Trading sessions on June 22 again witnessed slight decreases of stock indexes in both the Ho Chi Minh City's bourse and its Ha Noi-based counterpart.
By closing, the VN-Index made a slight dip of 0.74 points to finish at 1033.69 points.
Nearly 5.69 million shares, worth over 660.19 billion VND, were traded in Ho Chi Minh City during the day. The market saw 58 shares record gains, 29 remain the same and 22 fell.
Tay Ninh Cable Car Tour (TCT) continued its upward trend by tacking on 7,000 VND to its listed prices, while red-hot Binh Dinh Mining Company (BMC) cooled slightly after recording massive increases over the last month.
At the Ha Noi Securities Trading Centre, the HaSTC also declined slightly by 3.09 points to close at 299.77 points.
Blue chips Asia Commercial Bank (ACB), Saigon Securities (SSI), Bao Viet Securities (BVS), Hai Phong Securities (HPC), were among the 56 shares to lose value on the day.
The day saw 931,000 shares worth 97.8 billion VND change hands.
Source: VNA
Friday, June 22, 2007
Incombank signs PetroVietnam deal
Industrial Commercial Bank of Viet Nam (Incombank) will act as PetroVietnam’s primary provider of financial services under an agreement signed on June 21 Ha Noi.
PetroVietnam will also offer Incombank opportunities to directly invest in domestic and overseas projects, said Tran Ngoc Canh, general director of the State-owned oil company.
”I do believe that this cooperation will bring more opportunities for both of us in terms of supporting investment capital, expanding operational networks, diversifying business sectors, and exploiting each other’s advantages,” said Incombank general director Pham Huy Hung at the signing ceremony on June 21.
Under the agreement, Incombank would commit loans at favourable interest rates as well as provide other financial services to PetroVietnam and its subsidiaries.
Since the beginning of the year, Incombank has signed similar agreements with local giants like the Viet Nam National Cement Corporation (VNCC), the Viet Nam National Coal and Mineral Industry Group (Vinacomin), and the Viet Nam Post and Telecommunications Group (VNPT).
Hung also said Incombank has speeded up negotiations with leading local companies to become strategic partners as it expands.
Source: VNA
PetroVietnam will also offer Incombank opportunities to directly invest in domestic and overseas projects, said Tran Ngoc Canh, general director of the State-owned oil company.
”I do believe that this cooperation will bring more opportunities for both of us in terms of supporting investment capital, expanding operational networks, diversifying business sectors, and exploiting each other’s advantages,” said Incombank general director Pham Huy Hung at the signing ceremony on June 21.
Under the agreement, Incombank would commit loans at favourable interest rates as well as provide other financial services to PetroVietnam and its subsidiaries.
Since the beginning of the year, Incombank has signed similar agreements with local giants like the Viet Nam National Cement Corporation (VNCC), the Viet Nam National Coal and Mineral Industry Group (Vinacomin), and the Viet Nam Post and Telecommunications Group (VNPT).
Hung also said Incombank has speeded up negotiations with leading local companies to become strategic partners as it expands.
Source: VNA
Where are billion dollars to be injected?
Vietnamese people heard recently that foreign investment funds are planning to pour several billion dollars worth of capital into Vietnam. And a question has been raised about where the huge capital is to be injected in, as there seems to be no more room for foreign investors.
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.
Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors
Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.
The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.
In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.
Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.
Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.
Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).
In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).
Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.
However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.
The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.
Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).
Source: VNE
Gold price plunges, dollar skyrockets
Gold has lost VND440,000/tael just in the last few days compared to early May. Meanwhile, the greenback, which keeps revaluating since the beginning of the year, saw sharp price increases in the last few days.
The gold price plunged to the deepest low in the last three months last week in the world’s market. On the morning of June 11, gold was traded at $650/oz in Asia, down by $15/oz from the previous week’s level.
In Vietnam, SIC gold was traded at VND12,800,000/tael on June 11, down by nearly VND200,000/tael over the previous price level.
The price decreases have prompted businessmen and speculators to push up trade. The trading volume at the Saigon gold trading floor made a record on June 11, reaching 9,100 taels, worth VND116bil. Gold traders in HCM City also rushed to place orders to import gold.
A source said that within one week, nearly 10 tonnes of gold have been imported. Some traders ordered a large volume, 500-600kg of gold. The Saigon Jewellery Company (SJC) reported that it now could sell 5,000 taels of bar gold a day, an increase of 50% over the previous days.
As the gold price fluctuates heavily, gold traders can make the fat profit of VND150,000/tael, an analyst guessed.
The gold price began slipping on May 11, when the price slightly decreased to VND12,930,000/tael. After that day, the price keeps decreasing every day. By the end of the last week, the gold price had dropped by VND440,000/tael compared to the highest price level seen in May.
The dollar price has reached the VND16,120/US$1 level, the highest peak so far this year. On June 18, Vietcombank announced the purchasing and selling prices at VND16,095 and 16,130/US$1 respectively, increasing by VND55-68/US$1 compared to one month ago.
In the last few days, commercial banks have been raising the gold purchasing prices in order to buy more dollars to provide to import companies.
In the black market, the dollar price has also been increasing, approximate to the banks’ prices. Though the dollar price increases, the purchasing power from individuals remains unchanged.
Several commercial banks, anticipating the dollar price increases, have decided the US$ deposit interest rates. The Military Bank has raised the interest rate by 0.6%, while Habubank by 0.05-0.5%.
Bankers said that they offer higher interest rates in order to attract more capital in the context of the stronger dollar. The demand for borrowing dollars is increasing from import – export companies.
Analysts said that the higher US$ deposit interest rates would lead to the higher VND deposit interest rates in the coming time, especially when the State Bank of Vietnam has required the higher compulsory reserve ratio, which would make the usable capital lower.
The gold and the dollar prices always go in the opposite ways. According to Huynh Trung Khanh, an expert, the gold price would see another increase wave at the end of this year.
“The VND13,338,000/tael level in April would not be the highest peak of the year,” Mr Khanh said. He added that in the fourth quarter of the year, the greenback may decline in value against other foreign currencies, while the gold price would hit the $700/oz level.
In the world’s market, the gold price has slightly increased on the devaluation of the greenback after the news about the unsatisfactory CPI of the US. However, Eximbank’s experts still forecast that the gold price would see further decreases.
Meanwhile, a banker said that the dollar may decrease in the time to come for two reasons. He said that the dollar price increased because of the higher demand for dollars to make payment for export – import deals.
The VND/US$ exchange rate may see further increase in some days, but it is hardly to exceed the VND17,000/US$1 level as seen in mid 2006.
“The foreign currency reserve at the central bank proves to be profuse, while the overseas remittance is big. The imbalance between supply and demand does not exist, therefore, there would not be sharp price increases,” he said.
Source: VNE
The gold price plunged to the deepest low in the last three months last week in the world’s market. On the morning of June 11, gold was traded at $650/oz in Asia, down by $15/oz from the previous week’s level.
