Chủ đề: 25 August Vietnam Finance & Stock Market Overview

Prices of Gold, Oil, US Dollar, Euro, Yen at 4pm Today


Vietnam Stock Market Overview

Aug 25: VN-Index sees biggest gain over past five months

Aug 25: HASTC-Index surpasses 170-point level

Brokerages hold off on bank transfers

Investor confidence in economy fuels stock market

Brokerages start securities Repo to boost liquidity

VNM: Vinamilk, Kinh Do well-placed amid Vietnam slowdown, says fund

Templeton opens Vietnamese representative office

US Senate delegation visits Hanoi’s Securities Center

Banks taking diffident steps in resuming securities loans


Banking, Finance & Economics

Standard Chartered: Good sign for Vietnam’s economy

Stocks: Choice for short-term; Properties: Choice for long-term

Market constraints force domestic banks to take higher risks

Surge hopes dashed for electronic, IT industries

Ministry suggests raising cement price

Gov’t discusses food security plan

Steel prices, demand, construction all down

Seafood industry ups exports

Mobile phone market attractive to foreign investors

Vietnam to see boom in car demand

Vietnam to export 3.6Mln tons of rice by Sep

World’s biggest aircraft ideal for Vietnam: plane maker

EIB: Eximbank raises capital base by 14%

Canon runs largest laser printer factory in Bac Ninh


Listings

KHA buys back 423,260 shares

ALT: Member of board of directors registers to buy additional 69,300 shares

VPL: Setting up companies

PPC: Member of board of directors registers to sell 14,880 shares

VIP: Increasing chartered capital in affiliated company

PVD: Deputy general director registers to sell 8,690 shares

TSC: Record date for ballot on changing capital use, private share placement

PVI: Deferring capital increase

PVE: Record date for ballot on plan to issue shares to increase capital

BMP to list 2.8Mln additional shares from Aug 28

FMC: Bao Viet Securities Investment Fund sold 70,210 shares

LBM: Member of board of directors registers to sell 5,000 shares


OTC & Bonds

25 August: OTC share update

Notice on auctioneering for shares of Hyco4

Singaporean firm named Thaco’s strategic partner

VCG: Notice on custody for shares of Vinaconex

MB: Military Bank finances shipbuilding for export

Notice on auctioneering for shares of Pymepharco

Prices of Gold, Oil, US Dollar, Euro, Yen at 4pm Today

Inter-bank Foreign Rate: $1=VND16,498

Dollar Exchange Rate on Free Market: 16,650-16,730 đồng/USD
USD/Yen: US$1 = Yen 109.94
USD/Euro: US$1 = Euro 0.6783


24-K Gold Prices at Saigon Jewelry Co. (SJC): VND17.29/17.37Mln/Tael

World gold price:

- Spot 819.50 USD/ounce (-0.3 USD/ounce on early morning).

- Dec 2008: 826.60 USD/ounce (-0.7 USD/ounce on early morning).


Oil delivered Sep 2008: 115.01 USD/barrel (+0.38 USD/barrel on early morning).

Vietnam Stock Market Overview


Aug 25: VN-Index sees biggest gain over past five months

The index of Ho Chi Minh City Stock Exchange (HOSE) closed higher on August 25 with the biggest points gained over the past five months.

The VN-Index rose 21.27 points, or 4.04% at 548.25 today.

Total 18.9 million shares matched orders with value of VND767.59 billion today, down 11.9% in volume and 9.5% in value from the previous session.

Among 156 stocks, 150 stocks ended up, only two down and 4 flat.

HTV, DNP, DHA, PVD, SAM, AGF, HAS, TNA, SCD, ACL are the most advancers, all rise as much as 5%.

Sacombank (STB), the most active with 3 million shares traded, rose 4.71% at VND31,100.

Phu My Fertilizer (DPM), the second most active with 1.86 million shares, closed up 4.65% at VND67,500.

Mirae (KMR) saw the first rising session since its debut on the bourse. KMR rose 4.73% at VND17,700 with 1.18 million shares, ranking fourth among the active.

Of two losers, of which Alta (ALT) closed down 4.1% at VND30,600 and Imerpharm (IMP) down 0.9% at VND113,000.

PMS, RHC, VPL and DMC stayed unchanged today.

All fund certificates closed up. They had 1.4 million units traded at VND13.8 billion today.




Aug 25: HASTC-Index surpasses 170-point level

The index of Hanoi Securities Trading Center (HASTC) climbed up sharply and surpassed the 170-point benchmark on August 25.

The HASTC-Index closed at 173.41 today, surging 9.13 points from the previous trading session.

Total trading volume reached 8.2 million shares valued at VND352 billion today, decreasing by 26% and 29.5% from the previous session, respectively.

Of 147 stocks, 143 stocks jumped up, three down and one untraded.

Chuong Duong Construction (CDC) and Phu Thinh-Nha Be Garment (NPS) are the best performers. Both rose as much as 7% today.

Song Da 12 (S12), Yen Bai Mineral (YBC) and Yen Son Paper (YSC) followed with the same rise of 6.9%.

Shinpetrol (VSP) recorded a rise of VND14,500 a share, or 6.98% at VND222,200.

Asia Commercial Bank (ACB) is the most active stock with 646,700 shares matching orders. It rose 6.22% at VND90,500.

PetroVietnam Techincal Service (PVS) ranked second with volume of 586,300 shares. It shot up 6.59% at VND56,600.

The newcomer Central Metalic (KKC) rose 6.67% at VND113,600 with a trade of 344,100 shares.

The giant Kinh Bac (KBC) continued to fall 0.86% at VND91,700.

Beside KBC, VE9 and VBH are two other losers, of which VE9 fell 2.88% at VND13,500 and VBH dropped 6.36% at VND16,200.





Brokerages hold off on bank transfers


Brokerages have said they can’t meet the government deadline to transfer their investors’ money into banks, while stock market watchdogs argue there’s no reason for the delay.

The Ministry of Finance last year released a decision which required stock market investors to open bank accounts instead of holding accounts with brokerages.

The directive aimed to safeguard investors from brokers misusing their money.

The move, which was first expected to take effect March this year, was rescheduled for October.

Chairman of the Vietnam Association of Securities Business, Nguyen Thanh Ky, doubted the regulation would ensure smooth trading.

“We [the association] received many complaints from our members,” Ky said.

“They said there were too many technical problems to solve. They also said banks weren’t prepared for the connection with brokerages.”

“We ran a trial connection with banks for a long time, but we had to deal with many problems, such as connection cuts, software issues and slow data entry,” said a representative of Saigon Securities Inc., the country’s largest brokerage.

“Additionally investors don’t tolerate their trading orders being inputted 10-15 seconds late.”

Hai Phong Securities Company General Director Doan Van Minh added the connection with banks cost a lot.

“Once the regulation takes effect, brokerages will have to pay nearly VND300 million (US$18,000) every year for the connection with banks,” Minh said. “That will be a huge amount as brokerages have to cooperate with three or four lenders.”

“Most stock investors are retail and small-time investors, so they prefer to bring their money with them to do transactions.”

The Hanoi Securities Trading Center Deputy Director Nguyen Van Dung, however, didn’t agree with the brokerage representatives.

“Investors will certainly feel more secure when their money is kept in a bank,” Dung said.

