Vietnam Stock Exchange currently has 51 companies listed.
The total market capitalization is between $2.5 to $3.0 Billion.
http://www.ssi.com.vn/Stock/EnterSym.aspx
AGF Agifish An Giang Fisheries Import & Export Joint-Stock Company
BBC Bibica Bien Hoa Confectionery Corporation
BBT Cobovina Bach Tuyet Cotton Corporation
BMP BMPlasco Binh Minh Plastics Joint Stock Company
BPC BPC Bim Son Packaging Joint-Stock Company
BT6 BT6 Chau Thoi Concrete Corporation No.620
BTC BTC Binh Trieu Construction And Engineering Joint-Stock Company
CAN Canfoco Halong Canned Food Corporation
CII CII Hochiminh City Infrastructure Investment Joint Stock Company
COM COMECO Materials - Petroleum Joint Stock Company
CYC Chang Yih Chang Yih Ceramic Joint Stock Company
DHA HoaAn Hoa An joint stock company
DPC Danaplast Da Nang Plastic Joint-Stock Company
FPC Full Powe JS Co Full Power Joint Stock Company
GIL Gilimex Binh Thanh Import-Export, Production And Trade Joint-Stock Company
GMD Gemadept General Forwarding & Agency Corporation
HAP Hapaco Hai Phong Paper Joint-Stock Company
HAS Hacisco Hanoi P&T Construction & Installation Joint-Stock Company
HTV HATIEN TRANSCO Hatien Transport Joint Stock Company
KDC Kinhdo Kinh Do Corporation
KHA Khahomex Khanh Hoi Import Export Joint-Stock Company
LAF Lafooco Long An Food Processing Export Joint-Stock Company
MHC MARINA HANOI Hanoi Maritime Holding Company
NHC Brico Nhi Hiep Brick-Tile Joint Stock Company
NKD North Kido North Kinhdo Food Joint-stock Company
PMS PMSC Petroleum Mechanical Stock Company
PNC PNC Phuong Nam Cultural Joint Stock Corporation
REE REECorp Refrigeration Electrical Engineering Corporation
RHC Ry Ninh II Ry Ninh II Hydroelectric Joint Stock Company
SAM Sacom Cables And Telecom Materials Joint-Stock Company
SAV Savimex Import-Export & Economic Co-Operation Joint-Stock Company
SFC SFC Saigon Fuel Company
SGH Saigon Hotel Saigon Hotel Corporation
SHC SMC Saigon Maritime Joint Stock Co.Ltd
SJS Sudico Song Da Urban & Industrial Zone Investment and Development JSC
SSC SSC Southern Seed Joint- stock Company
STB Sacombank Saigon Thuong Tin Commercial Joint Stock Bank
TMS Transimex Trans-Forwarding And Warehousing Corporation
TNA Tenimex Thien Nam Trading Import Export Corporation
TRI Tribeco Sai Gon Beverages Joint-Stock Company
TS4 Seapriexco 4 Sea Food Joint-Stock Company No. 4
TTC TTC Thanh Thanh Ceramic Tile Joint Stock Company
TYA TAYA Taya Electric Wire and Cable Joint Stock Company
UNI UNICO Vien Lien Joint Stock Company
VFC VINAFCO VINAFCO Joint Stock Corporation
VFMVF1 VF1 VIETNAM INVESTMENT FUND (VF1)
VNM Vinamilk Vietnam Dairy Products Joint-Stock Company
VSH VSHPC Vinh Son – Song Hinh Hydropower Joint stock Company
VTC VTC VTC Telecommunications Joint-Stock Company
Full Version: Vietnam Stock Exchange
Excellent site, thanks 
QUOTE(landsknechts @ Aug 18 2006, 12:07 PM) 
Excellent site, thanks
You are welcome.
Manufacturing Trend
1980s: Taiwan
1990s: China
2000s: Vietnam
QUOTE
http://www.matthewsfunds.com
WEEKLY ASIA UPDATE Week Ended: August 18, 2006
Vietnam Aims for WTO Accession
Ho Chi Minh City, Vietnam.
On May 31st, Vietnam signed a bilateral agreement with the U.S. to accede to the World Trade Organization (WTO) by the end of the year. This was followed by the U.S. Senate's decision to award Permanent Normal Trading Relations (PNTR) status to Vietnam on July 31st - eleven years after diplomatic ties between the two nations were re-established. In addition to tourism (which accounts for 9% of GDP), Vietnam's recent growth has been driven predominantly by export-led sectors such as textile and garment manufacturing, oil and mining (Vietnam is a crude oil exporter), agriculture and food processing. Vietnam needs to join the WTO to remain competitive, as non-WTO members are subjected to certain quotas and other trade barriers.1
Vietnam has a small but growing stock market. With 48 members, 47 listed companies, and one domestic "mutual fund",2 the Vietnam Stock Exchange (VSE) has a current market capitalization of $3 billion, up from only $200 million and 26 companies in February of 2005.3,4 The pace of listings has accelerated, with twelve IPOs in the first half of the year.5 Still, about half of the market's current capitalization is attributable to only two companies. Meanwhile, the market has been volatile in recent months: after advancing sharply over the last two years, it has declined by about a third in the last quarter. Trading volumes remain very low, but are rising. Foreign ownership in listed securities is permitted, but it is capped at 49% for most companies and only 30% for banks. Prospective foreign investors must apply for permission to invest; upon consent, they are limited to using only one local brokerage. Vietnam's reforms are still limited, and it may take several years before foreign investors can easily access this market. However, the progress it has made thus far is heartening: like many other countries in Asia, Vietnam has embarked toward a future characterized by more open and free markets.
______________________
Quick Facts: Vietnam*
Population: 84.4 million
Median age: 26
Gross Domestic Product Growth: 8.4%
Foreign Direct Investment: $5.8 billion
First Half 2006 Export growth: 25.7%**
First Half of 2006 Trade Deficit: 4.4% of GDP
--------------------------------------------------------------------------------
*All data as of 2005 unless stated otherwise
**Compared to the same period last year, 2005.
1 GSO, Merrill Lynch
2 Ho Chi Minh City Securities Trading Center - Vietnam Stock Exchange (VSE)
3 U.S.-Vietnam Trade Council
4 The Matthews Asian Funds currently hold no Vietnamese-listed securities.
5 Saigon Securities Incorporation, VSE
QUOTE
http://quote.bloomberg.com/apps/news?pid=2...id=aD2tkqc91PNo
Vietnam Airlines, Expanding Fleet, Plans Share Sale (Update1)
By Linus Chua and Stephen Engle
Aug. 23 (Bloomberg) -- Vietnam Airlines Corp., the nation's state-owned carrier, plans to sell shares at home and abroad to fund an expansion of its fleet and routes, Executive Vice President Pham Ngoc Minh said.
