VietNam Business: trillion

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Wednesday, February 2, 2011

South Korea unveils huge clean energy investment plan

Photo: Reuters

SEOUL - South Korea Wednesday unveiled a five-year plan to spend US$36 billion developing renewable energy as its next economic growth engine.

The plan, approved at a meeting chaired by President Lee Myung-Bak, aims to transform South Korea into one of the world's five top players in renewable energy.

South Korea will spend about 40 trillion won -- seven trillion won in state money and 33 trillion won from private businesses -- on new renewable energy projects by 2015, the Ministry of Knowledge Economy said.

It hopes to export renewable energy worth 36.2 billion dollars in 2015.

The ministry predicts the global market for renewable energy will grow rapidly from 162 billion dollars last year to an estimated 400 billion dollars in 2015.

Asia's fourth largest economy, which imports almost all its oil, has tried to cut dependence on fossil fuels and diversify energy sources.

In addition to the 40 trillion won, the ministry said the government will spend nine trillion won to build an offshore wind farm in the Yellow Sea by 2019, generating 2.5 gigawatts per hour of electricity.

S.Korea unveils huge clean energy investment plan

Photo: Reuters

SEOUL - South Korea Wednesday unveiled a five-year plan to spend US$36 billion developing renewable energy as its next economic growth engine.

The plan, approved at a meeting chaired by President Lee Myung-Bak, aims to transform South Korea into one of the world's five top players in renewable energy.

It hopes to export renewable energy worth 36.2 billion dollars in 2015.

The ministry predicts the global market for renewable energy will grow rapidly from 162 billion dollars last year to an estimated 400 billion dollars in 2015.

Asia's fourth largest economy, which imports almost all its oil, has tried to cut dependence on fossil fuels and diversify energy sources.

Wednesday, January 26, 2011

IFC to buy 10 percent stake in Vietinbank for 190 mln USD

Vietinbank on Oct.10 agreed to sell a 10-percent stake in the firm to
International Finance Corporation (IFC) for 190 million USD. The deal
makes Vietinbank the first partly equitised State-owned bank to become
part-owned by a foreign strategic investor. It made its initial public
offering 22 months ago.

The price was set by the Government, the Ministry of Finance and the State Bank of Vietnam.

IFC will support Vietinbank with technologies, international business development and management.

Vietnam's largest partly-private lender announced on Oct. 10 its total
assets at the end of August had risen nearly 30 percent from the end of
2009 to 320 trillion VND (16.41 billion USD).

In
the first eight months of this year, the Hanoi-based lender raised more
than 290 trillion VND in deposits and lent 199.5 trillion VND. Its bad
debt stood at 1.05 percent of all loans, below an annual target of 2.5
percent for 2010.

The bank plans to pay a dividend
of 20 percent of its shares' face value of 10,000 VND for 2010, higher
than its initial target of around 15 percent, the statement said,
without giving profit figures for the eight-month period.

Vietinbank expects to increase its charter capital to 23 trillion VND
(1.18 billion USD) by the end of the year, and the figure is slated to
reach 35 trillion VND (1.8 billion USD) next year.

"By helping Vietinbank build up its capacity and strengthen its products
and services, IFC will assist the bank in reaching more small – and
medium-sized enterprises through its nationwide network," said Simon
Andrews, IFC regional manager for Vietnam, Cambodia, Laos, and Thailand.

"The proposed engagement will help Vietinbank
further develop as a leading SME and underlines IFC's support for the
Government's equitisation programme in the financial and banking
sectors."

The Hanoi-based bank also plans to sell a
stake of 15 percent to Canada's Bank of Nova Scotia to raise its
registered capital by 35 percent to 15.1 trillion VND. The deal is
expected to be finalised in December.

Shares of Vietinbank (coded CTG on the HCM Stock Exchange) closed at 18,700 VND per share on Oct.8.

Vietinbank went public in December 2007, becoming the first State-owned bank to do so.

However, it has struggled to find a foreign strategic investor./.

Tuesday, January 25, 2011

IFC to buy 10% stake in Vietinbank for $190 million

HA NOI — Vietinbank agreed yesterday to sell a 10-per-cent stake in the firm to International Finance Corporation (IFC) for US$190 million. The deal makes Vietinbank the first partly equitised State-owned bank to become part-owned by a foreign strategic investor. It made its initial public offering 22 months ago.

The price was set by the Government, the Ministry of Finance and the State Bank of Viet Nam.

IFC will support Vietinbank with technologies, international business development and management.

Viet Nam's largest partly-private lender announced yesterday its total assets at the end of August had risen nearly 30 per cent from the end of 2009 to VND320 trillion ($16.41 billion).

In the first eight months of this year, the Ha Noi-based lender raised more than VND290 trillion in deposits and lent VND199.5 trillion. Its bad debt stood at 1.05 per cent of all loans, below an annual target of 2.5 per cent for 2010.

The bank plans to pay a dividend of 20 per cent of its shares' face value of VND10,000 for 2010, higher than its initial target of around 15 per cent, the statement said, without giving profit figures for the eight-month period.

Vietinbank expects to increase its charter capital to VND23 trillion ($1.18 billion) by the end of the year, and the figure is slated to reach VND35 trillion ($1.8 billion) next year.

"By helping Vietinbank build up its capacity and strengthen its products and services, IFC will assist the bank in reaching more small – and medium-sized enterprises through its nationwide network," said Simon Andrews, IFC regional manager for Viet Nam, Cambodia, Laos, and Thailand.

