New shares debut on Hanoi bourse

The Hanoi Stock Exchange on Sept. 13 welcomed new listings by Nam Viet
Bank (NVB), IDJ International Financial Investment and Enterprise
Development Co (IDJ) and Asia Pacific Investment Co (API).

Nam Viet Bank (NVB), which became the third bank listed on the northern
bourse, issued 100 million shares, representing its entire charter
capital of 1 trillion VND (51.3 million USD). NVB closed up 8 percent
from its opening price to 11,900 VND per share (0.61 USD), with 69,700
changing hands.

This year, NVB targets earnings of
2.67 trillion VND (136.9 million USD) and a net profit of at least 350
billion VND (18 million USD). It has also set a goal of total assets
reaching 27 trillion VND (1.4 billion USD) by year's end and outstanding
loans of 17 trillion VND (871.8 million USD).

The bank also plans to increase its charter capital to 3 trillion VND (153.8 million USD).

IDJ, which operates in the fields of infrastructure and real estate
development, was founded in 2007 with domestic individuals contributing
about 90 percent of its charter capital.

This year,
it targets earnings of 550 billion VND (28.2 million USD) and a net
profit of 75 billion VND (3.8 million USD). It has also set plans in
place to increase its charter capital to 400 billion VND (20.5 million
USD)

IDJ shares closed down 12.5 percent on their
opening day to 17,500 VND (0.90 USD) per share, with nearly 1.1 million
traded.

Real estate developer API, established in
2007 with a charter capital of 264 billion VND (8.4 million USD), has
been listed on the unlisted public companies market (UPCoM) since
October of last year.

It moved its listing to the
primary exchange, and saw its shares plunge by 10 percent from their
opening price to a close of 15,500 VND (0.79 USD) per share. API shares
generated a volume of 273,500 on their opening day.

API has targeted earnings of 200 billion VND (10.3 million USD) this year and a profit of 50 billion VND (2.6 million USD)./.

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Vietcombank receives official approval to increase capital

The partly-privatized Vietcombank on Tuesday received government approval to raise their charter capital by 33 percent to VND17.59 trillion (US$902 million).

The move aims to help increase the bank's capital adequacy ratio (CAR).

"The charter capital increase is very positive," said Vietcombank management board member Le Thi Hoa in a phone interview with Vietnam News.

Vietcombank, coded VCB on Ho Chi Minh Stock Exchange, is in the process of finalizing its financial prospectus to submit to the State Securities Commission next week with the hope of receiving approval by the end of this month.

Under the proposal, Vietcombank will issue additional shares to all existing shareholders in accordance with the ratio of 100:33 at the face value of VND10,000 per share.

"We hope that right after the increase, our CAR will increase to 9-10 percent from 8.45 percent and we will have more capital to do business," Hoa said.

Under the Circular No13 issued by the State Bank of Vietnam, commercial banks must have a CAR of at least 9 percent by the end of this month, which is said to challenge several banks.

In the past two months, Vietcombank cut stakes at Vietnam Eximbank and Gia Dinh Bank to 6.93 percent and 11 per cent to restructure their investment portfolios in an effort to raise their CAR by the end of the month.

Early last month, Vietcombank increased its charter capital to VND13.22 trillion ($678.15 million).

Fitch Ratings recently lowered Vietcombank's individual rating from D to D/E, removed the rating from Rating Watch Negative, and affirmed Vietcombank's Support Rating at 4.

Fitch said the downgrade reflected Vietcom-bank's substantially weakened balance sheet that arose from excessively strong loan growth and the fragile quality of loans.

Vietcombank's credit profile was said to be comparable to D/E-rated State-owned banks, even though the bank's loan to deposit ratio was among the lowest.

"That's just their business and their ratings are not always true," said a representative from the bank who asked to be unnamed.

A foreign credit rating service provider like Fitch does not have a full understanding of Vietnamese banks and their standards may fit more with foreign banks, the official said.

"Look at the market response to that news. Nothing happens and VCB shares are in good liquidity, it is just up and down as usual," said the official.

On Tuesday, VCB share closed down 1.6 percent with individual shares priced at VND37,400 VND each ($1.91).

The Hanoi-based bank, which remains more than 90.7 percent State-owned, posted a first-half profit of VND2.8 trillion ($145.8 million), up 7.3 percent against the same six months last year. Net income from non-credit services was up 15 percent to a total of VND475 billion ($24.7 million).

Vietcombank has increased its risk provision to 39.6 percent against the first half of last year to VND350 billion ($18.2 million) and as of June 30 has total assets worth VND246.3 trillion ($12.8 billion).

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Vietcombank receives official approval to increase capital

The partly-privatised Vietcombank on Sept. 7 received Government
approval to raise their charter capital by 33 percent to 17.59 trillion
VND (902 million USD).

The move aims to help increase the bank's capital adequacy ratio (CAR).

"The charter capital increase is very very positive," said Vietcombank
management board member Le Thi Hoa in a phone interview with Vietnam
News.

Vietcombank, coded VCB on HCM Stock Exchange, is in
the process of finalising its financial prospectus to submit to the
State Securities Commission next week with the hope of receiving
approval by the end of this month.

Under the proposal,
Vietcombank will issue additional shares to all existing shareholders in
accordance with the ratio of 100:33 at the face value of 10,000
VND per share.

"We hope that right after the increase, our
CAR will increase to 9-10 percent from 8.45 percent and we will have
more capital to do business," Hoa said.

Under the Circular
No13 issued by the State Bank of Vietnam , commercial banks must
have a CAR of at least 9 percent by the end of this month, which is said
to challenge several banks.

In the past two months,
Vietcombank cut stakes at Vietnam Eximbank and Gia Dinh Bank to 6.93
percent and 11 per cent to restructure their investment portfolios in an
effort to raise their CAR by the end of the month.

Early last month, Vietcombank increased its charter capital to 13.22 trillion VND (678.15 million USD).

Fitch Ratings recently lowered Vietcombank's individual rating from D
to D/E, removed the rating from Rating Watch Negative, and affirmed
Vietcombank's Support Rating at 4.

Fitch said the
downgrade reflected Vietcom-bank's substantially weakened balance sheet
that arose from excessively strong loan growth and the fragile quality
of loans. Vietcombank's credit profile was said to be comparable to
D/E-rated State-owned banks, even though the bank's loan to deposit
ratio was among the lowest.

"That's just their business
and their ratings are not always true," said a representative from the
bank who asked to be unnamed.

A foreign credit rating
service provider like Fitch does not have a full understanding of
Vietnamese banks and their standards may fit more with foreign banks,
the official said.

"Look at the market response to that
news. Nothing happens and VCB shares are in good liquidity, it is just
up and down as usual," said the official.

On Sept.7, VCB share closed down 1.6 percent with individual shares priced at 37,400 VND each (1.91 USD).

The Hanoi-based bank, which remains more than 90.7 percent State-owned,
posted a first-half profit of 2.8 trillion VND (145.8 million USD), up
7.3 percent against the same six months last year. Net income from
non-credit services was up 15 percent to a total of 475 billion VND
(24.7 million USD).

Vietcombank has increased its risk
provision to 39.6 percent against the first half of last year to 350
billion VND (18.2 million USD) and as of June 30 has total assets worth
246.3 trillion VND (12.8 billion USD)./.

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