VietNam Business

Saturday, January 1, 2011

Property investors dominate rich-list

Property investors dominate rich-list Most of the ten richest people on the Vietnamese stock market are real estate moguls.

Doan Nguyen Duc, chairman of Hoang Anh Gia Lai, reclaimed his top position on the list after falling to number two last year. As of Monday, his stockholdings were valued at more than VND10.5 trillion (US$541 million), according to data compiled by Thanh Nien.

Duc was followed by Pham Nhat Vuong, board member of both Vinpearl JSC and Vincom JSC, and Dang Thanh Tam, chairman of Kinh Bac Urban Development.

Three new investors who made their debut in this year’s top ten are also leaders of large real estate firms: chairman of Ocean Group Ha Van Tham, chairman of Phat Dat Real Estate Development Nguyen Van Dat, and chairwoman of Quoc Cuong Gia Lai JSC Nguyen Thi Nhu Loan.

Dat told Thanh Nien that he was happy to make the top ten. This meant his efforts so far have paid off and he is now recognized by shareholders and investors, he said. The goal for his company was to continue to expand its business and generate more profit, Dat added.

Analysts said the domination of property stock investors in the top ten meant that the sector still remains attractive. Meanwhile, some bank and technology stockholders lost their places in the list due to stock transfers and sharp declines in these stocks.

Together, the ten richest investors by stockholdings owned more than VND45 trillion ($2.3 billion) worth of stock, up 10 percent from last year. This is equivalent to 6.5 percent of the total capitalization of Vietnam’s stock market.

Two people in the top ten, Duc and chairman of Hoa Phat Group Tran Dinh Long (ranked fourth on the list), are the first private aircraft owners in Vietnam.

Economist Le Dang Doanh said it was normal to rank people based on their wealth in other countries, but it is a new trend in Vietnam, and hence some people were still uneasy about the practice.

“But I think it’s necessary to promote transparency,” he said. “Rich people should be acknowledged by society.”

Doanh said information disclosure will also improve the reputation of a company and give investors more confidence.

Vietnam has around 600 listed companies on two stock exchanges in Ho Chi Minh City and Hanoi. The exchanges’ total capitalization is equal to 40 percent of the country’s gross domestic product.

Economic growth accelerated in the third quarter, expanding 7.16 percent compared to 6.4 percent in the second quarter, according to figures released on Tuesday by the General Statistics Office.

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Property investors dominate rich-list

Property investors dominate rich-list Most of the ten richest people on the Vietnamese stock market are real estate moguls.

Doan Nguyen Duc, chairman of Hoang Anh Gia Lai, reclaimed his top position on the list after falling to number two last year. As of Monday, his stockholdings were valued at more than VND10.5 trillion (US$541 million), according to data compiled by Thanh Nien.

Duc was followed by Pham Nhat Vuong, board member of both Vinpearl JSC and Vincom JSC, and Dang Thanh Tam, chairman of Kinh Bac Urban Development.

Three new investors who made their debut in this year’s top ten are also leaders of large real estate firms: chairman of Ocean Group Ha Van Tham, chairman of Phat Dat Real Estate Development Nguyen Van Dat, and chairwoman of Quoc Cuong Gia Lai JSC Nguyen Thi Nhu Loan.

Dat told Thanh Nien that he was happy to make the top ten. This meant his efforts so far have paid off and he is now recognized by shareholders and investors, he said. The goal for his company was to continue to expand its business and generate more profit, Dat added.

Analysts said the domination of property stock investors in the top ten meant that the sector still remains attractive. Meanwhile, some bank and technology stockholders lost their places in the list due to stock transfers and sharp declines in these stocks.

Together, the ten richest investors by stockholdings owned more than VND45 trillion ($2.3 billion) worth of stock, up 10 percent from last year. This is equivalent to 6.5 percent of the total capitalization of Vietnam’s stock market.

Two people in the top ten, Duc and chairman of Hoa Phat Group Tran Dinh Long (ranked fourth on the list), are the first private aircraft owners in Vietnam.

