Viet Nam May Set Up Stock Stabilization Fund

Monday, June 23, 2008
The State Securities Commission of Viet Nam, the nation's market regulator, is drawing up a plan to set up a fund to stabilize the stock market, Dau Tu Chung Khoan newspaper reported, citing Chairman Vu Bang.

The fund will buy stocks when the market has difficulties and sell shares when the market is doing well, the report said.

The State Securities Commission (SSC) last week lifted a limit for gains or losses on the stock exchange in an attempt to boost trade and improve the market investments.

Experts introduce model for boosting acquisitions abroad

Tuesday, May 27, 2008
The State Securities Commission (SSC) yesterday joined forces with three US-based financial institutions to introduce Vietnamese enterprises to a model for raising capital and engaging in acquisitions overseas.

The model, known as a Special Purpose Acquisition Corporation (SPAC), is a shell corporation formed for the purpose of consummating a business combination with another, operating business. It can also be used to raise capital through an initial public offering (IPO) abroad.

According to data from Chardan Capital Markets, the auction of SPACs has raised US$21.5 billion through 156 auctions on US stock exchanges since 2004, accounting for 23 per cent of IPOs last year.

"This model has become common and has played an effective role as a capital mobilisation channel for foreign enterprises in this market," said Kerry Propper, CEO of Chardan.

The model has worked well in China, helping Chardan raise $811 million through SPACs for investments in China.

"Vietnamese enterprises can also enter US equity markets using this model because your economy is similar to the Chinese. The most important thing is the transparency that your firms create in the overseas market," Propper said.

BBV Viet Nam SEA Acquisition Corporation is the sole SPAC created in Vietnam so far for the purposes of raising capital through an IPO or acquiring an existing business in Vietnam.

"As we know, Vietnamese firms are quite attractive to US investors thanks to the growing economy and the potential that domestic firms have not yet exploited," said Eric Zachs, managing partner of BBV-Asia LLC.

He said the model had yet to become common in Vietnam because the domestic firms had little demand to make IPOs offshore.

The director of the State Securities Commission's international co-operation department, Nguyen Ngoc Canh, said that domestic firms hoping to sell shares offshore faced challenges in terms of incompatible accounting systems and capital and disclosure regulations.

He cautioned domestic firms wanting to auction shares offshore, not only in US markets, to consider carefully the suitable target market before making an IPO.

"The firm itself has to improve its managerial, operational, and financial capacity in order to meet the high requirements of foreign securities markets," Canh said. (VNS)

HOSE informs temporary trading suspension on May 28

Wednesday, May 28, 2008
In the afternoon of May 27, Ho Chi Minh City Stock Exchange sent an urgent announcement to securities member companies, informing that trading activities will continue to be halted on May 28 session.

The southern bourse announced on its website that its decision to temporary suspend trading activities on May 28 has been approved by the chairman of the State Securities Commission.

The temporary trading suspension is needed as HOSE technicians need time to discover the cause of the technical incident that affected the trading system at 8.53 am May 27th, 2008 and solve the problem.

All transactions on May 27 session on HOSE were cancelled due to an traordinary technical incident which affected the trading system at 8.53 am, May 27th, 2008.

This is the third time the HOSE trading system has experienced technical difficulties. The other two incidents occurred in February 2, 2007 and December 8, 2006.

USAID trains securities regulators

Thursday, May 22, 2008
The US Agency for International Development (USAID) will continue providing training courses for the professional staff of the State Securities Commission, the commission said on its website yesterday.

The courses will focus on improving the commission’s supervisory capacity in order to promote the transparency of the domestic stock market.

Commission chairman Vu Bang said, "Transparency plays an important role in market development. As market regulators, we will try hard to build this quality by tightening our supervision of trading activities on the market."

He said that the USAID training was a basis for better supervision in the future.

The US office would also help the commission complete the legal framework governing the stock exchange by co-operation with the State Securities Commission on proposed revisions to regulations in the Law on Securities.

"Along with an analysis of the actual situation on the stock market, we will work together to complete the legal framework soon to adequately meet international standards," Bang said.

