Tuesday, January 8, 2008

Stock market expected to better 2007 performance

A view of the Hanoi stock exchange
Vietnam's strong economic growth is expected to push the stock market higher in 2008, improving on the index's 2007 performance, which stampeded to a record high in March.

After soaring an incredible 55 percent in just two months, the benchmark VN-Index hit a peak of 1,170 on March 12, 2007.

The dramatic increase in the index prompted the securities watchdog to issue warnings about a “bubble”, or overvalued market.

The share price spike, which didn't reflect the growth rate of listed companies, was followed by a readjustment period, with the VN-Index sliding to the year's low of 905 points on April 24.

For the rest of the year, the stock market in the southern hub of Ho Chi Minh City rode the waves, fluctuating between 884 and 1,113 points during the last nine months of the year.

However, in contrast to 2006, HCMC's VN-Index closed the year up 23 percent while Hanoi's HASTC-Index climbed 33 percent over the course of 2007.

Last year more than VND90 trillion (US$5.64 billion) was raised on the stock market through initial public offering and additional share issuances, three times as much as in 2006.

The number of companies listed on the exchange increased to 248 in 2007 from 192 in 2006.

Total market capitalization approached $29 billion, accounting for more than 40 percent of the national gross domestic product (GDP), expected to be $70 billion last year, surpassing expectations.

The government's stock market development plan had set a target for the stock market to account for 30 percent of the GDP by 2010.

The number of brokerage firms operating in Vietnam increased 35 percent to 74 last year, quadruple the number of brokers in 2005.

The law on securities came into effect in 2007, followed by official guidance from the government and other authorities which set out the legal framework for the stock market.

Other new legal regulations to affect the stock market included the law on personal income tax, Decree No. 24 withdrawing tax incentives to equitized companies and the central bank's Instruction No. 3 that reduced lending rate against securities to less than three percent.

Last year was a boom time for many sectors, with investor interest especially directed toward banking, insurance, securities, real estates, food and pharmacy.

Electrical stocks, in contrast, remained out of favor.

2008 outlook rosy

According to the latest report of Saigon Securities Incorporation (SSI), one of HCMC's largest brokerages, the stock market appears on course for another robust year thanks to rapid economic growth, increasing foreign investment, government equitization plans and an increase in the number of companies listed on the exchange.

About 60 companies are expected to list on the stock market in the first quarter of 2008, including giant lenders like Vietnam International Bank, Vietnam Joint-stock Commercial Bank for Private Enterprises, Vietnam Export and Import Bank and Dong A Bank.

Total market capitalization in 2008 is expected to reach 60 percent of the GDP.

SSI's analysts indicated China, which plans to invest $219 billions in overseas markets, could boost Vietnam's stock market even further.

The Chinese government has earmarked $78 billion for investment in Hong Kong, with the remaining $141 billion to be in other Asian countries.

The analysts said MSCI Barra, a leading provider of benchmark indices and risk management analytics products, in October added Vietnam to an index for 12 frontier markets, putting the country on the radar screens of even more international institutional investors.

The stock market's 2008 performance may be affected by monetary policy and any inflation control policies announced by Vietnam's government.

SSI analysts suggested investors start the year by reviewing their investment strategy, keeping in mind the new opportunities 2008 may bring.

“Sectors for possible investment include infrastructure, consumer goods, food and beverage and basic materials” the analysts said.

Reported by Hoang Uy

(VnAgency)

Indexes go up slightly to end gloomy days

Indexes go up slightly to end gloomy days

08/01/2008 -- 4:50 PM


Ha Noi (VNA) – The Ho Chi Minh City bourse and its Ha Noi-based counterpart recorded slight increases by the end of the January 8 trading session after continuous falls since the beginning of the new year.

The VN-Index at the Ho Chi Minh City Stock Exchange (HoSE) climbed 6.66 points to finish at 893.74 points. More than 9.2 million shares, worth over 877 billion VND, changed hands.

The session witnessed 80 stocks rally for gains, 29 remain unchanged and 32 decline.

Blue chips FPT Corp. (FPT), Hai Phong Paper (HAP), Saigon Securities Inc (SSI) and Sacombank (STB) were among the biggest movers of the day.

Meanwhile, the HaSTC-Index at the Ha Noi Securities Trading Centre saw a modest increase of 1.32 points to close at 298.93 points with over 2.4 million shares, worth 216 billion VND, being traded.