Economist Le Dang Doanh said it was normal to rank people based on their wealth in other countries, but it is a new trend in Vietnam, and hence some people were still uneasy about the practice.

“But I think it’s necessary to promote transparency,” he said. “Rich people should be acknowledged by society.”

Doanh said information disclosure will also improve the reputation of a company and give investors more confidence.

Vietnam has around 600 listed companies on two stock exchanges in Ho Chi Minh City and Hanoi. The exchanges’ total capitalization is equal to 40 percent of the country’s gross domestic product.

Economic growth accelerated in the third quarter, expanding 7.16 percent compared to 6.4 percent in the second quarter, according to figures released on Tuesday by the General Statistics Office.

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Gold hits new high in Vietnam

Gold hits new high in Vietnam Gold rose to a record high in Vietnam this week as the metal continued to advance on the global market due to a negative economic outlook.

The price of gold surged to VND31.35 million a tael on Wednesday, compared to VND30.22 million a week before. It fell slightly to VND31.19 million on Thursday morning. A tael is equal to approximately 1.2 ounces of gold.

On the world market, gold hit a lifetime high of US$1,313.45 an ounce on Wednesday as the dollar dropped against a basket of currencies due to expectations the US Federal Reserve would take new measures to shore up the US economy.

Analysts said economic outlook concerns have increased the appeal of gold as a safe-haven asset.

Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry Company, said the demand for gold was high on Wednesday. In the morning alone, her company sold 860 taels of gold, more than double the amount it bought.

Saigon Jewelry Holding Company, Vietnam’s largest gold trader, reported sales of 2,000 taels on Wednesday morning.

Gold traders said many local investors bought a lot of gold as a stop loss strategy fearing that prices could go up further. Some traders are seeking government approval to import the metal as they say there is pressure on local supplies.

But Do Minh Phu, vice chairman of the Vietnam Gold Business Association, said in an interview published by Tien Phong newspaper Wednesday that there was no real demand for gold.

During a gold hike in November last year there were long lines of people waiting to buy and sell gold. However, over the past few days, this has not been the case, he said.

“Gold prices are definitely driven by speculators,” Phu said.

Vietnam no longer has gold exchanges and the precious metal has already lost its appeal to local investors compared to other investment options, he said.

Phu said there were concerns about a supply shortage after many local gold traders boosted exports this year. But he said a scarcity of gold in Vietnam is unlikely.

The current price gap between local and international gold is around VND300,000 per tael.

As soon as the State Bank of Vietnam allows local traders to import gold, the gap will narrow, Huynh Trung Khanh, vice chairman of the Vietnam Gold Business Association, told Thanh Nien.

He said companies should be cautious if they want to borrow gold from banks and sell it to do business. Even though interest rates on gold loans are low, at around 3 percent, businesses need to consider the fact that gold has risen 32 percent over the past year.

Khanh forecast gold will hit $1,350 an ounce on the global market in the final quarter this year.

Gold is heading for a tenth straight annual advance and is “still some way from displaying the characteristics of a bubble,” Deutsche Bank AG said in a report on Tuesday.

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ADB ups growth forecast for Vietnam

ADB ups growth forecast for Vietnam The Asian Development Bank (ADB) has upped its economic growth forecast for Vietnam this year to 6.7 percent from the 6.5 percent it projected in April.

It has also raised the growth forecast for 2011 to 7 percent from 6.8 percent previously, while lowering inflation projection to 8.5 percent this year and 7.5 percent next year, according to the Asian Development Outlook 2010 Update released by the bank on Tuesday.

“The shift from strong fiscal and monetary stimulus implemented during the global recession to a more balanced policy stance helped to stabilize financial and economic conditions and, together with the global economic recovery, paved the way for solid economic growth this year,” said the report.

Vietnam’s third-quarter growth hit 7.16 percent, well above the government’s target of 6.5 percent for the full year, government data said on Tuesday.

Gross domestic product (GDP) in the country, which aims to become an industrialized nation by 2020, expanded 5.8 percent in the same July-September period last year, the General Statistics Office said.