He said that co-operation with USAID would contribute to making the stock market a more effective channel for the mobilisation of capital. (VNS)

Seminar urges firms to list shares overseas

Wednesday, May 21, 2008
More enterprises should try to list shares overseas as a more effective channel for raising capital, says Nguyen Ngoc Canh, head of International co-operation under the State Securities Commission (SSC).

Speaking at a conference yesterday in Ha Noi entitled A Step into Globilisation Through IPOs and Listing, Canh admitted, however, that Vietnamese firms are facing many difficulties in listing on foreign stock exchanges due to their inexperience on the domestic stock market and a lack of information about regional stock exchanges.

This was why many domestic firms with statd plans to list offshore, including Vinamilk and Saigon Securities Inc., have not yet carried out those plans, he said.

An enterprise seeking to list offshore normally would also expect to spend eight months to a year completing a typical listing process, in addition to pre-listing preparations.

"Nevertheless, we are confident that Vietnamese companies will explore and seek various means to tap into international capital for funding as well as a platform to expand and integrate into the international business community," said Alvin Chew, executive director of the Singapore-based financial advisory firm ICH.

Due to political, cultural and business affinity, Vietnamese enterprises have tended to list shares on regional stock exchanges, such as in Singapore. Foreign enterprises currently represented about 38 per cent of listed shares on the Singapore Stock Exchange, with a market capitalisation of US$165.24 billion.

"This number suggests that the Singapore Exchange is a very good destination for domestic firms seeking to list abroad," Canh said. "The firms themselves must follow listing procedures strictly in order to make the listing process as quick as possible." (VNS)

It’s time to make IPO abroad: SSC

Tuesday, May 20, 2008
Nguyen Ngoc Canh, Head of the International Cooperation Division under the State Securities Commission (SSC), said that it is now the right time for Vietnamese companies to make IPOs and list on foreign bourses, when the domestic stock market is lackluster, investors escape from trading floors and commodities remain unsalable.

Do you think that making IPOs abroad is the right choice for Vietnamese companies now?

Listing companies are facing big difficulties now, while state owned enterprises, though having been operating well, still find it difficult to successfully to make IPOs at this moment.

The situation is familiar to the regional markets, including China. As the stock index has dropped from 6,000 to 3,400 points, China saw only two out of 52 companies successfully making IPOs.

Therefore, I think that it’s reasonable for state owned enterprises to make IPOs abroad to mobilize capital.

Could you please elaborate on this?

By successfully issuing securities and successfully mobilizing capital on foreign stock markets, companies will restore confidence from domestic investors, attracting them back to the market.

By listing on foreign bourses, companies will be able not only to mobilize capital for their business and production, but also to heighten their images and position on the international market.

Which procedures must Vietnamese enterprises follow to list on foreign bourses?

First of all, enterprises need to fully understand the Securities Laws and Enterprise Laws. As for equitised companies, the plans to list on foreign bourses needs the approval at the shareholders’ meeting, while state owned enterprises need the approval of the organism in charge.

Second, every enterprise should consider thoroughly when choosing suitable bourses to list on. Every stock exchange sets its own conditions and offers different advantages.

Could you please give suggestions about which bourses should be listed on?

As I said before, different markets would require different conditions for listing. Enterprises should learn about every market in order to find the most suitable ones for them.

Hong Kong, a long standing market, which gathers many big investment funds of the world, proves to be the good choice for enterprises, which want to access foreign capital sources with low cost.

Besides, Singapore has also emerged as financial centre of the region, which I think can also be the place for Vietnamese companies to mobilize capital and list their shares.

High-tech companies can think of more distant markets like the US’s Nasdaq.

I think that in the immediate time, we should let some competent companies which can meet the requirements for listing set by foreign bourses do so. Other companies will learn the lessons from the predecessors. (Dan Tri)

Swiss government assists securities sector

Monday, May 19, 2008
Deputy Prime Minister Pham Gia Khiem has approved a Swiss-funded technical assistance project to help improve the capacity of the State Securities Commission (SSC).
The project has an investment of 1.135 million CHF, with 1.1 million CHF in non-refundable aid from the Swiss Government.
The state budget will inject around 35,000 CHF (550 million VND) into the project.

