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BUSINESS IN
BRIEF 31/1
Vinachem to accelerate apatite projects
The
Viet Nam Chemical National Group (Vinachem) will focus on investment of
apatite exploitation projects this year, said the group’s deputy general
director Bui The Chuyen.
Chuyen
said the group would accelerate completing procedures to get licences for
apatite projects such as mines 18, 19, Ngoi Dum Dong Ho, Cam Duong 2 and mine
26 of Apatite Viet Nam One Member Limited Company.
Vinachem
will resolve material issues to implement the expansion project of Bac Nhac
Son Apatite Ore Plant in the northern mountainous
In
addition, Vinachem will quickly complete investment preparation for improving
the quality of NPK Fertiliser Plant of Binh Dien Fertiliser Company in
southern Long An Province, with a total capacity of 200,000 tonnes a year,
Chuyen said.
According
to Vinachem’s report, production and trading of the Apatite Viet Nam One
Member Limited Company is faced with difficulties as the licence for apatite
exploitation at its mines has not been granted for a long time.
On
the other hand, its rivals have lowered prices to gain market shares, a
pressure tactic. This is one of the reasons why the company’s business
results have not met its expectation.
Last
year, its output reached 2.8 million tonnes, posting a 2.8 per cent
year-on-year increase and an increase of 6 per cent over the set target.
Its
apatite consumption reached 2.9 million tonnes, increasing 19 per cent from
the set target and 3.4 per cent from the previous year. The company’s revenue
was VND3.64 trillion (US$160 million), increasing by 2 per cent over the set
target and reducing by 7.3 per cent compared to 2016.
Nguyen
Tien Cuong, general director of the Apatite Viet Nam One Member Limited
Company, said its financial results last year did not meet the set targets
due to low prices, although its output and consumption surpassed targets.
The
company contributed VND566.6 billion to the State budget and posted a pre-tax
profit of VND150 billion.
Cuong
said the company has been seeking new export markets as well as continuing
its restructuring to improve financial supervision.
Digiworld looks to foray into FMCG sector
Digiworld
Corporation has said it will make a foray into the fast-moving consumer goods
(FMCG) and healthcare products markets this year.
Digiworld
plans to offer new products in the healthcare sector later this year. The
FMCG and healthcare sectors are expected to create new streams of revenue for
the company.
In
quarter three, Digiworld Venture Co Ltd, an arm of Digiworld Corporation,
acquired a 50.3% stake in CL Co Ltd, a local FMCG supplier which has a goods
distribution system across the country. The deal is expected to help
Digiworld venture into the FMCG market.
The
corporation made VND3.82 trillion (US$168.2 million) in revenue, and over
VND78 billion (US$3.4 million) in after-tax profit last year, beating its
full-year targets. In quarter four alone, its revenue amounted to VND1.12
trillion, a year-on-year rise of 11.3%.
Digiworld
general director Doan Hong Viet told reporters in HCMC on January 24 that the
corporation expects stronger growth in revenue from cell phones this year, at
roughly 60%. Notably, sales of cell phones like Xiaomi and Sharp have become
major revenue sources for the firm.
SBV asks banks to prioritize loans for production and business
The
State Bank of Vietnam (SBV) has told local banks and foreign bank branches to
increase lending to production and business activities, according to a Thoi
Bao Ngan Hang newspaper report.
SBV
governor Le Minh Hung asked banking institutions to strictly control their
credit growth in line with their assigned targets and the central bank’s
monetary policy.
Credit
growth and quality should go hand in hand, he said. Loan assessment and
supervision should be properly done to minimize non-performing loans, and
guarantee safety for the banking system.
Loans
for the real estate and construction sectors should be put under control.
Lender banks should monitor the progress of the property projects to which
they have lent, and check their clients’ financial capability,
creditworthiness and assets used as collateral.
They
should also control the quality of consumer loans, and improve the efficiency
of the loan approval process to reduce risks.
They
should strictly control lending to stock investors to minimize risks in line
with the SBV’s Circular 19/2017/TT-NHNN amending and supplementing a number
of articles of Circular 36/2014/TT-NHNN which provides safety limits in the
banking sector.
