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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Vietcombank's counterparty credit rating outlook cut to negative - S&P

Saturday, May 3, 2008
Standard & Poor's Ratings Services said it cut the outlook on its counterparty credit rating on Bank for Foreign Trade of Viet Nam (Vietcombank) to negative from stable and affirmed the counterparty credit rating at 'BB/B' following the revision on the outlook for the sovereign credit rating on Viet Nam.
The ratings agency said the action reflects the bank's systemic importance in the Viet Nam banking system such that its ratings would qualify for a two-notch uplift from its standalone rating of 'B+'.
However, the counterparty credit rating on Vietcombank would move downward with the sovereign credit rating as implicit government support cannot raise the rating on the bank above the foreign currency sovereign rating, the ratings agency said. (Thomson Financial)

Standard Chartered Adds to Asia Commercial Bank Stake

Saturday, May 3, 2008
Standard Chartered Plc, the U.K. bank that makes most of its profit in Asia, raised its stake in Asia Commercial Joint Stock Bank (ACB) to fifteen per-cent to tap growth in Viet Nam.
The London-based bank bought an additional 6.16% of shares and 7.10% of convertible bonds from International Finance Corp., the company said today in a statement. The purchase almost doubled Standard Chartered's holding in the Asian lender to 15%, compared with 8.56% it owned in December.
Standard Chartered, which has spent more than $2.7 billion in acquisitions since 2006, is seeking purchases and investing in its units as U.K. peers retrench amid higher funding costs and credit-related writedowns tied to the U.S. mortgage market. It gained a license to incorporate its Viet Nam unit locally last month, allowing it to open multiple branches and speed expansion in one of Asia's fastest-growing economies.
The increased stake will allow Standard Chartered ``to further strengthen its relationship with ACB, as well as benefit from the growth and development of the economy in Viet Nam,'' Standard Chartered said. Standard Chartered, which has held a stake in ACB since 2005, said Vietnam is a ``key market.''
Standard Chartered rose 2.7 percent to 1,880 pence in London trading, bringing its market value to 26.5 billion pounds. Asia Commercial Bank declined 1.4% in Hanoi trading, extending its loss in the past six months to 55%. (Bloomberg)

Chu Thoi 620 Concrete reports 706.877b dong in total asset

Saturday, May 3, 2008
Listed firm Chau Thoi 620 Concrete Joint Stock Co reported that by the end of 2007, it reached 706.877 billion dong in total assets, 689.934 billion dong in revenue from sales and service provision, 55.497 billion dong in combined profit from sales and service provision.
Also the company earned 23.095 billion dong in revenue from financial activities, 48.861 billion dong in total pre-tax profit with CIT of 11.350 billion dong.
Its EPS reached 3,690 dong while the dividend was 18%.
Meanwhile, the company spent 8.056 billion dong on financial cost, 16.264 billion dong on corporate administration cost and 1.287 billion dong on other costs.

REE reports 106b dong loss in Q1

Friday, May 2, 2008
The Refrigerating and Electrical Engineering Shareholding Co (coded REE) recently announced its business result in the first quarter of this year with 275.26 billion dong in revenue, equalling to 149% in comparison with the same period of last year, losing 106.15 billion dong.

In the explanation document sent to the State Securities Commission (SSC), REE reported that the company lost in the first quarter due to it set aside of 160.68 billion dong for finance standby for shares with decreasing market value in comparison with the prices are being accounted on books up to March 31.

The difference between the company's total finance investment portfolio up to March 31 and the market value was 341 billion dong. Particularly, up to the end of March, the company's total finance investment capital reached 1.377 trillion dong and capital market price was 1.719 trillion dong.

This year, REE targets to earn 1.1 trillion dong in revenue and 420 billion dong from pre tax profit.

DongA Bank (EAB) reports performance

Friday, May 2, 2008
Eastern Commercial Joint Stock Bank (DongA Bank - EAB) was formed in July 1992 with the initial chartered capital of 20 billion dong that now has been risen to 1.6 trillion dong. This year the bank will issue 180 million shares at 10,000 dong par to hike the chartered capital to 3.4 trillion dong.

Up to the end of last year, the bank issued over 1.8 million cards with nearly 900 ATMs and 1,500 payment points nationwide.

Big shareholders of the bank are HCM City's financial administration committee, PNJ, Phu Nhuan Housing Construction and Trading Co, Viet Tien Garment Corp, Sabeco, and Sasco. In addition, EAB has two members including EAB Securities Co and EAB Overseas Remittance Co.

By the last year end, EAB's total operational capital reached 26.961 trillion dong, a rise of 23% year-on-year, in which the credit capital accounted for 3.141 trillion dong. Total deposit attained 21.516 trillion dong while its outstanding loans totalled at 18.010 trillion dong and total pre-tax profit was estimated at 454 billion dong, growing by 126% yoy.

In 2008, EAB targets to reach 40 trillion dong in total operational capital, 26.5 trillion dong in deposit balance and 700 billion dong in pre-tax profit.

TNG to scale up chartered capital to 100b dong

Friday, May 2, 2008
TNG Trade Joint Stock Co (coded TNG) announced that it would raise its chartered capital to 100 billion dong via offering 4.75 million more shares.

Particularly, 2.715 million shares will be offered to the existing shareholders, 271,500 shares will be sold to the company's employees and 1,583,500 shares will be allocated to the other investors.

The capital being raised from the share offering is to support business capital and invest in some projects like TNG Cong River plant project in the second phase, TNG Phu Binh plant's branch project, Tan Dong Pho Yen industrial zone project and Viet Thai trade centre project.

In 2007, TNG earned 343 billion dong in revenue, exceeding 4.9% against the year's plan and up 86.4% from 2006, 17.1 billion dong in profit, a year-on-year increase of 191% and planed to pay dividend of 16%.

This year, the company targets to bring the figures to 733 billion dong in revenue, increasing 114% yoy, 28 billion dong from pre tax profit and 27 billion dong from after tax profit, up 58% from 2007.