“But brokerages aren’t willing to carry out the regulation, because it will cost them benefits.”

Dung said the issues that brokerages mentioned were minor.

“All brokerages and banks have to do is discuss ways to solve the problems together,” he said.

“For example, brokerages should ask banks how to make a smooth connection.”





Investor confidence in economy fuels stock market


The stock market recovered Thursday, with trading value exceeding VND1 trillion (US$61.8 million) for a third consecutive session, as investors seemed to regain confidence in the macro economy.

The bourse, after gaining for 10 consecutive trading sessions before losing on Wednesday, rallied Thursday amid an anticipated slowdown in inflation and gasoline price drop.

“The consumer price index (CPI) is forecast to rise 1.43-1.7 % in August,” Pham Quang Huy, deputy director of Bao Viet Securities Company, said.

The CPI had risen only 1.13 % in July, the lowest level since January. In June it had increased 2.14 % and in May 3.91 %.

Domestic gasoline prices are also likely to drop further, tracking global prices, leading to further optimism about the September CPI.

The VN-Index, which measures the 156 companies and four closed-end funds on the Ho Chi Minh Stock Exchange (HOSE), rose 17.51 points or 3.44 %, to close at 525.98.

Trading volume stood at 25.48 million, as 137 stocks advanced and only 12 declined.

The market was slightly volatile in the first session, edged up in the second, and sharply surged in the final session.

Foreign investors were net sellers, offloading stocks worth VND75 billion ($4.5 million).

Large-caps Saigon Thuong Tin Commercial Joint Stock Bank, PetroVietnam Fertilizer and Chemical Company, and production and trading group Hoa Phat were among the most traded Thursday.

“The index may reach 550 points in September,” Huy predicted. Thursday, at the Hanoi Securities Trading Center, the HASTC-Index rose 6.18 points, or 3.94 %, to close at 162.96.





Brokerages start securities Repo to boost liquidity


Securities companies have restarted their securities repossession services, or "repo", aimed at further raising the market’s liquidity as the stock market rallies.

Colloquially, "repo" is used to refer to a financial institution taking possession, an object that was rented, leased, or used as collateral in a transaction.

In the securities sector, "repo" refers to an investor inking a deal with a securities firm to sell a share volume as mortgage in order to receive a certain money sum for securities re-investment.

Committed to the deal, the investor must then buy back the mortgaged shares at a pre-negotiated time and price. If the investor fails to buy back shares when they are due, securities firms have the right to trade the mortgaged shares.

During the 2006-07 period, repo services boomed with the robust growth of the market. But in the first months of 2008, securities firms temporarily halted this service as the market fell too low and too many investors failed to pay back mortgages. As a result, a significant volume of shares accumulated in banks and securities firms.

But as brokerages continue to receive positive signals from the stock market, the service has returned.

Recently, Sacombank Securities announced it would spend VND200 billion (US$12.12 million) in reopening this service.

An increase of the capital for repo is also planned if and when the market does fully recover.

Another securities firm in Hanoi, VNDirect, has cooperated with the Bank of Investment and Development of Vietnam (BIDV) to restart the repo service.

Nguyen Ho Nam, General Director of Sacombank Securities, said that the stock market had undergone its toughest period, and has been gradually recovering, thanks to the smoother nature of the economy at large.

"Along with enthusiastic sentiments of investors, the repo service will undoubtedly help raise the market’s liquidity," Nam stated.

"We can say the economy has rallied, but we can’t say it has recovered. Thus a cautious process is necessary to avoid unexpected losses," said Nguyen Huynh, an analyst in a Hanoi-based securities firm which restarted securities repo service.

According to many firms, as the processing of repos must by nature be cautious, share portfolios and customers criteria for securities repo are restricted.

Huynh also said that unclear market trends and a high interest rate would cause risks for investors using this service, thus making the restriction on clients to provide repos essential.

However, Huynh declined to say what kind of clients provided this service. "We need longer to offer it to all kinds of customers when the market has truly recovered."

Nguyen Son, Head of the Market Development Department under the State Securities Commission, said that securities firms re-opening this service at this time were normal.




VNM: Vinamilk, Kinh Do well-placed amid Vietnam slowdown, says fund


Vietnam Dairy Products Joint-Stock Co. and Kinh Do Joint-Stock Co. are among the companies best-placed to maintain strong earnings amid a slowdown in economic growth, a fund manager told investors.

Vietnam Dairy Products, known as Vinamilk, is the biggest food-industry company on the Ho Chi Minh Stock Exchange and the second biggest overall on the bourse. Kinh Do is the second-biggest food company on the exchange.

Rising inflation, a wider trade deficit, and an increased risk of currency devaluation hurt Vietnamese share prices in the first half, DWS Vietnam Fund Ltd. Chairman Stephen Duerden said in a report released this week to the Irish Stock Exchange.

Tightened credit has led to slower growth in Vietnam, Deutsche Asset Management (Asia) Ltd. said in the report.

“Our strategy is to stay with domestic companies with pricing power,” Deutsche Asset Management said. “This includes Vinamilk, which is Vietnam"s top dairy producer, a company that has been able to gain market share via superior branding and marketing.”

Pricing power generally refers to a company"s ability to raise prices without hurting demand for its products.

Pricing power “is critical in an inflationary environment where higher raw material costs remain a threat,” Deutsche Asset Management (Asia) Managing Director Desmond Sheehy said in an e-mailed reply to questions sent by Bloomberg News.

Profit rises

Vinamilk, which posted a 30% rise in net profit in the first seven months of the year to VND812 billion (US$49 million), also “has improved its sales mix by launching premium products to protect margins against rising raw material costs,” Deutsche Asset Management, a unit of Deutsche Bank AG, said.

Kinh Do, whose main business is confectionery, has “strong distribution channels,” Deutsche Asset Management said.

Commodity-linked companies in Vietnam are also strongly placed, Deutsche Asset Management said.

PetroVietnam Fertilizer and Chemical Joint-Stock Co. has “benefited from rising fertilizer prices globally,” Deutsche Asset Management said. “The importance of the usage of fertilizers has increased as a result of limited agricultural land.”

Coffee growers in Vietnam, the world"s second-biggest producer, have been encouraged by high prices to invest in inputs such as fertilizer, the agricultural attaché’s office at the U.S. Embassy in Hanoi said in a May report.

PetroVietnam Drilling & Well Services Joint-Stock Co. “is well-positioned to tap into the growth prospects in the oil and gas sector,” Deutsche Asset Management said.

“As Vietnam embarks on exploration of its oil fields, we anticipate growth in the company"s core business.” Sheehy said, “Most oilfield projects are highly profitable.”

Vietnamese Prime Minister Nguyen Tan Dung told Vietnam Oil & Gas Group to increase the crude output target for the year to as much as 16.3 million metric tons from an earlier goal of 16 million tons, Dau Tu newspaper reported Friday.

Vietnam is Southeast Asia"s third biggest oil producer after Indonesia and Malaysia.




Templeton opens Vietnamese representative office


Templeton Asset Management has opened a representative office in Ho Chi Minh City, underlining its optimism about the country’s growth outlook.

The office will focus on emerging markets investment research and promotion of financial services projects to develop the Vietnamese stock market and securities industry, Templeton said in an e-mailed statement Friday.