The Hanoi-based carrier, which expects sales growth of 10 percent a year through 2010, may sell shares at home and in Hong Kong and Singapore within two or three years, Minh said in an Aug. 21 interview.
``The economic and social environment is stable,'' Minh said. ``We must expand because of the opportunity.''
Vietnam's economy grew 7.4 percent in the first half of this year as the government dismantles barriers and woos foreign investment. Trade and business travel are expected to rise after the country joins the World Trade Organization later this year, and as Vietnam reduces visa requirements for tourists.
``Vietnam is the flavor of the month,'' said Jonathan Pincus, senior country economist at the United Nations Development Program in Vietnam. ``There's a huge appetite for Vietnamese equities both domestically and among international investors.''
The Vietnam Stock Index has risen 52 percent this year, the fourth-best performer among any index in Asia, Bloomberg data showed. Vietnam Airlines wants to tap investor interest and transform itself from a state-run airline into one that's commercially run and privately owned, Minh said.
``Vietnam is clearly a market a lot of investors are looking at and the environment is conducive for an initial public offering,'' said Damien Horth, an analyst at UBS Securities Asia Ltd. in Hong Kong. ``If the management of Vietnam Airlines can outline a sensible, achievable growth path, I'm sure investors can look at it at the right price.''
Expansion Plans
The nation of 84 million people, which fought a war with the U.S. three decades ago, is normalizing relations with its erstwhile adversary. Vietnam Airlines will add flights to Los Angeles or San Francisco in the second half of next year, Minh said. It will also add routes to North Asia, he said.
The airline expects sales to rise to $1.07 billion this year from $970 million in 2005 and has ambitions to be one of the three biggest carriers by revenue in Southeast Asia within a decade, Minh said.
``With our growth in GDP, we expect the growth rate of more than 10 percent to last longer to 2010,'' Minh said in an Aug. 21 interview.
Fuel Prices
The carrier has ordered $1.2 billion of new aircraft to be delivered between 2006 and 2010, and as much as $3 billion worth of planes to be delivered between 2011 and 2015, Minh said.
In July, the company said it may order up to 10 Boeing Co. 787s. It is also considering Airbus SAS's A350s. The airline ordered four 787-8s last year in a deal that also included purchase rights to another 11 planes.
Still, rising energy prices may curb expansion plans, with the cost of jet fuel having risen to a record $93 a barrel on Aug. 8, according to Bloomberg data. Fuel has doubled to 33 percent of operating costs from 17 percent two years ago, and higher oil prices will cut 2006 profit to $25 million from $36 million last year, Minh said. In the six months through June, profit was between $12 million and $13 million, he said.
``The background on Vietnam is quite exciting but the airline industry is tough,'' Horth said.
To alleviate the burden of higher fuel costs, the company last year requested the government ease the cap on fare prices for domestic flights by 15 percent for peak periods. Minh said the carrier hasn't heard back from the government.
The carrier's load factor, a measure of how efficiently it fills its passenger seats and cargo space, is 69 percent. The load factor for domestic flights is 78 percent and 67 percent for international flights, Minh said. He expects to push the average load factor to between 71 percent and 72 percent in the next two to three years.
To contact the reporter on this story: Linus Chua in Singapore at lchua@bloomberg.net .
Last Updated: August 22, 2006 22:56 EDT
SoCal bro, do you work for the Vietnamese government? I wonder how you have access to not-so-obvious materials/information?
Good website! Thanks for sharing
Good website! Thanks for sharing
QUOTE(etalkishere @ Aug 23 2006, 09:30 AM)
SoCal bro, do you work for the Vietnamese government? I wonder how you have access to not-so-obvious materials/information?
Good website! Thanks for sharing
E Talk
I don't work for the Vietnamese Government. We can get the information from Google and Yahoo.
Vietnam Airlines will get an order of at least 14 Boeings 787 Dreamliners before 2010 and by that time, we can travel from Los Angeles/San Francisco to Saigon/Hanoi directly. That is what I hope.
From Los Angeles to Korea is about 6,000 miles and from Korea to Vietnam is over 2,000 miles (a total of over 8,000 miles). The Boeings 787 Dreamliners's range is in 8000 miles.
Quick comparison of developments between South Korea and Vietnam
Korean War (1950-1953)
From 1953 to 1962 (almost 10 years), South Korea's economy did not develop very much.
South Korea under General Park Chung-hee (1962-1979)
From 1953 to 2003 (50 years).
______________________________
From 1975 to 1986 (over 10 years), Vietnam's economy stagnated.
Vietnam Doi Moi (1986 to Present)
From 1975 to 2025 (50 years)
Korean War (1950-1953)
From 1953 to 1962 (almost 10 years), South Korea's economy did not develop very much.
South Korea under General Park Chung-hee (1962-1979)
From 1953 to 2003 (50 years).
______________________________
From 1975 to 1986 (over 10 years), Vietnam's economy stagnated.
Vietnam Doi Moi (1986 to Present)
From 1975 to 2025 (50 years)
http://english.vietnamnet.vn/biz/2006/08/605517/
Vietnam ranks 4th most competitive economy in ASEAN
16:59' 24/08/2006 (GMT+7)
VietNamNet Bridge - Vietnam has been ranked 4 th among the most competitive economies in the Association of Southeast Asian Nations (ASEAN), replacing the Philippines, according to a survey conducted by the Singaporean Institute of Policy Studies (IPS) and the Nanyang Technological University (NTU).
Among ASEAN member economies, Singapore topped the list and was followed by Malaysia and Thailand . However, experts warn that Singapore must keep a close eye on costs and focus on expanding its services sector. If not, the country will face risk falling behind.
In Asia , Singapore has been ranked the 3 rd most competitive Asian economies, behind Hong Kong and Taiwan .
The IPS-NTU competitiveness survey covers four main areas and takes into account 79 sites - the 10-member Association of Southeast Asian Nations, 34 Chinese cities and 35 Indian states.
(Source: VNA)
Vietnam ranks 4th most competitive economy in ASEAN
16:59' 24/08/2006 (GMT+7)
VietNamNet Bridge - Vietnam has been ranked 4 th among the most competitive economies in the Association of Southeast Asian Nations (ASEAN), replacing the Philippines, according to a survey conducted by the Singaporean Institute of Policy Studies (IPS) and the Nanyang Technological University (NTU).
Among ASEAN member economies, Singapore topped the list and was followed by Malaysia and Thailand . However, experts warn that Singapore must keep a close eye on costs and focus on expanding its services sector. If not, the country will face risk falling behind.