However, several shares suffered strong declines during the day. Of which, Song Da 99 (S99) was the biggest loser by having 11,700 VND wiped off its listed price.-Enditem
(VNAgency)

More opportunities for foreign investment in Viet Nam

More opportunities for foreign investment in Viet Nam

07/01/2008 -- 4:25 PM

Ha Noi (VNA) – Representatives from the world’s leading companies and groups will gather in Ha Noi this week for frank discussions on investment policies and business climate with representatives from the Vietnamese Government and relevant ministries in the context of Viet Nam being hailed as one of the dynamic economies in Asia.

The first Business Roundtable with the Government of Viet Nam is jointly organised by the Economist Conferences from the UK’s leading The Economist and the Viet Nam Foreign Ministry’s World and Vietnam Report.

The international meeting themed “ Viet Nam – A rising star in Asia ”, scheduled to talk place on January 8 and 9, is a chance for foreign businesses to hear the Vietnamese Government’s guidelines and policies as well as raise their views.

“It will make people better informed, have a clearer view of the country and also opportunities to invest,” Vice President of the Hong Kong-Shanghai Bank Corporation (HSBC) in Viet Nam David Morton said.

Meanwhile, Director of the Dragon Capitla Dominic Scriven said the meeting would reflect the Government’s concern on the business circles. During the two-day meeting, participants will discuss issues reports relating to Viet Nam’s economy such as banking reform, creation of new opportunities for foreign investors and sustainable human resource development. A meeting between foreign and domestic businesses will be held within the framework of the event.

“For Viet Nam, the event will attract leading officials from foreign and domestic economic groups. Through the meeting, investors could continue expanding their operation, thus generating more jobs,” Hoang Anh Tuan, Development Director of General Electric International said.

In 2007, Viet Nam registered an economic growth rate of 8.48 percent, the highest in the past 10 years, with GPD per capital standing at 833 USD.

Viet Nam has become foreign investors’ destination as the country attracted a record foreign direct investment (FDI) of more than 20.3 billion USD, a year-on-year increase of about 70 percent.

Besides, pledged official development assistance (ODA) from foreign donors hit 5.4 billion USD last year, 20 percent higher than the previous year. The year 2007 marked the first time Viet Nam’s ODA disbursement surpassed its plan of 2 billion USD, a year-on-year of 10 percent. This has helped increase foreign investors’ trust in Viet Nam ’s investment climate.-Enditem

(VNAgency)

Exports to EU may surpass 10 billion USD in 2008

Exports to EU may surpass 10 billion USD in 2008

07/01/2008 -- 4:37 PM

Ha Noi (VNA) – The Ministry of Industry and Trade (MoIT) has predicted that Viet Nam ’s export to the European Union (EU) will reach 10.4 billion USD in 2008, a year-on-year rise of 23.5 percent.

High increases are forecast for textiles and garments, footwear, seafood, wooden products and coffee. In particular, footwear is expected to remain the country’s major staple with export revenues estimated at 2.7 billion USD.

The EU is currently the world’s second largest importer of Viet Nam ’s footwear after the US . It bought 2.1 billion USD worth of footwear from Viet Nam in 2007, representing 7.2 percent of its total import value of the item. In recent years, the EU’s footwear import reaches 29 billion USD each year.

Although textiles and garments are expected to bring home around 1.65 billion USD, it will be considerably affected by the EU’s removal of quota for China ’s textiles and garments this year.

The EU is also the biggest consumer of Vietnamese coffee, accounting for around half of the country’s coffee export value. The nation’s coffee export to the EU is forecast to fetch 820 million USD this year, a slight reduction compared with 2007 due to the decrease in domestic production output.

Meanwhile, seafood export to the EU is expected to reach 1.15 billion USD, a year-on-year rise of 25 percent, and wooden products, around 780 million USD, a year-on-year surge of 30 percent.

To fully tap the EU market’s potential, the MoIT advised export businesses to strengthen their foothold in Germany , the UK , France , the Netherlands and Belgium while seeking more outlets in new EU markets like the Czech Republic , Hungary and Poland .

In 2007, Viet Nam earned 8.5 billion USD from exports to the EU, a year-on-year rise of 19 percent, accounting for 18 percent of the country’s total trade turnover.-Enditem
(VNAgency)

STB: STB and the exchange of shares of big holders

Foreign investors into Sacombank STB have recently made other investors lots of feelings – sometimes happy sometimes worried.

In the end of 2007, International Finance Corporation (IFC) informed to reduce the own volume of STB. IFC is one of the three international major financial investors into STB. The two others are Dragon Financial Holdings vĂ  Bank ANZ. IFC reduced their own volume to own 7,63% of the total STB volume. They meant to sell off 2%. That news made many people hastily sold their shares, that make the price down condiderably in some ending days of 2007.