In Vietnam, SIC gold was traded at VND12,800,000/tael on June 11, down by nearly VND200,000/tael over the previous price level.
The price decreases have prompted businessmen and speculators to push up trade. The trading volume at the Saigon gold trading floor made a record on June 11, reaching 9,100 taels, worth VND116bil. Gold traders in HCM City also rushed to place orders to import gold.
A source said that within one week, nearly 10 tonnes of gold have been imported. Some traders ordered a large volume, 500-600kg of gold. The Saigon Jewellery Company (SJC) reported that it now could sell 5,000 taels of bar gold a day, an increase of 50% over the previous days.
As the gold price fluctuates heavily, gold traders can make the fat profit of VND150,000/tael, an analyst guessed.
The gold price began slipping on May 11, when the price slightly decreased to VND12,930,000/tael. After that day, the price keeps decreasing every day. By the end of the last week, the gold price had dropped by VND440,000/tael compared to the highest price level seen in May.
The dollar price has reached the VND16,120/US$1 level, the highest peak so far this year. On June 18, Vietcombank announced the purchasing and selling prices at VND16,095 and 16,130/US$1 respectively, increasing by VND55-68/US$1 compared to one month ago.
In the last few days, commercial banks have been raising the gold purchasing prices in order to buy more dollars to provide to import companies.
In the black market, the dollar price has also been increasing, approximate to the banks’ prices. Though the dollar price increases, the purchasing power from individuals remains unchanged.
Several commercial banks, anticipating the dollar price increases, have decided the US$ deposit interest rates. The Military Bank has raised the interest rate by 0.6%, while Habubank by 0.05-0.5%.
Bankers said that they offer higher interest rates in order to attract more capital in the context of the stronger dollar. The demand for borrowing dollars is increasing from import – export companies.
Analysts said that the higher US$ deposit interest rates would lead to the higher VND deposit interest rates in the coming time, especially when the State Bank of Vietnam has required the higher compulsory reserve ratio, which would make the usable capital lower.
The gold and the dollar prices always go in the opposite ways. According to Huynh Trung Khanh, an expert, the gold price would see another increase wave at the end of this year.
“The VND13,338,000/tael level in April would not be the highest peak of the year,” Mr Khanh said. He added that in the fourth quarter of the year, the greenback may decline in value against other foreign currencies, while the gold price would hit the $700/oz level.
In the world’s market, the gold price has slightly increased on the devaluation of the greenback after the news about the unsatisfactory CPI of the US. However, Eximbank’s experts still forecast that the gold price would see further decreases.
Meanwhile, a banker said that the dollar may decrease in the time to come for two reasons. He said that the dollar price increased because of the higher demand for dollars to make payment for export – import deals.
The VND/US$ exchange rate may see further increase in some days, but it is hardly to exceed the VND17,000/US$1 level as seen in mid 2006.
“The foreign currency reserve at the central bank proves to be profuse, while the overseas remittance is big. The imbalance between supply and demand does not exist, therefore, there would not be sharp price increases,” he said.
Source: VNE
Bao Viet to auction shares a second time?
June 26 is the deadline for the investors who won the right to buy Bao Viet shares at the May 31 auction to pay for the shares. However, analysts have said that many investors will ‘give up the game’, and Bao Viet may have to put the shares into auction once again.
An official from a securities company said that Bao Viet shares were being traded at VND68-70,000/share and very few transactions had been successful due to the low demand for Bao Viet shares.
An investor on Seabank trading floor said that he had offered 6,000 Bao Viet shares for sale at ‘soft prices’ but he could not find buyers.
At first, right after the auction, Bao Viet shares were offered at very high price levels, VND82,000/share. However, the prices have been decreasing since then, and the closer the time comes to the day for making payment, the more the prices of Bao Viet shares are decreasing.
In another happening, on June 26, 2007, the Hanoi Securities Trading Cenre (HASTC) will hold an auction of 10mil shares of PetroVietnam Insurance Company (PVI). The starting price of PVI shares is VND50,000/share.
PVI’s main business field is non-life insurance, including re-insurance. PVI now accounts for 18.3% of the non-life market share, making it the third-largest market share holder. If considering their growth rates, PVI is a better option than Bao Viet; therefore, analysts have said that investors will ignore Bao Viet shares to inject money in PVI.
Analysts also say that if Bao Viet shares are priced at VND69,000/unit, the P/E would be 89.54, which means that Bao Viet’s profit growth rate is not high. The high P/E index proves to be unacceptable for serious investors.
The VND69,000/share price level would only be acceptable if Bao Viet could obtain a very high growth rate of 35-40% this year. However, analysts have said that the maximum growth rate the insurer will record will be 18-20%.
It is the opinion of experts that Bao Viet made IPO in unfavourable conditions, when both the OTC and official market were down. That explains why the share price did not increase as expected, and in fact has been decreasing considerably.
Some other analysts said that the newly released decision by the central bank on limiting the amount of loans given for securities investments has made the prices decrease. Investors cannot access bank loans as easily as they could do previously, and when the capital flow to the stock market decreases, the prices of shares, including Bao Viet’s, also decrease.
Source: VNE
An official from a securities company said that Bao Viet shares were being traded at VND68-70,000/share and very few transactions had been successful due to the low demand for Bao Viet shares.
An investor on Seabank trading floor said that he had offered 6,000 Bao Viet shares for sale at ‘soft prices’ but he could not find buyers.
At first, right after the auction, Bao Viet shares were offered at very high price levels, VND82,000/share. However, the prices have been decreasing since then, and the closer the time comes to the day for making payment, the more the prices of Bao Viet shares are decreasing.
In another happening, on June 26, 2007, the Hanoi Securities Trading Cenre (HASTC) will hold an auction of 10mil shares of PetroVietnam Insurance Company (PVI). The starting price of PVI shares is VND50,000/share.
PVI’s main business field is non-life insurance, including re-insurance. PVI now accounts for 18.3% of the non-life market share, making it the third-largest market share holder. If considering their growth rates, PVI is a better option than Bao Viet; therefore, analysts have said that investors will ignore Bao Viet shares to inject money in PVI.
Analysts also say that if Bao Viet shares are priced at VND69,000/unit, the P/E would be 89.54, which means that Bao Viet’s profit growth rate is not high. The high P/E index proves to be unacceptable for serious investors.
The VND69,000/share price level would only be acceptable if Bao Viet could obtain a very high growth rate of 35-40% this year. However, analysts have said that the maximum growth rate the insurer will record will be 18-20%.
It is the opinion of experts that Bao Viet made IPO in unfavourable conditions, when both the OTC and official market were down. That explains why the share price did not increase as expected, and in fact has been decreasing considerably.
Some other analysts said that the newly released decision by the central bank on limiting the amount of loans given for securities investments has made the prices decrease. Investors cannot access bank loans as easily as they could do previously, and when the capital flow to the stock market decreases, the prices of shares, including Bao Viet’s, also decrease.