In Asia , Singapore has been ranked the 3 rd most competitive Asian economies, behind Hong Kong and Taiwan .
The IPS-NTU competitiveness survey covers four main areas and takes into account 79 sites - the 10-member Association of Southeast Asian Nations, 34 Chinese cities and 35 Indian states.
(Source: VNA)
http://www.upi.com/NewsTrack/view.php?Stor...24-115735-2993r
Vietnam rejects Pyongyang bank business
HANOI, Vietnam, Aug. 24 (UPI) -- North Korea, widely suspected of counterfeiting and narcotics dealing, has virtually no foreign banking access except for Russia.
U.S. pressure forced Macao's Banco Delta Asia to stop taking North Korean deposits and this week resulted in Vietnam refusing deposits from the communist state, the Financial Times reported Thursday.
That means Pyongyang's access to the global financial markets is limited to Russia, officials said.
Vietnam's move paves its way into the World Trade Organization, which still does not include Russia.
Vietnam rejects Pyongyang bank business
HANOI, Vietnam, Aug. 24 (UPI) -- North Korea, widely suspected of counterfeiting and narcotics dealing, has virtually no foreign banking access except for Russia.
U.S. pressure forced Macao's Banco Delta Asia to stop taking North Korean deposits and this week resulted in Vietnam refusing deposits from the communist state, the Financial Times reported Thursday.
That means Pyongyang's access to the global financial markets is limited to Russia, officials said.
Vietnam's move paves its way into the World Trade Organization, which still does not include Russia.
N. Korea kept millions in dollar, euro accounts at Vietnam bank
(Kyodo) _ North Korea's Tanchon Commercial Bank, which has been identified by the United States as the primary financial facilitator of that country's ballistic missile program, had until recently held dollar and euro accounts at Vietnam's Military Commercial Bank, a Military Commercial Bank official said recently.
The official said millions of both dollars and euros, respectively, had been deposited in the accounts.
But the funds were hastily transferred to other banks, including a German bank, in July after the State Bank of Vietnam, the country's central bank, acceded to a U.S. request and began checking on any North Korean accounts involved in suspicious banking transactions.
Tanchon Commercial Bank is among North Korean entities that the United States has since June last year designated as proliferators of missiles and weapons of mass destruction, or their supporters, imposing sanctions aimed at denying them access to the U.S. financial and commercial systems.
The United States is urging other members of the United Nations to identify, track and freeze financial transactions and assets of such North Korean entities as the first step in implementing a binding U.N. Security Council resolution adopted last month.
The unanimous Security Council resolution, which condemned North Korea's ballistic missile launches in early July, requires all U.N. member nations to prevent the transfer of financial resources that could help North Korea's missile and WMD programs
The U.S. Treasury Department identifies Tanchon Commercial Bank as the main financial agent for North Korea's sales of conventional arms, ballistic missiles, and goods related to the assembly and manufacture of such weapons, which have provided Pyongyang with a significant portion of its export earnings and financially aided its own weapons development and arms-related purchases.
The Pyongyang-based bank held accounts at Macao's Banco Delta Asia SARL, which the United States in September 2005 subjected to sanctions as a "primary money laundering concern" that had facilitated a range of North Korean illicit activities.
While it was not clear when the funds were deposited in the North Korean accounts at the Vietnam's Military Commercial Bank, the bank official said they were transferred from a German bank and from the Bank for Foreign Trade of Vietnam, or Vietcombank.
According to sources, financial intelligence authorities of the United States, South Korea and Japan recently compiled a report on North Korea's overseas bank accounts that singled out 23 accounts in 10 countries, including Russia, deemed suspicious. Among the total, around 10 were in Vietnamese banks.
U.S. Treasury Undersecretary Stuart Levey, responsible for terrorism and financial intelligence issues, visited Vietnam in mid-July and called for Hanoi's cooperation in investigating and freezing the suspicious North Korean bank accounts.
--------------------
This is bullshiet. Who gives a phuck about north korea or Iran except the American. Now the American is using WTO as a bargain to stop us from doing business and earning money. I say once they sign the WTO deal, we just go back and do our business as usual.
(Kyodo) _ North Korea's Tanchon Commercial Bank, which has been identified by the United States as the primary financial facilitator of that country's ballistic missile program, had until recently held dollar and euro accounts at Vietnam's Military Commercial Bank, a Military Commercial Bank official said recently.
The official said millions of both dollars and euros, respectively, had been deposited in the accounts.
But the funds were hastily transferred to other banks, including a German bank, in July after the State Bank of Vietnam, the country's central bank, acceded to a U.S. request and began checking on any North Korean accounts involved in suspicious banking transactions.
Tanchon Commercial Bank is among North Korean entities that the United States has since June last year designated as proliferators of missiles and weapons of mass destruction, or their supporters, imposing sanctions aimed at denying them access to the U.S. financial and commercial systems.
The United States is urging other members of the United Nations to identify, track and freeze financial transactions and assets of such North Korean entities as the first step in implementing a binding U.N. Security Council resolution adopted last month.
The unanimous Security Council resolution, which condemned North Korea's ballistic missile launches in early July, requires all U.N. member nations to prevent the transfer of financial resources that could help North Korea's missile and WMD programs
The U.S. Treasury Department identifies Tanchon Commercial Bank as the main financial agent for North Korea's sales of conventional arms, ballistic missiles, and goods related to the assembly and manufacture of such weapons, which have provided Pyongyang with a significant portion of its export earnings and financially aided its own weapons development and arms-related purchases.
The Pyongyang-based bank held accounts at Macao's Banco Delta Asia SARL, which the United States in September 2005 subjected to sanctions as a "primary money laundering concern" that had facilitated a range of North Korean illicit activities.
While it was not clear when the funds were deposited in the North Korean accounts at the Vietnam's Military Commercial Bank, the bank official said they were transferred from a German bank and from the Bank for Foreign Trade of Vietnam, or Vietcombank.
According to sources, financial intelligence authorities of the United States, South Korea and Japan recently compiled a report on North Korea's overseas bank accounts that singled out 23 accounts in 10 countries, including Russia, deemed suspicious. Among the total, around 10 were in Vietnamese banks.
U.S. Treasury Undersecretary Stuart Levey, responsible for terrorism and financial intelligence issues, visited Vietnam in mid-July and called for Hanoi's cooperation in investigating and freezing the suspicious North Korean bank accounts.
