Dragon Capital Group Selects World-Check for Enhanced Risk Management

Dragon Capital Group, the most experienced investment house in Viet Nam, today announced that it has chosen World-Check to enhance its Due Diligence and Know Your Customer (KYC) compliance processes. World-Check is the leading provider of risk intelligence for the screening of customers, transactions, employees, prospective clients and service providers in accordance with globally accepted risk management procedures.

The incorporation of World-Check forms part of Dragon Capital's implementation of international best practice in order to meet its compliance obligations with all relevant anti-money laundering laws in their respective legal and operational jurisdictions.

"With World-Check's risk intelligence we are confident that we are effectively mitigating regulatory, financial and reputational risk across all of our operations", said Mike Temple, Director of Finance Administration Operations of Dragon Capital.

"We are delighted that Dragon Capital has chosen our service and look forward to assisting their compliance teams with their ongoing compliance requirements" said Daniel Peak, Chief Executive Officer of World-Check. "Our research teams regularly identify heightened risk individuals and entities up to seven years ahead of major international sanction lists making us the industry leaders in risk mitigation."

Re-insurer acquisition named ‘Best Vietnam Deal 2008’

Swiss Re’s US$79 million acquisition of a 25-percent stake in the Viet Nam National Reinsurance Corporation (VinaRe) has been named the Best Viet Nam Deal in 2008 by Finance Asia, a Hong Kong-based publication that presents annual achievement awards in the region.

The globally recognised awards commemorate ‘deals’ including equity offerings, mergers and acquisitions or bond issuance on Asian stock markets.

The Swiss Re acquisition was notable for being the first major strategic investment by a global player in Vietnam’s reinsurance sector, the magazine said.

“Swiss Re, a global reinsurer operating in 25 countries, had a business relationship with VinaRe for more than a decade, but that relationship expanded to include Swiss Re offering the Vietnamese company technical assistance in all its businesses, with a focus on further enhancing its reinsurance capabilities,” wrote the magazine.

According to Finance Asia, the deal also helped solidify Credit Suisse’s position as the leading investment bank in Viet Nam.

The magazine also noted the participation of the legal advisors for the deal, which included the local firm, Vision Law, and the foreign law firm Russin & Vecchi.

Recognition as Best Viet Nam Deal 2008 should also help promote the domestic reinsurance market to overseas investors, VinaRe said on its website.

In addition to the Swiss Re-VinaRe deal in Viet Nam, the magazine also recognised Chinalco’s US$14 billion acquisition of Rio Tinto in China, Estisalat’s US$900 million acquisition of Swan Telecom in India, and Petronas’ US$2.5 billion acquisition of the Gladstone LNG project in Malaysia. (VNS)

Late performance disclosures ring exchange warning bell

Late performance disclosures ring exchange warning bell
Late business performance disclosure by listed firms is ringing a warning-bell for market regulators, as it seems to be becoming a phenomenon on the Vietnamese exchanges.
In November, the blue-chip company Pha Lai Thermal Power informed shareholders of zero dividend payments due to profit losses. The impact was deemed serious enough for the HCM City Stock Exchange’s management board to give the company a warning.
Early this month, other listed firms like Construction No.5, or Investment and Construction Development Co made public their altered business results.
Nguyen Thi Hoang Lan, deputy director of Ha Noi Securities Trading Centre, said that it was acceptable for firms to make adjustments in business performance amidst the present market turmoil.
"However, enterprises should make public such information in a timely fashion, to enable investors to make good investment decisions," said Lan.
Nguyen Hoa Binh, Chairman of Vietcombank, confirmed that its disclosure of business adjustment in November was late.
"In the context of market turmoil, however, it is difficult to forecast a company’s future. Actually, I must confess that we deliberated a lot before making public our business performance. I hope there will be sympathy for our late disclosure," he said.
The Bank for Foreign Trade of Viet Nam, known as Vietcombank, has changed the year’s targets for total asset, credit growth and bad debt ratio.
A representative from Construction No 5 Co, who wished to remain anonymous, excused his companies’ late disclosure by saying: "Even at the end of the third quarter, we believed that we could reach the year’s target. But, the fluctuation lasted longer than we expected, along with spending for provision fund. We only recognised the inadequacy of the year’s business result early this quarter."
Nguyen Hong Quan, An Binh Securities’ acting director, said that late disclosure greatly decreases investor confidence.
"Investors are paying more attention to the business results from listed firms, as well as to changes in business performance. The situation will cause serious consequences, if it becomes a trend," said Quan.
The Viet Nam Association of Finance Investors is urging listed firms to make disclosures sooner to protect investors from unexpected loss and to promote transparency. (VNS)

