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  Banking Finance

BSC promotes investment activities

BIDV Securities Company (BSC), an independent member of the Bank for Investment and Development of Viet Nam, has doubled its chartered capital to VND200 billion (US$12.6 million) to promote investment activities.

This now makes BSC the securities company with the largest capital out of 14 operating in Viet Nam.

As it becomes increasingly possible that the country could enter the World Trade Organisation (WTO) this year, domestic enterprises are demanding large capital amounts to increase their competitiveness, said Ho Cong Huong, BSC director.

To meet this demand, the mobilisation of capital via the securities market is becoming more popular, along with credit and banking systems, he said. The Government and relevant offices have created many policies to encourage enterprises to list their shares on the market. This could lead to a rise in listed companies and share volume in the near future.

Under these new conditions, BSC would have had a challenge to expand its operation scale and compete with other securities companies, Huong said. By increasing its chartered capital to VND200 billion, the company will operate more smoothly on the domestic market.

In the near future, the company will develop further underwriting services and promote investment activities on the domestic market, in addition to current equitisation consulting and enterprise evaluation services, Huong said.

"One of the reasons for the unsuitability of the securities market over the past few years is that most investors only invested for the short term," Huong said. "With the increase in capital, we want to show our commitment to joining the market on the long term and create faith in investors for securities companies."

Last year, brokerage services accounted for three per cent of BSC’s total turnover, while consulting and underwriting services made up 10 per cent of the total.

"So, I think, we do not have any reason not to increase the capital for investment activities," Huong said.

BSC plans to invest five per cent of the total capital into the domestic currency market, 35-40 per cent into bonds and 55-60 per cent into listed or non listed shares, he added.

Vietnamnews - (13/04/2006)

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