Source: VNE
Vietnam's Navico raises $42 million in IPO
Vietnam's largest fish exporter, Navico, raised about $42 million through the sale of around 10% of its shares in an initial public offering, traders said Thursday. Navico, 60-percent family owned, sold the 6 million shares at an average of VND113,000 dong – a 13% premium to the initial offering price, they added.
Traders said investors bid between VND111,000-172,000 ($6.8-$10.7) for each of the shares, which have a face value of VND10,000.
Navico Chief Executive Doan Toi said in an interview with Reuters in April the firm would list it shares on the Ho Chi Minh Stock Market next month.
Navico forecast on June 15 that its net profit would rise by more than a quarter this year to VND321 billion ($19.9 million), helped by strong sales of catfish to Europe.
Formally known as Nam Viet Joint Stock Co., Navico operates four fish processing plants in the Mekong delta, and accounted for nearly 5% of Vietnam's $3.3 billion of fish exports by 900 exporters last year.
It forecast a return-on-equity of 48.6% and a dividend payment of 20% this year, with the ROE rising to 51.8% in 2008, and the dividend payout to 22%.
Navico aims to increase fish exports, mainly catfish products, to $250 million this year from $163 million in 2006, Chief Executive Doan Toi has said.
Source: VNE
Traders said investors bid between VND111,000-172,000 ($6.8-$10.7) for each of the shares, which have a face value of VND10,000.
Navico Chief Executive Doan Toi said in an interview with Reuters in April the firm would list it shares on the Ho Chi Minh Stock Market next month.
Navico forecast on June 15 that its net profit would rise by more than a quarter this year to VND321 billion ($19.9 million), helped by strong sales of catfish to Europe.
Formally known as Nam Viet Joint Stock Co., Navico operates four fish processing plants in the Mekong delta, and accounted for nearly 5% of Vietnam's $3.3 billion of fish exports by 900 exporters last year.
It forecast a return-on-equity of 48.6% and a dividend payment of 20% this year, with the ROE rising to 51.8% in 2008, and the dividend payout to 22%.
Navico aims to increase fish exports, mainly catfish products, to $250 million this year from $163 million in 2006, Chief Executive Doan Toi has said.
Source: VNE
Bank equitization faces delay
Four major State-run commercial banks are seen going public later than scheduled, said Le Xuan Nghia, director of the State Bank of Vietnam's Development Strategy Department.
He told 70 EuroCham members and other participants at the Banking Equitization: Going Global" luncheon in HCMC on Tuesday that the initial public offerings (IPO) by these banks would be a little later than expected due to problems with finding strategic shareholders and sharing price.
The Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Investment and Development of Vietnam, the Industrial and Commercial Bank (Incombank) and the Mekong Delta Housing Development Bank earlier planned to launch IPOs by this October.
Tumbling blocks have also arisen as to selling shares to staff of these banks.
Nghia explained strategic investors considered the offered share prices too high. The Government has ruled prices for strategic investors are based on the average price at IPOs.
This rule might undergo change, Nghia said at the luncheon organized by the European Chamber of Commerce in Vietnam (EuroCham). Therefore, there will be share auctions for only strategic investors before the IPOs.
However, he pointed out selling shares to staff of the four banks as a complicated issue that remains to be solved. He said there had been heated discussions about the staff's interests regarding to the number of their working years and shares for them as well as the interests of staff at the parent companies and subsidiaries.
He acknowledged that all the "humanitarian" issues were a hard nut to crack.
The Government permits the price of shares for staff to be 60% of the price set at public auctions.
There is a plan to equitize the Bank for Agriculture and Rural Development from 2008 and this job should be done by 2009, he said.
Nghia said the Government wanted to improve corporate governance for the banking sector through the equitization of the State-run banks.
Nghia stressed that Vietnam was implementing its commitments to the World Trade Organization and that the bilateral trade agreement with the US, under which the financial market will be opened up to foreign investors.
The Government allows foreign banks with total assets of at least US$20bil to open branches in Vietnam, and those with US$10bil or more to establish 100% foreign-owned banks and joint ventures with local banks.
Nghia said there were now six applications for opening, 100% foreign-owned banks but around 33 applications for new local banks.
Source: VNE
He told 70 EuroCham members and other participants at the Banking Equitization: Going Global" luncheon in HCMC on Tuesday that the initial public offerings (IPO) by these banks would be a little later than expected due to problems with finding strategic shareholders and sharing price.
The Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Investment and Development of Vietnam, the Industrial and Commercial Bank (Incombank) and the Mekong Delta Housing Development Bank earlier planned to launch IPOs by this October.
Tumbling blocks have also arisen as to selling shares to staff of these banks.
Nghia explained strategic investors considered the offered share prices too high. The Government has ruled prices for strategic investors are based on the average price at IPOs.
This rule might undergo change, Nghia said at the luncheon organized by the European Chamber of Commerce in Vietnam (EuroCham). Therefore, there will be share auctions for only strategic investors before the IPOs.
However, he pointed out selling shares to staff of the four banks as a complicated issue that remains to be solved. He said there had been heated discussions about the staff's interests regarding to the number of their working years and shares for them as well as the interests of staff at the parent companies and subsidiaries.
He acknowledged that all the "humanitarian" issues were a hard nut to crack.
The Government permits the price of shares for staff to be 60% of the price set at public auctions.
There is a plan to equitize the Bank for Agriculture and Rural Development from 2008 and this job should be done by 2009, he said.
Nghia said the Government wanted to improve corporate governance for the banking sector through the equitization of the State-run banks.
Nghia stressed that Vietnam was implementing its commitments to the World Trade Organization and that the bilateral trade agreement with the US, under which the financial market will be opened up to foreign investors.
The Government allows foreign banks with total assets of at least US$20bil to open branches in Vietnam, and those with US$10bil or more to establish 100% foreign-owned banks and joint ventures with local banks.
Nghia said there were now six applications for opening, 100% foreign-owned banks but around 33 applications for new local banks.
Source: VNE
Vietnam forex reserves at record high
Vietnam's foreign currency reserves have reached a record high and are enough for 17 weeks of imports, a central bank’s newspaper reported Thursday.
"There are large inflows of forex entering the country to invest in local stocks and bonds in the first six months of this year," Director Truong Van Phuoc of the State Bank of Vietnam's exchange bureau was cited as saying by Vietnam Banking Times newspaper.
Based on official statistics, Vietnam is estimated to have forex reserves of US$16 billion.
In November 2006, the SBV said Vietnam had forex reserves of $12 billion, enough for 13 weeks of imports.
Source: Thanh Nien
"There are large inflows of forex entering the country to invest in local stocks and bonds in the first six months of this year," Director Truong Van Phuoc of the State Bank of Vietnam's exchange bureau was cited as saying by Vietnam Banking Times newspaper.