“Vietnam is a young market, but the potential is immense,” Mark Mobius, executive chairman of Templeton Asset Management, said in the statement.

“We believe it will grow to become one of Asia’s most important markets and we want to provide our investors with the opportunity to take advantage of that growth.”

Templeton is betting on the outlook for Vietnam even as the VN Index tumbled 45% this year, the world’s fourth-worst performing benchmark index tracked by Bloomberg.

This office follows Templeton’s entry into the country last February through the acquisition of a 49% stake in Vietcombank Fund Management, according to the statement.

More valuable in three years

“Vietnam’s stock market now is down, so there are more opportunities,” Mobius said in an interview in Ho Chi Minh City.

“The market will go up and will be much more valuable in about three years.”

Mobuis, who oversees about US$40 billion in emerging-market equities, said in Vietnam Templeton would invest in retail banking, manufacturing and agriculture companies listed on Ho Chi Minh City’s stock exchange.

“Inflation is high, but we are happy to see the government is acting rapidly and very strongly to beat inflation,” Mobius said.

“But that’s also why the stock market looks attractive.”

Franklin Templeton Investments, the parent, based in San Mateo, California, first established its presence in the Asia-Pacific region in the late 1980s and currently has offices in mainland China, Hong Kong, India, Japan, Korea, Singapore and Australia.




US Senate delegation visits Hanoi’s Securities Center


A US Senate delegation, led by Senator Richard Shelby, visited the Hanoi Securities Trading Center (HASTC) yesterday to discuss future bilateral cooperation in the securities sector.

The delegation and HASTC managers also talked about bilateral cooperation in recent times, especially focusing on technical support from US organizations such as the Agency for International Development (USAID).

During the meeting, Vu Bang, Chairman of State Securities Commission (SSC), expressed his deep appreciation of the support from US partners.

"Both the HCM City Stock Exchange and Hanoi Securities Trading Center are in the process of development into international standardized securities exchanges," Bang said.

He added that market regulators planned to expand the Hanoi Center into a second stock exchange in the near future, with modern technical systems to manage the sub-markets of listed shares, unlisted shares and Government bonds.

"Thus, the technical support from the US agency is playing an important role in the development of Hanoi’s market," he stated.

The State Securities Commission and the Hanoi Center are working with various US organizations such as USAID and the US Trade and Development Agency (USTDA) in offering technical support to the Hanoi Center.



Banks taking diffident steps in resuming securities loans


The recovery of the stock market has prompted commercial banks to resume securities loans. However, they are far from being bold in their dispersal of new loans.

The prices of listed shares have recovered strongly since the State Securities Commission (SSC) raised the daily trading bands to 5% and 7% on transactions at the HCM City Stock Exchange and Hanoi Securities Trading Center.

The monetary market has been stabilized, while banks’ liquidity has improved. The interest rates on the market are expected to see sharp decreases in the time to come if the inflation rate for August is low and money is profuse.

The move by banks to slash deposit interest rates shows that they do not lack capital.

Analysts say that it is now the right time for banks to consider resuming securities loans, which have been halted for some time due to the market’s falls.

Sacombank became the first bank to herald the resumption of securities loaning when providing VND200 billion in capital to its Sacombank Securities Company so the company can resume securities loans and carry out repo contracts.

These services are scheduled to be re-initiated at the end of August. Of that sum of money, 90% will be used to loan to securities investors (collateral in securities required), while the other 10% will be reserved for repo contracts.

It is expected that the interest rate on the loans will be 21%, or 1.75% per month. However, the bank will have a selective list of shares accepted as mortgaged assets for the loans, including high-liquidity share items.

Tran Xuan Huy, general director of Sacombank, said that the bank will fund investors’ deals via Sacombank Securities until the outstanding securities loans reach 20% of total outstanding loans, the ceiling level stipulated in Decision 03 dated February 1, 2008.

Meanwhile, Tran Phuong Binh, general director of East Asia Bank, said that in the immediate time, his bank will not consider resuming securities loaning, and it does not intend to develop this type of loaning. It stopped providing loans of this kind in late 2007.

“We are focusing on loaning to businesses, therefore, we do not have time to think of resuming securities loans,” Binh said.

Some other banks are also planning to resume securities loaning, but they are taking very cautious steps, due to concern that the stock market has not fully recovered yet. Moreover, as mobilized capital has been growing slowly, banks still cannot push up loaning, though they still far from using up the allowed 20% limit.

A senior official of VIB Bank said that though the difficulties on the stock market have been eased, VIB will still keep the door closed on securities investors until the stock market and monetary market return to operating stably.

Meanwhile, some securities companies under banks and independent companies have been trying to push up repo contracts.

ACB Securities Company, for example, is using its own capital to provide loans under repo contracts. The sums of money clients can borrow from the company must not be higher than 40% of market share prices at the moment of repo contract signing.

The company believes that the national economy and stock market have shown signs of recovery, which have had positive impacts on investors’ confidence. Therefore, it is now the right time for securities companies to boost their business.

Banking, Finance & Economics




Standard Chartered: Good sign for Vietnam’s economy


Standard Chartered has released a report on Vietnam’s economy, saying that narrowing trade deficit and surge in FDI calm nerves over currency crisis.

This month’s report entitled “Vietnam – Immediate danger reduced, tough acts remain” was compiled by leading economists on Asia and Southeast Asia of the UK-based bank using latest data on trade balance, FDI and monetary policy.

Market sentiment on Vietnam has calmed considerably in recent weeks, as seen by the decline in USD-VND non-deliverable forward (NDF) as well as gradual return of foreign interest in the fixed income market, the bank’s economists said. This was brought by a combination of narrowing trade deficit as well as a sudden surge in pledged FDI of estimated US$44 billion in the first seven months of this year, they added.

Standard Chartered said Vietnam’s export performance thus far this year has been robust despite concerns over global economic uncertainty. Strong contracted FDI indicate confidence from foreign business investors over the country’s prospects as a manufacturing hub as well as a resource center for the region.

The report also said that data yet to show economic impact from light monetary policy, and the State Bank of Vietnam (SBV) may need to tighten again to retain capital onshore.

Standard Chartered now has a system of more than 1,750 branches and outlets located in over 70 countries and territories. The bank generates more than 90% of its profits from Asia, Africa and the Middle East. In Vietnam, it has offices and branches in Hanoi and Ho Chi Minh City and is planning to open as many as between 20 and 30 new branches over the next three to four years.




Stocks: Choice for short-term; Properties: Choice for long-term


Experts talk about the profitability of investments in gold, real estate and securities in the last few months.


Le Xuan Nghia, Director of the Banking Development Strategy under the State Bank of Vietnam: Stocks prove to be a good choice, but…


Stocks are the choice for short-term, while properties for long-term investments


Macroeconomic factors are effectively supporting the stock market’s recovery. However, investors should not put too high hopes on the bounce back of the stock market in the short term. The national economy is better off, but the government’s measures need more time to be effective. Difficulties will still exist for some more months, i.e. the purchasing power of consumer and electronics products have been decreasing sharply, while the real estate market has not recovered yet. The difficulties will not decrease for another 5-6 months.


Associate Prof, Dr Tran Hoang Ngan from HCM City Economics University: Risks for dollar, gold holders


Eight months after experiencing fluctuations, the gold price returned to the starting point. Those who purchased gold when the price was at its highest peak have lost money. Those who purchased dollars before also have incurred losses as the dollar price has dropped by VND3,000/US$1 from the highest peak. It is not advisable to purchase gold at this moment, as the domestic price is much higher than the world’s price level.