Vietnam’s nine-month economic growth was 6.52 percent, a “relatively high rise” compared with last year’s 4.62 percent over the same period, the agency said. It said the economy had become “rather stable towards a positive trend.”

Talking to the press on Tuesday, ADB’s Vietnam Country Director Ayumi Konishi said, “Vietnam should continue its efforts to ensure a better understanding of its policy stance by the public at large, supported by greater and timely availability of information and statistics.”

“This applies not only to the government but also to the corporate sector. In order to promote better corporate governance of public and private enterprises, quality and timeliness of information to be made available to the owners or shareholders and potential future investors will be the key,” Konishi added.

Most of the fiscal stimulus measures implemented during the global financial crisis expired at the end of 2009. Reflecting a somewhat more restrained fiscal stance, the government is targeting a 2010 budget deficit equivalent to 6.2 percent of GDP, narrower than the actual deficit in 2009 of 7 percent, said the ADB’s report.

Lei Lei Song, senior economist at the ADB, said on Tuesday that Vietnam’s growth resulted from an improved external environment and government stabilizing measures brought in last year to address macroeconomic imbalances.

Song warned of risks to Vietnam’s economic development as the dong is expected to be further devalued and inflation remains much higher than in other countries. This may erode the confidence of consumers and investors, Song said.

According to ADB, policy tightening and a good rice harvest contributed to the pulling back of inflation to 8.2 percent in July and August, although it increased to 8.9 percent in September.

Sizable trade deficits and relatively high inflation, coupled with residents switching from local-currency assets into US dollars and gold, continued to put downward pressure on the dong exchange rate, the bank said. From last November to August 2010, the dong was devalued three times, by a total of about 11 percent against the US dollar.

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Friday, December 31, 2010

ADB ups growth forecast for Vietnam

ADB ups growth forecast for Vietnam The Asian Development Bank (ADB) has upped its economic growth forecast for Vietnam this year to 6.7 percent from the 6.5 percent it projected in April.

It has also raised the growth forecast for 2011 to 7 percent from 6.8 percent previously, while lowering inflation projection to 8.5 percent this year and 7.5 percent next year, according to the Asian Development Outlook 2010 Update released by the bank on Tuesday.

“The shift from strong fiscal and monetary stimulus implemented during the global recession to a more balanced policy stance helped to stabilize financial and economic conditions and, together with the global economic recovery, paved the way for solid economic growth this year,” said the report.

Vietnam’s third-quarter growth hit 7.16 percent, well above the government’s target of 6.5 percent for the full year, government data said on Tuesday.

Gross domestic product (GDP) in the country, which aims to become an industrialized nation by 2020, expanded 5.8 percent in the same July-September period last year, the General Statistics Office said.

Vietnam’s nine-month economic growth was 6.52 percent, a “relatively high rise” compared with last year’s 4.62 percent over the same period, the agency said. It said the economy had become “rather stable towards a positive trend.”

Talking to the press on Tuesday, ADB’s Vietnam Country Director Ayumi Konishi said, “Vietnam should continue its efforts to ensure a better understanding of its policy stance by the public at large, supported by greater and timely availability of information and statistics.”

“This applies not only to the government but also to the corporate sector. In order to promote better corporate governance of public and private enterprises, quality and timeliness of information to be made available to the owners or shareholders and potential future investors will be the key,” Konishi added.

Most of the fiscal stimulus measures implemented during the global financial crisis expired at the end of 2009. Reflecting a somewhat more restrained fiscal stance, the government is targeting a 2010 budget deficit equivalent to 6.2 percent of GDP, narrower than the actual deficit in 2009 of 7 percent, said the ADB’s report.

Lei Lei Song, senior economist at the ADB, said on Tuesday that Vietnam’s growth resulted from an improved external environment and government stabilizing measures brought in last year to address macroeconomic imbalances.

Song warned of risks to Vietnam’s economic development as the dong is expected to be further devalued and inflation remains much higher than in other countries. This may erode the confidence of consumers and investors, Song said.