Loans
should be prioritized for production and business activities, especially in
agriculture, export and supporting industries, and small and medium, and
hi-tech enterprises.
Japan firm plans solar power plant in Binh Phuoc
Asia
Infonet Inc., a subsidiary of AIN Group of
Tsuyoshi
Sai, chairman and general director of Asia Infonet Inc., was quoted by the
news site as saying that the company is capable of developing solar power
plants and has invested in multiple projects with a combined capacity of
400MW.
According
to the company, Binh Phuoc holds high potential for solar power development.
The
Japanese firm wants to know administrative procedures to implement the
project, especially those for connecting the plant to the national grid and
for selling electricity to enterprises in the complex.
Loi
threw his support behind the project, saying this will be the first solar
power plant in the complex.
The
Binh Phuoc government pledged to create favorable conditions and help the
company get an investment license and propose the Ministry of Industry and
Trade approve the project.
The
provincial government also asked relevant agencies to help the investor
complete procedures this quarter.
Binh
Phuoc has 2,700 sunlight hours a year, so it is calling for investment in
solar power generation.
Debt-laden Mai Linh’s effort to seek help seen faltering
Faced
with huge debt, Mai Linh Group, which is known for Mai Linh Taxi brand
nationwide, is seeking emergency help but the possibility of it getting such
help is low as it is feared that it might set a bad precedent.
The
company has proposed its debts be frozen and its unpaid tax and insurance
premiums be further extended. A news report on news website Vietnamnet said
if Mai Linh’s proposal is approved, it would do more harm than good.
Vietnam
Social Security was quoted by the news site as saying that it has no
authority to freeze or cut insurance debts. Analysts said Mai Linh’s proposal
might not be approved.
The
company earlier wrote to the National Assembly Committee for Social Affairs,
the Ministry of Finance and Vietnam Social Security cataloging its
difficulties. The economic downturn triggered by the 2007-2008 financial crisis
and high interest rates left the company sitting on a mountain of unpaid
taxes, social/health/unemployment insurance premiums and bank loans.
The
news report quoted Mai Linh chairman Ho Huy as saying that like other
traditional transport service firms, Mai Linh is struggling with an unfair
competition with ride-hailing firms Uber and Grab. With revenue considerably
declining, Mai Linh is on the verge of becoming insolvent.
As
of late last October, Mai Linh’s unpaid tax and insurance amounts amounted to
VND150 billion and its late payment penalties some VND80 billion. The company
proposed it be exempted from loan interest.
The
debts belong to Mai Linh’s subsidiaries which have suspended operations and
have piled up since 2012.
Under
the prevailing regulations, tax payments can be rescheduled in some cases
such as natural disasters, fires and accidents.
Huy
previously told the media that for loan interest and late payment penalties,
the company would need a hundred years to pay them off.
Authorities
and experts said difficulties faced by firms should be handled in accordance
with regulations and that there should be no exception.
Mai
Linh has recently made certain changes in its competition with Uber and Grab,
such as launching a mobile app, and planning mergers of its units to increase
competitiveness.
In
the month, prices of seven out of 11 commodity baskets recorded slight
growth, with the highest rate seen in transport at 1.39 percent which was
attributed to the impact of gasoline price adjustments.
Other
goods with higher prices were other goods and services (0.65 percent);
housing, electricity, fuel and construction materials (0.46 percent);
beverage and tobacco (0.33 percent); medicine and healthcare services (0.16
percent); culture, entertainment, and tourism (0.04 percent); and equipment
and home appliances (0.02 percent).
Meanwhile,
decreases were seen in food and catering services (0.21 percent);
telecommunications (0.08 percent); and garment, hat and footwear (0.01
percent).
In
January, the price of education remained stable.
The
price of gold increased by 0.44 percent, while the price of US dollar
declined 0.02 percent from that of January 2017.
VND1 trillion mall comes into operation
Lead
investor Tran Le Nguyen on January 25 inaugurated the VND1-trillion (US$44
million) Van Hanh Mall, the largest commercial center in District 10, HCMC.
The
eight-story Van Hanh Mall at
The
mall has a wide range of products such as fashion, cosmetics, furniture,
household appliances, and food, which can be found at more than 200 stores of
domestic and international brands like Co.opXtra, CGV, Power Bowl, Nike,
Levi’s, Adidas, and Starbucks.
