Savico eyes property sector as revenue booster

Thursday, May 15, 2008
The HCM City based Saigon general Service Corp, or Savico, said it would deeply engage itself in the property sector with many projects nationwide in the offing, considering them as the key source of income as the company targets high revenue this year.
Board chair Nguyen Quang Tien said that it targets to obtain 2.2 trillion dong, or some US$137 million, in turnover this year, up 450 billion dong on last year, while the profit is targeted at 80 billion dong and a dividend for 2008 at 15%.
While trading and service remain Savico's core business in 2008, the company sees property projects as the base for service-trading system's growth, Tien was speaking at the company's shareholders meeting last Saturday at the Hotel Majestic.
The company will cooperate with
Vinaland Investments Co to develop Savico Plaza project at 115-117 Ho Tung Mau Street in HCM City's District 1 at an estimated cost of US$50 million, of which 50.5% is from Savico. The project includes a trading centre, high -class offices and apartments for lease, and construction will start in the four quarter this year.
Savico also has plans to develop Savico Plaza at 104 Pho Quang Street in Tan Binh District. The US$53 million building includes a trading centre, a hotel, and offices and apartments for lease.
Besides projects in the city, Savico is also expanding the property business to other localities. It will develop Savico Trading Centre System in Can Tho City and Savico Plaza Long Bien in Hanoi.
Savico is putting a finishing touch on some office building projects in HCM City like the seven -story building at 555 Tran Hung Dao Street and another seven-story office building with at 35 Dong Khoi Street, both in District 1 in the city.
The company has also started work on an 11-story building at 227 279 Ly Tu Trong Street in District 1. Besides, the company also builds hotels or resorts in Da Nang and other provinces.
Last year, the company obtained 1.750 trillion in revenue and 83.9 billion dong in before-tax profits, up 38% and 23% respectively compared with its targets.

Sacomreal boosts issue of project bonds

Thursday, May 15, 2008
To have enough investment capital for real estate, many enterprises selected to issue project bonds quickly. In conjunction with Hai Thanh Ltd Co in building Phu Loi 1 apartment area, HCM City's Dist 8, Sacomreal issued 100 billion dong in six-month bonds in the end of January 2008, the real estate trader's chair said that the issue time was calculated carefully so when the bonds come to mature in July, it will be the right time for completing the foundation of Phu Loi 1 apartment.
Sacomreal also ruled that each person who holds one bond with a face value of 500 million dong will be given priority to buy an apartment after the project is finished. Bond buyers will be subject to 5% discount of apartment value and receive a coupon rate of 8.8% per annum.
In March 2008, Sacomreal also issued 750 billion dong in shares with the par value of 1.5 billion dong each in cooperation with an investor to start the construction on Phu My apartment area, HCM City's Dist 7. the project bondholder is also allowed to buy an apartment plus the 8% discount preference. Dang Hong Anh, the company's general director said that capital raised from bond issues will be invested in large sized projects with over 1,000 apartments each. The coupon rate of these project bonds is 12% per annum.
Similar to Phu Loi 1 project's bonds, Phu My project bonds will mature in November 2008 when the foundation of project could be finished. By that time, bondholders will have the right to sign contracts to buy apartments. By the middle of May, Sacomreal will continue issuing bonds to raise investment capital for Phu Loi 2 property project.
In addition, Phat Dat Real Estate Development Joint Stock Co also plans to issue bonds for projects in Dist 7 such as raising 7.5 trillion dong for The EverRich II, nine trillion dong for The EverRich III. Similarly, Thanh Cong Textile Co recently announced that it would issue convertible bonds to build Thanh Cong Tower 1, 2 and 4.
Regarding some project bond issuers, according to Le Hoang Chau, chair of HCM City Real Estate Association, in the disadvantaged situation in terms of capital and banks are tightening up property lending, capital mobilisation by bond issue is an effectively new method. However, bonds naturally are the method of mortgage borrowing, in which bond buyers believe in that issuer's prestige and trade name. Therefore, there should be particular regulations to protect bondholders' interests.

