State-owned shares in JBC5 to be bid

Saturday, May 3, 2008
31,250 shares of Song Hong Corp (SH) in Construction and Building Materials Join Stock Company No5. (JBC5) will be bid for by Habubank Securities Company (HS) at an initial price of VND 105,000 each.
Bids can be submitted from April 28 to 15.00 May 6, 2008.
The auction has been scheduled for May 7, 2008 in Habubank Securities headquarter at 2C Van Phuc, Ba Dinh, Hanoi.
JBC5 Company is involved in various sectors such as industrial manufacturing, construction material, civil construction, cement additives, mechanics, oil and gas, technology consultancy and transfer.
In 2007, JBC5 earned a revenue of VND 31.268 billion while that of HS was at VND 427.53 billion. (Tien Phong)

Vinacontrol revenue hits 1.57 million USD

Saturday, May 3, 2008
The Viet Nam Superintendence and Inspection Joint Stock Co (Vinacontrol) has announced a net revenue of 25.2 billion VND (1.57 million USD) in the first quarter of this year, a year-on-year rise of 43.7%.
The company plans to earn a total revenue of 100 billion VND this year and pay its shareholders a dividend of 12%.

Stronger risk management for stock market required

Saturday, May 3, 2008
Market regulators need better policies and procedures in place to manage crises and emergencies that may arise on the nation’s stock exchanges, the Ministry of Finance said in a decision earlier this week, recommending a project be set up to create and model such policies.
The measure was one of five economic recommendations that the ministry set forth in the decision.
The decision also said that regulators needed to establish without further delay an over-the-counter (OTC) market under the administration of the Hanoi Securities Trading Centre, a step formally approved last year to reduce risks to investors in unsupervised OTC trading.
Regulators also needed to establish detailed criteria for listed companies to offer additional shares, the ministry decision stated.
“These things, although not new, will contribute to giving investors more optimism in their trading,” said Nguyen Tien Dung, an independent analyst. “They should have done earlier.”
Dung said a project to devise responses to market crises and detailed regulation on additional offers were most needed at this time because they would help the market avoid some of the steep declines of the past.
“As of now, the overload of shares seems to be the main reason for the reversal of the exchange. If we had had an obvious plan to solve it from the outset, the market would not have fallen as deeply as it has
The decision also addressed mechanisms for foreign investors as well as management of foreign capital inflows to the domestic exchange.
The decision was regarded as good news for investors during this week’s market holiday.
“The market could rebound early next week thanks in part to this news,” Dung said. “But, whether it can spur the market depends on how long it takes to implement the proposed project.” (VNA)

MoF announces five key plans to stabilise stock market

Saturday, May 3, 2008
Minister of Finance recently Decision No 745 governing on the action programme of implementing targets to stabilise market and curb inflation in 2008, including five key plans to stabilise the stock market.
* Implementing measures of stock market development along with limiting risks of the informal market, studying issue of regulations on share retails
* Studying to modify regulations in order upgrade standards for share offerings and sales, granting of business license to stock brokers and fund management companies.
* Amending or supplementing regulations relating to foreign investors on the stock market, operation rules of service provision, setting up of 100% foreign owned fund management companies, and measures to control foreign capital flow.
* Building up plans and measures to minimise risks and deal with the stock market depression
* Reforming the scheme of managing state capital in other businesses, joint holding of foreign investors in Vietnamese businesses, supervising financial business efficiency of economic groups and SOEs.

HCM City book distributor licensed to extend the share sale deadline

Saturday, May 3, 2008
State Securities Commission (SSC) on April 29 issued the Decision No 313/QD-UBCK approving the deadline extension of HCM City Book Distribution Corp (Fahasa)'s share sale to the public from January 24 to May 24, 2008.
Before the extended deadline, the company must complete the share allocation under Vietnamese regulations on securities and stock market.
Fahasa has the current chartered capital of 22 billion dong.

Cadovimex Viet Nam to list 8m shares on HOSE

Saturday, May 3, 2008
The Ho Chi Minh Stock Exchange (HOSE) reported receiving the listing application from Ca Mau province's Cadovimex Seafood Processing Import and Export Joint Stock Co (Cadovimex Viet Nam).
Under it, the seafood processor with a chartered capital of 80 billion dong asked STC's approval to list eight million ordinary shares on the southern floor under the consultancy of EAB Securities Co.

Securities depository centres licensed to define account balance of foreign investors based on foreign currency trading contracts

Saturday, May 3, 2008
State Securities Commission (SSC) on April 29 sent the Official Letter No 759/UBCK-PTTT to depository members on the usage of foreign currency trading contracts to define account balance of foreign investors in securities transactions.

According to the letter, investors when selling or offering shares (when setting securities purchase order), balance of their own accounts opened at securities depository members must meet terms on ratio of securities deposit.

To create conditions for foreign customers when setting securities purchase orders, depository members can define the account balance with securities brokerages on the payment ability of foreign investors based on foreign currency trading contracts. However, brokers should require depository members to have responsibility of ensuring payment of their customers' securities purchase with securities depository centres and custodian banks under the current laws.

Educational book supplier plans to list

Saturday, May 3, 2008
Binh Duong Educational Book and Equipment Joint Stock Co is asking Hanoi Securities Trading Centre's approval to list one million shares worth 10 billion dong on the bourse.
The company has a chartered capital of 10 billion dong, in which the state holds 51%, specialising in trading kinds of books, stationary, book distribution and others.