Finance Ministry asked to lower trading fee

Friday, May 16, 2008
The State Securities Commission (SSC) has called for the Finance Ministry to reduce the trading fee for securities firms from .05 percent to .02%, according to the head of the commission’s market development department.

The move will help securities firms overcome difficulties resulting from the strong decrease of stock indexes and the market’s liquidity, the department head Nguyen Son said.

SSC also planned to make a request for reducing trading fees for investors, he added.

A gloomy atmosphere still dominated the Vietnam stock market as the VN-Index at the Ho Chi Minh City Stock Exchange closed the May 16 trading session at 460.04 points, a decline of 6.63 points, or 1.42% over the previous session.

Only 14 shares rallied for gain, while 11 remained unchanged and 129 suffered losses.

Meanwhile, the HaSTC-Index at the Hanoi Securities Trading Centre fell 2.35 points, or 1.65%, to finish at 139.74 points. (VNA)

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.

Saigon Tourist Securities broker licensed

Tuesday, May 13, 2008
The State Securities Commission (SSC) on May 8 granted establishment and business license for Saigon Tourist Securities Joint Stock Co (STSC) with a chartered capital of 290 billion dong.
The newly securities broker will have full ranges of securities sectors like securities brokerage, securities self trading, securities investment consultancy and securities depository.s

Market regulator advises delay in share sales

Friday, May 9, 2008
State Securities Commission is encouraging companies to halt or delay planned share sales, after recent offerings were poorly received, a local newspaper reported.
Share sales this year by Hanoi Beer-Alcohol-Beverages Corp., Kim Long Securities Joint-Stock Co. and Saigon Beer-Alcohol-Beverages Corp. fell victim to bearish market sentiment.
No new licenses for sales have been granted in the past two months.
New listings on the Ho Chi Minh Stock Exchange have also slowed, according to the report.
Ten companies received permission to trade this year and love yet to do so, the report said, citing Tran Dac Sinh, general director of the exchange.

Some shareholders in the Joint-Stock Commercial Bank for Foreign Trade of Vietnam, known as Vietcombank, oppose the bank’s plan to list its shares this year, Thoi Bao Kinh Te Viet Nam newspaper reported April 28.

Vietcombank, which held an initial share sale in December, said in April that it planned to list its shares on Ho Chi Minh City’s exchange by July. (Bloomberg)

Hung Viet fund management firm licensed

Friday, May 9, 2008
The State Securities Commission (SSC) on May 6 granted business license No 33/UBCK-GP for Hung Viet Fund Management Joint Stock Co (HV Capital) located at No 63 Pham Ngoc Thach Street, Ward 6 in HCM City's District 3.
HV Capital with a chartered capital of 25 billion dong will specialise in securities investment fund management, securities investment enterprises and securities investment portfolio management.

Minh Viet Capital established

Friday, May 9, 2008
State Securities Commission (SSC) yesterday granted the establishment license to Minh Viet Securities Investment Fund Management Joint Stock Co called Minh Viet Capital with a chartered capital of 50 billion dong.
Minh Viet Capital is licensed to operate in fields of setting up and managing securities investment funds, securities investment companies and securities investment portfolio.
The firm's general director is Bui Quang Thanh.
Company address: Floor 11, Northern Asia Building at No 9A Dao Duy Anh St, Hanoi's Dong Da Dist.

Singapore’s Templeton to open rep. office

Thursday, May 8, 2008
Singapore-based Templeton Asset Management Ltd has begun operations in Viet Nam under a representative office in Ho Chi Minh City approved by the State Securities Commission (SSC).
The office is allowed to cooperate with Vietnamese enterprises related to the securities market as well as promote the implementation of contracts between Templeton and Vietnamese financial institutions.
Templeton’s representatives, approved to work in Viet Nam for an initial five years, intend to launch an enterprise scholarship project which invests in fledgling Vietnamese firms involved in the local securities market.
During its term of operation in Viet Nam , the Templeton representative office is not allowed to implement any securities investment or trading in the local market, neither may it offer securities services such as brokeraging or consulting in the local exchange. (VNA)

Agribank-VGFM Co's business license revoked

Thursday, May 8, 2008
The State Securities Commission (SSC) on May 5 issued a decision to revoke the business licensee No9dated on December 21, 2006 of Agribank-VGFM Securities Investment Fund Management Joint Venture Co (AVIM).

