The Hanoitimes - The rise of Vietnam’s capital market was largely attributed to the Vietnamese government’s privatization drive and market reforms, strong interest from foreign investors and local funds, as well as a high GDP growth rate of 6.8% in 2018, reported the Singapore Business Review (SBR). Singapore's initial public offering (IPO) market only raised US$715 million against Vietnam’s US$6.2 billion, which made up more than half of the total of US$12 billion across Southeast Asia, according to professional services firm Deloitte. Illustrative photo. Across the Southeast Asian region, Vietnam and Thailand dominated with three blockbuster listings seen in 2018. Vietnamese real estate developer Vinhomes Joint Stock Company (Vinhomes JSC) took the top spot with US$3.6 billion raised. It was followed by Thailand Future Fund, which raised US$1.8 billion, and Vietnam Technological and Commercial Joint Stock Bank (Techcombank), which raised … [Read more...] about Vietnam leapfrogs Singapore in raising capital from IPOs
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BUSSINESS NEWS IN BRIEF 25/8
RoK technology ventures seek opportunities in Vietnam An event connecting technology ventures of Vietnam and the Republic of Korea (RoK) was held in Ho Chi Minh City on August 22 to strengthen cooperation and trade activities between businesses of the two countries. It was organised by Vuccess Co., Ltd of the RoK, with support from the State Agency for Technology Innovation of the Ministry of Science and Technology, the Vietnam Trade Promotion Agency (Vietrade) of the Ministry of Industry and Trade, along with the Korea Institute of Science and Technology and Korea Techno-Ventures Foundation. At the event, Vietnamese firms were updated on latest technology and cooperation opportunities through 11 leading businesses of the RoK in various fields, including information technology, communications, power-electronics, garment-textile, chemistry, construction, energy and environment. Bui Hoang Yen from the Vietrade said that since Vietnam and the RoK established diplomatic relations in … [Read more...] about BUSSINESS NEWS IN BRIEF 25/8
Make or break for SOE equitization
The SOE equitization process has yielded mixed results over recent months. Vietnam has come a long way since 1986, when it first launched the reform process that gradually and successfully shifted the country to a market-oriented economy. But loosening government control over some 4,500 State owned enterprises (SOEs), many of which dominate key economic sectors such as energy and petroleum, is still unfinished business. Embarking on a staggered equitization drive over the last decade which has, thus far, failed to raise Vietnam the funds it has been looking for to reduce its debt burden, the government now finds itself up against a wall, leaving only a quick sell-off of State assets as the easiest way to bring in capital. Foreign investors and bankers, who flocked to Vietnam over recent decades seeking to cash in on government plans to sell State assets but have been left frustrated by reality falling short of promises, are finally seeing grounds for optimism. The good In a … [Read more...] about Make or break for SOE equitization
Vietnam stock market set to be world’s worst in April
Vietnam, Asia’s top stock market so far this year, is set to become the world’s worst performer this month, according to Bloomberg. The benchmark VN-Index slid 3.2 percent at the close on Thursday as trading resumed after a holiday on Wednesday, with foreign investors unwinding their positions in emerging markets aand rushing to exit a market that reached a record about two weeks ago. “There is a lot of foreign selling today and clearly the market is on a down trend and it is really pushing some margin calls,” Michel Tosto, the Ho Chi Minh City-based head of institutional sales and brokerage at Viet Capital Securities, said by phone. Thursday’s fall brought the drop so far in April to 11 percent, on course for its worst monthly performance in seven years. The decline wiped off more than $15 billion from the nation’s market capitalization. The plunge in the stock market is attributed to rising U.S. treasury yields and a stronger dollar that have … [Read more...] about Vietnam stock market set to be world’s worst in April
Foreign capital on its way to bourses
Foreign investors are gearing up to enter the Vietnamese stock market, which promises strong growth amid a stable macro-economic backdrop. A growth story To many investment funds, the appeal of Vietnam as a fast-growing market is an obvious one. The national GDP is expanding by over 6 per cent per year, inflation stays under control, and half of the population is under 30 years old. They are also eager consumers, helping to boost the domestic economy that used to be export-led. Recent major deals include the initial public offering of Vincom Retail, which raised an historic amount of $700 million. Commercial banks have also seen recent success, for example Techcombank collecting $370 million right before the IPO and HDBank drawing in $300 million from 76 investors. Leading state-owned enterprises Binh Son Refinery and PV Power also held successful share sales in early 2018. In 2017, foreigners bought $1.5 billion worth of shares on Vietnam’s stock exchanges and poured in $6.2 … [Read more...] about Foreign capital on its way to bourses