Based on official statistics, Vietnam is estimated to have forex reserves of US$16 billion.
In November 2006, the SBV said Vietnam had forex reserves of $12 billion, enough for 13 weeks of imports.
Source: Thanh Nien
Thursday, June 21, 2007
Vietnam stock indexes continue dip
The country's stock indexes continued to record slight losses at both the Ho Chi Minh City’s bourse and its Ha Noi-based counterpart by the end of the June 21 morning trading session.
By closing, the VN-Index, which measures the value of the Ho Chi Minh City Securities Trading Centre, slumped by 10.85 points to finish at 1,034.43 points.
More than 5.68 million shares, worth over 540 billion VND, changed hand during the day. Sixteen stocks recorded gains, 13 showed no change and 78 fell.
Binh Minh Minerals (BMC) and Tay Ninh Cable Car Tour (TCT) still top the list of big gaining stocks that includes Song Da Urban and Industrial Zone Investment and Development (SJS), Lu Gia Mechanical and Engineering (LGC), and Electric Equipment and Installation Firm Full Power (FPC).
Meanwhile, blue-chips shares Tan Tao Industrial Zone Development Company (ITA), Binh Minh Plastics (BMP) and Corporation for Financing and Promoting Technology (FPT) continued to lose value.
At the Ha Noi Securities Trading Centre, the Ha-STC dropped by 7 points to finish at 302.9 points. More than 1 million shares were traded, worth 114.4 billion VND.
Saigon Securities (SSI), Asia Commercial Bank (ACB) and Military Petroleum Company (MBC) recorded the largest trading volumes.
Blue-chippers like Bao Minh Insurance (BMI), Bao Viet Securities (BVS), Asia Commercial Bank (ACB) and Saigon Securities (SSI) were among shares found to be in decline by the end of the day.
Nguyet Anh, an investor, said that information relating to taxes being imposed on stock transaction activities and tardy progress of rolling out initial public offerings (IPO) by many businesses have caused anxiety in the market.
Source: VNA
By closing, the VN-Index, which measures the value of the Ho Chi Minh City Securities Trading Centre, slumped by 10.85 points to finish at 1,034.43 points.
More than 5.68 million shares, worth over 540 billion VND, changed hand during the day. Sixteen stocks recorded gains, 13 showed no change and 78 fell.
Binh Minh Minerals (BMC) and Tay Ninh Cable Car Tour (TCT) still top the list of big gaining stocks that includes Song Da Urban and Industrial Zone Investment and Development (SJS), Lu Gia Mechanical and Engineering (LGC), and Electric Equipment and Installation Firm Full Power (FPC).
Meanwhile, blue-chips shares Tan Tao Industrial Zone Development Company (ITA), Binh Minh Plastics (BMP) and Corporation for Financing and Promoting Technology (FPT) continued to lose value.
At the Ha Noi Securities Trading Centre, the Ha-STC dropped by 7 points to finish at 302.9 points. More than 1 million shares were traded, worth 114.4 billion VND.
Saigon Securities (SSI), Asia Commercial Bank (ACB) and Military Petroleum Company (MBC) recorded the largest trading volumes.
Blue-chippers like Bao Minh Insurance (BMI), Bao Viet Securities (BVS), Asia Commercial Bank (ACB) and Saigon Securities (SSI) were among shares found to be in decline by the end of the day.
Nguyet Anh, an investor, said that information relating to taxes being imposed on stock transaction activities and tardy progress of rolling out initial public offerings (IPO) by many businesses have caused anxiety in the market.
Source: VNA
Investors to buy stakes in Eximbank
The joint stock Viet Nam Export Import Bank (Eximbank) announced it plans to sell stakes to 16 strategic shareholders on June 20.
They include the Asia Commercial Bank (ACB), confectioner Kinh Do Group, Ban Viet Securities Investment Company, aviation service firm Sasco, and the Saigon Post and Telecommunication Company.
Together they will acquire 500,000 shares for 4 trillion VND (250 million USD), or at eight times their face value.
This strategic placement is part of the bank’s plan to increase its capital this year to 2.8 trillion VND (175 million USD) from 1.2 trillion VND (75 million USD), according to chairman Nguyen Thanh Long.
”Eximbank and its strategic partners will cooperate in various areas including products and services, clientele, and network,” he said, adding, for instance, non-banking partners would use Eximbank’s services. They would also make joint investments.
Source: VNA
They include the Asia Commercial Bank (ACB), confectioner Kinh Do Group, Ban Viet Securities Investment Company, aviation service firm Sasco, and the Saigon Post and Telecommunication Company.
Together they will acquire 500,000 shares for 4 trillion VND (250 million USD), or at eight times their face value.
This strategic placement is part of the bank’s plan to increase its capital this year to 2.8 trillion VND (175 million USD) from 1.2 trillion VND (75 million USD), according to chairman Nguyen Thanh Long.
”Eximbank and its strategic partners will cooperate in various areas including products and services, clientele, and network,” he said, adding, for instance, non-banking partners would use Eximbank’s services. They would also make joint investments.
Source: VNA
Vincom to auction 5 million shares in July
Vincom JSC on June 20 announced plans to sell five million shares during its initial public offering in the third quarter on the Ho Chi Minh City Securities Trading Centre.
The book building phase of the IPO will take place on July 3, with shares entering the stock market in early August. The shares carry a face value of 10,000 VND (0.63 USD) a piece, and will be offered at 80,000 VND next month.
The IPO is part of Vincom's plans to mobilise 775 billion VND by selling 20 million shares. The remaining 15 million shares will be sold to existing stock holders at 25,000 VND a piece.
The money raised will go toward improving the company's capital position and fund future projects.
"Over the last five years, we have maintained a solid position in the real estate market," said Vincom board chairman Le Khac Hiep. "We will continue to focus on this field in the coming years".
According to Hiep, major upcoming projects include a 456-billion VND (28.5 million USD) trade and apartment complex, the 1.5-trillion VND (93.75 million USD) Long Bien Eco-Tourism Resort and a 4-trillion VND (250 million USD) hydro-electric power plant.
Hiep said competition will continue to grow in the property development and construction industries, beyond current players like Trang Tien Plaza, Big C Thang Long and Opera Business Centre.
"We still aim to be a leading property developer in Viet Nam," said the board chairman.
Vincom now has 600 billion VND (37.5 million USD) in total equity, and expects to earn a revenue of 221 billion VND this year.
On the over-the-counter market, Vincom shares are now trading around 136,000 - 140,000 VND a piece.
Source: VNA
The book building phase of the IPO will take place on July 3, with shares entering the stock market in early August. The shares carry a face value of 10,000 VND (0.63 USD) a piece, and will be offered at 80,000 VND next month.
The IPO is part of Vincom's plans to mobilise 775 billion VND by selling 20 million shares. The remaining 15 million shares will be sold to existing stock holders at 25,000 VND a piece.
The money raised will go toward improving the company's capital position and fund future projects.
