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BUSINESS IN BRIEF 29/4
VN firms cosy up to Asia-Pacific
partners
 Vietnamese enterprises must band together with their Asia-Pacific partners for stronger growth. Said conclusion was reached at yesterday’s conference on strengthening the connection and partnership between Speaking at the conference, Doan Duy Khuong, Vietnam Chamber of Commerce and Industry (VCCI)’s Vice Chairman, appreciated the important cooperation between the VCCI and the CACCI, and between Khuong emphasised the importance of such regional collaboration, especially in the context of increasing international economic integration. Jemal Inaishvili, President of the CACCI, noted the Vietnamese business community’s effort in recent years, with significant economic development progress. He believed such growth has demonstrated the government’s efforts to create a smooth and favourable business environment for both local and international firms. Seeing how the Asia-Pacific region can be considered the largest consumer market in the world with a multitude of rising powers such as Japan, China and South Korea, and a total GDP accounting for 60 per cent of the world’s, the area is full of potential, added Khuong. He also mentioned that since the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), cooperation with major economies and markets would soon be virtually unlimited for Vietnamese businesses, in order for them to accelerate operations, trade, while gaining access to advanced production technology and improved management and administration. Coupled with collaboration from Asia-Pacific’s enterprises, Khuong was certain that Organised by the VCCI, yesterday’s event aimed to create a bridge between and to help both sides’ businesses find suitable cooperation and investment opportunities. At the same time, the VCCI hoped to reach out to senior members of CACCI’s, one of the largest organisations representing the Asia-Pacific region’s business community. The event was part of Inaishvili’s visit to Viet Nam, along with over 30 representatives from CACCI’s member corporations, most notably from Australia, India and Nepal, specialising in textile, garment, cosmetics, consumer goods, food distribution and processing, pharmaceuticals, chemicals, industrial products distribution, construction, IT, and tourism. Inaishvili expressed his wish to invite representatives from the VCCI and other Vietnamese business delegations to join the CACCI Summit later this year in Earlier in April, VCCI had worked with the CACCI and the General Department of Customs of Construction begins on TAFiCO’s second production line Fico Tay Ninh Cement Joint Stock Company (TAFiCO) started construction of the second production line of Tay Ninh cement plant in the southern Located in Cay Cay hamlet in Tan Hoa Commune, Tan Chau District, the plant’s second phase has a total investment of some VND4.8 trillion, covering an area of 11.5ha. The construction work includes mining of raw material and grinding of cement and other supporting items. According to TAFiCO’s leaders, the second production line uses advanced European technology, including a clinker kiln with a designed capacity of 4,000 tonnes of cement per day, equivalent to 1.26 million tonnes per year (capable of upgrading to 5,000 tonnes per day) and a cement grinding mill with a capacity of one million tonne per year. The project is expected to be completed in 2021, taking the total annual production capacity of TAFiCO to over three million tonnes of clinker and 4.5 million tonnes of cement. Advanced technology will allow the production line to use a variety of solid and liquid fuels and produce new types of cement to meet the increasing demand for construction. To meet the goal of sustainable development and environmental protection, the second line integrates a power generation system utilising the residual heat of the entire plant, reducing electricity consumption and dust emissions. The clinker kiln is capable of processing various types of waste. TAFiCO aims to become one of the leading cement companies in Deputy Minister of Construction Bui Pham Khanh underlined the necessity to use resources optimally and asked TAFiCO to work closely with the Department of Natural Resources and Environment along with local authorities to protect the environment and ensure the health of people in the area. At the commencement ceremony, TAFiCO donated VND1.05 billion to the Social Security Program of Tan Chau and Duong Minh Chau districts and VND300 million to support the “Fund for the Poor” in Tay Ninh Province. Duong Van Thang, vice chairman of Maybank Kim Eng Securities ups capital Maybank Kim Eng Securities Limited has added US$10 million to its charter capital to VND1.06 trillion ($46.38 million). John Chong, CEO of Maybank Kim Eng Group, said the decision to hike the capital is in line with Maybank Kim Eng Group’s business strategy and clearly demonstrates the firm’s long-term commitment in “ “Being the first 100 per cent foreign-owned securities company in Kim Thien Quang, CEO of Maybank Kim Eng Vietnam (MKEV), said: “Since we started our operations in “This additional capital will give us a strong foundation to enhance our competitiveness and increase our product