Tran
Le Nguyen, who is also general director of food processor KIDO Corporation,
said he will inject more money into developing infrastructure for the mall.
In
2008, he put
He
stressed the quality of services and goods, and convenient locations for
customers could guarantee success for shopping centers. “We choose
prestigious partners and good services to meet customer demand whenever they
come to Van Hanh Mall for shopping and entertainment,” he said.
He
added shopping space at Van Hanh costs US$30-60 per square meter and that it
is now over 90% full thanks to the presence of major and reputable brands.
The
Vietnam-France high-level economic dialogue was co-chaired by Vietnamese
Deputy Minister of Planning and Investment Nguyen The Phuong and French
Minister of State attached to the Minister for Europe and Foreign Affairs
Jean-Baptiste Lemoyne in
The
event was held as part of activities to mark the fifth anniversary of the
establishment of the strategic partnership and the 45th anniversary of
diplomatic ties between
In
2017, two-way trade between
At
the meeting, the co-chairs underlined growing food trade between
The
event was attended by Government agencies and businesses from the two
countries and focused on two major topics of the bilateral strategic
partnership, namely climate change and infrastructure development.
The
topics have been reflected through the French Development Agency’s Water
Action Plan and numerous projects and initiatives that would be funded by
French agencies like CLS’s remote sensing service for climate change
responses, EDF’s solutions for a sustainable city and Air Liquide’s
cooperation project for petrochemical development.
Stainless steel traders complain about time-consuming tests
Stainless
steel traders now have to wait at least six months to receive results of
tests on their shipments even though the maximum period under the current
regulations is five working days.
At
a dialogue between the HCMC Customs Department and the American Chamber of
Commerce in
According
to Decision 2999/QD-TCHQ dated September 6, 2017 of the General Department of
Vietnam Customs, customs offices must complete inspections and analyses of
imports and exports in five to eight days, a customs officer told the Daily
on the sidelines of the dialogue.
Nguyen
Quoc Toan, deputy director of the import-export tax division at the HCMC
Customs Department, admitted a large volume of stainless steel samples is
being stored at the customs office as tests are done by only one agency,
leading to a huge backlog.
Tests
are conducted in accordance with a decision on anti-dumping duty on stainless
steel of the Ministry of Industry and Trade. Although the decision is
applicable to steel imports from certain markets, the Ministry of Finance has
asked the customs to inspect all shipments.
Nguyen
Huu Nghiep, deputy head of the HCMC Customs Department, said the Prime
Minister would issue a new decree providing new customs regulations in March.
Particularly, the customs will classify commodities after relevant agencies
provide enough information.
In
addition, the Ministry of Finance has sent the Government a draft decree
which contains measures for removing obstacles to the national one-door
customs mechanism.
Accordingly,
ministries and agencies will implement inspections based on product
classifications by customs agencies, and export and import procedures must be
completed on the national one-door portal.
The
draft decree is expected to be approved this quarter.
Agriculture ministry advises farmers not to expand pepper
planting area
The
Ministry of Agriculture and Rural Development has advised farmers not to
cultivate new pepper plants, transfer into other crops if the plants die of
diseases and gradually reduce pepper area to 100,000 hectares.
At
a conference on sustainable pepper production yesterday, minister Nguyen Xuan
Cuong said that pepper growing area has tripled to 152,000 hectares, output
had also tripled during seven years in 2010-2017.
The
too fast development has showed many problems including out of control area
and quality and others in farming process and density. Purchase, processing
and export organization has not been appropriate to the pepper industry’s
value.
While
pepper demand increases only 3 percent in the world a year, global area hikes
8 percent to 600,000 hectares from 420,000 hectares in 2013. That has caused
price fall to about VND60,000 a kilogram, accounting for half of last year
price. It is forecast to remain low in the upcoming time.
Minister
Cuong said that the pepper industry would lag behind without restructuring.