CII reports 37.175b dong profit in Q1

Thursday, May 15, 2008
The HCM City-based Infrastructure Investment Joint Stock Co (CII) recently announced 95.145 billion dong in net revenue from sales and service provision in the first quarter of the year, up 116.59% or 51.217 billion dong against the same period of last year.
The company gained 37.175 billion dong from after tax profit in Jan-March, rising 74.44% or 15.864 billion dong year-on-year and CII's EPS reached 1,025 dong.
CII targets to bring the figures to 359.149 billion dong in total revenue, 140.784 billion dong from after tax profit and dividend of 16% within this year.

Kinh Bac urban developer reports 134.8b dong profit in Q1

Thursday, May 15, 2008
Kinh Bac Urban Development Joint Stock Co (coded KBC) recently reported business result in the first quarter of the year with 358 billion dong in net revenue from sales and services provision, 360.7 billion dong in total revenue or 30.34% of the year's plan, 134.8 billion dong from after tax profit, equalling to 22.06% of the year's target, and EPS was 1,605 dong.

Reportedly, last year the company made a revenue of 538.6 billion dong, 320.3 billion dong from after tax profit and dividend of 43% in shares.

This year, KBC plans to invest in a series of business projects like the project capitalised at US$100 million to expand Que Vo industrial zone covering on an area of 600 hectares, the US$200 million project to develop Yen Phong industrial and urban zone in Bac Ninh province and the US$200 million project to invest in Phuc Ninh urban park.

Simco Song Da subsidiary spends 243b dong on projects

Thursday, May 15, 2008
Simco Song Da Joint Stock Co (coded SDA)'s shareholders' meeting recently passed the plan to pay 20% dividend including 10% in cash and 10% in shares.

Last year, the company brought 121.8 billion dong in revenue and 32.17 billion dong from pre tax profit and that could be 200.6 billion dong and 37.2 billion dong respectively within this year. During the first quarter of this year, Simco Song Da reported gaining over 6.6 billion dong from after tax profit.

In order to gain this year's target of revenue and profit, the company plans to invest 243.8 billion dong in many projects such as Van Phuc-Ha Dong new urban zone project worth 174.47 billion dong, 53.5 billion dong in hydropower projects and industrial zones and 7.7 billion dong in Song Da Corp.

In addition, the company strives to boost exporting worker to abroad traditional markets as well as new markets with the number of 2,000 workers within this year.

Vien Dong insurance firm releases background

Thursday, May 15, 2008
Vien Dong Insurance Joint Stock Co (VASS) has joined the non-life insurance market since 2004 with a chartered capital of 72 billion dong and that is now 300 billion dong. VASS's shareholders include many potential and prestigious monetary commercial institutions like Saigon Thuong Tin Joint Stock Commercial Bank (Sacombank), Oriental Commercial Joint Stock Bank, Military Bank, Hanoi Building Commercial Joint Stock Bank (Habubank), HCM City Securities Co and Vietfund and Lam Son Sugar and Sugarcane Co.

So far, VASS with the headquarters in HCM City has provided its over 50 insurance service packages to 33 provinces nationwide and launched 24 branches, 45 customer service offices and over 2,500 agents through out the country.

In order to improve its competitive capacity, VASS has cooperated with many non-life and life groups such as Vietnam National Reinsurance Co (Vinare), Liberty Mutual, Aon Re, Lioyd's London, Munich Re and Pacific International.

Last year, VASS' revenue from insurance service reached 167.5 billion dong, an over two fold increase against 2006 and 35.8 billion dong from pre tax profit and that could be 246.8 billion dong and 84 billion dong respectively within this year.

In 2008, the company targets to double its chartered capital to 600 billion dong from the current of 300 billion dong.

On the OTC market, VASS' shares are being traded ranging between 17,000 dong and 18,000 dong per share.

Generalexim to issue 485,000 more convertible bonds

Thursday, May 15, 2008
Viet Nam general Export Import Joint Stock Co No I (Generalexim) recently released its plan of paying dividend of 3% in cash and 10% in shares for the second phase of 2007 on May 19.

The deadline to close the list of shareholders book to is on March 14.

This year, the company targets 1.57 trillion dong in revenue and 25.2 billion dong from after tax profit.

With the plan of paying 2007 dividend of 10% in shares and convertible bonds that will be matured on July 31, 2008, the company's chartered capital would be raised to 88.9 billion dong

Generalexim also plans to issue 485,000 more convertible bonds at 100,000 dong par within this year, which will be matured by 2009, to its chartered capital to 112 billion dong.

