Laos opens first stock exchange

The first securities exchange in Laos, a joint-venture between Laos
and the Republic of Korea (RoK), opened for business on October 10
in the capital, Vientiane.

On addressing the
opening ceremony, Laos Deputy Prime Minister and Chairman of the
Securities Commission Somsavat Lengsavad highlighted the importance of a
securities market when raising capital for the country’s socio-economic
development.

The Laotian government is about to
launch its seventh five year socio-economic development plan for the
period 2011-2015. The main objectives of the plan are to eradicate
poverty, reach the UN’s Millennium Development Goals (MDGs) and create
the best possible conditions to take Laos of the list of the world’s
under developed countries by 2020 and lay the foundations for the
country’s industrialisation and modernisation, said Somsavad.

He added that it was essential for Laos to raise significant
funding and professionally qualified human resources to boost its
integration into the world international arena./.

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Securities companies do extra work to survive

Securities companies have chosen to gear their operation to other businesses such as real estate development, financial services or overseas investment to survive amidst the prolonged gloomy situation.

The President of the Trang An Securities Co Executive Council, Le Ho Khoi, explained the company’s investment of almost 15 percent of a property project as an extra source of incomes from 2012 when it is inaugurated.

Project “Complex Building of services, trade and electronic assembly workshop”, consisting of 15 stories on a compound of over 5,000 square meters, has a total investment of VND200 billion (US$10.2 million). It is mainly invested by the Fortika Joint Stock Co.

Another giant, the An Binh Securities Co, together with two other affiliates of the An Binh holding company, has signed an agreement on strategic cooperation with the Vietnam Aviation Insurance Joint Stock Co (VNI) to develop new financial services.

Some other leading companies in this field have decided to try their chances abroad with a plan to open overseas branches.

The Sacombank Securities Joint Stock Co (SBS) is preparing a plan to enter into a joint venture with the Lao Development Bank (LDB) to set up a securities company in Laos named Lanexang Securities Public Co Limited, or SBS-Laos.

SBS said the establishment of the SBS-Laos, scheduled for the fourth quarter of this year, would offer an opportunity for investors from the two countries and contribute to economic development in both countries, especially Laos, which is making great efforts to open their market.

After reaching its peak of 1,300 points in late 2007, the stock market in Vietnam began the falling trend due to the negative impacts of the global economic crisis and domestic difficulties.

Despite great efforts made by the State Securities Commission, the market has still been painting a dim picture with VN-Index fluctuating between 400 and 450 points. The situation has forced a number of securities companies to gear to other businesses for survival.

Experts remain pessimistic about the market fate, saying there were no signs of taking off for the market in the near future.

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Securities companies do extra work to survive

Securities companies have chosen to gear their operation to other
businesses such as real estate development, financial services or
overseas investment to survive amidst the prolonged gloomy situation.

The President of the Trang An Securities Company Executive Council, Le
Ho Khoi, explained the company’s investment of almost 15 percent of a
property project as an extra source of incomes from 2012 when it is
inaugurated.

Project “Complex Building of services,
trade and electronic assembly workshop”, consisting of 15 storeys on a
compound of over 5,000 sq. m., has a total investment of 200 billion VND
(10.2 million USD). It is mainly invested by the Fortika Joint-stock
Company.

Another giant, the An Binh Securities
Company, together with two other affiliates of the An Binh holding
company, has signed an agreement on strategic cooperation with the
Vietnam Aviation Insurance Joint-stock Company (VNI) to develop new
financial services.

Some other leading companies in this field have decided to try their chances abroad with a plan to open overseas branches.

The Sacombank Securities Joint-stock Company (SBS) is preparing a plan
to enter into a joint venture with the Lao Development Bank (LDB) to
set up a securities company in Laos named Lanexang Securities Public
Company Limited, or SBS-Laos.

SBS said the
establishment of the SBS-Laos, scheduled for the fourth quarter of this
year, would offer an opportunity for investors from the two countries
and contribute to economic development in both countries, especially
Laos, which is making great efforts to open their market.

After reaching its peak of 1,300 points in late 2007, the stock market
in Vietnam began the falling trend due to the negative impacts of the
global economic crisis and domestic difficulties.

Despite great efforts made by the State Securities Commission, the
market has still been painting a dim picture with VN-Index fluctuating
between 400 and 450 points. The situation has forced a number of
securities companies to gear to other businesses for survival.

Experts remain pessimistic about the market fate, saying there were no signs of taking off for the market in the near future./.

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World Bank arm loans $5mln to securities company

The International Finance Corp, a World Bank arm, will lend $5 million to Hanoi-based Thien Viet Securities to develop investment banking services targeted at small and medium-sized enterprises in Vietnam.

The loan has a three-year term and can be converted into shares of the company. IFC will also advise TVS on risk management and corporate governance practices.

Thien Viet Securities, which has a capital of VND430 billion ($22.1 million) -- among the top 15 securities firm in terms of capitalization -- offers investment banking services to private companies looking to access the capital market.

It also consults on strategic development, operational management, corporate governance, mergers and acquisitions, and initial public offerings.

By helping Thien Viet Securities enhance its capacity, products, and services to meet international standards, the IFC will be able to replicate these practices in other sectors of the economy, particularly small and midsized firms that are currently overlooked by foreign investment banks.

“We have invested in a number of Vietnamese banks before, but this is IFC’s first engagement with a securities service provider in the country,” Rashad Kaldany, IFC’s vice president for Asia, Eastern Europe, Middle East and North Africa, said.

“It is a starting point for our work to strengthen more financial services providers in the country, with a focus on small and midsized enterprises.”

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