Bond issuance dips make for a disappointing second quarter

The second quarter of 2015 was one of the most disappointing periods for the primary bond market in the past four years, recording the second lowest issuance amount. Winning bond yields, which had declined significantly in the first quarter, rose considerably across all tenors during the second quarter. There were three main factors causing the yields to rise during the Q2/2015: strong credit growth, rising inflation, and low demand for purchasing bonds in the primary market. The winning rate of the second quarter as a whole stood at just 32.7 per cent, remarkably lower than the level of 73.5 per cent of the previous quarter. In the second half of the year, both credit growth and inflation are expected to grow at a faster pace, therefore bond yields will likely increase further. During the second quarter, the government successfully mobilised just VND29.373 trillion ($1.34 billion) of bonds and bills in the primary market, completing 26 per cent of the Q2/2015 issuance plan. … [Read more...]

VPBank and M.I.K Corporation join hands

M.I.K Corporation, a leading professional real estate developer in Vietnam, has recently announced that Vietnam Prosperity Bank (VPBank) will act as a guarantor for its projects, following the Law on Real Estate Business coming into effect on July 1. According to the revised law, property developers, before selling or leasing unfinished or future property, must obtain guarantees from eligible commercial banks as assurances of their financial obligations to buyers. Accordingly, in case property developers fail to follow through their commitments and hand over apartments to buyers, banks would be responsible for refunding the buyers, in line with the provisions of the signed contracts. The regulation is expected to enhance the responsibility and obligation of developers, improve liquidity in the real estate market, as well as protect the rights of purchasers. Since the regulation has been introduced, M.I.K Corporation has speeded up discussions with its bank partners. With its high … [Read more...]

VN-Index passes 600 point benchmark

Investors watch market fluctuations VPBank Securities' trading floor. On the HCM City Stock Exchange, VN-Index passed the 600-point landmark to close session at 605.70. — VNS Photo Truong Vi HA NOI (VNS) — The VN-Index finally surpassed the psychological landmark of 600 points yesterday, adding 14 points, or 2.4 per cent, to close session at 605.70 points. Strong growth of blue chips helped boost other stocks in the HCM City's market, with advancers overwhelming decliners by 158-63 by the end of the session. Up to 27 of a total 30 shares in the VN30, which tracks the top 30 shares by market value and liquidity on the HCM City Stock Exchange, gained value. Twenty stocks increased by more than one per cent. The VN30 ended 1.66 per cent higher at 633.28 points. Bank stocks continued to lead the uptrend. The biggest stock in terms of market capitalisation Vietcombank (VCB) and BIDV (BID) hit the ceiling price which was capped at 7 per cent a day while other lenders, … [Read more...]

Sai Gon Port received $19 million from IPO

HCM CITY (VNS) — Sai Gon Port Company Limited (Sai Gon Port) raked in VND411 billion (US$19 million) from selling 35.7 million shares from its initial public offering (IPO) on Tuesday, according to the HCM Stock Exchange. The average price per share was VND11,514 and the price per share ranged from VND11,500 to VND22,500. The successful sales volume was equal to 16.5 per cent of the company's charter capital. There were 39 investors, including Vingroup Corporation, Vietnam Prosperity Bank (VPBank) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank). Sai Gon Port targets VND2.16 trillion ($100 million) in charter capital after the privatisation, including 64 per cent owned by the Government. — VNS … [Read more...]

Securities shares likely to lead market

An investor examines trading at the VPBank Securities Trading Centre. — VNS Truong Vi HA NOI (VNS) — Securities shares are expected to lead the market this week following Decree 60 which allows foreign investors to increase their stakes in Vietnamese public listed companies, according to analysts. Investors are being advised to maintain their shares at a safe number, focus on leading stocks and avoid over-investing during sessions where the stock market rises significantly. Last week, the stock market fell as investors remained cautious, limiting the money flowing into the market and reducing liquidity. Securities shares took the lead on both bourses while bank shares and gas shares had little influence after suffering from strong selling pressure. HCM City Securities Corporation (HCM), Saigon Securities Incorporation (SSI), VNDirect Securities JSC (VND), Sai Gon-Ha Noi Securities JSC (SHS), IB Securities JSC (VIX) and Bao Viet Securities JSC (BVS) all made … [Read more...]