--------------------
This is bullshiet. Who gives a phuck about north korea or Iran except the American. Now the American is using WTO as a bargain to stop us from doing business and earning money. I say once they sign the WTO deal, we just go back and do our business as usual.
http://www.bernama.com.my/bernama/v3/news_...s.php?id=216209
August 25, 2006 21:09 PM
Time For CLMV Countries To Fend For Themselves
Vietnam Trade Minister Truong Dinh Tuyen (left) discussing with Laos Industry and Commerce Minister Dr. Nam Viyaketh (right) before they convene for the Cambodia, Laos, Myanmar and Vietnam-Japan Ministry of Economy, Trade and Industry (CLMV-METI) consultations meeting on the sidelines of the 38th Asean Economic Ministers (AEM) Meeting on Aug 23. Pix: Azman Firdaus
By Umi Hani Sharani and Nor Baizura Basri
KUALA LUMPUR, Aug 25 (Bernama) -- Cambodia, Laos, Myanmar and Vietnam might be the poor cousins of their counterparts in Asean, but that should not stop them from claiming a piece of the prosperity in Southeast Asia.
Of utmost importance is that they need investments to develop their economies so that they too can contribute meaningfully to regional integration.
But given the vagaries in the international marketplace, investments are not going to fall on their laps. They have to make it happen.
If some of them need convincing, they just have to look at Vietnam, easily the most developed among the four.
Hanoi undertook a massive plan to liberalise its economies, trade picked up, investments poured in and its pace of development took off. Now, it is seeking WTO membership by end-2006.
Of course, this is easier said than done, but they have to work at it rather than just depending on aid.
There is a long road ahead.
Hence, while the advanced regional economies rush to meet the deadline for Asean Economic Community (AEC) by 2015, the case is not so for its less developed siblings.
CLMV countries have understandably been accorded flexibilities.
Again, the antidote to join up by the deadline would be more foreign direct investments (FDIs).
Only then, would their economies accelerate and be at par with the others comprising Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
By while they grapple with complexities towards regional integration, there is now fear CLMV countries might be eclipsed by economic giants, no thanks to a proposed free trade area covering 16 economies.
The East Asia Free Trade Area (EAFTA) is supposed to include Asean, China, Japan, South Korea, New Zealand, Australia and India, a proposal which is nothing less than too ambitious especially for CLMV.
But as members of a grouping, they have no choice but do what is necessary to make their markets attractive.
Therefore, FDIs are crucial in helping CLMV economies and tune them via capacity building to achieve competitiveness.
Laos has publicly stated its inability to meet the deadline with the rest of the region, but is optimistic of joining the community in 2018.
Having been out of the economic mainstream for quite sometime, these countries still require assistance, financially and technically.
While aid has been given for capacity building from developed countries, it is far from adequate.
CLMV countries actually require more than that.
As the other Asean countries and the United States have put it, CLMV countries must demonstrate greater commitment in opening their markets.
Meanwhile, Japan has pledged to help CLMV in the rubber sector and assist in setting up special economic zones in respective economies to further attract FDIs.
CLMV countries now also count on China for continued investments, thanks to their strong historical links.
But at the end of the day, CLMV would have to fend for themselves.
They must possess the political will to dismantle non-tariff barriers, erase bureaucratic procedures and provide incentives to lure foreign investments.
If they don't do this, they not only face the danger of being left out of the Asean economic community, they would fail to share in whatever prosperity that arises out of integration.
-- BERNAMA
August 25, 2006 21:09 PM
Time For CLMV Countries To Fend For Themselves
Vietnam Trade Minister Truong Dinh Tuyen (left) discussing with Laos Industry and Commerce Minister Dr. Nam Viyaketh (right) before they convene for the Cambodia, Laos, Myanmar and Vietnam-Japan Ministry of Economy, Trade and Industry (CLMV-METI) consultations meeting on the sidelines of the 38th Asean Economic Ministers (AEM) Meeting on Aug 23. Pix: Azman Firdaus
By Umi Hani Sharani and Nor Baizura Basri
KUALA LUMPUR, Aug 25 (Bernama) -- Cambodia, Laos, Myanmar and Vietnam might be the poor cousins of their counterparts in Asean, but that should not stop them from claiming a piece of the prosperity in Southeast Asia.
Of utmost importance is that they need investments to develop their economies so that they too can contribute meaningfully to regional integration.
But given the vagaries in the international marketplace, investments are not going to fall on their laps. They have to make it happen.
If some of them need convincing, they just have to look at Vietnam, easily the most developed among the four.
Hanoi undertook a massive plan to liberalise its economies, trade picked up, investments poured in and its pace of development took off. Now, it is seeking WTO membership by end-2006.
Of course, this is easier said than done, but they have to work at it rather than just depending on aid.
There is a long road ahead.
Hence, while the advanced regional economies rush to meet the deadline for Asean Economic Community (AEC) by 2015, the case is not so for its less developed siblings.
CLMV countries have understandably been accorded flexibilities.
Again, the antidote to join up by the deadline would be more foreign direct investments (FDIs).
Only then, would their economies accelerate and be at par with the others comprising Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
By while they grapple with complexities towards regional integration, there is now fear CLMV countries might be eclipsed by economic giants, no thanks to a proposed free trade area covering 16 economies.
The East Asia Free Trade Area (EAFTA) is supposed to include Asean, China, Japan, South Korea, New Zealand, Australia and India, a proposal which is nothing less than too ambitious especially for CLMV.
But as members of a grouping, they have no choice but do what is necessary to make their markets attractive.
Therefore, FDIs are crucial in helping CLMV economies and tune them via capacity building to achieve competitiveness.
Laos has publicly stated its inability to meet the deadline with the rest of the region, but is optimistic of joining the community in 2018.
Having been out of the economic mainstream for quite sometime, these countries still require assistance, financially and technically.
While aid has been given for capacity building from developed countries, it is far from adequate.
CLMV countries actually require more than that.
As the other Asean countries and the United States have put it, CLMV countries must demonstrate greater commitment in opening their markets.
Meanwhile, Japan has pledged to help CLMV in the rubber sector and assist in setting up special economic zones in respective economies to further attract FDIs.
CLMV countries now also count on China for continued investments, thanks to their strong historical links.
But at the end of the day, CLMV would have to fend for themselves.
They must possess the political will to dismantle non-tariff barriers, erase bureaucratic procedures and provide incentives to lure foreign investments.
If they don't do this, they not only face the danger of being left out of the Asean economic community, they would fail to share in whatever prosperity that arises out of integration.
-- BERNAMA
Vietcombank to auction stocks next year
11:39' 23/07/2006 (GMT+7)
VietNamNet - The Bank for Foreign Trade of Vietnam (Vietcombank) will auction its stocks for the first time in the second quarter of 2007 at the latest as part of the move to equitise the bank, Vietcombank General Director Vu Viet Ngoan announced on July 21.