At present, generalexim is preparing to complete necessary documents and legal proceedings to meet the demand of listing on the stock transaction floor.

ABBank reports 2007 performance

Thursday, May 15, 2008
An Binh Commercial Joint Stock Bank (ABBank) reported that last year, the bank reached 325.36 billion dong in net revenue, rising 248.7 billion dong year-on-year, 421.54 billion dong in total operational turnover, up 300.9 billion dong or 249% yoy and 275.276 billion dong in net profit from business.

Meanwhile, it also gained 161.75 billion dong in after-tax profit after paying the current CIT of 69.017 billion dong, a year-on-year increase of 178% or 103.6 billion dong and EPS of 1,219 dong against the face value of 10,000 dong.

Formed in May 1993 with the initial chartered capital of one billion dong, the bank raised the figure to 2.3 trillion dong by the last year end.

As announced, ABBank will pay a 2007 dividend of 10.34% (1,034 dong per share), including 4.95% in cash paid on April 28, 2008 and the remaining 5.39% will be paid in the fourth quarter of this year to hike chartered capital.

The bank spent total 146.269 billion dong on operation costs.

Dai A Bank expands south

Thursday, May 15, 2008
Dong Nai headquartered Dai A Commercial Joint Stock Bank, or Dai A Bank, will inaugurate its branch in HCM City today as an important landmark for the lender to expand operations after converting itself into an urban bank from a rural bank.

Located at 1015 Tran Hung Dao Street in HCM City's District 5, the branch provides retail banking services, targeting individuals, small and medium enterprises, and especially companies in industrial zones and export processing zones, a representative of the bank said.

Dai A bank has total chartered capital of 500 billion dong and expects to double it to one trillion in third quarter of this year and to three trillion in 2010, the source said.

Apart from its headquarters and facilities in Dong Nai Province and this branch in HCM City, the bank expects to open more branches in Hanoi and Binh Duong, and some 15 transactions offices in other provinces by the end of this year.

On the occasion, Dai A Bank will sign agreements connect itself to the country's bank card networks including VNBC, BanknetVN and Smartlink. The bank launched the first 1,325 credit cards in April as part of a broader plan to issue multipurpose cards in June.

On this occasion, the bank will also ink deals with some securities companies in financial cooperation, and with enterprises in industrial parks to provide banking services.

Dai A Bank was established in 1993 in Dong Nai and has 10 branches and offices in this province. The bank obtained permission from the central bank in October 2007 to convert its business model from a rural commercial joint stock bank into an urban commercial bank.

Bibica postpones share issue

Thursday, May 15, 2008
Bien Hoa Confectionery Joint Stock Corp (Bibica)'s extraordinary shareholders' meeting recently decided to delay the plan of issuing shares at 10,000 dong par for the second phase at the ratio of three new shares for 10 shares held.

According to Bibica, the main reason is the downward tendency of the stock market. Issuing more shares could dilute the value of the company's share and cause disadvantages for the company's existing shareholders.

Bibica has not fixed the exact time yet for issuing shares for the second phase and the issue plan may be postponed until 2009.

Hai Phong Securities broker to hike chartered capital to 300b dong

Thursday, May 15, 2008
Hai Phong Securities Joint Stock Co (Haseco) recently announced that it plans to scale up chartered capital to 300 billion dong from the current of 192.463 billion dong via offering 12 million shares within this year.

Last year, the securities broker posted 127.088 billion dong in revenue, 72.47 billion dong from pre tax profit and dividend of 20%.

This year, the company plans to change operation mode towards investment banks. Haseco plans to invest US$1.5 million to upgrade information technology system and 100 billion dong to build its new headquarters at No 9, Hoang Dieu S trillion in Hai Phong.

Comeco targets 16b dong profit and 12% dividend in 2008

Thursday, May 15, 2008
Comeco Petroleum Materials Joint Stock Co (coded COM) on April 25 reported that it last year earned nearly 2.088 trillion dong in revenue, rising 22% yoy, 15.19 billion dong in after-tax profit, up 24% and a dividend of 15% including 9% in cash and 6% in shares.