Baseafood to pay 20% dividend in cash for the first phase of 2008

Ba Ria Vung Tau Seafood Import Export Processing Joint Stock Co (Baseafood) announced that it would pay 20% dividend in cash
for the first phase of 2008 between December 25 and 31, 2008.
During the third quarter of 2008, Baseafood reached 179.230 billion dong in net revenue from sales and services and 3.109 billion dong in after-tax profit, bringing the total figure for Jan-November to 432.586 billion dong in revenue, 13.908 billion dong after-tax profit and the EPS of 4,346 dong.

Securities meet links investors, experts

Around 50 foreign and local experts and investors are discussing issues relevant to Viet Nam’s securities market at a two-day conference that began yesterday in HCM City.

Le Dang Doanh, senior economist at the Institute of Development Studies, gave an overview of the country’s current economic situation.

According to him, the first five months in 2008 saw a GDP-growth rate of 7.4 per cent. Export turnover was US$23.4 billion while imports brought in $37.8 billion, creating a trade deficit of $14.4 billion. CPI increased over 19%.

The VN Index declined to less than 400 from around 1,200 in 2007.

The current high interest rate is a heavy burden for the business community, according to Doanh.

Foreign investors believe in the mid and long-term prospects of the economy, but are concerned with the volatility of the economic situation.

Doanh stressed State efforts to re-establish trust for investors.

Viet Nam’s economic growth rate this year is expected tobe between 6.2 to 7.2%.

"Higher disbursement rates of FDI and ODA could contribute to stabilising the international payment balance," he said.

Viet Nam may also push reforms further and accelerate the equitisation of State-owned enterprises.

"The 7.5% economic growth rate in the last 10 years is very impressive and I understand that more recently the stock market has experienced a downturn and the Government has focused on controlling inflation. No doubt this has been painful for investors but it does not appear to lead to withdrawal of foreign investment," said Michael O’Sullivan, President of the Australian Council of Superannuation Investors.

Bui Thu Thuy, Securities Services Deputy Head for HSBC HCM City Branch, singled out market entry as a key issue for foreign investors, and detailed regulations, taxation and the process of starting securites trading in Viet Nam.

Other topics included evaluating trends in the country’s stock exchange, the importance of corporate governance and trasparency in building market confidence.

Today (second working day), human resources, bond markets, alternative investments tools, fund risk and investment techniques for the local securities market will be covered.

The event is co-organised by Singapore-based Informa Finance Asia and local firm Quang Ba I.A.C. (VNS)

Quang Nam road construction firm asks permission to list 1.2m shares on HaSTC

Quang Nam Transportation Traffic Construction Joint Stock Co is asking Hanoi Securities Trading Centre's approval to list 1.2 million shares on the northern bourse.

The company has a chartered capital of 12 billion dong, in which 53.8% held by the state and 46.2% held by internal and external shareholders.

ABBank applies interest rate 18.2% per year

From June 20, An Binh Commercial Joint Stock Bank (ABBank) officially applied deposit rate of 17.8% per year as for one-month term deposit receiving the interest rate at the end of terms, three months at 18%, and from six to 12 months 18.2% per year.

In addition, ABBank also officially applied new interest rate benchmark as for US dollar deposits whereby one-month term will get the interest rate of 7.3% per annum, six months 7.5%, 12 months 7.7% and 13 months 8% per annum.

ABBank also applied the progressive interest rates as for both dong and US dollar deposits, except demand deposits. Particularly, the interest rates as for deposits worth from 100-500 million dong will be added by 0.2% per year, from 500 million-one billion dong by 0.3%, one-five billion dong by 0.4% and from five billion dong and higher by 0.5%

11 firms register to join HaSTC's floor for unlisted public companies

A source said that there are now 11 companies registering transactions on Hanoi Securities Trading Centre (HaSTC)'s floor for unlisted public companies including eight banks and securities companies among 40 enterprises receiving HASTC's invitation.

According to Nguyen Vu Quang Trung, vice director of HaSTC, first off, commodities for the market are mainly selected shares of companies meeting State Securities Commission (SSC)'s requirements on corporate administration and management of shareholder book. Those are mainly securities brokerages, banks, financial institutions and insurers.