Saigon Port’s upcoming IPO in the spotlight

Saigon Port Company Limited (Saigon Port) is offering 36 million shares or 16.51 per cent of the company to the public via auction at an initial price of VND11,500 (54 UScent) per share on June 30, 2015. The company is one of the oldest and largest port operators in Vietnam. But its market share has been declining and a substantial portion of its operations are being shut down. The real value of the company is in its property holdings, which include prime locations in the centre of Ho Chi Minh City that are being converted to residential and commercial development projects. Established in 1863, Saigon Port is a subsidiary of Vietnam National Shipping Lines (Vinalines). Saigon Port is located in the Ho Chi Minh City area, one of the most active port areas of Vietnam. According to the Vietnam Port Association (VPA), the company has the second highest throughput in the south of Vietnam, after Saigon New Port which owns the Cat Lai port area. But, Saigon New Port’s throughput in … [Read more...]

Margin calls force former CEO of medical firm JVC to sell shares

Mobile clinics provided by Japan-Vietnam Medical Instrument JSC. Photo credit: VnExpress More than 3.8 million shares of the Japan-Vietnam Medical Instrument JSC (JVC) have been sold to meet margin calls as the company's stock has sunk since June 10. JVC's former CEO Le Van Huong was forced by VPBank Securities Company to reduce his shareholding in the company twice on June 22 and 25 and he has sold over two million shares in total, news website VnExpress reported Friday, citing the Ho Chi Minh City Stock Exchange. Prior to the sell-off, Huong owned 13.3 million shares or 11.8 percent of the company. On June 15, Phu Hung Securities Company also sold 1.8 million shares owned by Huong's wife, Nguyen Phuong Hanh. JVC's stock, once offering a dividend rate of 15-20 percent for several years, started plummeting following rumors that Huong, then its CEO, was arrested. The company issued a statement on June 13 claiming that everything was normal, but about one week later announced that … [Read more...]

Credit growth improves in H1

Tran Thu and Dinh Duy Credit growth was around 3.69% at the end of April and 4.26% by end-May but surged by 1.5 percentage points to 5.78% by June 15. Banks continued to prioritize lending to the agricultural and rural sector as total outstanding loans in this sector were estimated to edge up 7.71% against late 2014. VPBank Securities Co. (VPBS) said in a report that credit rose around 6.1% as of June 18 and roughly 3.5% year-on-year. Credit for the real estate sector had grown 10.9% as of May 31. The brokerage noted some banks such as HDBank, DongABank, Eximbank and PGBank had revised up their short-term deposit rates in Vietnam dong. The rate spikes came a few days after some larger lenders such as BIDV, Vietcombank and Agribank adjusted up their short-term deposit rates by 0.1-0.3 percentage point. This might have resulted from high credit growth, VPBS said. According to the National Financial Supervisory Commission, deposit rates were poised to inch up as the pickup of … [Read more...]

New regulations lead to wider market divergence

There are currently 85 brokerages in the market, but there is considerable divergence between the leaders and the rest. Illustration Photo In the first quarter of this year, the leading 10 companies on HSX accounted for 64.25 per cent of the total market share; on HNX, the 10 leading securities companies accounted for 57.7 per cent of the brokerage market share. We believe that recent policy moves might make this divergence grow. The first move is the amendment of Circular No210/2012/TT-BTC. Authorities have consulted on the first draft with the market, but have apparently not yet taken the next step. However, once the amendment has been implemented, it will be advantageous to those securities firms that are not bank subsidiaries, such as SSI, HSC, and VND. Those securities firms that are bank subsidiaries are currently restricted from borrowing and raising capital from banks under the provisions of Circular No36/2014/TT-NHNN. When these firms reach their margin lending limit … [Read more...]

Markets edge back after declines

Investors track securities trading at VPBank Securities Joint Stock Company. — VNS Photo Truong Vi HA NOI (VNS) — Shares rebounded yesterday on the two exchanges after two days of declines, but liquidity continued to slip on rising investor caution. On the HCM City Stock Exchange, the benchmark VN-Index edged up 0.26 per cent to close the session at 580.35 points. Blue chips were mixed but strong growth of several large-cap stocks like Vietcombank (VCB), Vinamilk (VNM), Phu My Fertilizer (DPM), Sai Gon Securities Inc (SSI) and FLC Group (FLC) lifted the VN30 index by 0.37 per cent to end at 600.45 points. FLC reclaimed the most active stock title by the end of the session with over 9 million shares traded. Its price also gained 1.1 per cent to settle at VND9,100 a share. Ocean Group (OGC) retreated to second place with 7.3 million shares, rising 3.7 per cent to VND2,800 each. Overall liquidity continued to fall, however. The market volume dropped 25 per cent from the … [Read more...]