offerings. In particular, with a capital of more than a trillion dong, we will now be able to enter a new market to offer covered warrants." The company has had a successful first decade, he said. “To maintain our leading position, we will continue to focus on strengthening our retail brokerage, particularly online brokerage. “Currently 86 per cent of our brokerage transactions are via online trading. Our target is to grow it to 90 per cent. We are also looking to grow our institutional brokerage by tapping on MKE Group’s regional footprint and strong presence in ASEAN. “As the gateway to ASEAN, we will continue to give Masan Group shareholders approve ambitious sales targets Shareholders of the Masan Group Corporation approved many ambitious targets for 2018 at the company’s annual general meeting on Tuesday. The company expects to achieve revenues of between VND45.15 trillion (US$1.99 billion) and VND 47 trillion ($2.07 billion) this year, over 20 per cent higher than last year. The net profit after tax attributable to equity holders of the company is targeted to increase by 55-85 per cent to VND3.4-4 trillion ($149.8-176.2 million). Speaking at the meeting, the company’s chairman, Nguyen Dang Quang, said the ambitious goals had been set based on the positive results achieved last year and in the first quarter of this year thanks to changes in business strategies. Last year the corporation’s after-tax profit attributable to equity holders was VND3.103 trillion, a year-on-year increase of 11.1 per cent. In the first quarter of this year, though net revenues remained at a rather steady VND8.274 trillion, EBITDA rose by 39.9 per cent year-on-year to VND2.606 trillion. The net profit attributable to equity holders increased by 3.4 times to VND816 billion during the period. To achieve those results, Quang said member companies had made several drastic changes to their business strategies, and cited Masan Consumer as a typical example. He said the company stopped trade promotions and spent the first half of the year clearing out stocks with distributors and retailers. The company started communicating to customers again by revitalising power brands through effective communication, and scaled up its technological platform so as to be able to track inventories with distributors, he said. “More importantly, we stopped wasting our time reading market research and guessing what out consumers want and need, and spent most of our time in the field and market to understand first-hand out consumers’ big unmet needs instead.” To realise the double digit growth targets set for this year and the years to come, member companies of Masan Group would continue their own renovation strategies, he said. Indeed, Masan Resources would seek strategic partnerships to accelerate transformation from a ‘miner’ into a value-added, global downstream tungsten industrial player, he revealed. This would de-risk the business and enable the company to produce stronger cash flows across commodity cycles, he said. Its turnover is projected to be VND8 trillion this year. Masan Nutri-Science seeks to focus on increasing the diversity of products made to meet the demand of consumers at home and abroad, to expand its market share and, together with the Masan Group, to achieve US$10 billion in turnover and $800 million in pre-tax profit by 2020. Techcombank’s strategic plan this year is to further invest in technology in order to offer its services to everyone. This investment is expected to position the bank to grow efficiently for the foreseeable future on the back of financial inclusion. At the meeting, Masan executives said the company had earned VND1 trillion from selling Techcombank stocks before the bank launched initiative offerings, and explained that it had sold the stocks because the corporation’s ownership rate at the bank must be reduced from 31 per cent to under 20 per cent as required by the State Bank of Viet Nam. The money raised from the issuance will be used to increase charter capital, for business requirements and supplementing working capital. Other proposals like payment of dividends to shareholders for 2018, making certain amendments to the Company’s Charter and issuance of internal regulations on corporate governance were also approved by shareholders. Honeywell opens first Asian cyber-security centre in US-based technology company Honeywell opened its first industrial cyber-security centre of excellence in Asia at The centre has been developed with the support of Singapore Economic Development Board (EDB) and is designed to help defend the region’s industrial manufacturers against evolving cyber-security threats. “The only way manufacturers can reap the benefits of digital transformation, such as increased uptime and reduced maintenance, is to make sure their industrial environments are cyber secure,” said Jeff Zindel, vice president and general manager, Honeywell Industrial Cyber Security. “Today marks another important step forward in Honeywell’s leadership in industrial cyber security, further strengthening our ability to secure and protect assets, operations and people. The centre’s state-of-the-art capabilities and managed security services improve cyber security protection, detection, management and