"Initially, we estimate that about 40 corporate participants will be divided into many small groups so the registration will depend on depository progress taking about two weeks for each candidate. Currently, over 10 businesses registered to join the HASTC's floor for unlisted public companies just from the first stage", Trung added.

Time by time, HaSTC will bring these companies to depository and trading registration. However, with aforementioned legislation background, shares of unlisted public corporates will be gradually put into centralised transactions with a strict treatment.

Pubic companies must carry out centralised deposit, so if not being put into transactions via the floors, transference procedures of these corporate shares cannot be made. In addition, corporates also can violate regulations on information disclosure.

As reported, legally, the scheme on unlisted public companies was completed already, which gained the Ministry of Finance's approval and was set for forthcoming issue by SSC.

On the other hand, HaSTC also finished the draft rule on distance transaction that will first off be applied on the securities trading of unlisted public companies. This draft rule was sent to seek relevant agencies' opinion.

Systematically, according to Trung, both HaSTC and Vietnam Securities Depository (VSD) Centre are ready for securities transaction of unlisted public companies.

In February 2008, HaSTC piloted the trading model in in-house transactions. In April, distance transaction was trial with VSD and 69 securities brokerages to check the exact and connection quality. (TBKTVN)

SCB increases deposit rates strongly

From June 23, the dong deposit rates at Saigon Commercial Joint Stock Bank (SCB) were increased strongly, especially as for terms of from one week.

In particular, deposits with from one to three week terms will carry the yearly interest rate of 17.4-17.8%, one to three-month terms at 18.1-18.3%, three-nine-month terms at 18.5% and 370 day term 18.8%. The demand interest rates were also increased to 9% per year and from three-six day terms were ranged between 14-14.6% per year.

Also from June 23, customers with the balance worth from 20 million dong as for individuals and 50 million dong as for institutions will be allowed to joined "overnight investment" product with the interest rate of 13% per year.

On the same day, SCB announced that it increased prize-based bills of exchange rates to 18.8% per annum with from 30-day term and introduced "savings with principal interest rates" product with the interest rate of 17.4% per year. Each redeposit will plus by 0.2-18.4% per year of interest rates.

June 25, Stock market remarks three consecutive increases

Influenced from two previous sessions, the stock market today June 25 witnessed another surge with over 80% of shares increasing. The VN-Index of Ho Chi Minh City Stock Exchange (HOSE) ended at 383.78 points after adding 7.81 pts or 2.07% with the total matching order trade of over 9.3 million shares and fund certificates worth nearly 343 billion dong.

Among 152 share codes and four fund certificates being listed on the southern bourse, the stock market saw 127 shares increasing while eight stood still at the comparative price, one with no trades and 20 decreasing.

The sole share with no transactions was BTC.

Out of big shares with the largest market capitalisation, VPL lost 3,000 dong to fall to the floor price while others increasing such as STB, DPM, VNM, PVD, ITA, HPG and PPC.

DHG was the biggest gainer as adding 4,000 dong and followed by DMC +3,000, VIC and VNM up 2,500 and ITA, KDC, PVD and SGH leaped 2,000 dong per share.

Some big losers were DQC, SJS, BBC, SC5 and TTP.

STB reached the biggest trading volume with over 1.5 million shares, REE followed with 581,260, FPT 282,020, VF4 266,390, VTO 214,650, BF1 213,740, PVT 204,930 and others like VSH, PPC, HAP, HPG and NTL.

Similarly, Hanoi Securities Trading Centre (HaSTC) also bounced on the stock market when the HaSTC Index bounded 2.18 points or 1.98% to close at 112.06 pts with the total market trades of 4,690,800 shares worth over 93 billion dong.

Amongst 141 listed shares, the stock market recorded 30 shares decreasing, seven with no trades, five stood still and 99 remain increasing.

Seven with no trades were CID, HBE, HSC, HUT, LBE, LUT and NPS.
Five stood still namely KBC, L43, ONE, S96 and SD4.

MIC performed the strongest increase when adding 2,200 dong, ACB up 1.700 dong, VSP +1,600, RCL and SCJ +1,500, S99 +1,200, BVS, NTP, VC2 and VNR +1,100 dong per share.

SD2 showed the biggest decrease as losing 1,400 dong, L62 slipped 1,300 dong, DTC, HLY, PSC and SNG dropped 1,200 dong per share.

SD7 stood at the first place in trading volume with 515,600 shares, followed by ACB with 479,000, PVI 401,900, KLS 386,700, HPC with 218,500 and PVS with 170,800 shares being traded.