Tuesday, July 23, 2019 3:16:29 AM - Markets open
VN-INDEX 982.04 -0.30/-0.03%
HNX-INDEX 106.76 -0.31/-0.29%
UPCOM-INDEX 58.01 +0.47/+0.82%
Vietnamese securities catch the eye of South Korean investors R
Vietnam News - 6/17/2019 1:10:49 PM
 (0 ratings. You must sign in to rate.)
The Vietnamese stock market now has many South Korean-owned securities companies following a series of acquisitions in recent years.
 
In March Korean Investment Management bought a 5.08 per cent stake in Việt Capital Securities Joint Stock Company.         
 
Maritime Securities Company was renamed KB Securities Vietnam Company after  KB Securities Co. Ltd spent US$33 million to purchase a 99.4 per cent stake of MSI.
 
Nam An Securities Company was renamed Shinhan Securities Vietnam Company after it was taken over by a South Korean company, Shinhan Investment Corporation, after acquiring 14 million shares in 2015.
 
Recently South Korea’s Hanwha Investment and Securities Company completed the acquisition of HFT Securities Company.
 
Market observers said South Korean investment in Vietnamese securities companies is likely to continue.
 
Vũ Thị Chân Phương, vice chairman of the State Securities Commission (SSC), attributed the South Korean interest to Việt Nam’s investment promotion programmes in many international markets including South Korea in recent times.
 
The SSC organised promotions in Japan in 2014, the US in 2015, Japan again in 2017, and South Korea last year.
 
These events saw bilateral and multilateral meetings between Vietnamese securities companies and prospective investors.
 
Industry insiders said since the Vietnamese securities market was still in an early stage of development, foreign investors see great potential in it.
 
The great prospects for the country’s economy together with its stability, relentless professional improvement in the securities market and the Government’s open policy had also made Việt Nam an attractive destination to foreign investors, they said.
 
Its favourable geographical location and competitive labour costs were also advantages it had over other countries.
 
The large direct investment from South Korea was also thought to be a factor attracting portfolio investment from that country.
 
According to the Foreign Investment Promotion Department, the country has ongoing FDI projects worth $350.5 billion and South Korea accounts for $64.8 billion or 18.5 per cent.
 
Việt Nam’s comprehensive entry into the global market would help its securities market reach international standards, thus ensuring it is transparent and efficient and becomes a channel to mobilise long- and medium-term funds, experts said.
 
Not only securities …
 
The HCM City Stock Exchange (HOSE) announced recently that SK Investment Vina II, a subsidiary of SK Group, has completed the purchase of 205.7 million shares of real estate-retail-technology-auto conglomerate Vingroup.
 
With a 6.15 per cent stake, the Korean company has become a significant shareholder in the VNĐ32 trillion group.
 
SK earlier invested $470 million to buy a 9.45 per cent stake in consumer giant Masan Group.
 
A company spokesperson revealed that SK was also interested in the equitisation of State-owned enterprises and wanted to participate in the restructuring of a state-owned company, making it a parent company with a number of subsidiaries in Việt Nam.
 
… Not only South Korean investors
 
Investors from many other countries and territories are also pushing investments in Việt Nam. 
 
Japan’s Mitsui recently agreed to buy a 35.1 stake in Minh Phú Seafood Joint Stock Company, which accounts for 20 per cent of the country’s shrimp export.
 
In 2013 Mitsui had bought stakes in Minh Phú Hậu Giang Seafood Joint Stock Company, a subsidiary of Minh Phú.
 
Hậu Giang Pharmaceutical Joint Stock Company (DHG) is now a subsidiary of Japan’s Taisho Pharmaceutical Co Ltd after the latter increased its stake in it to 50.78 per cent in April.
 
The Japanese company had first bought 24.4 million shares for $100 million in 2016 before gradually increasing its stake, culminating in the purchase of 20.6 million shares in April.
 
DHG is the largest Vietnamese pharmaceutical firm by market capitalisation and revenue. Based on its share price of VNĐ114,300 last Friday, its market value is nearly VNĐ14.8 trillion ($635.2 million).
 
Analysts said more and more foreign investors were choosing to enter the Vietnamese market through the acquisition route instead of direct investment unlike before.
 
The Association of Foreign Invested Enterprises said acquisitions were worth more than FDI in the first five months of this year.
 
Experts said the trade diversion created by the escalating US-China trade war was one of the main reasons for both FDI and acquisitions to rise in recent times.
 
The CEO of HSBC Vietnam, Phạm Hồng Hải, said due to the trade tension, multinationals were diversifying their supply chain strategies with a mixture of local sourcing, offshoring and reshoring.
 
In the past decade Southeast Asia including Việt Nam has been perceived as a strong production option for multinationals given its role within existing supply chains, growing consumer base, and strong trade and investment ties. VNS
 
 
Read original article here
 
Newer News
21/07 VN stocks to struggle amid mixed corporate earnings
19/07 VN stocks fall, mounting sell pressure hits large-caps
16/07 HOSE releases updates for VN30 basket
15/07 Calls for insider traders to be dealt with criminally
12/07 Shares extend rally on credit growth limit relaxation
11/07 Shares advance for second day on foreign buying
10/07 Deutsche Bank's restructuring not expected to harm VN market
09/07 Securities firms warn listed businesses may struggle to meet EVFTA standards
08/07 VN stocks may keep rising, driven by corporate earnings
05/07 Transparency needed for healthier corporate bond market
Older News
15/06 VN-Index recovers after three-day decline
14/06 Shares fall for third day of trading
13/06 Shares ease on low demand
11/06 Share rally narrows in afternoon trade
10/06 VN stocks forecast to move forward
07/06 VN stocks move higher following global good mood
06/06 VN stocks slow gains down on economic worries
05/06 Shares recover on bottom fishing
04/06 Trade war fears darken VN stocks
01/06 Shares fall for four consecutive sessions
 
Newsletter Signup
Top Stories
VN has trade surplus of about $1.6 billion in H1
Trade pacts bring opportunities for seafood industry's sustainable growth
Credit institutions warned about P2P lending
CPTPP boosts export opportunities in Japan
Deutsche Bank's restructuring not expected to harm VN market
Market Update
Last updated at 3:10:05 PM
VN-INDEX 982.04 -0.30/-0.03%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.