Source: VietNamNet Bridge
Việt Nam is an emerging market for financial investment with
favourable conditions created by new policies and fresh impetus given to
the equitisation of State-owned enterprises, senior officials said at a
The seminar was titled Vietnam – Korea Capital Markets and Investment Co-operation Prospects.
Bằng, chairman of the State Securities Commission, reaffirmed that the
country’s first derivatives market will become operational by the end of
this year, with products including covered warrants and GDK
(Generalised Derivative Kernel).
He also said a new regulation
later this year will clarify provisions of Decree 60 issued last June on
increasing the cap for foreign stakeholding in local companies up to
100 per cent.
The time taken for trading registration will be
reduced, State ownership in enterprises lowered to serve strategic
partners and restructuring of institutions in securities business sector
persisted with, he said.
Improvements will also made to listing and issuance criteria, corporate governance and transparency, he added.
Dominic Scriven, executive chairman of the investment fund management
firm Dragon Capital, said he considers Việt Nam the best emerging market
for investment as it is experiencing accelerating growth while other
emerging markets are slowing.
Other factors that he cited included
the country’s large quality, economical labour force (two-thirds of its
population of 93 million and labour costs at just 35 per cent of
China), increasing middle class segment and improved productivity.
He said that productivity has been the ultimate driver of the country’s GDP and its gains are ongoing.
gains derive from heavy investment in manufacturing and infrastructure…
and accumulating productivity gains are turning Việt Nam into a modern
economy,” he said.
The country’s free trading agreement with the
ERU, its major export market and its membership of the Trans Pacific
Partnership will facilitate export growth once they take effect.
He said the price on earnings ratio could come down to 11.1, from 12.7 in 2015 and 2014, and 13 in 2013.
2016-2017, big companies like SATRA Corp., MobiFone, Vietnam Engine and
Agriculture and the Vietnam Cement Group are likely to be equitized,
offering opportunities for foreign investors.
Nguyễn Quang Thuan,
CEO of StoxPlus Corporation, backed Scriven, saying reforms to currently
prevailing State ownership in many industries will create a lot of
The State Capital Investment
Corporation’s divestment plan in 2015-2016 will also attract investor
interest, the conference heard.
Among companies subjected to
divesture include Vietnam Construction and Import – Export JSC (State
current ownership at almost 58 per cent of its chartered capital of
VNĐ4.417 trillion or almost US$200 million) and Quảng Ninh Thermal Power
JSC (11.4 per cent of VNĐ4.5 trillion).
Kim Soo-Ho, the Korean
General Consul in HCM City, said Việt Nam, as a labour/consumer market
of 100 million people, has the potential to benefit the most when
investors pull out of China (a JETRO survey shows Japan’s businesses in
China and Thailand hope to shift their manufacturing bases to Việt Nam).
The Government’s determination to attract investment is a positive factor, he added.