Regarding the profit allocation of 2007, the company planned to deduct 759.5 million dong for compulsory financial standby fund, 1.52 billion dong for the reward and welfare fund, 300 million dong for operation fund of director board, and 4.61 billion dong for the firm's investment and development fund.

In addition, Comeco targets to reach 2.55 trillion dong in revenue, 16 billion dong in after-tax profit and a dividend of 12% this year and plans to issue more shares to hike chartered capital.

To pay a dividend of 6% in shares, the company will offer 146,088 shares to key employees with the price of 24,000 dong per share.

During the first quarter of 2008, it reached 695 billion dong in revenue from sales and service provision, jumping 231.3 billion dong or 49.9% year-on-year, 5.006 billion dong in after-tax profit and EPS of 641 dong.

Ending the session on May 12, COM coded share price closed at 36,900 dong per share on a trade of 100 shares changing hands.

Nui Beo Coal Co. posts 12.27b dong profit in Q1

Thursday, May 15, 2008
Listed firm Nui Beo Coal Joint Stock Co (coded NBC) recently posted the first quarter's business results with the revenue of 325.93 billion dong, increasing 15.13% or 42.84 billion dong year-on-year, and the after-tax profit of 12.27 billion dong, growing by 175.73% and EPS of 2,045 dong.

The company, operating in fields of mining and processing coal and other natural minerals, building industrial and civil works, trading materials and equipments to serve production, targets to earn 1.304 trillion dong in total revenue, 49.437 billion dong in pre-tax profit and a dividend of 15%.

In Jan-March, Nui Beo Coal JSC also posted 43.683 billion dong in combined profit from sales and service provision, 192.840 billion dong in revenue from financial activities, 11.937 billion dong in net profit from business, and 335.466 million dong in other profits.

Its cost for financial operation in Jan-March was 5.934 billion dong, for sales at 7.205 billion dong, for corporate administration at 18.8 billion while the other costs were 3.536 billion dong.

After the first session of this week (May 12) closed, the share price of NBC declined by 1,400 dong down to 48,100 dong per share with 2,000 shares being traded.

SC5 construction firm to pay 30% dividend

Thursday, May 15, 2008
Construction Joint Stock Co No 5 (coded SC5)'s shareholders' meeting will be held on May 25 to pass this year's business plan with 878.2 billion dong from after tax profit, 818 billion dong in total revenue including 617.25 billion dong from installation and construction activities, 154.1 billion dong in revenue from housing business activities and 46.64 billion dong from construction materials and equipments, and dividend of 30%, of which 10% in shares and 20% in cash.
This year, SC5 plans to carry out many big projects like My Duc residential area project in ward 21 in Binh Thanh Dist and other projects of apartment, office building and trade centre.

SSC gives go-ahead to five IPOs

Thursday, May 15, 2008
The State Securities Commission (SSC) has approved in principle three companies to offer shares to the public namely Pymerphaco Joint Stock Co, Petroleum Transportation Joint Stock Co and VTC Telecom Joint Stock Co.

At the same time, SSC also issued the Decision No 328/QD-UBCK dated on May 9 to extend license of offering shares to the public for Vinaconex Glass Fiber Reinforced Polyester Joint Stock Co until June 26, 2008.

Earlier, SSC granted license No 302/UBCK-GCN of offering shares to the public for DIC-Intraco Investment and Trade Joint Stock Co that has a chartered capital of 33.6 billion dong.

The company was allowed to offer 4.48 million ordinary shares at 10,000 dong par to the public including 2.24 million shares issued to the existing shareholders and the remaining 2.24 shares to big investors.

Dong Tam Co to go public

Thursday, May 15, 2008
Dong Tam Joint Stock Co yesterday May 13 announced that it plans to list shares on Ho Chi Minh City Stock Exchange (HOSE) and expand business sphere to real estate sector and export import goods logistic services.
According to the fiscal report, last year the company earned 509 billion in revenue and 103 billion dong from after tax profit that could be 1.5 trillion dong and 250 billion dong respectively and dividend of 25-30% within this year.
The company also plans to offer more shares to hike its chartered capital from the current of 524 billion dong to 679 billion dong in this year.