Vietnam cashew association building material zone in Cambodia
The
import volume exceeded 1.1 million tons in 2016 and neared 1.5 million tons
in 2017 from only tens of thousands of tons in previous years. Businesess
have mainly imported the nut from African nations especially
Vinacas
hoped that cooperation with
According
to Mr. Nguyen Duc Thanh, chairman of Vinacas, besides building domestic
material zones to prevent area reduction and increase productivity, the
association has surveyed some Cambodian places adjacent to Vietnam and realized
that local soil conditions are similar to southeast region, the capital of
Vietnam’s cashew industry, and suitable with cashew growth.
In
fact,
Head
of the Agricultural Department under the ministry Hean Vann Horn said that
For
the last two years, raw cashew export from
Mr.
Hean Vann Horn said that Cambodian side hoped Vinacas to assist them from
sapling selecting, farming process, harvest technique and preservation to
improve productivity and cashew quality to ensure profit for Cambodian
farmers.
According
to the Vietnamese Ministry of Agriculture and Rural Development, the country
exported 350,000 tons of cashew nuts last year with the turnover of $3.5
billion, up 1.9 percent in volume and 23.8 percent in value over 2016.
Cashew
ranks first in the group of major export commodities including vegetable,
coffee, rice and pepper.
The
nut consumption increases about 10 percent a year in the world while area
increase possibility is only five percent. This is a condition for the cashew
industry to develop in the upcoming time.
International
Nut and Dried Fruit Council (INC) said that dried nut transaction value
approximates $30 billion a year in the global market. With this trend, cashew
will account for nearly 29 percent of the world market share by 2021,
followed by walnut.
Vietnamese businesses anticipate interest rate cuts in 2018
Several
local banks have decided to cut their lending rates in early 2018, especially
for loans in priority sectors, which is welcome news for business as it is
anticipated to facilitate them in accessing bank loans.
In
response to the central bank governor’s request to cut costs in order to
lower lending rates, a number of commercial lenders, including Agribank,
Vietcombank, Vietinbank, VPBank and BIDV, have recently trimmed their rates
by 0.5 to 1 percentage point.
Specifically,
Agribank has cut the rate on short-term loans from 6.5% to 6% and medium and
long-term loans from 8% to 7.5%.
Vietinbank
has cut its rates on short and medium-term loans for priority sectors by 0.5
percentage point while Vietcombank has lowered its rates to 6% on loans for
priority sectors.
BIDV
has also chopped its rates on short-term loans by 0.5 percentage point to a
maximum of 6%.
Such
rate cuts are considered by analysts as a significant effort by credit
institutions ahead of the Lunar New Year. But because of the timing, the rate
cuts have been chiefly made by large banks while smaller lenders remain
relatively quiet.
Many
analysts have said that it will be difficult for banks to lower their lending
rates in the future because they are still competing for deposits and a
market share, making it impossible for them to lower the deposit rates and
consequently the lending rates.
As
such, whether the recent rate cuts would become a clear trend and spread
through the entire banking system in the future remains uncertain.
Banking
expert Nguyen Tri Hieu said that commercial banks are trying to bring down
interest rates but it cannot be done immediately because many are struggling
with low liquidity as funds are withdrawn for shopping and paying bonuses
ahead of the Lunar New Year.
In
addition, under a recent circular issued by the central bank, the maximum
proportion of short-term funds allocated to medium and long-term lending has
been reduced from 50% to 45% from 2018 and will fall to 40% from 2019. Such a
tightening measure means a likely rise in the medium and long-term rates in
the future.
Economist
Can Van Luc said that there isn’t much room for rate cuts in the near future
since it is very difficult to reduce the deposit rates, adding that bad debt
has not been resolved radically, although the pace has been accelerated.
The
National Financial Supervisory Commission (NFSC) stated that interest rates
have not been lowered as expected because of a lack of connection between the
deposit market and the interbank market.
Specifically,
interbank rates are relatively low while deposit rates have not been reduced
considerably because good liquidity is seen mainly in large banks.
In
the meantime, a number of small banks or those in the process of
restructuring are still struggling to gain access to low-interest funds on
the interbank market and are forced to maintain or raise their deposit rates.
Furthermore,
bad debt remains a significant hurdle to rate cuts while the net interest
margin of local banks is rather modest compared with their regional peers,
which also discourages them from reducing lending rates, the NFSC said.