response for customers, which are key enablers for successful digital transformation in the industrial sector,” Zindel said. The cyber-security centre will be used to conduct proprietary research, develop new security technologies, provide hands-on training and certifications as well as test and validate actual solutions deployed at customer sites. In addition to serving as a research and development lab, it will also deliver managed security services to help customers reduce the risk of security breaches and proactively improve their security posture. These services include continuous security and performance monitoring and alerting, threat detection and risk management, security device management and incident response with 24-hour expert support throughout the year. “Cyber security is vital not just for the technology industry, but also our industrial sector and critical infrastructure, which are being increasingly digitalised,” said Gian Yi-Hsen, executive director, cities, infrastructure and industrial solutions, EDB. “We are excited that Honeywell has chosen The centre is the third Honeywell facility of its kind in the world. Earlier this year, the company had opened a new centre in Starting operations in Viet Nam in 2005, with offices in Ha Noi and HCM City, Honeywell provides cutting-edge technologies and solutions in the fields of aerospace, home and building technologies, safety and productivity solutions and performance material and technologies. Technologies from Honeywell UOP are being used in PetroVietnam’s Dung Quat and Nghi Son Refinery plants, Vietnam Airlines, Jetstar Pacific and Vietjet Air as well as in several universities in
Vinafood II starts trading on UPCoM
Vinafood II was officially started trading on unlisted public company market (UPCoM) and registered to list 114.8 million shares with the code VSF, yesterday. Reference price on the first trading day was VND 10,100 per share, yesterday. In 2018, Vinafood II said it plans to speed up trade promotion program to food products, exploit large-scale trade markets such as Vinafood II’s representative affirmed this year sees its strong demand for exports. As per plan, Vinafood II will try the diversification of rice export markets, not to depend on the existing ones. It targets to reach post-tax revenue of VND 5,127 million and dividend payout ratio at 1.9 percent. Trade promotion programmes improved to boost exports The Vietnam Trade Promotion Agency (Vietrade) will enhance supervision over the implementation of trade promotion programmes to improve their efficiency and provide training to associations and local agencies in organising trade promotion activities. Trade promotion programmes helped generate more than 200 billion USD from exporting goods and commodities in 2017, according to Vietrade. At a conference in The country earned more than 214 billion USD from exporting goods and commodities, up 21.2 percent compared to 2016. “Increased export had significantly contributed to growth of Gross Domestic Product, improving trade balance, stabilizing the macro-economy, fostering production while creating jobs and incomes for millions laborers,” Phu said. “Developing the domestic market was also important, with trade promotion programmes organised in border, mountainous and remote areas in line with the campaign of Vietnamese prioritizing Vietnamese goods.” The national trade promotion programme helped export companies to enter new markets of significant potential and expand exports to major markets. Vietrade’s 2017 statistics showed that exports to ASEAN markets rose by 24.2 percent, reaching 21.68 billion USD. It saw a surge of 61.5 percent to 35.46 billion USD in At the forum, the delegates were oriented to focus on two key export groups, including agro-forestry-fishery with the focus on cocoa and cassava, and industrial products with the focus on garment and textile and steel products. Besides expanding new markets, exporters were advised to work to improve the quality of Vietnamese goods. Maybank Kim Eng Securities increases capital Maybank Kim Eng Securities Limited has added 10 million USD to its charter capital to 1.06 trillion VND (46.38 million USD) in Vietnam. John Chong, CEO of Maybank Kim Eng Group, said the decision to hike the capital is in line with Maybank Kim Eng Group’s business strategy and clearly demonstrates the firm’s long-term commitment in “ “Being the first 100 percent foreign-owned securities company in Kim Thien Quang, CEO of Maybank Kim Eng Vietnam (MKEV), said: “Since we started our operations in “This additional capital will give us a strong foundation to enhance our competitiveness and increase our product offerings. In particular, with a capital of more than a trillion dong, we will now be able to enter a new market to offer covered warrants." The company has had a successful first decade, he said. “To maintain our leading position, we will continue to focus on strengthening our retail brokerage, particularly online brokerage. “Currently 86 percent of our brokerage transactions are via online trading. Our target is to grow it to 90 percent. We are also looking to grow our institutional brokerage by tapping on MKE Group’s regional footprint and strong presence in ASEAN. “As the gateway to ASEAN, we