It is unprofitable to keep dollars as the dollar supply will be profuse, to be sourced from overseas remittance, foreign direct investment and official development assistance, which is expected to be able to offset the trade deficit of $20bil.


The dollar price will remain stable at below VND17,000/USD, therefore, it is not profitable to keep dollars in the long term.


Tran Phuong Binh, General Director of East Asia Bank: Keep VND to be safe from risks


The CPI increased by 1.13% only in July, while a higher increase has been anticipated for August, but it will not be overly high as the petrol price has been slashed.


Deposit interest rates are forecast to go down in the time to come, therefore, it would be more profitable to make long-term deposits now and enjoy the interest rate of 1.5% per month (18% per annum).

The stock market has recovered, and proves to be an attractive investment channel, but it is not for all people.


Dang Van Thanh, Chairman of Sacombank


There are three groups to inject money in, in order of priority: bank deposits and securities; real estate projects which have medium prices; and gold and dollars.


Making deposits proves to be the safe investment, while securities can bring high profit in the long term. The stock market’s difficult period is over, while many share items have attractive prices. Deposit interest rates, though decreasing, are still high.


As for medium-price real estate projects, though the market is freezing, the demand for accommodations, offices and workshop premises remains very high.


Injecting money in gold and dollars may bring risks as the market happenings do not support gold price increases, while the exchange rate are tending to decrease.


Dinh The Hien, MA, finance investment expert: Buy now and wait till the end of the year


As for those who have profuse capital and well understand the real estate market, it is now the right time for investment.


However, it is expected that the real estate market will not recover until the end of 2009, when the national economy is more stable. Therefore, investors should prepare for long-term investments and thoroughly consider investment deals, especially when banks are still tightening real estate credit.


The stock market is also where investors can seek short-term investments. Macroeconomic factors are supporting the market.




Market constraints force domestic banks to take higher risks


It is said that good management, experience and a reputation for being trustworthy help foreign banks operating in Vietnam attract more high-quality customers than their domestic counterparts.



It has also been said that foreign banks in Vietnam have managed capital and liquidity better than domestic banks because they pay attention to policies that can help them raise funds at lower costs and build a safer loan portfolio.


While this is generally true, the real picture is more complex.


Many people in the banking industry say the customer bases of foreign banks and local banks are different, with the former attracting a great number of multinational corporations and domestic firms backed by foreign investment.


They have also financed many large state projects to build infrastructure or import airplanes.

It can be said that foreign banks’ customers often have a reputation for strong financial management and their projects are very likely to be effective and profitable.


Individuals also prefer keeping their money in foreign banks, thinking that it is safer although it means they will have to accept lower interest rates.


So, marketing strategies are not necessarily the only reason behind the successful capital management of foreign banks.


Their already built-up goodwill and the consumer perception about increased safety are important factors in attracting capital.


Generally, Vietnamese consumers believe foreign banks are trustworthy because they are under the umbrella of their mother companies, but many do not realize that several international banks were also hit hard by the recent financial crisis.


Compared to their foreign peers, local banks find it more difficult to attract clients.


First, global corporations have already established business relationships with international banks.

Second, local banks must offer higher interest rates to encourage customers to choose them over foreign banks.


Third, many local banks do not have the capacity to finance large projects.


A 2006 study by the International Monetary Fund found that foreign banks in developing countries have a less risky loan portfolio.


They lend to safer and more transparent customers, leaving what the IMF calls “informationally difficult firms” to domestic banks.


Among this group of more opaque customers, there are those whose projects are highly risky, for example investment in real estate and stocks.


But it is the limited choices on offer that force domestic banks to acquire riskier portfolios in order to maintain their market shares.


It is different in the U.S. and Europe, where being foreign is not an advantage – overseas and domestic banks alike have to enter risky market segments.


It should be noted that at a time when many local banks earned a lot from the real estate market and the stock market, foreign banks were still wary of the “bubbles.” It is a matter of experience.


Foreign banks have already witnessed many ups and downs in the financial markets of many countries around the world and can tell which slice of the pie is really delicious and which looks good but is in fact unhealthy.


So it is clear that the domestic banking sector needs to become more effective through improved capital, liquidity and risk management, as well as stricter monitoring of all financial activities.


Moreover, financial managers at banks must help businesses avoid decisions that can lead to financial disasters.


That said, businesses have to play their part as well.


They should be more transparent and allow their bankers to evaluate the risk of proposed ventures.

Customers’ unwillingness to disclose information and their eagerness to engage in high-risk ventures are systemic problems that plague the domestic market.


It will be hard for local banks to compete with foreign banks if these problems persist.





Surge hopes dashed for electronic, IT industries


With market predictions gone awry and the currency exchange rate belying expectations, importers and retailers of electronic and IT products have revised their outlook for the rest of the year from rosy to gloomy.



Lien An Thach, sales manager of Cho Lon Electronics supermarket chain, says it has become difficult to predict the movements of the market.


After achieving great sales in the first quarter, many businesses had forecast a 25 percent annual increase in sales for 2008.


However, some retail outlets have reported a steep drop in sales – from 30-50 percent – compared with figures for last year until mid-August.


The highest drop has been recorded in electrical appliances, followed by computer products and mobile phones.


Importers, meanwhile, have had to deal with a drop in the value of dong up to almost VND20,000 to the dollar in mid June.


While some had no choice but to receive the goods ordered, others bought a large amount of goods to keep in stock, fearing that the exchange rate would continue to surge.


But then the dong started strengthening at the end of last month.


The director of an import business, who wished to be unnamed, says his business has suffered great losses over this period because of the fall in the dong exchange rate and competition from new imports at lower prices.


Many importers now can’t sell the products they stocked earlier, says To Hong Trang, sales manager of Digiworld Corporation.


Sales have remained low in the rainy season despite the retailers reducing prices by 2-5 percent.


Distributors say they have stocks worth VND500 billion (US$30.25 million), but in order to get discount rates from manufacturers and to stay in the competition, they have to import newer models.


With the stockpiles growing, retailers in Ho Chi Minh City have decided to launch many promotion campaigns this month.


They hope to clear as much of the stock as possible by the end of September so that they are ready to purchase new products before the shopping season for the New Year begins.





Ministry suggests raising cement price


Deputy Minister of Construction Nguyen Tran Nam Wednesday signed an official document to request drafting a timeline to raise retail cement prices, the Vietnam Cement Industry Corporation said.

The document states the ministry has authorized adjusting cement prices due to recent market fluctuations.

Vietnam Cement Industry Corporation needs to draft a timeline for price adjustments as cement belongs to the list of stable-priced goods protected by the state, the ministry said.

Tran Quang Tuan, spokesman of Vietnam Cement Industry Corporation, said the proposed suggestion is to hike cement prices in two phases – in August and November by 15 % each time.

The current retail price of cement varies from VND850,000-900,000 (US$50-54) per ton.





Gov’t discusses food security plan


Ministry officials and experts met on Thursday in HCM City to figure out how to raise a targeted 3.6 million ha under rice cultivation by 2020 in to ensure food security.

