New government policies on banning gold deposits and credits from May 1, this year and limiting gold plate transactions shortly, as well as tight forex policies are pushing private equity investment funds to turn their interest towards enterprises in consumer-driven sectors. Mekong Capital principal Pham Vu Thanh Giang talks about the impact of the polices on its investees. As the government changes gold transaction management policies, what are the impacts on Phu Nhuan Jewellery (PNJ) - a Mekong Capital's investee? In our view, savings in terms of gold have been a habit for Vietnamese households and it will not take one or two days to change. When prohibited from buying and keeping gold bars, they will be driven to keep gold-in-kind and gold jewellery of prestige brand-names and PNJ will certainly be one of the best options. Given that jewellery sales accounted for about 30 per cent of PNJ's total sales last year but contributed 80 per cent of the company's gross profit, a shift … [Read more...] about Time for equity investment funds to have rethink
Investment fund accounting
Police bust online investment fund for fraud
Ministry of Public Security investigators are seeking to press charges of fraud against four employees of an online investment fund for fraud. They did not reveal details announced that Nguyen Quang Sang, 27, of Colony Invest Management (CI) was detained in Hanoi two days ago, while Hoang Thi Bay, 42, was held in the northern city of Lang Son, and Nguyen Van Dan, 34, and Vu Thi Thu Hang, 31, in Ho Chi Minh City. Sang is released on bail. CI advertised itself as a US-based global financial group investing in profitable businesses like casinos in Las Vegas and amusement parks like Disney Land, and in financial markets in London, New York, and Hong Kong. It solicited investment from Vietnamese investors. Investments of US$100-499 would fetch a daily interest rate of 2.5 percent, it claimed. Investments of $500-999 would get 2.8 percent, and of above $1,000 three percent. According to the investigators, CI had no representatives, business permit, or headquarters anywhere … [Read more...] about Police bust online investment fund for fraud
In hard times, domestic investment funds lying still
VietNamNet Bridge - While all trade moves by foreign securities investors have been regularly updated, the transactions of domestic investment funds have just been reported sporadically. Most fund management companies were established from 2006 to 2008, when Vietnam had a boom in its stock market. However, the majority of the companies are small and only five of them have billions of dong in chartered capital. According to Dau Tu Chung Khoan, the companies can be divided into five groups. First are the fund management companies belonging to big financial institutions like banks or insurance companies. The companies of this group account for a large proportion in the total 48 licensed fund management companies. The commonality between the companies is that they can get financial support and acquire management experience from the "parent" groups. The second group is comprised of fund management joint ventures. These include VFM, a joint venture between Dragon Capital and … [Read more...] about In hard times, domestic investment funds lying still
Realty investment fund hard to raise
Realty investment fund hard to raise Dinh Dung By Dinh Dung - The Saigon Times Daily HCMC – Although it is expected to have a positive impact on the property market, setting up a local property investment fund is a tough challenge for fund managers at the moment. The recently-issued Government Decree 58 provides a legal framework for establishing domestic property investment funds, alongside foreign ones. David Henry, managing director of VinaLand, hoped the decree would create chances for investors to inject more capital into the real estate market, thus improving the market’s liquidity. However, it is too soon to tell for sure whether local investment funds will be of help. Other factors such as interest rates, land rents and compensation costs should also be taken into account, said Henry. “From our perspective, the property market will make more positive changes if more funds participate in and create liquidity for the poor-performing market,” he told … [Read more...] about Realty investment fund hard to raise
Vietnam to tone down public investment funding
The Hanoitimes - At the 8th session of the 13th Standing Committee meeting of the National Assembly in Hanoi on May 5, it was discussed that even though public investment funding on construction projects had increased, the results were far from effective. Vietnam is planning on restructuring its economy, which will include cutting down on public investment funding. The restructuring plan will be submitted to the National Assembly at its next session. Thang LongBridge is an example of one of the most expensive and carelessly planned constructions and misuse of public investment funding (Photo: SGGP) At the National Assembly meeting it was announced that public investment funding in 2011 had increased, with the total spending last year being VND100,167 billion (US$ 4.8 million), exceeding by 13.8 per cent the estimated budget. Around 23 per cent of this amount was for development projects. For instance, the transport sector had the highest investment with … [Read more...] about Vietnam to tone down public investment funding