VPBank Securities scoops Best Investment Bank Award of 2015

VPBank Securities has just won the "Best Investment Bank" award in 2015 from Alpha Southeast Asia Magazine, the first and only institutional investment magazine purely focused and totally committed to Southeast Asia. This is one of ten awards which were presented by Alpha Southeast Asia to financial institutions in Vietnam this year. These awards belong to the ninth Annual Best Financial Institution Awards. The award winner is selected based on the combination of various criteria including comprehensive financial advisory capabilities in the equity market, bond market, M&A and other corporate advisory services. Other factors, such as the value and volume of transactions, the role of the deal structuring and financing arrangement, types of investors, and customer feedback are also carefully considered during the evaluation. In 2014, the company (VPBS) also won the "Best Bond House" award by Alpha Southeast Asia Magazine. With a strategic objective to make investment banking … [Read more...]

Vietnam’s “chaebols”: Tran brothers rule Kinh Do Corp.

VietNamNet Bridge - Brothers Tran Kim Thanh and Tran Le Nguyen have been at the two top posts in Kinh Do Corporation since the company's establishment. Related news Vietnamese "chaebols": Tu Huong 'Empire' and Nam A BankVietnam's "chaebols": The rich and mysterious family of VingroupVietnam's chaebols: The power of femininity at Quoc Cuong Gia LaiVietnam's "chaebols": King of 'Acquisition' Tram BeVietnam's "chaebols": The female general of Nam Cuong Group Kinh Do Corporation is a business group of Vietnam with an emphasis on food production, including baked goods, confections, snacks and soft drinks. The corporate group also includes companies in the fields of financial services, real estate and a retail bakery chain. Kinh Do Corporation manages a wide variety of brand names, distributes imported brand name snack and candy goods, and manufactures food for export from Vietnam. Main offices of the company are located in Ho Chi Minh City. Absolute dominance Brothers Tran Kim Thanh … [Read more...]

Local banks court foreign investors

Lauded as the land of the rising middle class, with surging spending power and plenty of room for retail banking growth, Vietnamese local banks will likely continue to be merge and acquisition targets of foreign investors in the time to come. According to senior manager Long Ngo at Ho Chi Minh City-based Viet Capital Security (VCSC) – voted as Vietnam’s best investment bank in 2015 by Finance Asia – the global banking landscape has changed dramatically since 2007, with concerted efforts across the globe by regulators to reign in risk taking by global banks. As such, regulators have tinkered with risk weighting rules for equity investments in other banks. "Any new investments by global banks into Vietnamese banks now carry higher hurdle rates," stressed Ngo. In the past few years, local banks have been proactively seeking strategic foreign investors. Despite their eagerness, the process remains sluggish, as the local banking system has been struggling with its own … [Read more...]

Saigon Port to sell 16.5 percent of its stake

Vingroup, VPBank and Vietinbank have already signed up to acquire stakes in Saigon Port (Photo: ndh) Saigon Port Company Limited will sell 35.7 million shares, or 16.5 percent of its equity, to strategic investors. According to HCM City Stock Exchange (HOSE), these shares will be sold after the company completes its initial public offering (IPO) at rates not lower than the IPO's average price. Vingroup, VPBank and Vietinbank have already signed up to acquire stakes in Saigon Port. Vingroup has announced plans to acquire 80 percent of Saigon Port's chartered capital, while VPBank and Vietinbank plan to buy 11 percent each. As reported on June 1, Saigon Port will hold its IPO on June 30, in which a similar number of shares will be auctioned at a base price of 11,500 VND per share. Three percent of the chartered capital will be sold to the company's employees and its labour union at preferential prices. After the IPO, the State will hold 64 percent of the port's chartered … [Read more...]

Sai Gon Port to sell 16.5% of its stake

Sai Gon Port Company Limited will sell 35.7 million shares, or 16.5 per cent of its equity, to strategic investors. According to HCM City Stock Exchange (HOSE), these shares will be sold after the company completes its initial public offering (IPO) at rates not lower than the IPO's average price. Vingroup, VPBank and Vietinbank have already signed up to acquire stakes in Sai Gon Port. Vingroup has announced plans to acquire 80 per cent of Sai Gon Port's chartered capital, while VPBank and Vietinbank plan to buy 11 per cent each. As reported on Monday, Sai Gon Port will hold its IPO on June 30, in which a similar number of shares will be auctioned at a base price of VND11,500 per share. Three per cent of the chartered capital will be sold to the company's employees and its labour union at preferential prices. After the IPO, the State will hold 64 per cent of the port's chartered capital. Sai Gon Port expects the IPO to raise its charted capital to VND2.16 trillion ($98.9 … [Read more...]