The Department of Cultivation organized the seminar, National Food Security Strategy until 2020 and Vision until 2030, to collect opinions and propose policies for food producers to ensure short and long-term national food security.

The target of the food security strategy set for 2010 is to keep rice growing on about 4 million ha. The area will be reduced from the current 3.8 million ha under cultivation to 3.6 million ha by 2020, with 3.5 million ha to be maintained between 2020 and 2050.

Rice harvests should come in at 36.5 million tons by 2010, 39.8 million tons by 2020 and 40.5 million tons by 2030.

The strategy’s overarching objective is to ensure food security in every household nationwide by boosting food production, especially rice and maize, maintaining the area under wet rice cultivation, and applying intensive farming to increase output and profits.

Under the proposed strategy, farmers will be given VND3-5 million per ha of crop to buy seedlings and fertilizer, receive training to modernize food production and be exempted from irrigation fees.

Seminar attendees agreed that a national strategy for food security was essential in the face of a global food crisis, an increased risk of natural disasters and epidemics due to climate change, and the demands of industrialization and modernization.

Vietnam’s population is set to boom at 1-1.2% per year in the next few decades, and is predicted to reach 100 million people by 2020 and 120-130 million people by 2030.

Demand for food for human and animal consumption will continue to go up while agricultural harvests are expected to gradually decrease with input materials and fuel prices constantly on the rise.

If drastic measures are not taken, the area of rice farms will continue to shrink, eventually threatening national food security, according to participants.

The World Climate Change Organisation forecast that around 1.5-2 million ha of agricultural land, mostly in the Cuu Long (Mekong) Delta and coastal provinces, will be submerged as sea levels rise an additional metre in the next 100 years.

In the past ten years, farmland has given way to aquaculture and other non-agricultural purposes.

A report by the Ministry of Natural Resources and Environment shows that the country currently has 4.1 million ha of land under rice cultivation, down 361,000ha since 2000 or an average decline of 51,000ha per year.

However, rice output skyrocketed from 1997 to 2002, with national rice output last year averaging 4.98 tons per ha, an increase of 1.02 tons per hectare or 25.7% over 1998’s figure.

The rise in rice output has slowed in the past five years to a pace of 1.41%, compared with 2.21% between 1997 and 2001.

Seminar participants also pointed to shortcomings in food security system and policies as well as the domestic food distribution network.

The shortcomings could hinder access to food sources if unfavorable climate and market fluctuations occur.

Nguyen Tri Ngoc, head of the agricultural ministry’s Cultivation Department, said the national food security strategy identified a number of key crops, with rice plants in the Cuu Long (Mekong) Delta representing 52-55% of the national output.

Rice from the Cuu Long (Mekong) Delta will account for more than 90% of the national volume for export.

Prof Vo Tong Xuan proposed the board in charge of drafting the National Food Security Strategy Project to review and map out a national master plan for rice production in each region of the country.

The plan would be submitted to the National Assembly for final approval, he said.

Prof Xuan emphasized the need to issue a law on land zoning to stabilize agricultural areas.

An information system on food security should also be established to control rice production and harvesting activities as well as rice output to ensure stockpiles for reserve and export, he added.

The United Nations reported that by May this year more than 850 million people worldwide faced severe food shortages as the world food reserve last year fell to the lowest amount in the past 25 years.

The Food and Agriculture Organization announced a list of 37 countries worst hit by the food crisis, most of which are in Asia, Africa and Central America.




Steel prices, demand, construction all down


Steel prices are forecast to fall for the rest of the year as demand slackens in the domestic market, according to the Vietnam Steel Association (VSA).

The association said July steel output was at a record low 250,000 tons this year, adding that August steel consumption was even lower at an estimated 200,000 tons.

This month, steel producers reported insignificant steel sales. Vinakyoei Steel Co, a leading steel producer from southern Vietnam, sold only 2,000 tons of steel in the first 10 days of August.

Decreasing demand has led to price reductions, the association reported, adding that steel prices will probably decrease in coming months, dropping from the current price of VND17.3 million per ton, already a 30% decrease on June prices.

Steel prices are lowest in the south with prices in the north roughly VND1 million per ton higher. VSA said steel prices were also dropping in the North now.

VSA chairman Pham Chi Cuong attributed the reduction in demand and subsequent price drops to decreased construction activity during the rainy season. The global steel price was also falling and impacting local prices, said Cuong.

Despite the falling prices, experts noted that steel producers continue to make a healthy profit, as prices have skyrocketed over the last few years. Dinh Vu Steel reported a VND227 billion profit in the first six months of the year.

Meanwhile, domestic producers of steel ingot - the raw material needed for refined steel production - said they were facing difficulties, and inventory stockpiles were growing. While domestic consumption was down, the 20% export duty made exports uncompetitive in the global market, curtailing export activities.

Steel ingot trades for US$950 per ton on the domestic market, however, the market remains sluggish.

Steel ingot producers said they will cease production if the situation continues, as credit concerns would force production cuts.

To help the domestic steel ingot industry, the VSA recommended that the Government cut export tax.

Recent steel and cement price drops were seen as a positive sign by some, who believe it a signal that Government measures to bring down consumer price index (CPI) growth are taking effect. CPI has surged 21% year-on-year in the first seven months of the year.

Deputy director of the General Statistics Office’s Trade and Pricing Statistics Division, Nguyen Duc Thang, said a price reduction in the construction materials market would make a positive impact on August’s CPI figures, as housing and construction materials account for more than 9% of the basket of commodities and services that are used to calculate the CPI.




Seafood industry ups exports


In the first seven months of the year, Vietnam’s seafood export turnover increased by 20% year on year to US$2.4 billion, according to the Vietnam Association of Seafood Exporters and Processors (VASEP).

Frozen-shrimp export turnover accounted for 32.8%, with tra and basa catfish at 31.9%.

In July alone, processors exported over 136,000 tons of seafood, worth nearly US$476 million, according to VASEP. This is the highest growth rate for quantity and value in the past three years.

Russia remains a big market for Vietnamese seafood exporters. Last month, catfish export turnover to Russia was up to US$38 million, 64 times higher than the same period last year.

Exports to Ukraine doubled against last year to US$22 million in July.

Export turnover to the EU, Japan and South Korea also enjoyed growth rates of 17.23%, 41.72% and 23.85%, respectively.

Moreover, the US Department of Commerce recently exempted three Vietnamese tra catfish export and processing companies, East Sea Seafoods Joint Venture Co Ltd (ESS), QVD Dong Thap Food Limited Company (QVD Food Co) and Anvifish Co Ltd, from anti-dumping tariffs, a move expected to boost exports.

If that is the case, this year’s seafood export target of US$4.25 billion is realistic, said Nguyen Huu Dung, VASEP standing vice president.

Five seafood exporters in the Cuu Long (Mekong) Delta, Nam Viet Co, Agifish, Hung Vuong, Vinh Hoan and Cafatex Co, will collectively raise export prices 5% to prevent more dumping, according to Luong Le Phuong, Agriculture and Rural Development deputy minister.

The Government is dispatching a working group to Russia this October to promote exports for the Christmas and Lunar New Year holidays seasons.

Thirty seafood factories in Ca Mau Province are speeding up production to meet the province’s target of US$600 million in seafood export value, said Ly Van Thuan, general secretary of the Ca Mau Association of Seafood Processors.