"The proposed engagement will help Vietinbank further develop as a leading SME and underlines IFC's support for the Government's equitisation programme in the financial and banking sectors."

The Ha Noi-based bank also plans to sell a stake of 15 per cent to Canada's Bank of Nova Scotia to raise its registered capital by 35 per cent to VND15.1 trillion. The deal is expected to be finalised in December.

Shares of Vietinbank (coded CTG on the HCM City Stock Exchange) closed last Friday at VND18,700 per share.

Vietinbank went public in December 2007, becoming the first State-owned bank to do so.

However, it has struggled to find a foreign strategic investor. — VNS

Tuesday, January 18, 2011

Cashew sector to need VND11 tril.

HCMC – The local cashew industry will need around VND11 trillion to sustain development within the next ten years.

The sum will help the sector expand growing areas, modernize production and invest in research, according to the 2011-2020 cashew development plan devised by the Vietnam Cashew Association (Vinacas).

The fund will be mobilized from banks, corporate bond sales, share issues and the State budget.

Vinacas plans to pass the project to relevant ministries and submit it to the Government in the fourth quarter of this year for approval. The industry will spend VND4.5 trillion in the 2011-2015 period and VND6.5 trillion until 2020.

The industry is facing difficulties due to unstable material sources as farming families have switched to growing rubber or cassava for higher profits. Besides, cashew export in the coming years will be affected by a labor shortage and higher input costs.

According to Vinacas, the capital will help to ensure a stable cashew material cultivation area of 315,000 to 360,000 hectares in the country, 200,000 to 250,000 hectares in Cambodia and 50,000 to 100,000 hectares in Laos. Through this financing, enterprises can also train workers, improve processing technology and promote business at home and abroad.

Vietnam is the world’s leading cashew exporter but 30% of unshelled cashews are imported from Africa. As African nations plan to process cashews in the future as well, the local processing industry will certainly suffer a material shortage.

Wednesday, December 15, 2010

Vietnam’s GDP grows 6.52 percent in 9 months

HCMC

Vietnam’s economy grew 6.52 percent in the past nine months, the Ministry of Planning and Investment (MPI) reported on Monday.

The growth was hugely supported by industrial production value, which hit VND574 trillion or a rise of 13.8 percent compared with the same period last year and exports, which rose 20 percent to US$51.5 billion.

According to the MPI, the export figure was mainly contributed by the foreign direct investment sector and the rising prices of rubber, pepper, cassava, cashew nut, tea, rice and seafood in the world market.

In the past nine months, retail and service sales raked in VND1.146 trillion, a rise of 25 percent compared to the equivalent period in 2009.

The ministry reported that the state had collected VND360 trillion for its budget, which represented 78.2 percent of the yearly estimate.

Despite gains, the national economy still faced a high trade deficit, the MPI said, citing an import value of $60.08 billion, which represented a rise of 22.7 percent compared with the corresponding period last year.

The MPI predicted that prices of consumer goods would go up in the remaining three months because of the rising prices of input materials and commodities in the world market.

It asked relevant ministries and sectors to introduce detailed plans to retain the prices.

Sunday, December 12, 2010

Vietnam sees share offerings booming

HANOI – The State Securities Commission (SSC) this year has approved the largest ever number of share offerings by listed firms, sparking concerns of oversupply.

SSC as of the end of July had permitted enterprises issue around VND61 trillion worth of shares while it was only VND19.3 trillion in the whole 2009, said Bui Hoang Hai, deputy director of SSC’s Issuance Management Department.

Hai told a seminar in Hanoi last week that SSC had approved nearly 500 share issue applications this year.

In the first six months of 2010 alone, SSC had allowed listed organizations to issue VND18.6 trillion worth of shares to the public, VND1.1 trillion for their staffs and VND25 trillion for strategic shareholders. In addition, there were VND717 billion of shares offered via auctions at the stock exchanges, VND50 billion of bonus shares and VND86 billion worth of dividend stocks.

Hai said that many enterprises are seeking to offer huge amounts of shares this year as they failed to do so last year due to poor profits. Meanwhile, commercial banks also want to offer shares to increase capital given new regulations requiring them to spur capital to at least VND3 trillion each or get disbanded.

However, due to the lack of transparency on the part of listed firms, stock investors may face risks.

The quality of information released by listed companied in Vietnam is still poor. Most enterprises have no specific and long-term issuance strategies and announce information barely at compulsory requirements, Hai said.

“Some information is not trustworthy and may cause misunderstanding,” Hai said. There are enterprises providing information of business results or share prices on the basis of non-standard calculations. “Few enterprises have responsibility for what they say in the announcements,” he stressed.

While some enterprises release information regularly, others have no official websites and rarely send notices to stock watchdogs. “I think that many investors cannot receive the information either,” Hai said.

Hai also noted that while share issuance in the world aims to attract capital from new investors, listed enterprises in Vietnam primarily offer shares to existing shareholders.

David Gerald, president of the Singapore Securities Investors Association, advised investors at the seminar to study the stock market thoroughly.

“Don’t join the market if you have no knowledge. You have to check the issuing companies,” he said.

“We have to create an equity market where investors have responsibilities, knowledge and bear the blame for their decisions,” Gerald added.

Other experts said transparent information and proper release via the media could help Vietnamese enterprises maximize the value in their initial public offerings (IPO).

According to SSC, Vietnam’s stock market capitalization as of the end of August reached VND650 trillion, or US$33.5 billion, equivalent to one-third of the country’s gross domestic product.