Ms. Tran Thi Bao Ngoc have said, however, that ICF did so because they want to reconstruct their investment of Viet nam securities. They are continuing to be one of the strategic shareholders to co-operate with Sacombank to make the bank develop intensively and widely.

The amount of shares that IFC intended to sell are recommended to hold by other financial organizations. Sacombank securities company SBS will help choose who will buy the shares.

ANZ bank’s purchase in early 2008 makes individual shareholders to be relieved. The buying period deadline is March 21; however, Jan 03 2008 ANZ informed that they have bought enough as registed. It is 703,170 shares. They now own 44,488,140 shares.

For those reasons, STB’s price has been stable in the downward spiral of the total market although it has not already gained back to its highest price before.

Recently, the union of financial investors have suggested the Financial Ministry and the State Security Commision about the increasing of the owning room for forein investors up to 35-37.5%. With this, the individual Sacombank shareholders are strainedly observe the up and down of STB’s price and its information.

Enterpreted from VIR by vietnamfinance.blogspot.com
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PM: agricultural restructuring must ensure food security

PM: agricultural restructuring must ensure food security

07/01/2008 -- 4:45 PM

Ha Noi (VNA) – Agricultural restructuring must ensure food security and jobs for labourers, said Prime Minister Nguyen Tan Dung.

The Prime Minister gave the instruction to the agricultural sector at a conference of the Ministry of Agriculture and Rural Development in Ha Noi on January 7 to launch the 2008 plan.

PM Dung stressed that agriculture, though contributing only 20 percent of the Gross Domestic Product (GDP), is the foundation for stability as 72 percent of the country’s population live in rural areas.

The PM asked the sector to focus its efforts on restructuring farm production to fulfill the plan for this year and the 2006-2010 plan in the long term. He also stressed the need to apply scientific and technological advances to improve quality of farm produce.

Looking back the year 2007, PM Dung noted that the country faced many challenges posed by WTO membership, price hike, natural disasters and epidemics, but per capita income in the agricultural sector and rural areas increased 6.6 percent and the poverty rate among households in rural areas reduced by 2 percent.-Enditem
(VNAgency)

Seminar to focus on property, financial investment

Seminar to focus on property, financial investment

08/01/2008 -- 10:08 AM

Ha Noi (VNA) – Real estate and financial investment will be major topics of an international seminar scheduled to take place in Ha Noi from January 9-10.

More than 150 investors both at home and abroad are expected to attend the event that will be co-organised by the Ha Noi Association of Young Entrepreneurs (HAYE) and Singapore-based Allevents Group (AEG).

HAYE general secretary Do Thi Tu Anh said the workshop is expected to become a forum for local investors to exchange experiences and seek partnership with foreign counterparts.

Foreign participants will be offered a chance to inquire into Viet Nam ’s investment environment and investment incentives, as well as opportunities in finance and real estate sectors.

The association, Anh said, plans to make presentations on a number of projects which are calling for investment, expressing hope that deals will be signed at the end of the seminar.-Enditem
(VNAgency)

Vinare adjusts share issuance plan

Vinare adjusts share issuance plan

07/01/2008 -- 8:13 PM

Ha Noi (VNA) – The Viet Nam National Reinsurance Corporation (Vinare) has been given the go ahead by the State Securities Commission to adjust its second phase to issue shares to strategic investors.

The company will add more than 11.8 million shares left from the first phase of the additional issuance in 2007 to the second phase, during which it plans to auction 12.75 million shares to domestic and foreign strategic shareholders.

However, ownership by each foreign investor is not allowed to exceed the 25 percent cap set by the State Securities Commission.

In the share auction in late August 2007, the number of shares purchased by investors fell short of Vinare’ projected 27.92 million shares. Its strategic shareholder for this phase was Swiss Reinsurance Corporation (Swiss Re.).

Under its initial plan, Vinare will issue 40.7 million shares, worth 407 billion VND, to local and foreign investors in two phases.-Enditem
(VNagency)

Vietnamese dong creeps on dollar

Vietnamese dong creeps on dollar

08/01/2008 -- 11:24 AM






Ha Noi (VNA) – The Vietnamese dong has crept up on the US dollar since the trading band widened two weeks ago as part of measures to curb rising inflation. The exchange rate has fallen below 16,000 VND.




The currency has strengthened by as much as 28 VND per dollar per week on average, a significant move given that the dollar has for years been hovering above 16,000 VND.