"Over the last five years, we have maintained a solid position in the real estate market," said Vincom board chairman Le Khac Hiep. "We will continue to focus on this field in the coming years".
According to Hiep, major upcoming projects include a 456-billion VND (28.5 million USD) trade and apartment complex, the 1.5-trillion VND (93.75 million USD) Long Bien Eco-Tourism Resort and a 4-trillion VND (250 million USD) hydro-electric power plant.
Hiep said competition will continue to grow in the property development and construction industries, beyond current players like Trang Tien Plaza, Big C Thang Long and Opera Business Centre.
"We still aim to be a leading property developer in Viet Nam," said the board chairman.
Vincom now has 600 billion VND (37.5 million USD) in total equity, and expects to earn a revenue of 221 billion VND this year.
On the over-the-counter market, Vincom shares are now trading around 136,000 - 140,000 VND a piece.
Source: VNA
Vietnam to privatise top garment maker Vinatex
The Vietnam government has agreed to the privatisation of Vinatex, its largest textile and garment group, which accounted for 22% of exports of such products last year.
Deputy Prime Minister Nguyen Sinh Hung said in a directive on Thursday the group would hire a consultant to conduct its privatisation process.
Hung also approved a plan to issue convertible bonds.
The directive did not give details of Vinatex's bond issue, but company chairman Le Quoc An has said the group needs to raise at least 10 trillion dong ($620 million) to expand.
An said the group planned to complete its privatisation process next year.
The state-owned firm said it aimed to raise textile and garment exports, mainly to the European Union and the United States, to $1.55 billion in 2007 from $1.3 billion last year.
Textile and garment products are Vietnam's second-largest export category after crude oil, with $2.68 billion in revenues reported during the first five months of this year.
Source: Reuters
Deputy Prime Minister Nguyen Sinh Hung said in a directive on Thursday the group would hire a consultant to conduct its privatisation process.
Hung also approved a plan to issue convertible bonds.
The directive did not give details of Vinatex's bond issue, but company chairman Le Quoc An has said the group needs to raise at least 10 trillion dong ($620 million) to expand.
An said the group planned to complete its privatisation process next year.
The state-owned firm said it aimed to raise textile and garment exports, mainly to the European Union and the United States, to $1.55 billion in 2007 from $1.3 billion last year.
Textile and garment products are Vietnam's second-largest export category after crude oil, with $2.68 billion in revenues reported during the first five months of this year.
Source: Reuters
Taxi operator Mai Linh sees '07 profit up 13 fold
Major Vietnam taxi firm Mai Linh Group (MLC) said on Thursday it expected its 2007 net profit to jump nearly 13-fold from last year to 173.3 billion dong ($10.7 million) due to its enlarged fleet.
The Ho Chi Minh City-based group forecast revenues would reach 3.83 trillion dong ($240 million) this year, Chairman Ho Huy said in a statement.
Huy has said Mai Linh Group, which has added around 1,000 cabs and more than 100 buses to its fleet this year to expand its operation to 50 cities and provinces, would list its shares in August next year.
The firm, which also operates bus services between Ho Chi Minh City and Cambodia, is about 25% owned by foreign investment funds, including Vinacapital and Indochina Capital.
Source: Reuters
The Ho Chi Minh City-based group forecast revenues would reach 3.83 trillion dong ($240 million) this year, Chairman Ho Huy said in a statement.
Huy has said Mai Linh Group, which has added around 1,000 cabs and more than 100 buses to its fleet this year to expand its operation to 50 cities and provinces, would list its shares in August next year.
The firm, which also operates bus services between Ho Chi Minh City and Cambodia, is about 25% owned by foreign investment funds, including Vinacapital and Indochina Capital.
Source: Reuters
Viettel sharpens competitive edge
Viettel Corporation yesterday announced the merger of three of its core arms to form Viettel Telecom Company, in a bid to strengthen its foothold in the increasingly competitive telecommunications market.
The three firms merging are Viettel Fixed Telephone Co, Viettel Internet Co and Viettel Mobile Co, the military-run company said.
"The merging of Viettel’s three flagship firms will enable Viettel Telecom to be the biggest telecom provider in Viet Nam, which will provide multiple telecom services," said Viettel deputy director Nguyen Manh Hung.
Hung added that the domestic telecom market had grown increasingly competitive following Viet Nam’s entry into the World Trade Organisation.
"The restructure will also help Viettel to shift from being a network service provider to becoming an information service provider," he said.
According to the Viettel Corporation, Viettel Telecom will provide a full range of telecom services, including internet, fixed telephone, VoIP, mobile phones and network services.
The company’s flagship, Viettel Mobile Co, has 13 million mobile subscribers, accounting for over 40% of the country’s total mobile subscriber market. It is ranked among the top 20 fastest-developing mobile carriers in the world.
Viettel Internet Co has 140,000 broadband internet subscribers, while Viettel Fixed Telephone Co has 190,000 subscribers.
Source: VNS
The three firms merging are Viettel Fixed Telephone Co, Viettel Internet Co and Viettel Mobile Co, the military-run company said.
"The merging of Viettel’s three flagship firms will enable Viettel Telecom to be the biggest telecom provider in Viet Nam, which will provide multiple telecom services," said Viettel deputy director Nguyen Manh Hung.
Hung added that the domestic telecom market had grown increasingly competitive following Viet Nam’s entry into the World Trade Organisation.
"The restructure will also help Viettel to shift from being a network service provider to becoming an information service provider," he said.
According to the Viettel Corporation, Viettel Telecom will provide a full range of telecom services, including internet, fixed telephone, VoIP, mobile phones and network services.
The company’s flagship, Viettel Mobile Co, has 13 million mobile subscribers, accounting for over 40% of the country’s total mobile subscriber market. It is ranked among the top 20 fastest-developing mobile carriers in the world.
Viettel Internet Co has 140,000 broadband internet subscribers, while Viettel Fixed Telephone Co has 190,000 subscribers.
Source: VNS
Wednesday, June 20, 2007
VN-Index, HaSTC record slight dips
Both Ho Chi Minh City’s bourse and its Ha Noi-based counterpart reported decreases by the end of their trading sessions on June 20.
The VN-Index at the HCM City Securities Trading Centre dropped by 4.3 points or 0.41% to close at 1,045.28 points, with 6.6 million shares worth 666.8 billion VND (roughly 41.7 million USD) being traded.
Thirty-five stocks rallied for gains, 30 shares remained unchanged and 44 fell.
Saigon Thuong Tin Commercial Bank (STB), Tuong An Oil (TAC), Pha Lai Thermal Power (PPC), Corporation for Financing and Promoting Technology (FPT) and Song Da Urban and Industrial Zone Investment and Development (SJS) recorded the highest trading volumes.
Binh Dinh Minerals (BMC), Tay Ninh Cable Car Tour (TCT) and Lam Dong Building Materials (LBM) continued to rise due to massive demand from investors.