will continue to give Hoa Phat Dung Quat steel complex to be operational in Q3 The process of the Hoa Phat Dung Quat iron and steel production complex project is on schedule with the first line expected to be operational in the third quarter of this year, meeting demands of the central and southern regions. According to Hoa Phat Group, other items are projected to be completed from the fourth quarter of this year to 2019. It aims to put both phases of the project into a trial run in late 2019. By the end of the first quarter of 2018, Hoa Phat Group reported revenue of 13 trillion VND (572 million USD), and a post-tax profit of 2.2 trillion VND (96.8 million USD), up 25 percent and 14 percent year-on-year, respectively. The steel sector remained the driver of Hoa Phat during the reviewed period, the group said. The busy construction market in the first months helped Hoa Phat grow nearly 10 percent against the corresponding time last year, with an output of 542,000 tonnes. With the yield, the group has maintained its leading position in the domestic construction steel sector with its market share exceeding 24 percent. Between January and March, the group exported 73,000 tonnes of steel sheets, a rise of 40 percent year-on-year, earning more than 42 million USD. Its major markets included Of note, Hoa Phat Group has shipped wire-drawing steel to the Other products like interiors, refrigeration and building equipment have also maintained their market shares. In the sphere of real estate, the group is speeding up the hand-over of its Mandarin Garden 2 housing project and Hoa Phat 70 Nguyen Duc Canh apartment building, and infrastructure projects at several industrial parks. Thanks to its outstanding performance, Hoa Phat has been named in the list of the strongest Vietnamese brand names, and taken the lead among the top ten prestigious construction material businesses in the country. Foreign-invested firms’ disbursement up 7.2 percent Foreign-invested enterprises disbursed 3.88 billion USD in the first quarter this year, up 7.2 percent annually, according to the Ministry of Industry and Trade’s Foreign Investment Agency (FIA). The country attracted 618 newly-licensed projects with registered capital of 2.12 billion USD, up 25.4 percent in volume, proving that Among 76 countries and territories investing in FDI firms invested in 19 out of 21 sectors, mostly in manufacturing and processing with 188.52 billion USD (58.5 percent). It was followed by real estate with 53.56 billion USD (16.6 percent) and electricity, gas and water supply with 21 billion USD (6.5 percent). Their projects now cover all the 63 cities and provinces nationwide. According to economists, there were 618 newly-licensed projects during the period, up 25.4 percent in volume but down 27.3 percent in value. At the same time, 199 projects registered additional capital of over 1.78 billion USD, down 54.6 percent annually. The total newly-licensed and additional capital topped 3.9 billion USD, down 43 percent year-on-year. A survey by the General Statistics Office indicated that 33 percent of businesses performed better in the first quarter while 24.6 percent met difficulties and 42.4 percent enjoyed stable production and trade. It is forecast that 55.7 percent of firms will be opportunistic about their performance, 10.4 percent will face obstacles and 33.9 percent operate stably in the second quarter. A representative from the Centre for Japanese Investment Promotion in Deputy head of the Health Ministry’s Vietnam Food Administration Le Van Giang said the Vietnamese government drastically asked agencies concerned to not cause difficulties for enterprises while refining e-government system from the grassroots to central level, towards improving the business climate for domestic and foreign firms. Steel sector has potential for 22% growth However, this will be possible only if it overcomes difficulties such as trade defence lawsuits and high imports, according to the Viet Nam Steel Association (VSA). The sector faced 30 trade defence lawsuits from other countries in 2017, many of which have continued into 2018. These include anti-dumping cases for cold-rolled stainless steel, steel plates and H-shaped steel as well as trade defence cases related to pig iron, long steel and colour-coated steel sheet. By March 2018, The quality of Vietnamese steel has met the demand of choosy markets, such as the However, in the first few months of 2018, VSA Vice President Nguyen Van Sua said despite a fall in imports and rise in exports, the volume of imported steel remained high. According to him, the domestic steel industry was still dependent on imports as the domestic production process was yet to be synchronised, along with low capacity in producing steel for the mechanical manufacturing sector. Meanwhile, domestic firms are unable to produce many input material products, such as hot-rolled steel and pig iron, thus making production slow and expensive. With the recent market recovery and extensive economic integration, especially the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the upcoming signing of the free trade agreement between But the fact is when Tran Tuan Duong, general director of Hoa Phat Group, said Vietnamese firms should maintain