Agricultural Construction and Rural Development Co reports share auction results

Saturday, May 3, 2008
Hanoi Securities Trading Centre (HaSTC) reported the results of Agricultural Construction and Rural Development Co's share auction held on April 29 as follows:

* Total auctioned share volume: 3,671,500 shares

* Face value: 10,000 dong per share

* Initial price: 10,000 dong per share

* Total number of investors registering to join the share auction: 16 individuals

* Total bidding volume: 3,671,500 shares

* Highest bidding volume: 1.63 million shares

* Lowest bidding volume: 200 shares

* Highest bidding price: 10,800 dong per share

* Lowest bidding price: 10,000 dong per share

* Highest winning price: 10,800 dong per share

* Lowest winning price: 10,000 dong per share

* Average bidding price: 10,001 dong per share

* Total number of winners: 16 individuals

* Total volume of sold shares: 3,671,500

* Total value of sold shares: over 3.671 billion dong

* Payment deadline: between May 2 and 15, 2008.

Investors wait for new exchange for unlisted stocks

Saturday, May 3, 2008
Investors are awaiting the opening of an over-the-counter stock exchange in Hanoi for trading unlisted stocks after several recent scams, a move that has been delayed recently.
The exchange was scheduled to debut in March but the opening was put off by the Hanoi Securities Trading Center (HASTC) to the end of June.
The HASTC, which will operate the new exchange, did not assign a reason for the delay.
“The OTC market will safeguard investors from being cheated and improve liquidity for unlisted stocks,” an analyst said.
Investors, who struggle to sell unlisted stocks, usually approach retail dealers, who tend to rip off both sides.
40 firms to list
Nguyen Vu Quang Trung, HASTC deputy director, told Thoi Bao Kinh Te Sai Gon (Saigon Economic Times) newspaper: “At first, 20 brokerages, five insurers and 15 banks will list on the market.
We chose those companies because over-the-counter investors mainly trade in the financial and banking sectors.”
Trading regulations on the new platform wouldn’t be muchdifferent from the Hanoi and Ho Chi Minh City stock exchanges.
“Unlisted companies will have their shares traded at brokerages,” Trung said.
HASTC director Tran Van Dung added investors would be allowed to open a trading account for unlisted shares.
“Those who already have an account for trading listed stocks canuse that account to trade unlisted stocks. The account will be split into two.”
The State Securities Commission (SSC) and the HASTC were discussing the daily trading band for the new exchange, he said.
“We suggested [it] should be 20%.”
Figures from the SSC show there are 926 shareholding companies in the country. (Tuoi Tre)

KDB ups stake in financial leasing company

Saturday, May 3, 2008
Korea Development Bank’s KDB Capital Corporation raised its stake in a Vietnamese financial leasing company to 60% from 37.7% to expand its business in the country.
KDB bought the additional stake in Vietnam International Leasing Company from Industrial & Commercial Bank of Viet Nam, the country’s fourth biggest bank, Kim Byung Sun, first deputy general director of the financial leasing company, said in an e-mailed statement.He didn’t say how much KDB paid for the stake.
Cho Soo Cheol, a spokesman at KDB Capital in Seoul, said by phone that the South Korean company raised its stake to 60% last year.
Natixis SA, the French investment bank, and Aozora Bank Ltd., the Japanese bank controlled by Cerberus Capital Management LP, each holds 20% in the leasing company, Kim said. (Bloomberg)

Guide Foreign Investor How To Invest In Vietnam Stock Market

1. For private investors, it is necessary to fly to Ho Chi Minh City. As a foreign investor, you can completely exchange on the Vietnamese stock market under Securities Law and other relating laws.
Foreign ownership of shares in companies listed on the Ho Chi Minh City Stock Exchange is limited to 49% of the company’s issued share capital(except for bank and other special industries). For bonds, foreign investors can hold 100% ownership of a particular issuer’s bonds.
Foreign investors who wish to purchase shares through the Ho Chi Minh City Stock Exchange are required to register through a custodian licensed to hold securities on behalf of foreigners – of which there are currently three: The Hongkong and Shanghai Banking Corporation, Deutsche Bank AG and Standard Chartered Bank. Beside these three, securities companies can play role of custodian unit to hold stocks for foreigners as well. Once registered, a Securities Transaction Code is issued to the foreign investor who may then open a Trading Account with one or more of the twelve licensed Securities Companies.
Basic documents required include:
* For individuals: registration form, applicant information sheet, judicial record.
* For institutions: registration form, applicant information sheet, Certificate of Incorporation, and Decision/Board resolution appointing authorized signatories.
The Investor's information need to be notified by the notary public of the home country and the Vietnamese embassy.
Then the sealed hardcopy must be sent to the securities broker, who applies for a trading code.
Fill out the application for a trading account, which you will receive from your securities broker. And send back a hardcopy.
2. Investors must open a transaction/trading account in VND with a depository member or securities company.
3. The selected depository member or securities company then opens a foreign currency demand deposit for the foreign investor, along with a special VND demand deposit into which the foreign currency that will be used to purchase stock is transferred.
After all account applications are complete, funds are deposited into the VND deposit account according to rules. Buying and trading stock is in VND.
Investors may place orders in person at the office of the selected securities company, by telephone, by fax, or online, depending upon securities company. Trading at the HOSE is conducted daily with two matching sessions at 09:20am and 10:30am local time. Securities companies normally accept orders ten minutes before matching time. If the order is matched, the investor receives the security or deposit in their account after one trading day.
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