Therefore,
many experts have called for stronger action from both the government and the
banking system in order to bring down interest rates. The government needs to
maintain inflation at 4% and take bolder measures to tackle non-performing
loans in a more effective manner. At the same time, it is also an opportunity
to reduce lending rates if bank credit-related public investment is well
managed.
Revised policies required to develop private sector
Despite
the implementation of a number of policies in support of the private sector
over the past few years, the private sector remains insignificant.
According
to Nguyen Duc Thanh, Director of the Vietnam Institute for Economic and
Policy Research under the
Professor
Tran Van Tho from
SOEs
hold high positions and are provided with preferential treatment in terms of
capital and land while these factors of production are disadvantages to small
private enterprises, requiring institutional reform in the factors of
production to enhance resource efficiency and productivity.
Although
the foreign direct investment (FDI) sector occupies a large proportion of the
economy, it creates a negligible impact on economic structure transfer. In
addition, the link between FDI and domestic enterprises remains weak,
creating limited influence on technology and knowledge transfers. A strategy
for increasing the connectivity between the FDI and domestic sectors would
help to improve the productivity of domestic enterprises.
Thanh
said that raising the private sector is crucial for national development, but
it is difficult to make the private sector grow in a robust fashion. The
biggest obstacle to the economy is the dominant role of the State in all
areas, including State management and SOEs. Thus, it is necessary to devise a
transparent law system which is committed to protecting the ownership rights
and achievements of businesses through streamlined procedures when solving
any disputes.
When
the people and enterprises continue making complaints about policies, it
means that the management apparatus has yet to pay off. Professor Tho said
that it is necessary to encourage start-ups in addition to devising policies
to nurture enterprises and help them to increase their size.
He
noted that light industries also need to increase their size in order to
renew their technology, enhance productivity and improve competitiveness.
Furthermore,
Sharing
the same view as Tho, Dr. Vu Thanh Tu Anh from
Enterprises
operating in
It
would appear that
Economist
Pham Chi Lan stated that
The
expert recommended policy adjustments in order to encourage enterprises to
take part in industries.
In
addition, Deputy Minister of Finance Do Hoang Anh Tuan stated that there have
been a lot of inadequacies with regards to tax incentives over the past 20
years. For instance, the taxation statistics released by the Finance Ministry
showed that the FDI sector received over VND35 trillion (US$1.54 billion) worth
of tax exemption out of VND37 trillion (US$1.63 billion) tax payments, which
was a result of the price escalation in tax incentives charges.
The
reality also poses a risk to transfer pricing and incentives following tax
periods, requiring the promulgation of a simple tax law system and accounting
policy. Meanwhile, it is advisable to revise tax policies on the basis of
expanding the tax base but not increasing the tax and tax payment rates.
CBRE to manage Van Tri Avenue Villas
CBRE
Vietnam has been officially appointed by Noble Vietnam as property management
agents for its Van Tri Avenue Villas, starting from January 24.
Villas
come in four or five bedrooms on areas of 1,100 to 1,300 sq m and are
expected to be handed over in December 2019.
CBRE
will sell seven type A villas and five type B villas. Type A villas cover
area of 1,150 sq m and overlook the lake and nearby Van Tri Golf Club, with a
housing area of 384 sq m and 814 sq m of total floor area on three floors.
Each boasts a swimming pool and are priced from $2,100 to $2,300 per sq m.
This
is the only golf villa project located in the ASEAN City @ Hanoi complex,
which is being planned and developed along the 11-km road from Noi Bai
International Airport to Nhat Tan Bridge and covers an area of 1,900 ha,
including Van Tri Golf Club, Concordia Hanoi International School, and the
Van Tri Urban Area, which will have 1,214 high-end apartments.
Outstanding
facilities such as the golf course are managed under international ISO:14001
standards with practice holes and greens, while the complex also has an
international school, a luxury restaurant, a spa, a wedding center, a clinic,
and a supermarket and retail stores.