Shortage of capital

However, many in the seafood industry warn that a shortage of capital, electricity and input materials may slacken the expected "acceleration" in the fourth quarter.

Deputy PM Hoang Trung Hai ordered the State Bank to release capital to commercial banks so that loans for seafood processors are available.

Hai also required the Vietnam Electricity Group (EVN) to guarantee a stable power supply for seafood processors. However, 30 processing plants in the south may not have enough raw materials to operate efficiently for the rest of the year because they are threatened by diseases, fisheries exhaust and fuel price increases, according to the Ca Mau Department of Agriculture and Rural Development.

Debts are preventing many catfish farms from re-starting operations, according to the Ministry of Agriculture and Rural Development (MARD).

Between 20 to 30% of fish breeders are quitting the business, said Pham Van Danh, president of the An Giang Association of Aquaculture and Processing.

Each year, Vietnam has to import US$90-100 million worth of raw seafood materials for export processing.

VASEP proposed MARD continue importing raw seafood materials in order to stay on the year’s target.

"If we spend US$1-2 billion a year importing raw material, we can increase our export turnover by US$1.8-3.5 billion", said Nguyen Huu Dung.

VASEP also suggested the Government eliminate import duties on raw materials or reduce them to 0.5% to boost Vietnam’s competitiveness with big movers like China, Thailand, Canada and the US.





Mobile phone market attractive to foreign investors


With growth rate of 60-70% a year, the highest in Asia, the Vietnamese mobile phone market has become an attractive destination for foreign telecom groups.

In addition to telecom companies which have run businesses profitably in Vietnam for a long time like Ericsson, Motorola, Siemens and Nokia, the coming of many new trademarks including Telenor of Norway, NTT DocoMo of Japan, Vodafone of Britain and Lucent Technologies of the US in the country has shown foreign investors’ keen interest in this market.

Foreign businesses have not only developed marketing in Vietnam but also planed to establish joint ventures and took part in the equitisation of domestic telecom companies.

Recently, Vimpel Com, a large mobile phone company of Russia, has signed an agreement to set up a joint venture with the Global Telecom Corporation with the aim of providing all kinds of telecom services in Vietnam .

VimpelCom has committed US$1 billion investment in Vietnam and technical supply for development of Vietnam’s GSM network.

The equitisation of MobiFone, the largest mobile phone firm in Vietnam, has selected Credit Suisse from Switzerland from ten foreign companies which were interested in providing consultation.

Holding that Vietnam’s demand for mobile communications is increasing, many foreign companies are willing to take part in the equitisation of State-owned mobile phone companies.

Ola Ree, chief of Norway’s Telenor representative office in Vietnam, said that the domestic mobile telecom market has seen spectacular progress and his company is eager to expand its investment in the market.

As one of the seven largest mobile phone service providers in the world, Telenor came in Vietnam in 2005, is planning to become a strategic partner of a Vietnamese mobile phone provider.

Roger de Bazelaire, Vice President of Russia’s Altimo Group, praised the development of Vietnam’s telecom industry in the recent past. He said he considered Vietnam as a strategic investment market.

Deputy Minister of Information and Telecommunications Nguyen Thanh Hung said that even though foreign businesses are interested in Vietnam’s mobile phone market, Vietnam should continue improving the investment environment to make full use of this source of capital. He urged domestic businesses to actively cooperate with foreign partners.

According to statistics, by the end of July 2008, Vietnam has more than 48 million mobile phone subscribers with four largest national providers, namely MobiFone, VinaPhone, Viettel and S-Fone.




Vietnam to see boom in car demand


Vietnam will see a boom in car use by 2020 as forecasted at a seminar held by the Heavy Industry Department of the Ministry of Industry and Trade (MIT) in Hanoi on August 21.

The seminar held that 2020 will begin a booming period for the country’s car demand with a rate of 38 cars per 1,000 population that will increase to over 50 cars per 1,000 population by 2025.

It also forecasted that cars of less than 9 seats will lead the period, helping to boost car manufacture and assembly as well as auxiliary industries, and reduce trade deficit.

According to the MIT, to anticipate the demand increase, Vietnam should boost the domestic car industry by focusing its resources onto the strategic segment of cars of less than 9 seats.

In addition, the government should have policies to protect the domestic market by levying high taxes on CBU (completely-built unit) cars before its ASEAN Free Trade Area (AFTA) commitments will be applied in 2018.

The government also needs solutions to boost auxiliary industries by drawing more foreign investment and intensifying technology transfer process.

Other steps include the development of transport infrastructure in order to reduce traffic jams, and the issuance of regulations and laws to solve environmental and transport problems.

At the seminar, a representative from the Japan Automobile Manufacturers Association (JAMA) said that Vietnam’s fledgling car industry needs more suitable policies to facilitate manufacturers’ operation and reduce taxes in order to increase their competitiveness.

By the end of 2007, Vietnam’s rate of car ownership was 8 cars per 1,000 population, ranking 50th among 52 car manufacturing countries.





Vietnam to export 3.6Mln tons of rice by Sep


Rice businesses can achieve the target of exporting 3.6 million tons of rice by the end of September with assistance from commercial banks.

The State Bank of Vietnam said commercial banks have provided businesses with a total of VND13.3 trillion to buy paddy from farmers.

Thanks to the loans, businesses presently buy around 20,000 tons of paddy a day at the price of VND4,700-5,300 per kilo, up VND300-400.

According to the Vietnam Food Association, its members expect to buy up to 640,000 tons of commercial paddy from farmers in August.

The country expects a total yield of 37 million tons of paddy for this year, one million tons higher than 2007, with bumper crops in both the north and south.

Domestic businesses have signed contracts to export 3.5 million tons of rice in the first nine months of the year.

By mid-August, the country shipped abroad close to 2.86 million tons of rice.

Rice is Vietnam’s fifth largest foreign currency earner, accounting for 20% of the total export turnover of the agro-forestry-seafood group.






World’s biggest aircraft ideal for Vietnam: plane maker


France-based Airbus said Friday Vietnam would be a profitable market for its A380 planes, the world’s largest commercial aircraft.



Speaking at a luncheon in Ho Chi Minh City, Airbus’ Regional Communications for Asia chief, Sean Lee, said the A380 would be ideal for the country’s national flag carrier Vietnam Airlines to operate long-haul flights to Europe and the U.S. in the future.


Despite current difficulties, Airbus is confident in Vietnam’s air traffic growth and long-term economic performance.


“We consider Vietnam as one of our key markets in Southeast Asia in the next decades,” he said.

Lee said passenger traffic on key air routes in and out of Vietnam would grow at 4.9 percent in coming years, much higher than the world’s average.


And the Vietnam-Frankfurt air-route alone would see a rise of over 10 percent a year.


Vietnam’s recent order for 30 other Airbus planes reaffirmed the European air carrier’s position as the country’s biggest aircraft supplier, Lee said.


Last December, Vietnam Airlines and Vietnam Aircraft Leasing Company (VALC) placed an order for 10 Airbus A350-900XWB passenger jets and 20 single-aisle A321 jets.


The first delivery is scheduled for July 2012.


Vietnam Airlines currently has 10 A320s, 13 A321s and four A330s.


At present, Airbus accounts for 63 percent of all aircraft orders by Vietnamese air carriers.