He added that the bank also plans to conduct its first bond trading session at the Ho Chi Minh City Securities Trading Centre (HSTC) on July 28, 2006.
The General Director said that the bank's plan is to issue its shares. This means that the State Securities Commission (SSC)'s permission to list Vietcombank's bonds at the HSTC before the proposed equitisation would help investors to have easier access to their capital.
Vietcombank is one of the four largest State-owned commercial banks in Vietnam to undergo test equitisation. By the end of June, its total assets had been valued at VND 148 trillion (roughly US $9.3 billion), and its ownership capital, at VND 9.7 trillion (around US $606 million).
(Source: VNA)
--------------------------
Is Vietcombank the 2nd or 3rd largest Vietnamese bank?
11:39' 23/07/2006 (GMT+7)
VietNamNet - The Bank for Foreign Trade of Vietnam (Vietcombank) will auction its stocks for the first time in the second quarter of 2007 at the latest as part of the move to equitise the bank, Vietcombank General Director Vu Viet Ngoan announced on July 21.
He added that the bank also plans to conduct its first bond trading session at the Ho Chi Minh City Securities Trading Centre (HSTC) on July 28, 2006.
The General Director said that the bank's plan is to issue its shares. This means that the State Securities Commission (SSC)'s permission to list Vietcombank's bonds at the HSTC before the proposed equitisation would help investors to have easier access to their capital.
Vietcombank is one of the four largest State-owned commercial banks in Vietnam to undergo test equitisation. By the end of June, its total assets had been valued at VND 148 trillion (roughly US $9.3 billion), and its ownership capital, at VND 9.7 trillion (around US $606 million).
(Source: VNA)
--------------------------
Is Vietcombank the 2nd or 3rd largest Vietnamese bank?
http://english.people.com.cn/200608/28/eng...828_297469.html
Home >> Business
UPDATED: 13:04, August 28, 2006
Vietnam eyes foreign investment of 34 bln USD in 5 years
Vietnam plans to attract 30-34 billion U.S. dollars of foreign direct investment (FDI) between 2006 and 2010, according to local newspaper Investment on Monday.
Under a draft program on enticing FDI from 2006 to 2010 recently worked out by Vietnam's Ministry of Planning and Investment, the country is anticipated to attract 22-24 billion dollars of fresh FDI and 8-10 billion dollars of additional capital of operational projects.
To this end, Vietnam will strongly encourage foreign investment in information technology, electronics, micro-electronics, biotechnology, basic technology, auxiliary industries, agro- processing, realty trading, tourism, healthcare, education and training.
Vietnam is estimated to lure nearly 4.1 billion dollars of FDI in the first eight months of this year, decreasing one percent over the same period last year, according to the ministry's Foreign Investment Department under the Ministry of Planning and Investment.
Of the investment, roughly 3 billion dollars come from 421 newly-licensed projects, down 33.5 percent in project number but up 1.5 percent in registered capital, and 1.1 billion dollars from 216 operational projects.
Vietnam is expected to attract FDI worth 6.8 billion dollars next year, up from anticipated 6.5 billion dollars this year. Of the FDI in 2007, between five and six billion dollars is expected to be fresh investment, and the rest additional capital of operational projects, the department said.
Vietnam attracted nearly 5.9 billion dollars worth of FDI in 2005, up 40.2 percent over 2004. As of July 20, it housed 6,427 foreign-invested projects with total registered capital of over 54. 6 billion dollars.
Source: Xinhua
Home >> Business
UPDATED: 13:04, August 28, 2006
Vietnam eyes foreign investment of 34 bln USD in 5 years
Vietnam plans to attract 30-34 billion U.S. dollars of foreign direct investment (FDI) between 2006 and 2010, according to local newspaper Investment on Monday.
Under a draft program on enticing FDI from 2006 to 2010 recently worked out by Vietnam's Ministry of Planning and Investment, the country is anticipated to attract 22-24 billion dollars of fresh FDI and 8-10 billion dollars of additional capital of operational projects.
To this end, Vietnam will strongly encourage foreign investment in information technology, electronics, micro-electronics, biotechnology, basic technology, auxiliary industries, agro- processing, realty trading, tourism, healthcare, education and training.
Vietnam is estimated to lure nearly 4.1 billion dollars of FDI in the first eight months of this year, decreasing one percent over the same period last year, according to the ministry's Foreign Investment Department under the Ministry of Planning and Investment.
Of the investment, roughly 3 billion dollars come from 421 newly-licensed projects, down 33.5 percent in project number but up 1.5 percent in registered capital, and 1.1 billion dollars from 216 operational projects.
Vietnam is expected to attract FDI worth 6.8 billion dollars next year, up from anticipated 6.5 billion dollars this year. Of the FDI in 2007, between five and six billion dollars is expected to be fresh investment, and the rest additional capital of operational projects, the department said.
Vietnam attracted nearly 5.9 billion dollars worth of FDI in 2005, up 40.2 percent over 2004. As of July 20, it housed 6,427 foreign-invested projects with total registered capital of over 54. 6 billion dollars.
Source: Xinhua
Even more important than the ability to attract investment is the ability to absorb it efficiently enough to give a decent return. As our infrastructure improves, so does our capability to absorb investment efficiently, which in turn attracts more investment.
http://quote.bloomberg.com/apps/news?pid=2...id=apXxyzyg40po
Vietnam's Sacombank, Asia Commercial See Profit Surge (Update1)
By Netty Ismail and Stephen Engle
Aug. 29 (Bloomberg) -- Vietnam's two biggest non-government banks said rising demand for consumer loans will boost profit by at least 25 percent, helping fend off competition from overseas lenders as the nation enters the World Trade Organization.
Saigon Thuong Tin Commercial Joint-Stock Bank expects pretax profit to grow by 25 to 30 percent to 500 billion dong ($31 million) in 2006, Chief Executive Officer Phan Bich Van said. Asia Commercial Bank, partly owned by Standard Chartered Plc, expects pretax profit to jump to 650 billion dong from 385 billion in 2005, Chief Executive Officer Ly Xuan Hai said.
The lenders want to capture growing demand for credit in a nation where 5 percent of 84 million people use banking services. The government expects the economy to expand as much as 8 percent annually in the next decade as Vietnam's entry into the WTO this year spurs investment.
``The most lucrative banking in Vietnam is retail,'' Asia Commercial Bank's Hai, 41, said in an interview in Ho Chi Minh City last week. ``Vietnam is one of the most under-banked countries.''
Vietnam's population is expected to grow to almost 100 million by 2010 and the ratio of loans to gross domestic product will increase 10 percent a year, Hai said. Loans account for 63 percent of Vietnam's gross domestic product, up from 55 percent last year, Hai said.