Meanwhile, Saigon Garment Manufacturing (GMC), Hau Giang Pharmaceutical (DHG), Full Power (FPC), Kinh Do Corp. (KDC) and Hanoi P&T Construction and Installation (HAS) were the five big losers on the day.
At the Ha Noi Securities Trading Centre, the HaSTC slid by 3.25 points to finish at 309.89 points in large part due to decreases recorded by blue-chippers such as Asia Commercial Bank (ACB), Hai Phong Securities (HPC) and Bao Minh Corp. (BMI).
However, the newly listed Cho Lon Real Estate (RCL) again increased sharply by tacking on 22,400 VND on its listed price.
More than 1 million stocks worth 112.4 billion VND (approximately 7 million USD) changed hands during the course of the session.
The VN-Index at the HCM City Securities Trading Centre dropped by 4.3 points or 0.41% to close at 1,045.28 points, with 6.6 million shares worth 666.8 billion VND (roughly 41.7 million USD) being traded.
Thirty-five stocks rallied for gains, 30 shares remained unchanged and 44 fell.
Saigon Thuong Tin Commercial Bank (STB), Tuong An Oil (TAC), Pha Lai Thermal Power (PPC), Corporation for Financing and Promoting Technology (FPT) and Song Da Urban and Industrial Zone Investment and Development (SJS) recorded the highest trading volumes.
Binh Dinh Minerals (BMC), Tay Ninh Cable Car Tour (TCT) and Lam Dong Building Materials (LBM) continued to rise due to massive demand from investors.
Meanwhile, Saigon Garment Manufacturing (GMC), Hau Giang Pharmaceutical (DHG), Full Power (FPC), Kinh Do Corp. (KDC) and Hanoi P&T Construction and Installation (HAS) were the five big losers on the day.
At the Ha Noi Securities Trading Centre, the HaSTC slid by 3.25 points to finish at 309.89 points in large part due to decreases recorded by blue-chippers such as Asia Commercial Bank (ACB), Hai Phong Securities (HPC) and Bao Minh Corp. (BMI).
However, the newly listed Cho Lon Real Estate (RCL) again increased sharply by tacking on 22,400 VND on its listed price.
More than 1 million stocks worth 112.4 billion VND (approximately 7 million USD) changed hands during the course of the session.
Will stock market suffer from IPO-induced ‘indigestion’?
The Government may ask giant state owned corporations and banks to reconsider the dates of their IPO (initial public offering), for fear that the stock market may suffer from “indigestion” if all of them make IPO at the same time.
Tran Bac Ha, Director General of the Bank for Investment and Development of Vietnam (BIDV), has asked the Government to re-arrange the dates for the IPOs of important state owned corporations and banks scheduled to take place in the second half of the year.
According to Mr Ha, an overly high supply of shares may lead to the decrease of share prices, while creating losses for the state.
The IPOs of a series of big state owned corporations at the same time may make the market stumble. The big state owned corporations include BIDV, which will have the expected chartered capital of VND14tril ($0.875bil). Though proposing the time rearrangement, Mr Ha said that BIDV would still carry out its IPO as previously planned.
When asked if the IPO of Vietnam Industrial and Commercial Bank (Incombank), also slated for the fourth quarter of the year, would have any bad impact on either big bank, Mr Ha said tersely: “The same quarter, but not the same month”.
With the tentative chartered capital of VND10tril, Vietcombank has submitted its equitisation plan to the Prime Minister. Nguyen Thi Thu Ha, Deputy Director General of Vietcombank, said that with the current condition of the stock market, it would be difficult to sell shares at high prices, but added that the situation might be different in August.
Huynh Nam Dung, Chairman of the Mekong Housing Development Bank (MHB), said that he had not received any instruction from the Prime Minister relating to the IPO delays; therefore, the bank was now still moving ahead with its previously set plan. He said that MHB might perform IPO in October.
Meanwhile, investors have heard that other state owned giants in telecommunications and brewing are also planning to make IPO in the upcoming months.
Le Ngoc Minh, Director of MobiFone, said that the company had not received any instructions on an IPO roadmap rearrangement. MobiFone previously planned to auction its shares in December at the latest. Meanwhile, Sabeco, a brewery and drink company, is having its assets valued, and its IPO plan is expected to be drawn up to be submitted to the Ministry of Industry and the Government by early August.
After the plan is approved, Sabeco will auction shares equivalent to 20% of chartered capital in the first phase, and sell another 20% in 2008. Another brewery company, Habeco, is planning to make IPO at the end of the third quarter or early in the fourth quarter.
Economists give contradictory opinions regarding the massive IPO movement of state owned corporations.
Nguyen Dinh Cung, Head of the Macro Economic Management Division under the Central Institute of Economic Management (CIEM), said that banks should not make IPO at the same time, because the market would not be able to consume such a big volume of commodities, especially at this moment, while it is in a low period.
An economist said that the IPOs of several banks could be delayed, but Vietcombank could not delay its IPO, because the bank already issued convertible bonds in December 2005. Investors have been waiting two years for the right to become the bank’s shareholders.
Meanwhile, bankers seem to not agree with the suggestions to delay the IPOs. A bank director said that the high price of shares was not the only thing the bank wanted when making IPO. “If IPOs are delayed, the equitisation and bank restructuring process will be prolonged.”
According to an official of the State Securities Commission (SSC), the organ still does not know how to best arrange the time for IPOs. He said that it was a very big issue, and it needed to be discussed by a lot of state management agencies.
“We put a series of enterprises into auction, while the State Bank of Vietnam is trying to tighten its monetary policy by limiting banks’ loans given for securities investment and requiring higher compulsory reserve ratio,” the official said.
Meanwhile, according to the official, no one can measure the demand for securities at this moment. The State Bank still cannot release figures on foreign portfolio investment and the public idle capital volume.
“What will we say, to delay or to continue IPO plans if we do not have any basis for our conclusion?” he questioned.
Source: VNE
Tran Bac Ha, Director General of the Bank for Investment and Development of Vietnam (BIDV), has asked the Government to re-arrange the dates for the IPOs of important state owned corporations and banks scheduled to take place in the second half of the year.
According to Mr Ha, an overly high supply of shares may lead to the decrease of share prices, while creating losses for the state.
The IPOs of a series of big state owned corporations at the same time may make the market stumble. The big state owned corporations include BIDV, which will have the expected chartered capital of VND14tril ($0.875bil). Though proposing the time rearrangement, Mr Ha said that BIDV would still carry out its IPO as previously planned.
When asked if the IPO of Vietnam Industrial and Commercial Bank (Incombank), also slated for the fourth quarter of the year, would have any bad impact on either big bank, Mr Ha said tersely: “The same quarter, but not the same month”.
With the tentative chartered capital of VND10tril, Vietcombank has submitted its equitisation plan to the Prime Minister. Nguyen Thi Thu Ha, Deputy Director General of Vietcombank, said that with the current condition of the stock market, it would be difficult to sell shares at high prices, but added that the situation might be different in August.