Lee expected the figure to rise to 71 percent in coming years.


Budget carrier Jetstar Pacific also plans to use A320s on domestic and regional routes over the next six years.


Airbus’ relationship with Vietnam dates back to 1991 with the operation of A310 aircraft on behalf of Vietnam Airlines by Singapore-based Region Air.


Last September, Airbus showcased its A380 plane in a high-profile demonstration flight into Hanoi.

Based in Toulouse, Airbus is part of the European Aeronautic Defense and Space (EADS) Consortium which produces about half of the world’s commercial jets.



EIB: Eximbank raises capital base by 14%


Export Import Commercial Bank, 15 % owned by Sumitomo Mitsui Financial Group Inc., said Friday it has raised its capital base for the second time this year by issuing shares to its foreign investors.

The Ho Chi Minh City-based unlisted bank, Vietnam’s eighth-largest lender, has hiked its registered capital by 14 % to VND4.25 trillion (US$254.5 million) by issuing 12.9 million new shares to four foreign shareholders.

Eximbank said it has also used VND386.7 billion ($23.1 million) from retained profit last year to fund the second phase of its capital boost.

Apart from Japan’s SMGF, British Virgin Islands-registered VOF Investment Ltd. owns 5 % of Eximbank, MAE under South Korea’s top mutual fund Mirae Asset group has 4.5 % and Mirae Asset Maps Opportunity Vietnam Equity Balanced Fund has 0.5 %.

In August 2007, the Japanese bank bought the 15 % Eximbank stake for US$225 million.

Eximbank issued more than 93.33 million shares in May in the first phase of a plan to boost its registered capital to VND7.26 trillion ($434.7million) by the end of this year.

Its total assets at the end of April rose 15 % from the end of 2007 to VND38.79 trillion, making it the eighth largest among 41 commercial banks operating in Vietnam.

Foreign ownership in a domestic bank is capped at 30 % with a 15-% limit for a strategic investor who could apply to raise the stake to a maximum 20 %, subject to government approval.

Eximbank is one of 10 Vietnamese banks that have sold shares to foreign banks, among which HSBC Holdings Plc. has the largest stake of 20 % in Hanoi-based, unlisted Techcombank.




Canon runs largest laser printer factory in Bac Ninh


Canon Vietnam Co. Ltd on August 22 inaugurated and put into operation a laser beam printer factory in northern Bac Ninh province, about 30 km from Hanoi.

The factory is capable of turning out 14.4 million products annually.

Built on 60 hectares in Que Vo Industrial Park, the factory is Canon’s largest of its kind in the world which is expected to account for about 35% of the world’s demand for laser beam printers.

Once operational, the factory will generate jobs for 6,500 locals. The number of workers is expected to increase to 10,000 people by 2011.

After five years of operation, the Que Vo Industrial Park has attracted more than 60 domestic and foreign investors with a total registered investment capital of over US$663 million, said Dang Thanh Tam, general director of Kinh Bac City Development Shareholding Corporation.

Listings


KHA buys back 423,260 shares


Khanh Hoi Import Export Joint Stock Company (Khahomex) announces the result of share buyback for treasury stock.

Volume of treasury stocks before buyback: 700,359 shares
Volume registered to buy back: 700,000 shares
Bought volume: 423,260 shares
Volume of treasury shares after the trading: 1,123,619 shares
Finished transaction date: August 22, 2008
Reason for not buying enough shares: The purpose of buying back shares is to stabilize the market price of KHA shares in the downtrend market. However, the market rallied and the company, thus, cancelled the buyback midway to protect the interests of shareholders.





ALT: Member of board of directors registers to buy additional 69,300 shares


Tan Binh Culture Joint Stock Company (ALTA) announces the insider trading result and new trading registration.

Trader: Le The Nhan
Position in the listed company: Member of board of directors
Traded stock symbol: ALT
Volume of shares before trading: 100,000 shares (2.5%)
Bought volume: 30,700 shares
Volume of shares after August 20, 2008: 130,700 shares
Additional volume registered to buy: 69,300 shares
Expected volume of shares after trading: 200,000 shares (5%)
Trading method: Order-matching and negotiation
Expected trading time: From August 27 to November 27, 2008.




VPL: Setting up companies


Vinpearl Tourism and Trading Joint Stock Company has informed of contributing capital to set up companies.

On March 24, 2008, the board of directors issued the Resolution No. 04/2008 approving the contribution 70% of stake, or VND105 billion, to set up Vinpearl Hoi An Tourism Investment Joint Stock Company.
After receiving the business license from the Department of Planning & Investment of Quang Nam Province dated April 1, 2008, the company has been put into operation.
On June 5, 2008, the board of directors issued the Resolution No. 11/2008 ratifying the contribution of 80% of stake, or VND8 billion, to set up Vietnam Nha Trang Tourism Joint Stock Company.
After receiving the business license from the Department of Planning & Investment of Khanh Hoa Province dated June 12, 2008, the company is expected to be put into operation on September 5, 2008.




PPC: Member of board of directors registers to sell 14,880 shares


Pha Lai Thermal Joint Stock Company (PLPC) announces the insider trading.

Trader: Vietnam International Securities Joint Stock Company
Position in the listed company: Member of board of directors
Traded stock symbol: PPC
Affiliated person in the listed company: Pham Linh
Linh’s position in the trading company: Deputy general director
Volume of shares before trading: 1,050,300 shares
Volume registered to sell: 14,880 shares
Expected volume of shares after trading: 1,035,420 shares
Purpose: To restructure investment portfolios
Expected trading time: From August 26 to November 26, 2008.




VIP: Increasing chartered capital in affiliated company


Vietnam Petroleum Transport Joint Stock Company (Vipco) has increased the chartered capital in Vipco Commerce Co. Ltd from VND50 billion to VND100 billion.

Total investment capital: VND35 billion
Capital source: Development investment fund and soft loans
The board of directors is assigned to instruct the investment of the company.





PVD: Deputy general director registers to sell 8,690 shares


PetroVietnam Drilling and Well Services Corporation (PV Drilling) announces the insider trading result.

Trader: Mr. Luong Trong Diep
Position in the listed company: Deputy general director
Traded stock symbol: PVD
Volume of shares before trading: 22,346 shares
Sold volume: 8,690 shares
Volume of shares after trading: 13,656 shares
Purpose: For personal financial needs
Finished trading date: From August 14, 2008.




TSC: Record date for ballot on changing capital use, private share placement


The Ho Chi Minh City Stock Exchange announces the record date for ballot on changing capital use and private share place of Techno-Agricultural Supplying Joint Stock Company.

Stock type: Common stock
Par value: VND10,000
Record date: September 10, 2008
Ex-right date: September 8, 2008
Purpose: Conduct a ballot on:
Changing share issuance size
Changing capital use
Changing the volume of shares offered in private placements for existing shareholders
Exercise date: From September 23 to October 8, 2008
Place to exercise voting: Sending ballots to the company’s head office: 1D Pham Ngu Lao Street, Thai Binh Ward, Ninh Kieu District, Can Tho City
The Vietnam Securities Depository – HCM City Branch will temporarily suspend the custody activities for TSC shares on September 9, 10 and 11, 2008.





PVI: Deferring capital increase


The Hanoi Securities Trading Center announces record date for a ballot on changing earnings targets set for 2008 and deferring chartered capital increase in 2008 by PetroVietnam Insurance Joint Stock Corporation.