Dong Tam Co to go public

Thursday, May 15, 2008
Dong Tam Joint Stock Co yesterday May 13 announced that it plans to list shares on Ho Chi Minh City Stock Exchange (HOSE) and expand business sphere to real estate sector and export import goods logistic services.
According to the fiscal report, last year the company earned 509 billion in revenue and 103 billion dong from after tax profit that could be 1.5 trillion dong and 250 billion dong respectively and dividend of 25-30% within this year.
The company also plans to offer more shares to hike its chartered capital from the current of 524 billion dong to 679 billion dong in this year.

Dong Tam Co to go public

Thursday, May 15, 2008
Dong Tam Joint Stock Co yesterday May 13 announced that it plans to list shares on Ho Chi Minh City Stock Exchange (HOSE) and expand business sphere to real estate sector and export import goods logistic services.
According to the fiscal report, last year the company earned 509 billion in revenue and 103 billion dong from after tax profit that could be 1.5 trillion dong and 250 billion dong respectively and dividend of 25-30% within this year.
The company also plans to offer more shares to hike its chartered capital from the current of 524 billion dong to 679 billion dong in this year.

Singaporean's OCBC Group increases stake at VPBank

Thursday, May 15, 2008
Singapore’s third largest financial group OCBC will increase its Vietnam Joint Stock Commercial Bank for Private Enterprises (VPBank) shareholdings to 15% following an agreement to buy another 5% of the local bank’s stock.

Under the deal inked in Hanoi on May 14, the Singaporean partner will pay 4.5 times more than the share’s market value, or an equivalent to the price previously paid for its 10% stake.

Since becoming VPBank’s strategic partner in May 2006, OCBC has made a number of deals with the local financier, including spending 7 million USD in personnel training for VPBank.

VPBank is one of the three leading commercial joint-stock banks and has 140 branches nationwide. Its charter capital has reached 2 trillion VND.

Incomfish stops issuing shares

Wednesday, May 14, 2008
Incomfish announced it would temporarily stop issuing 23.99 million shares, and authorised the management board to choose a financial organisation to acquire loans.
At a meeting, shareholders agreed to stop three projects because of difficulties mobilising capital and the projects’ ineffective operation, according to Trinh Ba Hoang general director of Incomfish.
The company will continue investments into other projects, including Tan Thanh Industrial Zone, a three-star hotel and trading centre in Thu Duc, HCM City and a frozen seafood factory in Dong Thap Province.

Lop-sided trading bands proposed to rescue stock

Wednesday, May 14, 2008
Lop-sided trading bands have been suggested as a measure to rescue the falling stock market.
If the stock market keeps falling for a long time, investors’ confidence in the market will be lost and the stock market will collapse. Therefore, experts have urged the Ministry of Finance and State Securities Commission (SSC) to take actions urgently to rescue the market.
No transactions for many share items
The stock market witnessed another lackluster day on May 13, when the trading volume under the mode of matching orders in HCM City was VND39bil only, just equal to 5% of normal days. The trading volume was VND17bil in Hanoi.
A lot of share items like BTC, HAX, HDC, and ST8 did not see any transaction.
Investors, letting things run their course, tried to sell stocks. The share prices are now just equal to 15-20% of the highest peak price levels.

SSC’s Head of the Market Development Division Nguyen Son once stated that the commission will ‘apply strong measures’ when necessary if the market falls into uncertainty. And now is when investors are expecting the promised ‘strong measures’.

Which strong measures?

Hoang Xuan Quyen, Investment Analysis Director of Tan Viet Securities Company, wrote on Thoi bao Kinh te Vietnam that there are six possible strong measures:

1. Temporarily halting transactions for a certain time

2. Closing the market when the VN Index and HASTC Index fall into the ‘dangerous areas’

3. Narrowing the trading bands

4. Providing more room for foreign investors

5. Limiting the sales of mortgaged stocks by commercial banks

6. SCIC (State Capital Investment Corporation) to join the market

According to Quyen, No 1 would not be easy to implement as it requires the agreement of all market members. Moreover, SSC thinks that drastic measures are not necessary at this moment.

No 2 proves to be unfeasible, as there is no concept of ‘dangerous areas’.

The two last measures, No 5 and 6, were applied in the past, but did not bring desired effects.

No 4, raising the allowed foreign ownership ratio in local companies, has been a hot topic in the discussion of investors and securities experts, who consider this an effective way to stimulate demand. However, state management agencies are still hesitating to raise the foreign ownership ratio, as this is considered a risky solution. The agencies are still worried about a massive capital withdrawal of foreign investors which could lead to the collapse of the stock market.