Huynh Nam Dung, Chairman of the Mekong Housing Development Bank (MHB), said that he had not received any instruction from the Prime Minister relating to the IPO delays; therefore, the bank was now still moving ahead with its previously set plan. He said that MHB might perform IPO in October.
Meanwhile, investors have heard that other state owned giants in telecommunications and brewing are also planning to make IPO in the upcoming months.
Le Ngoc Minh, Director of MobiFone, said that the company had not received any instructions on an IPO roadmap rearrangement. MobiFone previously planned to auction its shares in December at the latest. Meanwhile, Sabeco, a brewery and drink company, is having its assets valued, and its IPO plan is expected to be drawn up to be submitted to the Ministry of Industry and the Government by early August.
After the plan is approved, Sabeco will auction shares equivalent to 20% of chartered capital in the first phase, and sell another 20% in 2008. Another brewery company, Habeco, is planning to make IPO at the end of the third quarter or early in the fourth quarter.
Economists give contradictory opinions regarding the massive IPO movement of state owned corporations.
Nguyen Dinh Cung, Head of the Macro Economic Management Division under the Central Institute of Economic Management (CIEM), said that banks should not make IPO at the same time, because the market would not be able to consume such a big volume of commodities, especially at this moment, while it is in a low period.
An economist said that the IPOs of several banks could be delayed, but Vietcombank could not delay its IPO, because the bank already issued convertible bonds in December 2005. Investors have been waiting two years for the right to become the bank’s shareholders.
Meanwhile, bankers seem to not agree with the suggestions to delay the IPOs. A bank director said that the high price of shares was not the only thing the bank wanted when making IPO. “If IPOs are delayed, the equitisation and bank restructuring process will be prolonged.”
According to an official of the State Securities Commission (SSC), the organ still does not know how to best arrange the time for IPOs. He said that it was a very big issue, and it needed to be discussed by a lot of state management agencies.
“We put a series of enterprises into auction, while the State Bank of Vietnam is trying to tighten its monetary policy by limiting banks’ loans given for securities investment and requiring higher compulsory reserve ratio,” the official said.
Meanwhile, according to the official, no one can measure the demand for securities at this moment. The State Bank still cannot release figures on foreign portfolio investment and the public idle capital volume.
“What will we say, to delay or to continue IPO plans if we do not have any basis for our conclusion?” he questioned.
Source: VNE
Itaco to invest $47 mln in engineering firms
Vietnam's Tan Tao Industrial Park Corp (Itaco) said on Wednesday it will invest $47 million for majority stakes in two engineering firms that focus on power plant construction and irrigation projects.
The group said in a statement published by the Ho Chi Minh Stock Exchange it would pay $32 million for a 51-percent stake in the Long An province-based ITA-Power and $15 million for a 50-percent stake in North-West Power JSC in Lai Chau province.
North-West Power JSC has already won a contract to build a 70-megawatt hydro power plant in Lai Chau, the group said.
Itaco, which is the first industrial park developer listed in Vietnam, has been operating the Tan Tao industrial park in Ho Chi Minh City, Vietnam's business centre, since 1997.
In addition to expansion into the energy sector, Itaco is also branching out into highway and residential property development and has two projects in the pipeline in the southern province of Long An worth a total $59 million.
Shares in Itaco closed unchanged on Wednesday at 141,000 dong ($8.75), valuing the company at $525 million.
Source: Thanh Nien
The group said in a statement published by the Ho Chi Minh Stock Exchange it would pay $32 million for a 51-percent stake in the Long An province-based ITA-Power and $15 million for a 50-percent stake in North-West Power JSC in Lai Chau province.
North-West Power JSC has already won a contract to build a 70-megawatt hydro power plant in Lai Chau, the group said.
Itaco, which is the first industrial park developer listed in Vietnam, has been operating the Tan Tao industrial park in Ho Chi Minh City, Vietnam's business centre, since 1997.
In addition to expansion into the energy sector, Itaco is also branching out into highway and residential property development and has two projects in the pipeline in the southern province of Long An worth a total $59 million.
Shares in Itaco closed unchanged on Wednesday at 141,000 dong ($8.75), valuing the company at $525 million.
Source: Thanh Nien
PetroVietnam earnings up 2%
Despite lower than expected output on certain overseas operations, Viet Nam Oil and Gas Group (PetroVietnam) on June 19 reported a revenue of 84.6 trillion VND (5.3 billion USD) in the first half of the year, up 2.8% over the same period in 2006.
The State-owned enterprise hopes to generate over 168 trillion VND by the end of the year.
In the first two quarters, the company produces 11.73 million tonnes of gas and oil, which executives consider strong but below expectations. The figure represents 47.3% of the company’s 2007 target.
“The amount of gas and oil produced was still large. We could have exploited more but we didn’t because it would have affected oil and gas fields,” Tran Ngoc Canh, general director of Petrovietnam, was quoted as saying in a press release issued on June 19.
Despite the shortcomings, PetroVietnam signed four contracts during the first six months of the year to explore other offshore oil fields in Viet Nam. The company now has nine exploration contracts in place with foreign partners.
PetroVietnam also reported its service sector developed well over the two quarters with 16 trillion VND (1 billion USD) in revenues generated through these activities. The figure represents about 19% of the company's overall earnings.
"PetroVietnam hopes to become interdisciplinary. We will develop into many different fields including finance, banking and securities," said Dinh La Thang, PetroVietnam chairman.
The company hopes services will account for 50% of its overall revenue by 2025.
Since January, PetroVietnam has invested 18.9 trillion VND in new and ongoing projects. It also contributed 30 trillion VND (1.8 billion USD) to the State budget in the six months, down nearly 10% year-on-year.
Oil and gas exports in the first two quarters reached 7.68 million tonnes, about 46.5% of the company's annual target. The oil and gas output for the second half of 2007 is expected to reach 13.15 million tonnes.
Source: VNA
The State-owned enterprise hopes to generate over 168 trillion VND by the end of the year.
In the first two quarters, the company produces 11.73 million tonnes of gas and oil, which executives consider strong but below expectations. The figure represents 47.3% of the company’s 2007 target.
“The amount of gas and oil produced was still large. We could have exploited more but we didn’t because it would have affected oil and gas fields,” Tran Ngoc Canh, general director of Petrovietnam, was quoted as saying in a press release issued on June 19.
Despite the shortcomings, PetroVietnam signed four contracts during the first six months of the year to explore other offshore oil fields in Viet Nam. The company now has nine exploration contracts in place with foreign partners.
PetroVietnam also reported its service sector developed well over the two quarters with 16 trillion VND (1 billion USD) in revenues generated through these activities. The figure represents about 19% of the company's overall earnings.
"PetroVietnam hopes to become interdisciplinary. We will develop into many different fields including finance, banking and securities," said Dinh La Thang, PetroVietnam chairman.
