Vietnam to Launch 20 IPOs Worth $179m in December
About 20 companies are about to launch initial public offerings (IPOs) on the Hanoi and Hochiminh stock exchanges this month with a total estimated value of more than four trillion dong ($178.6 million).
The firms set to go public include Sonadezi Corporation, Civil Engineering Construction Corp No 6 (Cienco 6), Phu Tho Tourist Co, Hanoi Railway Transport Co Ltd, Tay Ninh Sugar Co Ltd (Tanisugar), and Binh Duong Building Materials and Construction Co Ltd.
Foreign Investors Buy 82% of Shares Vietnam Airport Developer Offers at IPO
Foreign investors purchased 63.7 million shares or 82% of the volume Airports Corporation of Vietnam (ACV
), the largest airport developer in the country, put up for sale at its IPO on Thursday morning.
ACV raked in 1.12 trillion dong ($49.6 million) from selling out 77.8 million shares, or a 3.47% stake, at an average price of 14,344 dong each.
The firm will sell up to a 20% stake to strategic investors and another 1.53% stake to its employees, cutting the state holding in it to 75%.
Vietnam C.Bank Extends Forex Lending till March 2016
The State Bank of Vietnam (SBV), the country’s central bank, has issued a circular allowing banks to provide loans in foreign currencies to resident clients that need to pay import bills, finance production projects for export, and invest overseas until March 2016.
The circular will come into force in the coming January.
The new regulation aims to switch from the forex mobilization-lending relations to purchase-sale relations, which are considered one of the measures to limit the dollarization in the economy.
Bad Debt Ratio at Vietnam Banks Keeps Sliding
The bad debt ratio in the Vietnamese banking system slid from 2.93% in September to 2.91% in October after local banks were forced to unload non-performing loans (NPLs) to the central bank-run Vietnam Asset Management Company (VAMC).
VAMC purchased 43.36 trillion dong ($1.93 billion) and recouped 4.9 trillion dong ($217.8 million) worth of NPLs in Q3/2015.
Eximbank Appoints New CEO
Vietnam Export Import Commercial Bank (Eximbank) has appointed its Deputy General Director Tran Tan Loc to general director, replacing Pham Huu Phu, who has resigned.
The change in high-ranking personnel took place in the context the bank will select the management board for a new term and the Vietnamese central bank is striving to revamp Eximbank, which has seen a sharp fall in business results.
Uchida Yoko Acquires 10% Stake in Fujinet System
Japan’s Uchida Yoko has bought a 10% stake in Ho Chi Minh City-based Fujinet System, one of the largest software outsourcing firms in Vietnam, becoming the latter’s strategic partner.
Sales of Fujinet System are expected to surge in the time to come as Uchida Yoko will transfer outsourcing orders to it, said Nguyen Dang Phong, CEO of Fujinet System.
HCM City to Issue $133 Million Bonds in 2016
Ho Chi Minh City plans to sell three trillion dong ($133.3 million) worth of municipal bonds next year to fund major projects in the city.
The city has issued $133.3 million worth of debt this year, raising the total bond issuance to 10 trillion dong ($445 million) to date.
Thailand’s Tasco Earmarks $61.8 Million for M&As in Vietnam, Indonesia
Tipco Asphalt Pcl, or Tasco, a major asphalt manufacturer in Thailand, plans to spend $61.8 million on acquiring five companies in Vietnam and Indonesia, business news website Deal Street Asia reported.
The acquisitions are expected to be completed in the first quarter of next year, it said. They are part of Tasco’s plans to become a big player in the world’s asphalt and petroleum-related products market over the next five years, according to the report.
France to Resume Shipping Apple, Beef to Vietnam
French apples and beef will be officially imported into and sold in Vietnam after many years of absence, representatives of French fruit-vegetable and meat-livestock associations said at a press conference in Ho Chi Minh City this week.
Vietnam suspended beef imports from France 15 years ago right after the mad cow crisis erupted in Britain, and then spread to other European countries, said Emmanuel Bernard from the French Meat and Livestock Association (INTERBEV).
Car Sales Up 33% m/m in November
Traders in Vietnam sold 29,706 cars in November, representing increases of 33% against October and 86% against November 2014, according to a report of the Vietnam Automobile Manufacturers’ Association (VAMA).
Thaco remained at the top of the market with its wide range of vehicles, selling 8,625 units in November. The runners-up were Toyota with 4,419 cars sold, and Ford with 2,369 vehicles sold.
Vietnam, Pakistan Aim to Raise Trade to $500 Million
The Pakistani government wants to sign a trade preferential agreement with Vietnam, paving the way for a future bilateral free trade agreement with a view to accelerating the two countries’ trade.
The intention was delivered by Pakistani Finance Deputy Minister Tariq Bajwa at the third session of the Vietnam-Pakistan Intergovernmental Committee in Hanoi on Wednesday.
Japan poured $1.72 billion into 281 fresh projects and 129 operational projects in Vietnam in the 11 months through November, being the third-largest investor after South Korea and Malaysia, the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment said.
The manufacturing sector drove the largest Japanese capital inflow when attracting $923 million, or 53.5% of total Japanese investments, followed by the construction industry with $355.9 million and the real estate sector with $146.84 million.
As many as seven of the 10 countries in the Southeast Asian region made investments worth a total $3.97 billion in Vietnam between January and November this year, according to the FIA.
Malaysia topped the list with 22 newly-licensed projects worth $2.44 billion and 16 operational projects raising their capital by $91 million. Singapore followed with $1.03 billion and Thailand with $264.5 million.
Foreign-invested companies in Vietnam posted a trade surplus of $15 billion in the 11 months through November this year, compared to a trade gap of $18.8 billion posted by the domestic sector.
Foreign-invested enterprises (FIEs) operating in Vietnam, including those in the oil and gas sector, saw their exports up 13.5% year-on-year in the first 11 months this year to $105 billion, accounting for 70% of the country’s total export turnover, the FIA said.
(VNA) is close to finishing deals to sell stakes to strategic partners this month, laying the path for their signing in early 2016, said VNA General Director Pham Ngoc Minh at a Ministry of Transport meeting late on Wednesday.
VNA initiated a plan to find strategic partners in September 2014 before going public in November that year. However, potential partners did not send a letter of intent until this August, Mr. Minh tipped.