the domestic market, while for export activities, they should adhere to the regulations of free trade agreements and actively cooperate with other countries when faced with anti-dumping lawsuits to avoid losing markets or paying high taxes. According to Duong, market protection solutions are not enough and businesses themselves should enhance their competitiveness and make use of all opportunities for development. A representative of the Viet Nam Steel Corporation said obstacles to exports mostly came from trade barriers and defence measures of importing countries. Therefore, the corporation would continue to improve efficiency in production and business by enhancing market forecasts and having flexible production and business activities according to market development. Despite the lack of capacity and experience, Vietnamese firms could still fight trade defence in the context of integration, the representative said. VSA highlighted the need for cooperation with countries in the face of trade defence problems, along with the development of professional teams to deal with investigation and data gathering to protect steel firms in domestic and foreign markets. PM calls for new measures to boost exports Prime Minister Nguyen Xuan Phuc has affirmed that having more control over the market will help the Vietnamese economy in the long run. He made the statement during a national conference in Ha Noi on Monday, hosted by the Ministry of Industry and Trade, while discussing comprehensive measures to boost exports. The PM said that successful countries and businesses considered the world as a market that they could exploit to expand their reaches, and thus they sought ways to improve their competitiveness. The domestic market, with a population of more than 90 million, was important, but it was necessary to look at the global market to achieve sustainable growth, he said. The leader noted that while administrative procedures had improved, they remained below international standards. He expressed his wish to listen to policy feedback from localities and associations, in order to increase the value of exported commodities, and make it easier for Vietnamese firms to join the global value chain. He underscored the need to update Vietnamese exporters about market information and legal regulations abroad, as well as potential opportunities and risks, and orientations to manufacturing and exports. Ministers, alongside leaders of localities, are to be required to look towards exports to contribute to sustainable growth. Based on public feedback, the PM will issue a directive on measures to boost manufacturing and exports. At the conference, Minister of Industry and Trade Tran Tuan Anh said the country’s exports grew by 15.8 per cent last year, exclusive of cell phones, computers and electronic spare parts. In 2017, there were four new items that recorded export revenue of over US$1 billion, bringing the total number of items to 29. The number of items with an export revenue of over $2 billion was 20, while eight had an export revenue of over $6 billion. Exported products of the processing industry continued to play an important role in export growth, accounting for more than 81 per cent of total exports, up sharply from 61 per cent in 2011. The proportion of agricultural and aquatic products decreased to 12.1 per cent. Meanwhile, export of crude, coal, petrol and minerals accounted for just 2 per cent of total export turnover. “The export market was also expanded toward diversification and multilateralisation, especially for industrial goods,” Tuan Anh said. In 2017, the The leader of the MoIT said that local firms had made good use of opportunities from integration. Exports to countries that have signed free trade agreements with The localisation rate in export products was also gradually improved. For example, in the textile sector, the localisation rate increased from15-17 per cent in 2000 to over 50 per cent in 2017. However, Tuan Anh said exports still predominantly relied on foreign-invested enterprises, which contributed over 70 per cent of the country’s total export value, up 23 per cent against 2016. Though tariffs have been removed, The MoIT proposed three major measures to sustainably step up exports, including restructuring agriculture, closely controlling supply, and gradually improving the quality of agricultural and aquatic products. It will also work to maintain stable export markets, improve the efficiency of trade promotion, and cope with trade defence and protectionism that are not in line with international commitments. At the same time, the ministry will step up institutional reform, refine legal corridors for export activities, accelerate administrative reform, and clear barriers to payment and credit to ensure there is sufficient capital for manufacturing and export, the minister added. BIDV plans to raise chartered capital by 28% this year The Bank for Investment and Development of Viet Nam (BIDV) has proposed a plan to its shareholders to increase its chartered capital this year by 28 per cent, compared to the end of 2017. In the plan which was unveiled at the bank’s annual general shareholder meeting on April 21, BIDV proposes to add VND9.45 trillion (US$418.2 million) to its chartered