The company hopes services will account for 50% of its overall revenue by 2025.
Since January, PetroVietnam has invested 18.9 trillion VND in new and ongoing projects. It also contributed 30 trillion VND (1.8 billion USD) to the State budget in the six months, down nearly 10% year-on-year.
Oil and gas exports in the first two quarters reached 7.68 million tonnes, about 46.5% of the company's annual target. The oil and gas output for the second half of 2007 is expected to reach 13.15 million tonnes.
Source: VNA
Citigroup sign Vietnam finance deals
Citigroup said on Tuesday it has signed financing deals with three major Vietnamese companies to provide loans, banking services and consultation on a domestic bond issue.
A Citigroup statement said it signed the agreements in New York for undisclosed amounts with dominant state utility Vietnam Electricity (EVN) group, Vietnam National Shipping Lines (Vinalines) and top coal producer Vinacomin.
None of the companies are listed.
Vietnamese President Nguyen Minh Triet arrived in New York on Monday in the first visit to the United States by a Vietnamese head of state since the U.S. war in Vietnam ended in 1975.
Citigroup would advise Vinacomin, also the largest mining firm, on a bond issue on Vietnam's markets, the statement said without elaboration.
"This financing will enable Vinacomin to diversify funding sources to meet increasing local demands in energy," Vinacomin chairman Doan Van Kien was quoted in the statement as saying.
Citigroup, which runs two bank branches in Vietnam, will provide EVN with financing, cash management and online banking products, the statement said.
The state utility needs $3 billion in annual investment to meet electricity demand, which has been growing at 16% to 17% a year, EVN Chief Executive Pham Le Thanh said.
Communist-ruled Vietnam has targeted economic growth of 8.5% this year and up to 8.7% in 2008.
Under the deal with Vinalines, Citigroup would finance the state-run firm to expand its fleet and build ports, the global financial services company said.
Vietnam joined the World Trade Organisation in January but foreign investors say it needs big improvements in infrastructure in sectors such as transport, telecoms, banking and financial services and energy.
Source: Reuters
A Citigroup statement said it signed the agreements in New York for undisclosed amounts with dominant state utility Vietnam Electricity (EVN) group, Vietnam National Shipping Lines (Vinalines) and top coal producer Vinacomin.
None of the companies are listed.
Vietnamese President Nguyen Minh Triet arrived in New York on Monday in the first visit to the United States by a Vietnamese head of state since the U.S. war in Vietnam ended in 1975.
Citigroup would advise Vinacomin, also the largest mining firm, on a bond issue on Vietnam's markets, the statement said without elaboration.
"This financing will enable Vinacomin to diversify funding sources to meet increasing local demands in energy," Vinacomin chairman Doan Van Kien was quoted in the statement as saying.
Citigroup, which runs two bank branches in Vietnam, will provide EVN with financing, cash management and online banking products, the statement said.
The state utility needs $3 billion in annual investment to meet electricity demand, which has been growing at 16% to 17% a year, EVN Chief Executive Pham Le Thanh said.
Communist-ruled Vietnam has targeted economic growth of 8.5% this year and up to 8.7% in 2008.
Under the deal with Vinalines, Citigroup would finance the state-run firm to expand its fleet and build ports, the global financial services company said.
Vietnam joined the World Trade Organisation in January but foreign investors say it needs big improvements in infrastructure in sectors such as transport, telecoms, banking and financial services and energy.
Source: Reuters
Bao Viet choosing foreign strategic shareholders
Bao Viet share prices have been dropping dramatically since the auction. And a question has been raised about whether Bao Viet can find suitable foreign strategic shareholders.
Le Quang Binh, Chairman of Bao Viet, said that the insurer was still in the process of selecting foreign strategic shareholders.
Before the auction was organised, you said that Bao Viet would conduct negotiations to choose foreign strategic shareholders with reference to the final price of the share auction. Could you please tell me about the negotiation outcome?
Right after the final price of the auction was determined, Bao Viet began negotiating with financial and insurance groups which are interested in becoming strategic partners of Bao Viet.
The negotiations will be conducted with the focus on two aspects. First, the technique negotiation. Bao Viet will consider the partners’ capability to give technical assistance (assistance in IT will be appreciated), and assistance in corporate governance and competitiveness improvement. The second aspect is the price of shares. And there is the principle that we must follow, that the price of shares to be sold to strategic investors must not be lower than the average final price of the auction.
Bao Viet has announced the result of the auction to the consultant. Under the current regulations, the average final price of the auction will serve as the basis when Bao Viet offers shares to strategic shareholders.
Do you mean that the average auctioned price of VND73,910/share is not the final price, based on which Bao Viet will negotiate with strategic shareholders?
Yes, I do. The VND73,910/share price level is not the final average price. The final average price will only be defined after June 26, when investors must pay money for the shares they got the right to buy at the auction.
Could you please tell me what interests foreign investors about Bao Viet?
Foreign investors highly appreciate Bao Viet’s potential; they are also interested in Bao Viet’s trademark in the market.
The lowest price level at which foreign investors successfully bought shares at the auction was VND70,200/share. 103 foreign investors, including 15 institutions and 88 individuals, got the right to buy 13,049,400 shares.
The figures will serve as important information for foreign strategic shareholders for reference.
Source: VNE
Le Quang Binh, Chairman of Bao Viet, said that the insurer was still in the process of selecting foreign strategic shareholders.
Before the auction was organised, you said that Bao Viet would conduct negotiations to choose foreign strategic shareholders with reference to the final price of the share auction. Could you please tell me about the negotiation outcome?
Right after the final price of the auction was determined, Bao Viet began negotiating with financial and insurance groups which are interested in becoming strategic partners of Bao Viet.
The negotiations will be conducted with the focus on two aspects. First, the technique negotiation. Bao Viet will consider the partners’ capability to give technical assistance (assistance in IT will be appreciated), and assistance in corporate governance and competitiveness improvement. The second aspect is the price of shares. And there is the principle that we must follow, that the price of shares to be sold to strategic investors must not be lower than the average final price of the auction.
Bao Viet has announced the result of the auction to the consultant. Under the current regulations, the average final price of the auction will serve as the basis when Bao Viet offers shares to strategic shareholders.
Do you mean that the average auctioned price of VND73,910/share is not the final price, based on which Bao Viet will negotiate with strategic shareholders?
Yes, I do. The VND73,910/share price level is not the final average price. The final average price will only be defined after June 26, when investors must pay money for the shares they got the right to buy at the auction.
Could you please tell me what interests foreign investors about Bao Viet?
Foreign investors highly appreciate Bao Viet’s potential; they are also interested in Bao Viet’s trademark in the market.
The lowest price level at which foreign investors successfully bought shares at the auction was VND70,200/share. 103 foreign investors, including 15 institutions and 88 individuals, got the right to buy 13,049,400 shares.
The figures will serve as important information for foreign strategic shareholders for reference.
Source: VNE
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