``The confidence is growing,'' he said.
Stock Listings
In July, Saigon Thuong Tin Commercial Joint-Stock Bank, known as Sacombank, became the first lender to trade its shares on the main board of Vietnam's stock exchange. Asia Commercial Bank plans to follow next year or in 2008.
The lenders are seeking to strengthen their positions as the government eases restrictions on overseas banks under WTO accession terms.
Vietnam's National Assembly is targeting October for approving a package that may allow the nation to join the global trade club a month later, according to the Washington-based U.S.-Vietnam Trade Council.
Asia Commercial Bank's loan portfolio increased by more than 40 percent in the first seven months of 2006, Hai said. Loans growth will match a 65 to 68 percent expansion in assets for the whole year, he said.
The lender aims to lift assets to $10 billion to $11 billion after five years, from about $2 billion, Hai said.
``We have a plan to raise ACB to become a regional-sized bank in the next five years,'' Hai said. The bank's equity will grow to $1 billion from $600 million, he said.
Asia Commercial Bank plans to expand its branches to 80 by the end of the year from 68. It will open 20 every year starting 2007, to reach a target of 150 to 160, Hai said.
Sacombank
Ho Chi Minh City-based Sacombank, which counts Australia & New Zealand Banking Group Ltd. among its shareholders, plans to boost lending to individuals to between 50 percent and 60 percent of all loans in two years, from 40 percent, Chief Executive Van, 37, said.
Loans will grow 30 to 35 percent and total assets will increase 40 percent annually in the next five years from 22 trillion dong at the end of July, she said.
Sacombank expects earnings growth to accelerate 35 percent to 40 percent by 2010, Van said. ANZ Bank, Australia's No. 3 lender which paid $27 million in 2005 for 10 percent of Sacombank, is helping the Vietnamese lender develop consumer products.
Sacombank has put on hold a plan to sell more stock after its share price fell 17 percent since a July 12 debut. The Vietnam Stock Index, the fifth-best performing of 416 Asian indexes tracked by Bloomberg this year after rising 56 percent, has dropped 24 percent since reaching a record high on April 25.
``At the moment, it is not the right time to issue more shares,'' Van said.
State-Owned Banks
State-owned banks' averaged 24 percent credit growth in the past five years, according to VinaCapital Group in Ho Chi Minh City, which manages $600 million of investments in Vietnam.
The Communist Party-ruled nation's four biggest state-owned lenders control about three-quarters of the nation's $40 billion of banking assets, Fitch Ratings said in March. Non-state-owned and joint-venture banks account for 17 percent of the assets and branches of overseas banks 8 percent, Fitch said.
Asia Commercial Bank and Sacombank will seek acquisitions in the next five to 10 years, the chief executives said.
``At the moment, I don't think the local banks are strong enough to compete against the foreign banks because the local banks have a lower level of technology and product development,'' Van said. ``The capital of local banks is still very low. Consolidation is better for the banking industry.''
Under WTO accession terms, foreign banks will be able to establish wholly owned subsidiaries, making it easier to set up local branch networks, according to the Office of the U.S. Trade Representative.
``Naturally as the market opens more to foreign banks, we will see a consolidation of the local banks, as they won't enjoy the same level of government protection,'' said Thuy Dam, Hanoi- based general manager of ANZ Bank in Vietnam. ``This will change the competitive landscape: some will disappear, some will consolidate, some will become stronger.''
To contact the reporter on this story: Netty Ismail in Singapore nismail3@bloomberg.net .
Last Updated: August 29, 2006 00:36 EDT
Vietnam's Sacombank, Asia Commercial See Profit Surge (Update1)
By Netty Ismail and Stephen Engle
Aug. 29 (Bloomberg) -- Vietnam's two biggest non-government banks said rising demand for consumer loans will boost profit by at least 25 percent, helping fend off competition from overseas lenders as the nation enters the World Trade Organization.
Saigon Thuong Tin Commercial Joint-Stock Bank expects pretax profit to grow by 25 to 30 percent to 500 billion dong ($31 million) in 2006, Chief Executive Officer Phan Bich Van said. Asia Commercial Bank, partly owned by Standard Chartered Plc, expects pretax profit to jump to 650 billion dong from 385 billion in 2005, Chief Executive Officer Ly Xuan Hai said.
The lenders want to capture growing demand for credit in a nation where 5 percent of 84 million people use banking services. The government expects the economy to expand as much as 8 percent annually in the next decade as Vietnam's entry into the WTO this year spurs investment.
``The most lucrative banking in Vietnam is retail,'' Asia Commercial Bank's Hai, 41, said in an interview in Ho Chi Minh City last week. ``Vietnam is one of the most under-banked countries.''
Vietnam's population is expected to grow to almost 100 million by 2010 and the ratio of loans to gross domestic product will increase 10 percent a year, Hai said. Loans account for 63 percent of Vietnam's gross domestic product, up from 55 percent last year, Hai said.
``The confidence is growing,'' he said.
Stock Listings
In July, Saigon Thuong Tin Commercial Joint-Stock Bank, known as Sacombank, became the first lender to trade its shares on the main board of Vietnam's stock exchange. Asia Commercial Bank plans to follow next year or in 2008.
The lenders are seeking to strengthen their positions as the government eases restrictions on overseas banks under WTO accession terms.
Vietnam's National Assembly is targeting October for approving a package that may allow the nation to join the global trade club a month later, according to the Washington-based U.S.-Vietnam Trade Council.
Asia Commercial Bank's loan portfolio increased by more than 40 percent in the first seven months of 2006, Hai said. Loans growth will match a 65 to 68 percent expansion in assets for the whole year, he said.
The lender aims to lift assets to $10 billion to $11 billion after five years, from about $2 billion, Hai said.
``We have a plan to raise ACB to become a regional-sized bank in the next five years,'' Hai said. The bank's equity will grow to $1 billion from $600 million, he said.
Asia Commercial Bank plans to expand its branches to 80 by the end of the year from 68. It will open 20 every year starting 2007, to reach a target of 150 to 160, Hai said.
Sacombank
Ho Chi Minh City-based Sacombank, which counts Australia & New Zealand Banking Group Ltd. among its shareholders, plans to boost lending to individuals to between 50 percent and 60 percent of all loans in two years, from 40 percent, Chief Executive Van, 37, said.
Loans will grow 30 to 35 percent and total assets will increase 40 percent annually in the next five years from 22 trillion dong at the end of July, she said.