Saigon Port to launch IPO next month

The Saigon Times Daily Saigon Port has chartered capital of around VND2.16 trillion (US$99.3 million), the local news site VnExpress reports. The company will sell a 16.56% stake via a public auction, 16.51% to strategic investors and 2.98% to its employees and the labor union. The State will hold a 64% stake at the firm after it goes public. Saigon Port said it would sell 35.7 million shares to strategic investors after the public auction is finished with the price not lower than the average winning price at auction. Vingroup, Vietnam Prosperity Bank (VPBank) and Vietnam Bank for Industry and Trade (VietinBank) have registered to buy a combined stake of 102% at Saigon Port. Vingroup has applied to buy an 80% stake and the two banks 11% each. According to its 2014 financial report, Saigon Port earned net revenue of over VND1.07 trillion and after-tax profit of VND65.4 billion, up 100% and 72% against 2013 respectively. The respective targets this year are VND943.7 billion and … [Read more...]

Banks make huge profits, but won’t pay dividends

VietNamNet Bridge - Many banks have announced they will not pay 2014’s dividends to shareholders, even though they have declared trillions of dong in profit. This has raised doubts about the status of the banks’ health. Despite fierce opposition from small shareholders, Techcombank’s 2015 shareholders’ meeting still approved a plan on not paying 2014 dividends, but using all the profits for re-investments. Techcombank’s president Ho Hung Anh said this was not the first time the bank’s board of directors faced strong opposition from shareholders. However, it is steadfast with its policy. Anh also said that Techcombank does not intend to pay dividends in the next 3-5 years as well. The statement implies that long-term investors would not make money from Techcombank shares for about 10 years. Shareholders had every reason to cause such a backlash toward Techcombank’s board of directors. The bank has repeatedly reported high growth rates, … [Read more...]

Greenback firmer again, gold down

Tran Thu Customers buy gold at a shop in HCMC. Domestic gold price has inched down by VND40,000 per tael since early this month - PHOTO: UYEN VIEN Most banks raised greenback selling prices by VND10-30 to VND21,630-21,655 per dollar on April 8 from the previous day. DongABank, ACB, Sacombank, VPBank and Eximbank were selling the greenback at VND21,640. While Vietcombank offered the lowest selling price at VND21,630, up VND10 against Tuesday, Techcombank’s quotation was VND21,655, a VND30 increase from Tuesday and VND17 lower than the ceiling set by the central bank. The foreign exchange rate has approached the upper limit although the central bank on March 25 announced to keep the rate fluctuation within a range of 2% this year. The agency also attributed psychological factors to the dollar appreciation. In a report at the end of March, HSBC Bank said Vietnam’s foreign reserves had climbed to about US$36 billion. However, the risk is that the central bank … [Read more...]

Foreign exchange rate approaches upper limit

Tran Thu Local banks on April 1 quoted the dollar selling price at VND21,595-21,610 a dollar, up VND5-30 from the day earlier. Vietcombank and VPBank offered the lowest price, at VND21,595, while ACB and DongABank quoted the highest rate, at VND21,610. From the second week of March banks repeatedly revised up dollar prices, sending the exchange rate up to VND21,590 on March 24. Then, the rate fell to VND21,525-21,540 on March 25-26. On March 25, the central bank clarified its position to keep the exchange rate movement within a band of 2% on either side this year as earlier targeted. The central bank explained psychological factors were the main cause of the dollar surge on global markets in previous days. Meanwhile, dollar supply and demand in the country remains balanced while the balance of payments ran a surplus of US$2.8 billion in the first quarter. Just several days after the announcement, the exchange rate has turned sharply volatile. Ngo Dang Khoa, head of trading … [Read more...]

Indonesian firm mulls Hanoimilk bid

Vietnamese dairy producer Hanoimilk is reportedly a target for Tiga Pilar Sejahtera Food, an Indonesian food producer. The ASEAN company is planning to invest US$80 million in food producers in Viet Nam and Malaysia, Vietstock.vn quoted Asian-agribiz as saying. Tiga Pilar is among the largest biscuit producers in Indonesia, has market shares in rice and packed noodles. It also has palm farms. In 2013, sales reached $390.2 million and net profit was $33.3 million. Its total assets are now $413.1 million. Sjambiri Lioe, Tiga Pilar's finance director, said that negotiations with Hanoimilk would be completed shortly. Barry Weisblatt, VPBank Securities' Head of Research Department, said that Tiga Pilar hoped to expand its annual profit by $18.8-23.5 million by selling Hanoimilk's products in Indonesia. The company has seen a decline in sales and it has also been short of capital to improve product quality and develop its own cattle farm of 2,000 cows in Me Linh District, worth … [Read more...]