FE CREDIT signs $50mn loan facility with Lion
The
VPBank Finance Company (FE CREDIT) recently announced it has received a $50
million loan facility from Lion Asia I (RB) Limited as additional capital to
continue to grow its business as the market leader in
Lion
Asia, an entity established in the British Virgin Islands and 100 per cent
owned by the Lending Ark Asia Secured Private Debt Fund, acted as facility
agent for the $50 million loan. The Fund was established by Lending Ark Asia
Secured Private Debt Holdings Limited, a market leader in complex, innovative
secured private credit lending across the Asia-Pacific region.
As
one of only a few pioneers in
“This
cooperation continues to re-affirm our brand value and the operational
excellence of our business in meeting the highest level of international
standards,” said Mr. Kalidas Ghose, Vice Chairman and CEO of FE CREDIT. “This
loan facilitates the growth of our business in the future by providing
solutions to the needs of millions of people across
“It
is a great honor to announce the successful completion of our $50 million
loan facility for FE CREDIT,” said Mr. Gregory Park, Managing Director - Fund
Head and representative of Lion Asia. “With tremendous support from the State
Bank of
FE
CREDIT also acquired a $100-million senior secured loan from Deutsche Bank
two months ago for its expansion plans.
US's Sanford Health shakes hands with Victoria Healthcare
The
Its
international healthcare arm, Sanford World Clinic (SWC), is cooperating with
Victoria Healthcare (VHC) in
This
is the first agreement in Southeast Asia for SWC and represents the beginning
of cooperation and professional support to VHC from one of the leading
healthcare systems in the
“We
believe in the quality of services, procedures, systems, and business
strategies of VHC in
After
more than 12 years of operations, VHC has opened four branches in
It
signing a comprehensive strategic cooperation agreement with SWC is a new
step forward for
Sanford
Healthcare is a leading healthcare organization in the
Sanford
Health will also enter
“With
these partnerships, we are creating unique opportunities for shared
learning,” said Mr. Kelby Krabbenhoft, President and CEO of Sanford Health.
“This is not something we are pursuing for financial gain, as we believe this
type of collaboration will help further our mission of health and healing.”
$185mn raised from PV Oil IPO
The
government raised VND4.18 trillion ($185 million) from selling 20 per cent of
the country’s sole crude oil exporter, the PetroVietnam Oil Corp. (PV Oil),
at an initial public offering (IPO), the company announced on January 25.
The
proceeds exceeded the government’s target of $122 million from the sale,
which is part of plans to equitize hundreds of State-owned enterprises (SOEs)
to boost their performance, ease a tight State budget situation, and reform
an economy that is highly reliant on foreign investment.
Demand
at the January 25 IPO of PV Oil, Vietnam’s second-largest oil products
retailer with a 22 per cent market share in the domestic oil products market,
was 2.3-times higher than availability, the company said.
A
total of 3,195 investors took part, including 54 foreign institutional
investors. Overseas investors purchased 6.6 per cent.
Post-IPO,
PetroVietnam Board Member Mr. Dinh Van Son said PV Oil would file for a
listing on the Unlisted Public Company Market (UPCoM) within the next three
months and would work to complete the company’s strategic stake sale.
A
further 44.72 per cent stake will be sold to strategic investors, both
domestic and foreign. The government’s ownership is to be reduced to 35.1 per
cent after the equitization process is completed.
Eight
investors, including a founding shareholder in
The
six foreign bidders are Shell, Idemitsu, Puma, Kuwait Petroleum International
(KPI), PTT, and SK, while the two Vietnamese contenders are the Sacom
Investment Fund and Sovico Holding, he said.
“We
have received an application from a foreign investor who expressed a wish to
buy 49 per cent of PV Oil shares, the cap set for foreign investors,” he
added.
As
other foreign investors want to buy between 25 and 35 per cent, the total
shares investors have registered to buy exceeds the number to be sold.
Foreign
ownership of PV Oil is capped at 49 per cent of charter capital, while
foreign investors are also required to deposit an amount equivalent to 20 per
cent of the stake they have registered for prior to entering the auction.
Investors
seeking to become strategic investors must commit to long-term investment by
retaining their holding for at least ten years. They must also commit to
prioritizing buying petroleum products from the Dung Quat Oil Refinery and
the Nghi Son Refinery and realize commitments in terms of market, technology,
and management development.