Regarding the application of trading bands, Quyen thinks that SSC will not use the tool once again (In March, the trading bands were lowered to 1% and 2% for HCM City and Hanoi trading floors, respectively, and then have been raised to 2% and 3%).

Quyen said that many developed market are still applying the trading band scheme in order to avoid market ‘hyperactivity’. Austria and Turkey, for example, are applying the trading band of +/- 5%, Taiwan +/- 7%, India +/- 8%, Argentina, Mexico, Spain and China +/- 10%, while Malaysia and Thailand +/- 30%. Some countries are applying lop-sided trading bands like Belgium (-5%; +10%), France and Italia (-10%; +20%), Philippines (-30%; + 40%), and Japan (-10%; + 60%).

However, many others think that the application of the lop-sided trading bands will help rescue the market.

Nguyen Chinh Nghia, General Director of Hoang Gia International Joint Stock Company, said that previously, when Taiwan’s market was gloomy, Taiwanese authorities applied the lop-sided trading band scheme (the allowed maximum price increase is higher than the maximum price decrease. The “-10%; +20%” trading band means the share prices of the next trading session must not be 20% higher and 10% lower than the prices of the previous session).

If the lop-sided trading band scheme is applied, investors will regain their confidence in the market if they feel that the stock market has fewer risks. This will encourage them to make transactions, which can help stimulate demand.

Nghia said that in Vietnam, the price decrease should be limited at -0.5% or -1%, while the price increase should not be limited.

Analysts say that the solution may cause side effects, but most importantly, it will help restore investors’ confidence. Meanwhile, if the market falls into decay, it will be impossible to restore investors’ confidence.

VND/US$ exchange rates see new hike records

Wednesday, May 14, 2008
The dollar value has been witnessing continued, record increases. Commercial banks opened today’s transactions with new prices for the dollar, VND7/US$1 more than yesterday.
The dollar revaluation began in the first week after the April 30 holiday, when the dollar price unexpectedly soared by VND20/US$ in the first transaction day, kicking off the second sharp increase of the dollar in the year. To date, the dollar price has increased by VND40/US$ over the pre-holiday period.
Currently, banks’ sale price is at VND16,165/US$1, while in the black market, the sale price is VND16,450/US$1. Compared to the deepest low of the dollar (VND15,300/US$1), the price has soared by VND150/US$1.

The latest report by the State Bank of Vietnam said that the dollar supply and demand shows signs of imbalance with demand for the dollar on the rise.

The main reason behind the increased demand for dollars is the higher demand of import companies. As everything is getting more expensive on the world’s market, importers need more dollars to import commodities. The supply of dollars has become tighter as Vietnam had the high trade deficit of $11bil in the first months of the year. The figure has been pressuring the foreign currency reserve of the State Bank, though the bank affirmed that it would sell dollars to commercial banks to ease the dollar shortage.

Dollar deposits have been slowing down. In the first four months of the year, deposits in dollars increased by 1.73%, higher than the VND deposits, but representing a lower rate than the same period of last year (5.39% vs 15.55%).

The Governor of the State Bank of Vietnam has released Document No 4228, requesting commercial banks to provide enough dollars for petroleum importers so that the importers can ensure petroleum supplies to serve domestic consumption.

Commercial banks say that they have the demand to buy foreign currencies from the State Bank. (TBKTVN)

Foreign, domestic banks go fishing – for capital

Wednesday, May 14, 2008
Lacking capital, bankers are trying different ways to lure capital. While foreign banks are raising deposit interest rates, domestic banks are launching promotion programmes with attractive preferences.

On May 12, ANZ Bank announced it will apply the new interest rate of 12% per annum on 1-6-month term deposits, which is 0.5% higher than the rates offered by domestic banks. The new rate will be applied for deposits of VND20mil at least.

Meanwhile, the ceiling interest rates applied by domestic banks are 12% for six-month term and longer deposits and 11.5% for less than 6-month term deposits. A securities investor revealed that a foreign bank offered him the interest rate of 14% per annum if he deposited VND4bil or more.