On Jan. 7, the central bank announced a daily inter-bank exchanged rate of 16,107 VND. Eximbank listed an exchange rate of 15,986 VND/15,992 against 16,018 VND/16,040 after SBV allowed more flexible exchange rates for the US dollar.




The exchange rate for the greenback was 16,030 dong at the close of 2007, one year ago. The currency, said it’s most volatile, was still within the narrow range of 15,970 and 16,230 throughout the year.




Compared to an exchange rate against the dollar of 16,287.5 on August 21, the weakest point in at least 14 years, the exchange at this time has fallen 1.85 percent.




With the dollar plunging against world currencies in recent months, the tight trading band has kept the dong artificially weakened with less liquidity in forex markets.-Enditem



(VNAgency)

Swiss Re becomes Vinare’s sole foreign strategic partner

Swiss Re becomes Vinare’s sole foreign strategic partner

07/01/2008 -- 9:51 PM

Ha Noi (VNA) – The Viet Nam National Reinsurance Corporation (Vinare) has announced Swiss Reinsurance Corporation (Swiss Re) as its sole foreign strategic shareholder with 25 percent stake.

The two companies signed a strategic partnership agreement in Ha Noi on January 7.

According to Vinare CEO Trinh Quang Tuyen, Swiss Re has bought nearly 17 million shares issued by the company at a price of 75,000 VND per share.

The strategic cooperation agreement is expected to improve the business capacity of Vinare and expand its operation outside the country, said Tuyen.

According to Martyn Parker, Managing Director of Swiss Re. in Asia , as a strategic partner, the company will help Vinare improve management capacity and become a leader on the local financial services market.

Vinare is the only reinsurance services supplier in Viet Nam . It recorded an estimated turnover of 900 billion VND in 2007, a year-on-year increase of nearly 19 percent.-Enditem
(VNAgency)

NST - The ex-right date for additional issuance with the buying ratio of 100:9,17 at price VND 15,000 per share

NST - The ex-right date for additional issuance with the buying ratio of 100:9,17 at price VND 15,000 per share
(1/8/2008)

PPG - The ex-right date for paying 1st 2007 dividend at the ratio of 6%

PPG - The ex-right date for paying 1st 2007 dividend at the ratio of 6%
(1/8/2008)


LBM - The ex-right date for getting shareholders' votes on investment projects and expanding factory

LBM - The ex-right date for getting shareholders' votes on investment projects and expanding factory
(1/8/2008)

Information on auditing companies

Information on auditing companies




On January 2nd 2008, the State Securities Commission approved the following auditing companies to audit issuance and listing institutes and stock trading organizations

Auditing and Consulting Co., Ltd. (A&C)

Auditing and Accounting Company Limited AAC

Auditing and Accounting Financial Consulting Company Limited (AFC)

Auditing and Informatics Service Company (AISC)

KPMG Vietnam Co, Ltd. (KPMG)

Deloitte Vietnam Company Limited

Vietnam Auditing and Evaluation Joint Stock Co., Ltd (VAE)

DTL Auditing Co., Ltd

Thang Long Auditing and Consulting Co., Ltd

Vietnam Auditing and Consulting Co, Ltd. (VAAC)

NEXIA ACPA Auditing & Consulting Co., Ltd

HSBC advised to buy stock in Viet Nam due to VNINDEX will access 1100 by the end of 2008 18% compared to the end of 2007.

HSBC advised to buy stock in Viet Nam due to VNINDEX will access 1100 by the end of 2008 18% compared to the end of 2007.

Viet Nam economy develop at high rate 8%/year. Enterprises’ profit rise sharply recent years 80% in the first half of 2007. P/E at 20.

However, a risk for short time investment. HSBC: The bad is that Viet Nam is restrict the foreign currency, restrict the amount of money into the security market. Since Nov 2007, the state bank stoped buying USD. It has been difficult for investors to pour money into Vietnam and rise the “night interest” of “inter-banks” up to 10%. This situation may last until the TET holiday in Feb 2008.


The additional bad is from the auction vietcombank, the average price is 107,860VND/share. It means P/e=87, HSBC indicate it is so high because the 2007 profit ratio is just 14%.

The potential strategic investors will not satisfy with the price. Moreover, the price is so high that people are doubt about the success of the other auction of other major organizations in this year.

Along with VietNam market, the other markets such as China, Korea, India, Singapore and Thailand markets are said to be time to buy by HSBC. HSBC believe that Asia markets this year will give not bad profit to their investors.

However, Asia markets are suffering from inflation in 2008, and from the different ratio of China’s currency.

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enterpreted by vietnamfinance.blogspot.com