Sacombank expects earnings growth to accelerate 35 percent to 40 percent by 2010, Van said. ANZ Bank, Australia's No. 3 lender which paid $27 million in 2005 for 10 percent of Sacombank, is helping the Vietnamese lender develop consumer products.
Sacombank has put on hold a plan to sell more stock after its share price fell 17 percent since a July 12 debut. The Vietnam Stock Index, the fifth-best performing of 416 Asian indexes tracked by Bloomberg this year after rising 56 percent, has dropped 24 percent since reaching a record high on April 25.
``At the moment, it is not the right time to issue more shares,'' Van said.
State-Owned Banks
State-owned banks' averaged 24 percent credit growth in the past five years, according to VinaCapital Group in Ho Chi Minh City, which manages $600 million of investments in Vietnam.
The Communist Party-ruled nation's four biggest state-owned lenders control about three-quarters of the nation's $40 billion of banking assets, Fitch Ratings said in March. Non-state-owned and joint-venture banks account for 17 percent of the assets and branches of overseas banks 8 percent, Fitch said.
Asia Commercial Bank and Sacombank will seek acquisitions in the next five to 10 years, the chief executives said.
``At the moment, I don't think the local banks are strong enough to compete against the foreign banks because the local banks have a lower level of technology and product development,'' Van said. ``The capital of local banks is still very low. Consolidation is better for the banking industry.''
Under WTO accession terms, foreign banks will be able to establish wholly owned subsidiaries, making it easier to set up local branch networks, according to the Office of the U.S. Trade Representative.
``Naturally as the market opens more to foreign banks, we will see a consolidation of the local banks, as they won't enjoy the same level of government protection,'' said Thuy Dam, Hanoi- based general manager of ANZ Bank in Vietnam. ``This will change the competitive landscape: some will disappear, some will consolidate, some will become stronger.''
To contact the reporter on this story: Netty Ismail in Singapore nismail3@bloomberg.net .
Last Updated: August 29, 2006 00:36 EDT
Petrovietnam unit raises $87.7 million at IPO
HANOI, Aug 30 (Reuters) - State oil monopoly Petrovietnam has raised 1.4 trillion dong ($87.7 million) via an auction of shares in its technical arm PTSC this week, above its expectation, the stock market authority said on Wednesday.
The offering of about 37.3 million shares was about six times subscribed, and valued the company's entire share capital of 100 million shares at around $230 million, more than triple the auction's starting price. Investors had sought to buy more than 220 million shares of PTSC in the initial public offering held by the Hanoi over-the-counter stock market <.HASTC> on Monday, the exchange said in a statement.
Shares of the Hanoi-based PTSC, or Petroleum Technical Services Company, fetched an average of 37,256 dong ($2.30) per share, far above a starting price of $0.66. Foreign investors bought 1.4 million of the shares sold.
PTSC has yet to say when it plans a stock listing. Vietnam is Asia's hottest stock market this year with a rise of more than 60 percent for the VN Index <.VNI>.
PTSC offers engineering services to oil and gas exploration projects as well as logistic and port services for other oil firms operating in Vietnam.
Crude oil is the largest export earning item of Vietnam, Southeast Asia's third-largest producer of crude oil.
PTSC is the third subsidiary of Petrovietnam to take on partial privatisation so far under a plan to divest its non-core businesses to raise funds for oil and gas exploration.
Last year shares of Petrovietnam's drilling arm, PV Drilling, surged more than 30 percent at their initial public offering as investors sought to invest in the fast-growing energy sector. ($1=15,972 dong)
HANOI, Aug 30 (Reuters) - State oil monopoly Petrovietnam has raised 1.4 trillion dong ($87.7 million) via an auction of shares in its technical arm PTSC this week, above its expectation, the stock market authority said on Wednesday.
The offering of about 37.3 million shares was about six times subscribed, and valued the company's entire share capital of 100 million shares at around $230 million, more than triple the auction's starting price. Investors had sought to buy more than 220 million shares of PTSC in the initial public offering held by the Hanoi over-the-counter stock market <.HASTC> on Monday, the exchange said in a statement.
Shares of the Hanoi-based PTSC, or Petroleum Technical Services Company, fetched an average of 37,256 dong ($2.30) per share, far above a starting price of $0.66. Foreign investors bought 1.4 million of the shares sold.
PTSC has yet to say when it plans a stock listing. Vietnam is Asia's hottest stock market this year with a rise of more than 60 percent for the VN Index <.VNI>.
PTSC offers engineering services to oil and gas exploration projects as well as logistic and port services for other oil firms operating in Vietnam.
Crude oil is the largest export earning item of Vietnam, Southeast Asia's third-largest producer of crude oil.
PTSC is the third subsidiary of Petrovietnam to take on partial privatisation so far under a plan to divest its non-core businesses to raise funds for oil and gas exploration.
Last year shares of Petrovietnam's drilling arm, PV Drilling, surged more than 30 percent at their initial public offering as investors sought to invest in the fast-growing energy sector. ($1=15,972 dong)
http://www.thanhniennews.com/features/?cat...mp;newsid=19507
Vietnam seeks to grow stock market value eightfold by 2010
Vietnam's stock market may grow eightfold by market value to $24 billion in the next four years as government-owned companies, the head of the country's stock exchange said.
Tran Dac Sinh, director of the Ho Chi Minh City Securities Trading Center, told Bloomberg that Vietnam wants to increase the value of its stock market to between 20 percent and 30 percent of gross domestic product from 6 percent.
GDP may reach $80 billion by 2010, he said. The current average for stock markets in Asia is about 127 percent, according to estimates by Merrill Lynch & Co.
“I really want to see this securities trading center become as big as other stock exchanges in the region,'' Sinh said in an interview last week.
The Vietnamese government is drawing up a securities law to improve companies' disclosure standards, hoping to attract more international investors to an economy it says will grow as much as 8 percent annually in the next decade.
Sales of shares in state-owned companies may accelerate the stock market's growth as the government seeks to sharpen the ability of government firms to compete after Vietnam joins the Word Trade Organization this year.
“Even if it doubles, it's still not a very large market, but obviously it's a quantum leap,” said Kelvin Lee, Head of Investment Banking at Ho Chi Minh City-based VinaCapital Group, which manages $600 million of investments in Vietnam.
“The question is whether it has sufficient improvement to attract the real, serious investors.”
Upcoming sales
Bank for Foreign Trade of Vietnam will sell shares next year, followed by Mekong Delta Housing Bank, Bank for Investment & Development of Vietnam and Industrial & Commercial Bank of Vietnam (Incombank), Sinh said. VietNam Insurance Corp., Hochiminh City Insurance Co., Electricity of Vietnam, Vietnam Post & Telecommunications Corp. and steel and cement companies will also sell shares by 2010, Sinh said. All the companies are government-owned.