When asked why foreign banks have the right to apply interest rates higher than the ceiling interest rate and the rates applied by domestic banks, Ho Huu Hanh, Director of the HCM City branch of the State Bank of Vietnam, said that foreign bank branches are under the control of the central bank, and the branch cannot interfere in this.

Meanwhile, domestic banks, in order to attract more capital, have been rushing to launch a series of promotion programmes.

VP bank, for example, is running the promotion programme “VP Bank’s golden gifts” from May 15 to August 9 with the total value of gifts up to VND3bil. This is the most expensive promotion programme the bank has initiated so far.

Ocean Bank has launched a programme allowing depositors to make deposits in VND with the value ensured by gold. In all cases, the value of the deposits would not be lower than the initial value. Eximbank is also running a summer promotion programme which will last until August 2 with the total value of VND1bil.

In order to mobilise capital from all possible sources, Saigon Joint Stock Bank has raised demand deposit interest rates from 3.6% per annum (0.3%/month) to 9% per annum (0.75% per month).

In principle, demand deposits always have low interest rates, not higher than 30% of fixed term deposit interest rates. However, as banks need capital, they have raised demand deposit interest rates to 3.5-4%. With the new interest rate, SCB’s demand deposit interest rate is equal to 70% of its fixed term deposit interest rate.

Bankers say that the increases of demand deposit interest rates will not cause new interest rate wars as only individuals and businesses that usually pay through banks make demand deposits. (SGTT, TBKTVN)

Foreigners Net Buyers Of VND20.6 Billion Of Shares

Wednesday, May 14, 2008
Foreign investors were net buyers of VND20.6 billion ($1.3 million) of Vietnamese stocks Wednesday, out of a total of VND44.3 billion traded, the Ho Chi Minh Securities Trading Center said.
Volume traded totaled 915,550 shares, with foreigners accounting for 46.5%, according to the stock market operator. (Dow Jones)

HOSE welcomes Asia and Europe Securities Co

Wednesday, May 14, 2008
Asia and Europe Securities Joint Stock Company (AAS) became the 84 th member of HCM City Stock Exchange (HOSE) and officially began operating on May 14 on the bourse.

The company has a charter capital of 35 billion VND and functions as a stock broker and stock investment consultant.-Enditem
TTA1405.018 Railway Union to reduce accident hot spots
HCM City (VNA) – The Vietnam Railway Union Corporation will spend over 100 billion VND (6.25 million USD) this year to eliminate railway “hot spots,” sites where numerous accidents have taken place in recent years.

The corporation will focus on hot spots in Da Nang and the provinces of Phu Yen, Khanh Hoa and Dong Nai.

Over 480,000 construction projects violate railway safety procedures, according to the corporation.

Investors await regulated OTC market

Wednesday, May 14, 2008
Despite rumours to the contrary, trading on the over-the-counter (OTC) market remains as slow as it has been on the stock exchange in recent weeks.

"Trading in this market is actually quite sluggish. It is only active for real estate and banking stocks," said Dong, who works for sanotc.com, an OTC trading website, and who asked to be identified only by his given name.

"The fear of losing money prevents investors from trading on the OTC market," Dong said.

Nguyen Tien Dung, an independent analyst, said that everyone knows the risk of trading on the OTC market, calling it "a gamble".

He said, however, that "investors still join in the gambling lately because it brings them enough return to help make up for their losses on the official markets."

Nguyen Hung, a Hanoi investor, said, "I traded on the OTC market for two weeks and earned a good amount from banking shares."

Investors were waiting for the more regulated OTC market, being set up by the Ha Noi Securities Trading Centre, suggested Dong.

"The regulated OTC market may be ready to operate in early June because we are now waiting only for the new trading regulation from the Ministry of Finance," said Nguyen Vu Quang Trung, deputy director of Ha Noi Securities Trading Centre.

"We also did the trial test with 69 securities firms and Viet Nam Securities Depository Centre, and everything goes well. The errors that happened during the trial could absolutely be repaired and upgraded."

Hanoi launched a project to bring the OTC market under its management in the middle of last year, and the Ministry of Finance approved the plan last December.

The market would help assure payments agreed to during negotiations, the most troublesome issue for traders on the OTC market.