Under it, since May 5, AVIM must stop all activities noted in the business license and announce information via E-newspaper or printing paper during three consecutively editions.

According to the business license, AVIM with a chartered capital of over 16.09 trillion dong was a joint venture between Agribank accounting for 51% of chartered capital and Vietnam Global Fund Management 49% with the operation duration of 50 years.

Pham Hong Son, head of the SSC's securities management board said that AVIM is the first fund management company in Vietnam being revoked the business license. Under the securities law, after 12 months from being licensed, the companies that do not start operation will be revoked the business license.

Fines re-jigged for securities breach

Thursday, May 8, 2008
Prime minister's office on May 5 announced amended ordinance of dealing with administrative violation. Accordingly, the maximum punishment on violations relating to securities, environmental protection, construction, land, banking, intellectual property, petroleum exploration and development.

Under the amended ordinance, State Securities Commission's chief has the right to impose the punishment decision of 70 million dong at most on administrative violations in fields of securities while the SSC's chair also has the right to release the maximum punishment of up to 500 million dong.

Authorities have the right to apply an administrative punishment of 1-5% of total illegal money amount on issuers.

The ordinance will be enforced from August 1, 2008.

Is there a hand that controls the stock market?

Tuesday, May 6, 2008
Two months ago, an official from the State Securities Commission (SSC) revealed that it had discovered the transactions by some big institutions that aimed to restrain share prices. He said there was the hand of foreign institutions.

The transactions on the market in the last six months showed that the influence that investors think tries to sway the market, is really existing.

Nevertheless, until now, SSC still has not provided any further detail, including the names and the tricks of the institutions and individuals, as well as the things SSC will do to punish them in order to make the market healthier.

In the last several months, a lot of blue-chip items, including REE, FPT, SAM and SSI were once sold in big volume in a lot consecutive trading sessions at floor prices, which led to the massive sale of these items from small investors, who played the stock market with borrowed money and could not keep shares for a long period.

As a result, the prices of a lot share items plunged dramatically to the prices which were equal to 1/3 of the peak prices seen in March 2007.

An experienced investor said that he believes that some big investors have made use of the bad news like the gold price fluctuations, continued oil price increases, high inflation, the tightened monetary policy and the US economic recession, to force the stock prices down to unexpectedly low prices. Thousands of small investors had to sell shares out massively, and it was the right time for the big investors to buy shares in.

The transactions in the last six months showed that the arguments about the influence that tries to control the market are reasonable.

Most recently, in April 2008, SSC’s inspectors took an inspection tour to securities companies, the members of the HCM City Stock Exchange, where they checked the transactions made at the companies. The inspectors found out five most suspicious accounts out of 300,000 accounts.

These were the accounts which had the biggest transaction value and highest transaction frequency.

In mid April 2008, the second inspection tour was taken, when inspectors tried to find the trails related to an account with abnormal transactions.

The inspectors found out that right before Tet 2007, an individual investor transacted over 1mil shares of the share item listed among the top 10 items that had the biggest market capitalization value (the transactions of the share item were carried out in 3 consecutive trading sessions). After Tet, in 3 trading sessions, the investor sold over 1mil shares of the same share item.

SSC found out that the investor was assisted by a staff from a securities company in buying and selling shares.

A securities expert said that the cooperation among the Ministry of Public Security, Securities Depository Centre and SSC is needed to track down the transactions that aimed to control share prices.

He also said that SSC should ask the Government to raise the punishment on the violations relating to securities transactions. The current low fine levels of VND30-50mil for individuals, and VND50-70mil for violated institutions prove to be too low, not high enough to deter violators. (TBKTVN)

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.

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.

SSC halts securities company establishment

Saturday, April 26, 2008
The State Securities Commission (SSC) will temporarily halt receiving new applications for the establishment of securities and fund management companies as from April 28.
The SSC explained that the move aims to ensure sustainable development for the fledgling stock market in the country.
While lauding securities and fund management companies’ positive contributions to the growth of the stock market, the SSC also said these companies need to have their operation reassessed in a bid to raise the quality of their services.
The stock market watchdog also said it will later announce the date for receiving new applications. (VNA)