Mid-year IPO for Vinalines
The
government has asked for the company to be equitized but plans to retain a 65
per cent stake, he said, with the remainder being sold to local and foreign
investors.
According
to a plan submitted by the Ministry of Transport to the government for
approval, Vinalines’ charter capital stands at nearly VND13.92 trillion ($630
million).
Mr.
Tinh said 2017 revenue was estimated at VND16 trillion ($702.4 million),
exceeding the annual target by 15 per cent. More than VND4.4 trillion
($193.16 million) came from port services while VND7.1 trillion ($311.7
million) was made from transport services.
Profit
was VND515 billion ($22.6 million) and total assets stood at over VND18
trillion ($790 million). It targets consolidated profit of $75.8 million on
revenue of $757.7 million by 2020.
The
company held a regional maritime exhibition in
Vinalines
has worked with the Auditing Company Limited & Vietnam Appraisal and the
ATC Auditing and Valuation Firm Company to complete its valuation, which
under current regulations must then be appraised by State Audit of Vietnam.
The
shipping company once symbolized the post-war promise of
The
government has taken cautious measures to hasten the overall equitization
process, including forcing public companies to list shares on the local stock
exchange.
Vinalines’
IPO was first due to be held in the first quarter of 2015. It proposed
removing five ships - Vinalines Global,
MEF II divests from MobileWorld
Mekong
Capital has announced that its Mekong Enterprise Fund II (MEF II) has
completed its full divestment from the MobileWorld Investment Joint Stock
Company (MobileWorld), the largest mobile device and home appliance retailer
in
This
was the culmination of an exit process that began with a pre-listing private
placement shortly before the 2014 public listing of MobileWorld on the Ho Chi
Minh Stock Exchange and involved gradually selling blocks of shares to
institutional investors approximately once a quarter after the listing. The
final block of 5 million shares were sold at a price of VND165,000 ($7.39)
per share and was completed on January 29.
“MEF
II was launched in 2006 and ultimately had a 12-year term, hence we needed to
complete the divestment of our remaining investments, including MobileWorld,
in the first few months of 2018,” said Mr. Chris Freund, Partner at Mekong
Capital. “If it wasn’t for MEF II’s limited timeframe, we would have wanted
to continue as a shareholder of MobileWorld for the foreseeable future,
especially as they ramp up Bach hoa xanh into
MEF
II originally invested $3.5 million in MobileWorld for a 35 per cent stake in
2007. The cumulative net proceeds from the sale of MobileWorld shares and
dividends received was $199.4 million. When MEF II originally invested in
MobileWorld in 2007, they had seven stores and a $10 million valuation. “Our
original goal was to increase to 50 stores and a $50 million valuation,” said
Mr. Freund. “The success of this investment has exceeded our wildest expectations.”
Many
factors contributed to the success, he added, but at the core was
MobileWorld’s five co-founders and their open-mindedness, proactiveness,
willingness to improve, and complementary points of view. “Together they had
a big vision, built an extraordinarily strong team and a strong corporate
culture, put the interests of customers first, and created an unstoppable
machine that consistently sets the standard for retailing best practices in
He
added there is currently no company in
Mekong
Capital’s investment framework, called Vision Driven Investing, has
consistently enabled its funds to realize high rates of return. The framework
enables investee companies to create a big breakthrough vision and achieve
their vision while creating significant value creation for shareholders.
MobileWorld was both an inspiration for, and model of, the Vision Driven
Investing framework.
During
MEF II’s ten and a half year holding, MobileWorld has grown from seven stores
to over 2,000 today under four different retail brands: thegioididong.com,
Dien may xanh, Bach hoa xanh, and vuivui.com. The company has also recently
announced the acquisition of Tran Anh Digital World and the Phuc An Khang
pharmacy chain.
Launched
in 2006, MEF II is the second private equity fund managed by Mekong Capital.
It made ten investments, of which nine have already been fully exited. The
Fund’s only remaining investee company is Asia Chemical Corporation (ACC).
Its other notable investments included Golden Gate,
As
at December 31 it operates 1,070 thegioididong.com outlets in all 63 cities
and provinces nationwide, making it the Number 1 mobile retailer in
VNN
|
Thứ Tư, 31 tháng 1, 2018
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