Stock symbol: PVI
Stock type: Common stock
Par value: VND10,000
Record date: September 5, 2008
Ex-right date:
T+3: September 3, 2008
T+2: September 4, 2008
(Note: Not applied for T+1 transactions on September 3 and 4, 2008)
Purpose: Conduct a ballot on changing earnings targets set for 2008 and deferring chartered capital increase in 2008
Apportion ratio: 01 share - 01 right to vote
Exercise date: September 16, 2008
The Vietnam Securities Depository will temporarily suspend the custody for PVI shares on September 4, 5 and 8, 2008.



PVE: Record date for ballot on plan to issue shares to increase capital


The Hanoi Securities Trading Center announces record date for a ballot on plan to issue shares to increase chartered capital of PetroVietnam Investment Consultancy and Engineering Joint Stock Company.

Stock symbol: PVE
Stock type: Common stock
Par value: VND10,000
Record date: September 5, 2008
Ex-right date:
T+3: September 3, 2008
T+2: September 4, 2008
(Note: Not applied for T+1 transactions on September 3 and 4, 2008)
Purpose: Conduct a ballot on the plan to issue shares to increase chartered capital
Apportion ratio: 01 share - 01 right to vote
Exercise date: September 15, 2008
Method: Sending written ballots
The Vietnam Securities Depository will temporarily suspend the custody for PVE shares on September 4, 5 and 8, 2008.





BMP to list 2.8Mln additional shares from Aug 28


The Ho Chi Minh Stock Exchange announces the first listing and trading of additional shares issued to pay dividend to existing shareholders by Binh Minh Plastics Joint Stock Company (BMPLASCO).

Stock type: Common stock
Par value: VND10,000/share
Additional listing volume: 2,808,116 shares (paid as dividend to existing shareholders)
Additional listing value: VND28,081,160,000
Effective listing date: July 21, 2008
Official trading date: August 28, 2008.




FMC: Bao Viet Securities Investment Fund sold 70,210 shares


Sao Ta Foods Joint Stock Company (Fimex VN) announces the trading result of major shareholder (Bao Viet Securities Investment Fund).

Trader: Bao Viet Securities Investment Fund
Traded stock symbol: FMC
Volume of shares before trading: 460,000 shares (5.82%)
Sold volume: 70,210 shares
Volume of shares after trading: 389,790 shares (4.93%)
Trading time: From July 15 to August 13, 2008.




LBM: Member of board of directors registers to sell 5,000 shares


Lam Dong Mineral and Building Material Joint Stock Company announces the insider trading.

Trader: Mr. Nguyen Danh Cuong
Position in the listed company: Member of board of directors
Traded stock symbol: LBM
Volume of shares before trading: 16,000 shares
Volume registered to sell: 5,000 shares
Expected volume of shares after trading: 11,000 shares
Purpose: For family’s financial needs
Expected trading time: From August 27 to November 27, 2008.

OTC & Bonds

Notice on auctioneering for shares of Hyco4


The Ho Chi Minh City Stock Exchange announces the auctioneering of shares issued by Hydraulic Construction Corporation No.4 (Hyco4).

Auctioning company: Hydraulic Construction Corporation No.4
Headquarters: 205 Nguyen Xi Street, Ward 26, Binh Thanh District, HCM City
Chartered capital: VND100 billion
Offering volume: 1.55 million shares
Starting price: VND10,500 per share
Bidders: All Vietnamese and international investors
Estimated time for information disclosure, registration and money deposit for the auction: From August 29, 2008
Time and place for the auction: 9:00 on September 19, 2008, at the Ho Chi Minh Stock Exchange
Securities companies expecting to act as agents for the auction, please submit registration applications to the bourse no later than 16:00 on August 25, 2008.
Contact: Auctioning Department - Ho Chi Minh Stock Exchange
Address: 45-47 Ben Chuong Duong Street, District 1, HCM City
Tel: 089142535; Handset: 0908.858545 (Ms Nguyen); Fax: 088210486.



Singaporean firm named Thaco’s strategic partner


Singapore’s leading auto distributor Jardine Cycle & Carriage group (JC&C) became Truong Hai Auto Company (Thaco)’s strategic partner under an agreement signed in Ho Chi Minh City on August 21.

Under the agreement, JC&C will hold a 20% of stake in Truong Hai Auto with total investment of US$77 million, becoming the company’s largest shareholder.

As a strategic partner, JC&C will help Thaco distribute cars in Vietnam and map out a development strategy to earn a place in the regional market.

The two partners will also exchange staff, build up a joint distribution system with focus on tourism coaches in Vietnamese market and later in the AFTA and boost investment in industrial zones and financial services.

Established in 1997 in Bien Hoa II industrial park, southern Dong Nai province, Thaco has a factory to assemble Kia light truck with an annual capacity of 5,000 units. The company has recently put into operational another plant in Chu Lai, central Quang Nam province.

In the first half of 2008, Thaco sold 11,207 cars of all kinds compared to 12,140 units of the whole 2007.

Thaco’s partner, JC&C was established in 1899 and is now holding 50.1% of stake in Astra, one of the leading auto groups in Indonesia and Southeast Asia.





VCG: Notice on custody for shares of Vinaconex


The Vietnam Securities Depository announces the custody for shares issued by Vietnam Construction Import-Export Corporation (Vinaconex).

Issuer: Vietnam Construction Import-Export Corporation
Stock name: Shares of Vietnam Construction Import-Export Corporation
Stock symbol: VCG
Par value: VND10,000
Custody volume: 149,985,150 shares
Custody value: VND1,499,851,500,000
Method: Book entry
The Vietnam Securities Depository started the custody for VCG shares from August 22, 2008.





MB: Military Bank finances shipbuilding for export


Military Joint Stock Bank will provide 13 million euro to a local project to build four ships for Seatrium Shipbuilding B.V of the Netherlands.

Under the 23 million euro contract, Hong Ha Shipbuilding Company will deliver the 3,300 ton ships in November 2009.

Earlier, the Military Bank also lent 10.5 million euro to Hong Ha to implement a project to build six 2,600 ton ships for export to the Netherlands.




Notice on auctioneering for shares of Pymepharco


The Ho Chi Minh City Stock Exchange announces the auctioneering of shares issued by Pymepharco Joint Stock Company.

Auctioning company: Pymepharco Joint Stock Company
Headquarters: 166-170 Nguyen Hue Street, Ward 7, Tuy Hoa City, Phu Yen Province
Tel: 057- 829165 Fax: 057- 824717
Chartered capital: VND85 billion
Offering volume: 1,072,003 shares
Starting price: VND45,000 per share
Bidders: All Vietnamese and international investors
Estimated time for information disclosure, registration and money deposit for the auction: From August 27, 2008
Time and place for the auction: 9:00 on October 2, 2008, at the Ho Chi Minh Stock Exchange
Securities companies expecting to act as agents for the auction, please submit registration applications to the bourse no later than 16:00 on August 25, 2008.
Contact: Auctioning Department - Ho Chi Minh Stock Exchange
Address: 45-47 Ben Chuong Duong Street, District 1, HCM City
Tel: 089142535; Handset: 0908.858545 (Ms Nguyen); Fax: 088210486.