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  Banking Finance

First local investment fund licensed

The State Securities Commission has awarded a licence to the country’s first wholly domestic fund management company.Its deputy chairman Nguyen Doan Hung said, "we gave the Thanh Viet Investment Fund Managing Company (TMC) the licence last week enabling them to raise funds from investors."

This is the second fund management company to get a licence after the VietFund Management Company (VFC), a joint venture between the domestic joint stock Sacombank and the British management company Dragon Capital, earlier this year.

TMC is a VND11 billion (US$700,000) joint stock company in which TVH, a management and financial investment consultant, and the Phuong Nam Joint Stock Commercial Bank are the major shareholders.

The company plans to establish Sai Gon Fund, a fund that is expected to draw VND100-150 billion ($6.4-9.5 million), 60 per cent of which will be invested in securities.

The VFC’s VND300 billion ($19.1 million) VietFund (VF1) was listed on the HCM City Securities Trading Centre board last Monday. After closing the session on VND10,100, it fell to VND9,300 after five trading days.

Meanwhile, the VN Index closed last Friday at 226.99, a slide of 3.56 points from a week earlier. None of the 25 listed firms enjoyed a rise. Twenty one suffered losses with the telecom company, VTC, the hardest hit. It fell 4.93 per cent to close at VND32,800. Khahomex followed declining 4.57 per cent to hit VND20,900.

The furniture firm Savimex posted the smallest loss of 0.66 per cent, closing the week at VND29,900.

Four companies remained stable – Bim Son Packaging Co at VND16,800, the concrete producer BT 6 at VND31,500, the canned food Canfoco at VND14,000 and the Petrolimex mechanical company at VND14,600.

Last week, almost 5.378 million securities, worth nearly VND435 billion ($27.7 million), changed hands. Shares accounted for 704,340 of them while VF1 saw almost 809,000 units traded. Bonds, worth almost VND408 billion ($26 million) accounted for the remaining securities.

REE topped volumes with more than 110,000 stocks changing hands while the Binh Trieu Company finished bottom with 1,070 shares.

Foreign investors bought 58,510 shares for almost VND1.7 billion ($108,300), picking up companies like VTC, Hacisco, BT 6 and Bach Tuyet Cotton Co They also picked up 485,000 VF1 certificates for VND4.864 billion ($310,000).

They sold 92,810 shares in VTC, Hapaco, SACOM, REE and others, for almost VND2.8 billion ($178,300).

Other developments

Last week, REE won a contract to install the mechanical and electrical systems for Tan Son Nhat Airport. The two-year contract is valued at $29 million.

In other news, Deputy Minister of Finance Le Thi Bang Tam met with the securities commission last week for discussions. It was agreed that the HCM City bourse would be linked up with regional stock markets.

The Ha Noi Securities Trading Centre, which is soon set to begin operations, will be an OTC market. Trading in Government bonds will be moved there while it will also handle auction of stocks to convert State-owned enterprises into joint stock companies.

Businesses that cannot satisfy listing requirements at HCM City will also be allowed to list at the Ha Noi centre.

Moreover, businesses that are eligible to list at HCM City but do not want to do so will also be allowed to register at the Ha Noi bourse. But they will not be entitled to the incentives given to listed firms.

VNS - (16/11/2004)

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