance, consumer goods, tourism and hotels.
Prior to that, the appearance of the 112mio US$ Vietnam Holding investment fund was also an event that drew a lot of attention from the financial investors’ circle. 60% of the fund’s capital has been raised from Swiss investors.
Most investment funds are aiming to buy shares of equitised companies or small private companies which need capital to restructure and expand their business scopes.
Don Lam, Director General of VinaCapital, said that VOF (the Vietnam Opportunity Fund managed by VinaCapital) only makes investment in leading companies in every field of the national economy.
VOF has poured money into Kinh Do Confectionary Group, Masan and Pho 24. Mekong Capital eyes small private companies in localities, which use many workers and make products for export.
Louis Nguyen, Managing Director of DFJ VinaCapital L.P stated that projects in information technology (IT) that were original and creative were the ones the venture fund would target.
Tim Draper, the founder of DFJ, added: “We are venture investors. We know that young Vietnamese people are very clever, dynamic and hard working, and will follow new ideas of doing business. We have decided to pursue the big opportunities available here." Though being concerned about the implementation of intellectual property rights in the IT sector and about the limited market opening in the IT sector, Mr Draper still believes that the opportunities are bigger than the challenges.
Source: VEN
Prior to that, Draper Fisher Juvervetson (DFJ), the leading US venture investment company, joined hands with VinaCapital to set up a new investment fund in Vietnam. Experts’ forecasts given before about the new wave of portfolio investment flow into Vietnam have become true.
“We will move our head office from Europe to Vietnam.” The statement that surprised everybody was made by the president of Jaccar, Jacques De Chateugvieux, at the signing ceremony of the agreement on strategic partnership with Hoang Anh Gia Lai Joint Stock Company.
The president said that he did not speak prematurely when saying so, stressing that it was the company's actual plan. “Vietnam proves to be a very good destination for doing business. Vietnamese staffs are both clever and diligent. Besides the good business opportunities, I find the labour force here very competitive,” he said.
Several months ago, during his official visit to Vietnam, the Danish Prime Minister cut the ribbon to inaugurate Private Equity New Markets (PRNM), an investment fund managed by BankInvest, which manages the total assets of 23 billion US$, including 3 billion US$ to be injected in developing countries. PENM is managing the capital sum of 80mio US$, which is expected to be injected in unlisted companies in the fields of finance, consumer goods, tourism and hotels.
Prior to that, the appearance of the 112mio US$ Vietnam Holding investment fund was also an event that drew a lot of attention from the financial investors’ circle. 60% of the fund’s capital has been raised from Swiss investors.
Most investment funds are aiming to buy shares of equitised companies or small private companies which need capital to restructure and expand their business scopes.
Don Lam, Director General of VinaCapital, said that VOF (the Vietnam Opportunity Fund managed by VinaCapital) only makes investment in leading companies in every field of the national economy.
VOF has poured money into Kinh Do Confectionary Group, Masan and Pho 24. Mekong Capital eyes small private companies in localities, which use many workers and make products for export.
Louis Nguyen, Managing Director of DFJ VinaCapital L.P stated that projects in information technology (IT) that were original and creative were the ones the venture fund would target.
Tim Draper, the founder of DFJ, added: “We are venture investors. We know that young Vietnamese people are very clever, dynamic and hard working, and will follow new ideas of doing business. We have decided to pursue the big opportunities available here." Though being concerned about the implementation of intellectual property rights in the IT sector and about the limited market opening in the IT sector, Mr Draper still believes that the opportunities are bigger than the challenges.
Source: VEN
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