The Government is directing ministries and agencies to raise capital for State-owned commercial banks through the use of dividends or share sales this year, Deputy Prime Minister Vuong Dinh Hue said at a recent meeting. Hue revealed the news after four State-owned banks – Vietcombank, Agribank, BIDV and VietinBank – proposed the capital hike at the meeting on bad debt resolution last week as they are facing difficulties to fulfill the plan. Currently, the banks are under great pressure to hike capital to satisfy the State Bank of Viet Nam (SBV)’s regulations to meet Basel II standards in 2020. Under SBV’s Circular, banks must maintain a capital adequacy ratio (CAR) of at least 8 per cent as per Basel II norms, starting in 2020. With the new regulation, the CAR of the banks will fail to reach the minimum level set by the SBV if they fail to increase capital. Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations … [Read more...] about Government directs capital hike for State-owned banks
Dividends or share sales
KIDO Foods expects to move to HOSE this year
KIDO Foods expects to move to HOSE this yearBy Hung Le Members of the board of directors of KIDO Foods at a 2018 annual general meeting on June 18 - PHOTO: HUNG LE HCMC – KIDO Foods (KDF), under KIDO Group, intends to move from the Market for Unlisted Public Companies (UPCoM) to the Ho Chi Minh Stock Exchange (HOSE) between October 2018 and April 2019. Speaking at a 2018 annual general meeting on June 18, a board member noted that the company will complete the switch by end-2018. The board of KIDO Foods revealed that the company, in October, will have adhered to all basic conditions to have its shares listed on HOSE. A leader of KIDO Foods stressed that the transfer will be completed in 2018 or early 2019. Some investors stated that the company’s shares on UPCoM are priced below VND40,000 each, lower than it was first traded on the exchange, while the leader noted that the number of freely circulated shares accounted for 30% of the capital, equivalent to 16 … [Read more...] about KIDO Foods expects to move to HOSE this year
BUSINESS IN BRIEF 19/6
Nawaplastic still hungry for Binh Minh Plastic shares Owning a dominant stake in Binh Minh Plastic (BMP) did not quench Nawaplastic Industry Co., Ltd. (Nawaplastic)’s thirst for BMP shares. Most recently, Nawaplastic registered to buy an additional 1.17 million BMP shares to increase its holding to 44.525 million shares, equalling 54.39 per cent of the charter capital. The transaction is expected to occur between June18 and July16. The registered share volume is the remaining part of the 2.86 million shares that Nawaplastic failed to buy during previous transactions. Notably, Nawaplastic registered to buy 2.86 million BMP shares during transactions on May 14-June 12, however, the Thai investor ended up buying 1.69 million of the registered shares as BMP did not match Nawaplastic’s target price. BMP manufactures and trades civil and industrial products made of plastic and rubber. The company also designs, manufactures, and trades in plastic moulds for the casting industry; … [Read more...] about BUSINESS IN BRIEF 19/6
BUSINESS IN BRIEF 24/4
Leaders of Ho Chi Minh City recently held a meeting with foreign-invested (FDI) businesses, calling on them to work side by side with the southern metropolis of Vietnam toward the goal of fast and sustainable development. The event on April 21 drew representatives of foreign businesses’ associations and nearly 200 FDI companies in HCM City. Secretary of the municipal Party Committee Nguyen Thien Nhan said over the past years, HCM City has made efforts to improve investment climate, step up administrative reforms, streamline procedures, increase transparency and boost IT application in the settlement of administrative procedures to enhance the attractiveness to foreign investment. As a result, the city attracted 6.6 billion USD in FDI in 2017, surging over 90 percent from the previous year. In the first quarter of 2018 alone, the figure stood at 1.37 billion USD, compared to 5.8 billion USD of the entire country. However, he said, HCM City is also facing an array of challenges … [Read more...] about BUSINESS IN BRIEF 24/4
BUSINESS IN BRIEF 26/3
HCM City to host food ingredients expo The 2018 Food Ingredients Vietnam to be held in HCM City in May will showcase a large variety of food and beverage ingredients and natural ingredients. The exhibition has attracted more than 140 exhibitors from many countries and territories, Rungphech (Rose) Chitanuwat, business director of UBM Asia, the organiser, said. The expo would also feature international conferences and professional seminars, and link up businesses, she said. With more than 93 million people, of whom more than half are under 30 years of age, Việt Nam is one of the most promising food and beverage consumption markets in the region, and has a diverse range of raw materials for food and beverages, she said. Speaking at a press conference in HCM City on March 22 to introduce the expo, Ly Kim Chi, chairwoman of the Food and Foodstuff Association of HCM City, said the country’s food and beverages sector has enjoyed strong growth in recent years. The market is … [Read more...] about BUSINESS IN BRIEF 26/3
BIDV raises chartered capital to VND33.5 trillion
