Opportunities abound for professional advisors

M&A activities in Vietnam in 2014 were very robust, with total deal value increasing by nearly 30 per cent from 2013, according to reports from several independent research houses. VPBS has successfully advised on various equitisation transactions and IPOs of state-owned enterprises Notable deals were primarily in the retail sector, including Thailand’s BJC negotiating to buy Germany’s Metro Cash & Carry Vietnam in a deal valued at $879 million; Thailand’s Central Group purchasing a 49 per cent stake in Nguyen Kim with a value of $80 million; Vingroup buying Ocean Mart for $25 million; and Japan’s AEON taking a 49 per cent stake in Citimart valued at $20 million. The food and beverage sector has also seen significant mergers and acquisitions (M&A) activities, with Modelez International buying an 80 per cent stake in Kinh Do Binh Duong, an arm of Kinh Do Group that specialises in cakes and candies, for $370 million; Daiwa PI Partners and … [Read more...]

Bank credit outpaces deposits, lending rates

HCMCITY (VNS) — Bank credit growth so far this year stands at 7 per cent year-on-year, outstripping deposit growth, which is only 5 per cent, Dau Tu Chung Khoan newspaper reported. Reports from the VPBank Securities Company (VPBS) and BanViet Securities Company predict full-year credit growth to exceed the target of 13-15 per cent. The highest growth has been registered in lending to the property sector — 10.9 per cent – as it accounted for 8.3 per cent of total outstanding loans as of end July. VPBS analysts attributed the rapid credit growth to reasons like the reduction in interest rates. Deposit interest rates declined by 0.2-0.5 percentage points, allowing lending interest rates to fall by 0.3 percentage points, they said. With the prices of commodities and fuel falling in the global market since late last year, companies have been able to cut production costs, leading to a recovery in their business and increased credit demand as a result. The chief of a … [Read more...]

Vinalines still incurs losses

Lan Nhi A Vinalines ship docks at a port in this file photo. Vinalines has reported first half profit of VND124 billion but its consolidated business results show losses of VND197 billion - PHOTO: LE ANH A Vinalines report released on July 20 says that in the first half, the holding corporation’s total revenue was estimated at about VND9.3 trillion, representing 51% of the year’s target and falling 1% compared to the same period in 2014. A 7% year-on-year rise (or 14.6 million tons) in cargo transport volume and an 11% year-on-year surge (or 42 million tons) in cargo throughput at the corporation’s ports in the country contributed to attaining such revenue. Its 2014 revenue amounted to over VND19.8 trillion but its losses reached around VND1.63 trillion. Despite its loss-making operations, Vinalines will still proceed with an initial public offering in the third quarter this year. Vinalines said in quarter two this year the holding company settled VND1.43 … [Read more...]

Abundant liquidity key driver in OMO development

During the second quarter of 2015, the State Bank of Vietnam (SBV) withdrew large amounts of funds by issuing bills. At the same time, banks had little demand for borrowing from the SBV, demonstrated by the limited value of reverse repo transactions. Ample banking liquidity, limited issuance in the primary bond market in line with large foreign capital inflows were likely the most important drivers. A total of VND201 trillion ($9.24 billion) of SBV’s bills were issued in the second quarter, up 14.4 per cent compared to the previous quarter. Meanwhile, there was only VND39 trillion ($1.81 billion) in reverse repo transaction value, down 76 per cent compared to the first quarter. So while the SBV net withdrew money via Open Market Operations (OMO), the outstanding balance of reverse repo and bill issuance increased throughout the quarter. The total transaction value of reverse repos and bills issuance via the OMO in the first half of 2015 reached VND580 trillion ($26.6 … [Read more...]

Vinalines makes dent in its debt load

HA NOI (VNS) — The Viet Nam National Shipping Lines, or Vinalines, repaid more than VND1.4 trillion (US$64.2 million) worth of debts in the second quarter of this year. Its executives told a meeting held early this week to review first-half operations that this figure took the total repayments since late 2013 to more than VND3.6 trillion ($165 million). Deputy general director Nguyen Huu Long said the corporation had remaining debts of over VND7.6 trillion ($349 million), and its main tools remained selling them to credit institutions and converting some of the debts into equity. It has speeded up negotiations with major lenders like Vietinbank, ACB and VPBank and achieved some success, he said, adding that the debts would reduce remarkably by year end. Vinalines had been saddled with debts of around VND11 trillion, or $504 million, to 24 lenders, nearly half of them foreign. VietinBank led the list with VND2.23 trillion ($100.9 million) followed by VDB, Asian Commercial … [Read more...]

Embattled Vinalines repays $64.2m worth of debts

Vinalines has repaid more than $165 million worth of debts so far. — Photo ndh.vn HA NOI (Biz Hub) — The Vietnam National Shipping Lines, or Vinalines, repaid more than VND1.4 trillion (US$64.2 million) worth of debts in the second quarter of this year. Its executives told a meeting held on July 20 to review first-half operations that this figure took the total repayments since late 2013 to more than VND3.6 trillion ($165 million). Deputy general director Nguyen Huu Long said the corporation had remaining debts of over VND7.6 trillion ($349 million), and its main tools remained selling them to credit institutions and converting some of the debts into equity. It has speeded up negotiations with major lenders like Vietinbank, ACB and VPBank and achieved some success, he said, adding that the debts would reduce remarkably by year end. Vinalines had been saddled with debts of around VND11 trillion, or $504 million, to 24 lenders, nearly half of them foreign. VietinBank … [Read more...]

Investors encouraged to wait for positive market turns

Last week’s stock market volatility has kept the VN-Index around 630 points all week, edging up 0.28 percent on the week’s last trading day, while the HNX-Index concluded its last session in red, down 0.59 percent. A slump of hot bluechips in the insurance and banking sectors, which had previously enjoyed strong gains, together with the separation between stocks in the same industry are believed to be holding back the market. Liquidity on both national stock exchanges fell 17 percent from the previous week’s level to only 135 million shares changing hands. The decrease is owed to reduced cash flows pumped into the market and the increasing number of investors offloading their shares, said the Viet Dragon Securities Corporation (VDSC), adding that the stock market would remain volatile this week. The firm recommended short-term investors unload their shares when the market turns positive while long-term investors should maintain roughly half cash and half … [Read more...]

Secondary bond market sees second quarter trade flurry

In the second quarter, the secondary market attracted investors and recorded a high trading amount because of the inactivity of the primary bond market. Investors were attracted by a significant rise in bond yields and the huge gap between yields in the primary and secondary markets. Bond yields in the secondary market by the end of the second quarter had bounced back strongly from a decline in the first quarter, as a result of strong credit growth, rising inflation, and a depreciation of VND against USD. In the second half of this year, it is expected that credit growth and inflation will increase further, which will likely cause bond yields to continue their upward trend. During the first six months of 2015, total traded value of bonds and bills in the secondary market via outright and repo transactions reached VND497.179 trillion ($21.9 billion), up 53 per cent compared to the same period last year. As a result, the average value per month was recorded at VND82.863 trillion … [Read more...]

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...]