According to ADB, policy tightening and a good rice harvest contributed to the pulling back of inflation to 8.2 percent in July and August, although it increased to 8.9 percent in September.

Sizable trade deficits and relatively high inflation, coupled with residents switching from local-currency assets into US dollars and gold, continued to put downward pressure on the dong exchange rate, the bank said. From last November to August 2010, the dong was devalued three times, by a total of about 11 percent against the US dollar.

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HSBC expands to central region

Thomas Tobin (3rd, R), CEO of HSBC Vietnam, and colleagues cut the ribbon at the opening of the bank’s Danang branch on Thursday - Photo: Courtesy of HSBC

HCMC – HSBC Vietnam on Thursday opened a branch in Danang City to expand its geographical reach to the central region.

This is the second branch which the foreign bank has set up this year. The bank’s first branch debuted in Can Tho City in southern Vietnam’s Mekong Delta just last week.

Thomas Tobin, CEO of HSBC Vietnam, said in a statement, “Given Danang’s positioning as one of the country’s fastest-growing economic centers, as well as one of the most attractive hubs for foreign investment, we are looking forward to playing a role in this dynamic city’s exciting business sector.”

With the new branch at the Indochina Riverside Tower, 74 Bach Dang Street, Hai Chau District, corporate customers in Danang and neighboring provinces can gain access to HSBC’s business banking products, including commercial banking, global banking, payment and cash management, and trade finance, among others.

HSBC also has a range of personal financial services available for individual clients, including deposits and savings account transactions, loan products, international credit and debit cards.

Like other outlets across Vietnam, the Danang branch is launching a nationwide “Great Offers” promotion, offering customers discounts, bonus interest rates, and gifts across HSBC’s personal financial services products until October 31 this year.

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Countries of CLMV join hands for tourism development

Vo Anh Tai (R ), director of Saigontourist Travel Service Co., talks with foreign partners at the International Travel Expo in HCMC’s District 7 - Photo: Dao Loan

HCMC - High-ranking tourism officials of Cambodia, Laos, Myanmar and Vietnam, often referred to as CLMV, on Thursday announced in HCMC that they had agreed to join hands in many activities to develop tourism in the four countries.

The four tourism ministers agreed on the cooperation on Wednesday in a meeting as part of the sixth International Travel Expo in HCMC, which kicked off in HCMC on Thursday.

Tran Chien Thang, Vietnamese Deputy Minister of Culture, Sports and Tourism, said that the four sides would join hands in marketing activities, in organizing tourism investment forums, and developing human resources.

The four ministers also agreed on concerted efforts to make transport easier for citizens and international tourists to travel to and from the countries, and would seek ways to links tours between the four destinations. Efforts would also be made to open air routes linking the region’s world heritage sites.

The four ministers also agreed to organize the ministerial meeting in every two years to further discussions about the cooperation.

“We want to use the tourism industry as a lever to reduce poverty,” said Somphong Mongkhonvilay, tourism minister of Laos.

Tourism cooperation among the three countries of Cambodia, Laos, and Vietnam was formally initiated in 2007, when the three tourism ministers signed an agreement to this effect. The cooperation is now further widened with the participation of Myanmar this year.

The Laos minister said that the three countries were doing well in joint promotion activities, in organizing caravan tours, and making transport easier for citizens and international tourists.

“The number of flights between the three destinations is increasing. Overland transportation is easier. We are talking with the Governments to open more border gates for tourists to travel through,” he said.

Tourism officials said transportation is very important to help develop the tourism industry.

“Making transport easier is very important especially for visitors from outside the region. We should help them get visas in international border gates. We are talking with Governments to build more highways for better transportation,” said Thong Khon, Cambodia’s tourism minister.

The tourism ministers of Laos and Cambodia said that international tourists to the two countries can make visa procedures at international gates. Meanwhile, for Vietnam, tourists can get visa at the embassy or at international gates, but in the second way local travel firms must be there to assist such visitors.

The travel expo kicked off on Thursday at the Saigon Convention and Exhibition Center in District 7. Along with the exhibition, buyers and sellers are continuing business meetings there.

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