BIDV raises chartered capital to VND33.5 trillionVan Ly By Van Ly - The Saigon Times Daily HCMC – BIDV shareholders have approved a proposal for raising the bank’s chartered capital to VND33.5 trillion from VND28.1 trillion. In the capital increase plan, the Bank for Investment and Development of Vietnam will sell shares to its current investors and strategic shareholders, and pay a dividend by shares. The forthcoming share sale will lead the State ownership of the bank to fall to 86.66% from the current 95.76%. The bank said its listing on the HCMC stock exchange early this year had set a foundation for an upcoming sale of shares to a strategic foreign investor. At the bank’s general meeting last Friday, shareholders asked whether or not the bank was planning to merge with another credit institution, Tran Bac Ha, chairman of the bank, said since the State remains a majority stakeholder, the bank will not do that unless otherwise approved by the State. The 2014 … [Read more...] about BIDV raises chartered capital to VND33.5 trillion
Foreign investment funds making huge profits in Vietnam
VietNamNet Bridge - Some foreign funds are leaving Vietnam after making huge profits from their investment deals, while others are entering the country to seek new opportunities. Nawaplastic Industries (Saraburi) has wrapped up the sale of 21.27 million NTP shares of Thieu Nien Tien Phong Plastics, or 23.84 percent of charter capital of the company, after five years of investment. Analysts said the Thai investor earns roughly VND1.5 trillion, or three times higher than the initial investment capital. Prior to that, it received hundreds of billions of dong worth of dividends from Thieu Nien Tien Phong Plastics. Pyn Elite Fund announced its net asset value has reached 420 million euros, an increase of 80 million euros compared to the beginning of the year. The fund has made big money so far this year because the prices of the shares it is holding, including The Gioi Di Dong (MWG), Hoa Binh (HBC), DIC Corp (DIG), Khang Dien (KDH) and Vinaconex (VCG), have been increasing … [Read more...] about Foreign investment funds making huge profits in Vietnam
BUSINESS IN BRIEF 22/12
Dong Nai attracts $1.3 billion FDI in 2017The southern province of Dong Nai attracted over US$1.3 billion in foreign direct investment (FDI) in 2017, $300 million higher than the set target.According to the provincial industrial zones’ management board, it has attracted 1,733 FDI projects, so far, with total investment of $31.3 billion. Investors from 45 countries and territories have invested in the locality.South Korea is the largest foreign investor in the province, following by Taiwan (China) and Japan.The board said despite laying down stricter conditions for investment projects, FDI capital that poured into the province still increased this year. In particular, disbursement reached $1.1 billion, equivalent to 88 per cent of the total registered capital.In recent years, Dong Nai has given priority to FDI projects using hi-tech, skilled labourers and are environment-friendly.Mai Van Nhon, deputy head of the board, said investors believed in the province’s support for … [Read more...] about BUSINESS IN BRIEF 22/12
Vietcombank seeks permission for stake sale to foreign investors
Vietcombank seeks permission for stake sale to foreign investorsHai Ly HCMC – The Bank for Foreign Trade of Vietnam (Vietcombank) has written to the State Bank of Vietnam (SBV) and the Government seeking approval for selling its shares to Singapore’s GIC Pte Ltd and Japan’s Mizuho Bank Ltd. Under a memorandum of understanding signed between Vietcombank and GIC on August 29, the latter will acquire 305.81 million new shares, equivalent to a 7.73% stake in Vietcombank. Meanwhile, Mizuho Bank will buy 53.97 million shares to keep its ownership unchanged at 15% and remain the biggest private shareholder in Vietnam’s largest bank by market capitalization. A senior official in the banking sector told the Daily that Vietcombank had found good partners and the share price offered by foreign investors is reasonable given the current market conditions in Vietnam and the region. The bank’s equity sale to foreign investors is now subject to regulatory approval. … [Read more...] about Vietcombank seeks permission for stake sale to foreign investors
BUSINESS IN BRIEF 10/12
JETRO to host Invest Japan seminar in Ho Chi Minh CityJapan External Trade Organisation Ho Chi Minh City (JETRO) and the Ministry of Planning and Investment's Foreign Investment Agency will co-organise the Invest Japan seminar in Ho Chi Minh City on December 19.The seminar aims to introduce the strengths of the Japanese market, the advantages of establishing a branch in Japan, as well as JETRO’s free support activities for enterprises in Vietnam looking to invest or establish a business in Japan.The relationship between Japan and Vietnam has improved significantly over the past years. This January, Japanese Prime Minister Shinzo Abe visited Vietnam. In March, the Emperor and his Empress visited Vietnam for the first time, and in June, Vietnamese Prime Minister Nguyen Xuan Phuc visited Japan for the second time after taking office.In terms of the economy, the number of Japanese enterprises investing in Vietnam continues to increase, while trade relations are on the rise. A growing … [Read more...] about BUSINESS IN BRIEF 10/12