Foreign investors prick ears to Vietnam bourse
Vietnam Economic Times, Friday, January 02, 2004 22:00:55
The hive of activity among foreign investors on the HCM City securities trading floor has contributed to the recovery of the VN-Index, confirmed Vu Bang, Deputy Chairman of the State Securities Commission on December 26 in HCM City.
The number of foreign investors opening accounts for stock transaction in 2003 increased 36% compared to 2002, mostly through the Saigon Securities Company (SSI). They also now account for 27% of all trade value on the bourse.
By December 24, 2003, the HCM City Securities Trading Centre had held 242 trading sessions with a total transaction value of more than VND2.7tril through both shares and bonds. Around 27% of this hailed from foreign investors.
The six most attractive portfolios to foreign investors in 2003 were AGF under the An Giang Seafood Processing Company – Agifish, CAN under the Ha Long Canned Food Company – Canfoco, REE under the Saigon Refrigeration Engineering Enterprise, TMS of Transimex Saigon and TS4 of the Seafood Company No. 4.
Along with the brisk trade among foreign investors, the special care in handling foreign investment funds was also an outstanding point in 2003, marking the return of such funds to Vietnam.
Aside from Dragon Capital, two foreign investment funds, Vina Capital and Mekong Capital, have become involved in the stock market. Share portfolios in equitised and listed companies are leading interest.
Around eight years ago, many foreign investment funds entered Vietnam to seek investment opportunities under the form of adventure investment. However, only Dragon Capital has held its ground. The Vietfund Securities Investment Company (VF) has asked permission from SSC to join the Vietnam bourse.
Three months ago the Government issued Decision 46/QD-TTg to raise the maximum interest foreign investors could hold, both for listed and unlisted shares in Vietnam from 20% to 30%. Experts said that the decision has encouraged activity among foreign investor.
Foreign investors and foreign investment funds are now the main targets of the SSC, Mr Bang said. The committee will have new mechanisms to attract adventure investment and banking funds both at home and abroad to the bourse, Mr Bang added.
The committee will also request that the Government simplify licensing formalities for foreign investors, easing the purchase of shares in the market.
The total listed value of the stock market is VND11.6tril, with 99 types of government bonds worth VND11tril, accounting for nearly 90% of the market. Two kinds of corporate bonds, totalling VND157.6bil, hold 1% of the total quoted value. The remainder is spread across 22 types of shares, for a total value of VND1.12tril.
Source: HCM City Securities Trading Centre
VietnamNet
By Minh Quang - (02/01/2004)