capital, so the figure would reach VND43.65 trillion by the end of 2018. Specifically, BIDV will issue 965 million ordinary shares with a face value of VND10,000 per share. Of the total, more than 171 million shares will be sold to the public through an initial public offering or private placement, 603.3 million shares to be sold to foreign strategic investors under private placement, and over 171 million shares sold under the Employee Stock Ownership Plan (ESOP). The increase in chartered capital is part of BIDV’s plan to increase its equity to meet the minimum capital adequacy requirement set by the State Bank of The move is also expected to help the bank improve the credit rating results of international institutions, enhance prestige in its business operations, and improve its financial capacity and competitiveness, in both domestic and international markets. Also, the bank commits to use added capital in the business areas of BIDV, with reasonable guidance to ensure the capital is used with efficiency and maximises benefits to shareholders. Regarding the profit distribution plan in 2017, the Board of Directors has submitted to shareholders to approve the cash dividend payment plan at the rate of 7 per cent. The total amount of dividends is nearly VND2.4 trillion. The remuneration of the Board of Directors and Board of Supervisors in 2018 will be, at maximum, 0.44 per cent of the profit after tax in 2018. In 2018, BIDV sets the target of credit growth of up to 17 per cent; before-tax profits of VND9.3 trillion; a bad debt ratio below 2 per cent; and a dividend payout ratio is expected to range from 5 to 7 per cent. At the meeting, BIDV General Director Phan Duc Tu said that in 2017, BIDV continued to be the market leader, maintaining its position and market share in the industry. Accordingly, its total assets reached over VND1.2 quadrillion, up 19.5 per cent, compared to 2016. Total deposits of the bank reached VND 1.12 quadrillion, up 19.7 per cent over the beginning of the year. The consolidated profit before tax was VND8.6 trillion, up 13 per cent year on year, exceeding the target set by the General Meeting of Shareholders in 2017, with a return on assets reaching 0.63 per cent and a return on equity (ROE) of 5 per cent. Sotrans to cancel listing on HOSE South Logistics Joint Stock Company (Sotrans) will cancel its listing on HCM Stock Exchange and move to the Unlisted Public Company Market (UPCoM) by the end of this year. This was revealed at the company’s annual shareholders’ meeting in Since December 2017, two largest shareholders of Sotrans – Viet Nam Electrical Equipment Joint Stock Corporation and Indo Trans Logistics Corporation (ITL) – have increased their holdings to over 88 per cent of Sotrans’ charter capital. As per the regulation of HCM Stock Exchange, Sotrans’ shares, traded with the code STG, are no longer eligible to be listed on the southern exchange because the total number of voting shares held by non-large shareholders fall below the required threshold of 20 per cent. “We will terminate the listing after one year as per regulation, so around December this year, Sotrans will cancel the listing and transfer to UPCoM,” a representative of Sotrans said at the meeting. ITL now has 28.4 million shares, equivalent to 33.28 per cent of Sotrans’ capital. The company wants to lift its ownership rate here. Sotrans has submitted a plan to faciliate ITL’s share purchase to increase its holding here to a maximum of 43.2 per cent without having to make a public tender offer. The plan will be implemented after receiving shareholders’ approval. Sotrans’ shares are being traded at some VND20,600 (US$0.90) per share on HCM Stock Exchange. ITL is expected to spend some VND176 billion for the planned purchase. Transactions will be carried out via order matching or put-through methods. UPCoM is a minor stock exchange under the management of Ha Noi Stock Exchange with lower requirements for listing standards or information disclosure. With more listing of State-owned enterprises after equitisation, the market’s profile has risen significantly, with over 730 listed companies. Sotrans’ business improved last year with total sales of VND1.46 trillion, up by 115 per cent year-on-year, thanks to the launch of the Phu My warehouse project and development of a new agent system. Its consolidated net profit reached VND521.3 trillion, 4.7 times higher than 2016. The company has decided to pay dividends at the rate of 15 per cent in the form of stocks. It will finalise the shareholders list for the payout in May. It has targeted a revenue growth of 12 per cent in 2018 to earn VND1.66 trillion, but the net profit is projected at just VND171.4 billion, down 67 per cent from 2017, due to the absence of large dividend earnings like in 2017. Q2 earnings, high dividend will attract investors Listed companies with positive second-quarter earning prospects, as well as high dividend payment, are likely to attract investors in the future, after the effect of the Q1 result has cooled. In the latter half of April, over 20 companies will finalise the lists of shareholders for cash dividend payout at the rate of 5 per cent to 35 per cent. Many companies have seen their share prices soar in recent sessions. Vnsteel – Vicasa Joint Stock Company, which trades shares on the Unlisted Public Company Market (UPCoM) under the code VCA, will pay cash dividend at a rate of 30 per cent on May 15. After the dividend announcement, the shares climbed over 20 per cent from VND16,400 per share on April 11 to VND20,000 (US$0.88) per share on April 16 before falling to nearly VND19,000 by the end of last week. The steel shares were also among the most active stocks on the market thanks to a surge in demand. The increase of cash dividend to 24 per cent, a half rise compared to the old rate of 16 per cent, also helped boost shares of Tuong An Vegetable Oil Joint Stock Company (TAC). Its 2017 net profit result was also good at VND166 billion, up 98 per cent against last year. TAC price rose 12 per cent in one week, from VND53,500 per share on April 12 to VND59,800 each on April 20. Earlier, shares of Ben Tre Aquaproduct Import and Export Joint Stock Company (ABT) also increased from VND36,000 per share in early April to VND38,500 on April 16 before falling to around VND37,000, after the company reported good business results and a dividend rate of 30 per cent for 2017. According to statistics from the two main stock exchanges in Growth expanded across almost all sectors thanks to favourable macroeconomic conditions, low lending rates, as well as rising consumer demand. Such encouraging results have already reflected in their share price increases from last year. The sectors with the highest investment returns included financial services, real estate and banking. As the effect of Q1 earnings has faded, many analysts have predicted that Q2 prospects will have a stronger impact on share prices in the coming time, especially in the latter half of the second quarter. According to Bao Viet Securities Company (BVSC), promising sectors in the medium term include banking, real estate, information technology and thermal power. Many of these businesses reported good results in the first quarter. However, BVSC’s analysts have also warned that positive earnings impact may be modest, and risk is rising as many shares in these sectors have seen a prolonged rally.
Nawaplastic acquires majority
interest in Binh Minh Plastics
Nawaplastic Industry Co., Ltd., a subsidiary of Notably, the transactions were conducted on April 6-9. After the deal, Nawaplastic increased its holdings in BMP to from 19.89 to 50.12 per cent, equalling over 41 million shares, according to Bizlive. At the date of the transactions BMP’s shares were valued at VND70,900 ($3.11), thus, Nawaplastic spent approximately VND11 billion ($483,115) on the deal. The deal is part of Nawaplastic’s plan to buy an additional 818,000 BMP shares to increase its holding to 50.89 per cent. The transactions are expected to occur between April 4 and May 3 this year. Thus, by May 3, the Thai investor will buy the remaining 630,000 shares. If the plan comes true, Nawaplastic will secure its hold in BMP, although it has already achieved a majority interest. Previously, Nawaplastic bought 99.9 per cent of the shares BMP offered at an auction organised on March 9. According to information published by the Ho Chi Minh City Stock Exchange (HSX), two investors joined the auction: Nawaplastic and a domestic individual. As a result, Nawaplastic spent approximately VND2.329 trillion ($102.33 million) buying 24.139 million of the 24.159 million shares on offer at the initial price of VND96,500 ($4.24). Nawaplastic, a wholly-owned subsidiary of Thai Plastic and Chemicals PCL (TPC), specialises in manufacturing and distributing PVC. Through the acquisitions in BMP and Tien Phong Plastic, Nawaplastic would seize their advantages in manufacturing and distribution systems as well as their brands to realise SCG and Nawaplastic’s target to control the construction materials market in Vegetable and fruit exports in the first three months of this year generated revenue of US$649.6 million, up 54.3% year-on-year. The In related news, as from April 1 Vietnamese vegetable and fruit shipments bound for Guangxi Danang eyes sustainable tourism development The central coast city of Tran Chi Cuong, deputy director of the Danang Department of Tourism, said the plan would include bolstering cooperation between Danang and its two neighboring provinces, Thua Thien-Hue and Quang Cuong said the city would ask the central Government to adopt preferential policies for the three localities to further develop tourism. The city government will work with the Vietnam Tourism Association and other tourism management organizations in the city to carry out promotion programs, improve tourism service quality, and develop human resources for the sector this year. The department plans to open a representative office in Until 2020, Danang will convert Tien Sa and Thuan Phuoc ports into tourist ports, develop tourism products and services at night along the bank of the Han River, upgrading and building boat piers and boat fleets to foster waterway tourism, and launch services at Last year, the tourism sector contributed 24.4% to Danang’s gross regional domestic product (GRDP), above 23.72% in the previous year.
VNN
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Thứ Hai, 30 tháng 4, 2018
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