Australian bank seeks 20 percent stake in VIB

Commonwealth Bank of Australia (CBA) will seek approval to increase its
stake in Vietnam International Bank (VIB) to 20 percent, according to a
CBA statement quoted by Dow Jones on Sept. 14.

"Consistent
with the strategic partnership agreement signed earlier this year,
Commonwealth Bank intends to request an increase in the VIB investment
to 20 percent at the earliest opportunity – the maximum investment
allowed by the State Bank of Vietnam ," said the statement.

No financial details of the transaction were disclosed.

VIB did to give any comment on the statement but confirmed that all
procedures had been finalised to sell a 15-percent of stake to CBA under
a strategic partnership agreement announced last April.

CBA's acquisition of a 15-percent interest added 600 billion VND (30.8
million USD ) to VIB's charter capital, bringing the total to 4 trillion
VND (205.2 million USD). VIB's assets have also increased by an annual
average of 40 percent over the past five years.

CBA is the
exclusive foreign strategic shareholder of the Hanoi-based bank and was
expected to help VIB improve its performance in such critical business
areas as retail banking, risk management, human resources, IT, and
finance.

Commonwealth Bank has quietly been enlarging its
footprint in Asia over the past decade. It is now one of the leading
international banks operating in Indonesia , and it also has
investments and partnerships in two Chinese banks – Qilu Bank in Jinan
and the Bank of Hangzhou ./.

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Aussie bank seeks 20% stake in VIB

HA NOI — Commonwealth Bank of Australia (CBA) will seek approval to increase its stake in Viet Nam International Bank (VIB) to 20 per cent, according to a CBA statement quoted by Dow Jones on Tuesday.

"Consistent with the strategic partnership agreement signed earlier this year, Commonwealth Bank intends to request an increase in the VIB investment to 20 per cent at the earliest opportunity – the maximum investment allowed by the State Bank of Viet Nam," said the statement.

No financial details of the transaction were disclosed.

VIB yesterday refused to give any comment on the statement but confirmed that all procedures had been finalised to sell a 15-per-cent of stake to CBA under a strategic partnership agreement announced last April.

CBA's acquisition of a 15-per-cent interest added VND600 billion (US$30.8 million) to VIB's charter capital, bringing the total to VND4 trillion ($205.2 million). VIB's assets have also increased by an annual average of 40 per cent over the past five years.

CBA is the exclusive foreign strategic shareholder of the Ha Noi-based bank and was expected to help VIB improve its performance in such critical business areas as retail banking, risk management, human resources, IT, and finance.

Commonwealth Bank has quietly been enlarging its footprint in Asia over the past decade. It is now one of the leading international banks operating in Indonesia, and it also has investments and partnerships in two Chinese banks – Qilu Bank in Jinan and the Bank of Hangzhou. — VNS

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Vietnam, EU embark on forest product dialogue

Vietnam and the EU are to hold the first round of formal negotiations on a bilateral Voluntary Partnership Agreement (VPA) for Forest Law Enforcement, Governance and Trade (FLEGT) in Hanoi by late November.

At the first VPA preparatory meeting Monday, both sides raised hopes that the negotiations will conclude with the signing of a voluntary partnership agreement by the end of 2012.

The agreement is expected to create conditions for Vietnam ’s timber producers to improve their position on the EU market and increase their ability to adapt to EU market requirements with respect to the legality of timber.

The agreement aims to establish control and licensing procedures in timber producing and processing countries to ensure that only timber products derived from legally harvested timber enter the EU.

At the VPA preparatory meeting, the Charge d’Affaires of the EU delegation Hans Farnhammer emphasised the importance of the agreement. He said, “We do hope that the signing of the FLEGT Voluntary Partnership Agreement will help to further strengthen the position of Vietnam ’s timber and timber products in the EU market.

The forthcoming negotiations are witness to Vietnam ’s commitment to meeting EU consumer demands as well as fighting climate change”.

Vice Minister of Agriculture and Rural Development Hua Duc Nhi said, “This is the first step to ensure the exports of timber and timber products from Vietnam to the EU continue smoothly in years to come.

In the long run, the VPA will give legal certainty and bankable guarantees to exporters, importers and investors in the timber sector willing to trade with the EU”.

The FLEGT will come into force from January 2012, demanding the transparency of forest products in all fields, from exploitation to end-products, so the EU can trace the origin of raw materials.

The EU has so far signed FLEGT VPA with three African countries and is conducting negotiations with several others in Asia .

Vietnam is one of the world’s biggest timber furniture suppliers and the EU is the second largest market of Vietnamese timber products, following the US .

In the first seven months of the year, Vietnam earned over US$1.9 billion from exports of forest products and wood furniture, representing an increase of 31 percent year on year.

The country, however, has to import raw material and other timber products with revenues hitting $605 million in the first seven months of the year, an increase of 33 percent year on year.

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Vietnam, EU embark on forest product dialogue

Vietnam and the EU are to hold the first round of formal negotiations
on a bilateral Voluntary Partnership Agreement (VPA) for Forest Law
Enforcement, Governance and Trade (FLEGT) in Hanoi by late November.

At the first VPA preparatory meeting on August
16, both sides raised hopes that the negotiations will conclude with the
signing of a voluntary partnership agreement by the end of 2012.

The agreement is expected to create conditions for Vietnam ’s
timber producers to improve their position on the EU market and increase
their ability to adapt to EU market requirements with respect to the
legality of timber. The agreement aims to establish control and
licensing procedures in timber producing and processing countries to
ensure that only timber products derived from legally harvested timber
enter the EU.

At the VPA preparatory meeting, the
Charge d’Affaires of the EU delegation Hans Farnhammer emphasised the
importance of the agreement. He said, “We do hope that the signing of
the FLEGT Voluntary Partnership Agreement will help to further
strengthen the position of Vietnam ’s timber and timber products in
the EU market. The forthcoming negotiations are witness to Vietnam ’s
commitment to meeting EU consumer demands as well as fighting climate
change”.

Vice Minister of Agriculture and Rural
Development Hua Duc Nhi said, “This is the first step to ensure the
exports of timber and timber products from Vietnam to the EU continue
smoothly in years to come. In the long run, the VPA will give legal
certainty and bankable guarantees to exporters, importers and investors
in the timber sector willing to trade with the EU”.

The FLEGT will come into force from January 2012, demanding the
transparency of forest products in all fields, from exploitation to
end-products, so the EU can trace the origin of raw materials.

The EU has so far signed FLEGT VPA with three African countries and
is conducting negotiations with several others in Asia .

Vietnam is one of the world’s biggest timber furniture suppliers
and the EU is the second largest market of Vietnamese timber products,
following the US .

In the first seven months of
the year, Vietnam earned over 1.9 billion USD from exports of
forest products and wood furniture, representing an increase of 31
percent year on year. The country, however, has to import raw material
and other timber products with revenues hitting 605 million USD in the
first seven months of the year, an increase of 33 percent year on year./.

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