"Thanks to the feasibility of the project, many investors delayed trading in OTC market for a month to begin a new investment when the project starts in June," Dong said. He expected the market would then begin to draw the attention of investors away from the official markets.

Analyst Dung cautioned against undue optimism, however.

"In the current situation of the economy, and with less and less capital available for securities investment, it's hard to say whether this market will get be brighter with this project," Dung said. (VNS)

May 14, tock market continues falling, trading volume reaches below 1m shares

Wednesday, May 14, 2008
Today stock market continued falling, marking the eighth consecutively decreasing session. The VN-Index slipped another 8.42 points or 1.73% to close at 475.5 pts with the total matching order trade of 915,550 shares and fund certificates worth 44.356 billion dong.

Like previous sessions, among 154 shares and fund certificates being listed on the southern bourse, the stock market witnessed many shares with no trades. In particular, there was one share increasing while one share stood still at the reference price and 152 others decreasing with 150 shares reaching the floor price.
The sole share increasing was PMS with 500 dong to 28,700 dong per share and the share code stood still namely VTB of Tan Binh Electronic Joint Stock Co.

As for trading volume, DPM took the first place with 163,910 shares, SSI with 102,070, HPG with 88,220, VHG with 52,760, TRC with 40,710, PVD with 38,320 and STB with 30,620 shares. 24 share codes reached trading volume of ten shares and 31 other codes ranged between 20 and 100 shares.

Foreign investors bought 42 share codes and one fund certificate with the total volume of 583,080 shares, of which, DPM reached 140,710 shares, HPG with 85,180, DHA with 55,540 and VHG with 50,000 shares.

Many listed share codes were traded closely with face value like CYC at 10,800 dong, VPK at 11,700 dong, BBT 12,100 dong per share. Finishing the trading session today, there were 50 share codes reaching the trading price of below 20,000 dong per share.
Similarly, the Hanoi Securities Trading Center (HaSTC) today May 14 kept decreasing impetus on the stock market by falling another 3.01 points or 2.04% to end at 144.85 pts with the total market trade of 272,300 shares worth over 10 billion dong.

Amongst 136 listed shares on the northern bourse, the stock market recorded three shares increasing while 98 others decreasing, two shares stood still and 33 shares with no trade.

Three shares increasing were CAP up 200 dong, LUT jumped 700 dong and NVC added 500 dong per share.

Two shares remained unchanged including KBC and LTC.

MIC showed the biggest decliner by losing 3,200 dong per share, ACB lost 2,000 dong, VSP dropped 1,800 dong and SCJ slipped 1,700 dong.

There was no shares reaching the trading volume of over 100,000 shares. NVC reached the biggest trading volume with 51,500 shares and followed by POT with 25,800 shares and KBC with 16,500 shares.

No good mornings in Viet Nam for ANZ

Wednesday, May 14, 2008
Not content with the spilt blood at Opes Prime, Tricom, Centro and the rest of the $980 million in bad debt provisions and set asides for the March half year, the ANZ Bank is nursing another nasty multi-million dollar hole.

Its move into the Vietnamese stock market has sprung a leak, which is an unfortunate turn of events given the Opes Prime and Tricom experiences. In September of last year, ANZ reported that it had completed the transaction to acquire a 10% stake in Saigon Securities Incorporation (SSI) in Viet Nam for a total investment cost of US$88 million (A$107 million).

Completion follows approvals from shareholders and regulators.

Mr Gilles Plante, Joint Managing Director of ANZ’s Markets business will join the SSI Board.

SSI is the leading securities and investment banking company in Viet Nam and is listed on the Hanoi Securities Trading Centre.

The ANZ said the purchase price includes the equity stake and the purchase of interest bearing bonds which are convertible in three tranches at ANZ’s discretion over the next two and a half years. But from Viet Nam comes word that the stockmarket in the emerging communist-run economy has had a bit of a meltdown as the authorities seek to cool a boom.

The current value of their investment in SSI has fallen from the acquisition price of 170,000 VND (Viet Nam Dong) per share (about $US10) to around 47,000 VND per share (about $US2.95). With the cost of acquisition at $A107 million, ANZ is nursing a book loss of about $A70 million for the investment in SSI.

Locals say there has been much controversy about the chairman and founder of SSI which has dragged the share price down, with further downward pressure on the share price of SSI expected. (Crikey.com.au)