Vietnam, which began market-oriented reforms in 1986, has the fastest-growing stock market in Asia.
There are 48 companies on the six-year-old Ho Chi Minh City Securities Trading Center, with a combined market value of about $3 billion.
Vietnam's stock exchange increased 50 percent in market value on July 12 after shares in Saigon Thuong Tin Commercial Joint-Stock Bank made their debut.
Twenty-two more companies will sell shares on the exchange in the next four months, raising the market value to 10 percent of Vietnam's gross domestic product by the end of the year, Sinh said.
Gross domestic product was $53 billion at the end of 2005, according to data from Vietnam's General Statistics Office. The economy is projected to grow 8 percent this year.
Accelerating process
Vietnam has been selling shares in companies after first converting their ownership structure into stockholdings. The shares tend first to be sold to a company's managers or other employees.
“We have to accelerate the” transformation, Sinh said. “By 2010, the process must be finished.”
Vietnam wants to encourage about 2,400 companies whose shares exchange hands in the unregulated over-the-counter market to formally trade stock. The companies together trade between five and 10 times the main board's value, Merrill said in a report in April.
The informal market doesn't subject participants to the same disclosure requirements as those who sell shares on the stock exchange.
“The problem is many of these companies don't meet the requirements, so rather than list on the stock exchange, they issue shares to their customers and other people, their friends and families,” said Peter Tebbutt, a Hong Kong-based director at Fitch Ratings.
“The over-the-counter market is getting quite well developed, it's much larger than the official market. That makes it more attractive.”
Over the counter
The Ho Chi Minh City Securities Trading Center's VN Index, which tracks stocks traded on the main board, has lost 24 percent of its value since reaching a record 632.69 on April 25.
A securities law that comes into effect in January seeks to lay out standards of disclosure and governance for all companies, whether they trade in the over-the-counter or the formal exchanges in Vietnam. The government is also offering tax incentives for companies to shift the trading of their shares to the exchange.
“In Vietnam, the question is always implementation,” said Jonathan Pincus, senior country economist at the United Nations Development Program in Hanoi. Will the provision for accountability and transparency “be enforced so that companies will have to abide by the laws and investors know exactly what they're getting when they buy shares?”
Having a capital market is very important to Vietnam's future, Pincus said. “At the same time, you need capital markets that are transparent, where companies are actually reporting what they're doing,” he said. “The quality of management is certainly improving. But they still have a long way to go.”
Source: Bloomberg
Vietnam seeks to grow stock market value eightfold by 2010
Vietnam's stock market may grow eightfold by market value to $24 billion in the next four years as government-owned companies, the head of the country's stock exchange said.
Tran Dac Sinh, director of the Ho Chi Minh City Securities Trading Center, told Bloomberg that Vietnam wants to increase the value of its stock market to between 20 percent and 30 percent of gross domestic product from 6 percent.
GDP may reach $80 billion by 2010, he said. The current average for stock markets in Asia is about 127 percent, according to estimates by Merrill Lynch & Co.
“I really want to see this securities trading center become as big as other stock exchanges in the region,'' Sinh said in an interview last week.
The Vietnamese government is drawing up a securities law to improve companies' disclosure standards, hoping to attract more international investors to an economy it says will grow as much as 8 percent annually in the next decade.
Sales of shares in state-owned companies may accelerate the stock market's growth as the government seeks to sharpen the ability of government firms to compete after Vietnam joins the Word Trade Organization this year.
“Even if it doubles, it's still not a very large market, but obviously it's a quantum leap,” said Kelvin Lee, Head of Investment Banking at Ho Chi Minh City-based VinaCapital Group, which manages $600 million of investments in Vietnam.
“The question is whether it has sufficient improvement to attract the real, serious investors.”
Upcoming sales
Bank for Foreign Trade of Vietnam will sell shares next year, followed by Mekong Delta Housing Bank, Bank for Investment & Development of Vietnam and Industrial & Commercial Bank of Vietnam (Incombank), Sinh said. VietNam Insurance Corp., Hochiminh City Insurance Co., Electricity of Vietnam, Vietnam Post & Telecommunications Corp. and steel and cement companies will also sell shares by 2010, Sinh said. All the companies are government-owned.
Vietnam, which began market-oriented reforms in 1986, has the fastest-growing stock market in Asia.
There are 48 companies on the six-year-old Ho Chi Minh City Securities Trading Center, with a combined market value of about $3 billion.
Vietnam's stock exchange increased 50 percent in market value on July 12 after shares in Saigon Thuong Tin Commercial Joint-Stock Bank made their debut.
Twenty-two more companies will sell shares on the exchange in the next four months, raising the market value to 10 percent of Vietnam's gross domestic product by the end of the year, Sinh said.
Gross domestic product was $53 billion at the end of 2005, according to data from Vietnam's General Statistics Office. The economy is projected to grow 8 percent this year.
Accelerating process
Vietnam has been selling shares in companies after first converting their ownership structure into stockholdings. The shares tend first to be sold to a company's managers or other employees.
“We have to accelerate the” transformation, Sinh said. “By 2010, the process must be finished.”
Vietnam wants to encourage about 2,400 companies whose shares exchange hands in the unregulated over-the-counter market to formally trade stock. The companies together trade between five and 10 times the main board's value, Merrill said in a report in April.
The informal market doesn't subject participants to the same disclosure requirements as those who sell shares on the stock exchange.
“The problem is many of these companies don't meet the requirements, so rather than list on the stock exchange, they issue shares to their customers and other people, their friends and families,” said Peter Tebbutt, a Hong Kong-based director at Fitch Ratings.
“The over-the-counter market is getting quite well developed, it's much larger than the official market. That makes it more attractive.”
Over the counter
The Ho Chi Minh City Securities Trading Center's VN Index, which tracks stocks traded on the main board, has lost 24 percent of its value since reaching a record 632.69 on April 25.
A securities law that comes into effect in January seeks to lay out standards of disclosure and governance for all companies, whether they trade in the over-the-counter or the formal exchanges in Vietnam. The government is also offering tax incentives for companies to shift the trading of their shares to the exchange.
“In Vietnam, the question is always implementation,” said Jonathan Pincus, senior country economist at the United Nations Development Program in Hanoi. Will the provision for accountability and transparency “be enforced so that companies will have to abide by the laws and investors know exactly what they're getting when they buy shares?”
Having a capital market is very important to Vietnam's future, Pincus said. “At the same time, you need capital markets that are transparent, where companies are actually reporting what they're doing,” he said. “The quality of management is certainly improving. But they still have a long way to go.”
Source: Bloomberg
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