The Military Bank gives priority to investors interested in long-termpartnerships, an official of the bank told participants at VietnamInvestment Forum held in HCM City on June 19.
Le Hai, the bank'sdeputy general director, took questions from foreign investors at theevent held by Vietnam Investment Review, which included matters aboutcorporate restructuring and business development strategies.
Othercompanies like Hoang Anh Gia Lai (HAG) and the Financing and PromotingTechnology Corp. (FPT) attracted the interest of investors present atthe event, an indication of the attractiveness of the country's stockmarket.
Speaking on Vietnam's economic outlook, Don Lam, CEO ofthe asset management and real estate development firm VinaCapital, saidthat medium- and long-term economic prospects remained positive.
Henoted that the banking system was making progress in its restructuringprocess, with the nine weakest banks having gone through mergers andacquisition or major restructuring.
"The Vietnam Asset ManagementCompany (established in May 2013) continues to purchase and resolveNPLs and with a fairly small capital of 25 million USD, it would likelyuse bonds for most purchases," he said, adding that a mechanism forforeign institutions to buy NPLs should be accelerated.
As forthe stock market, the VN Index rose to 562 at the end of May, up 11percent year-to-date. Last year's figure was 22 percent.
Meanwhile,PE (price on earnings) valuation has increased to over 13, up from 12last December, which is still attractive compared to the average of 18.8for other emerging markets in the region, including Thailand, thePhilippines, Malaysia and Indonesia.
The equitisation ofState-owned enterprises is an important aspect of Vietnam's emergingcapital markets, and the Government is entering the important phase ofequitisation involving the sale of the largest and most attractive SOEsduring 2014 and 2015, he said.
Progress, however, was slow due tothe lack of motivation, chronic procedural issues (state audits cantake up to 75 days) and a valuation methodology that is not aligned witha market-oriented approach, he said.
Improved efficiency of the equitisation process SOEs represents unique opportunities for private equity investment, he said.
Meanwhile,Thomas Hugger, CEO of Asia Frontier Capital, said he saw opportunities,as the market and the economy are at the bottom and not at the top likein other Asian emerging or developed markets.
He noted theimproving business environment with positive aspects, especially therestructuring of the banking sector, which includes the taking over ofnon-performing loans from commercial banks by the State asset managementcompany and consolidation of banks via mergers and acquisitions, aswell as better supervision and severe punishment of banking misconduct.
TheGovernment has been supporting economic recovery through the loweringof lending rates, tax cuts and stimulus packages for various industrysectors as well.
Nguyen Chi Dung, Deputy Minister of Planning andInvestment, stressed that the Vietnamese Government had implementedcomprehensive economic restructuring based on three pillars:restructuring investment, restructuring SOEs, and restructuring thefinance-banking sector.
In terms of restructuring SOEs, he said:"The Government has approved a comprehensive equitisation programmethat aims to reform 432 SOEs in the 2014-2015 period."
Theprogramme is a great opportunity for both local and foreign investorswho are doing business in Vietnam by allowing them to buy stakes andbecome foreign strategic investors of SOEs.
This process issupported by ongoing institutional reforms, and particularly the factthat this year the National Assembly is considering major amendments tothe Enterprise Law, Investment Law, Law on Real Estate Trading, Law onHousing and more to improve the local regulatory environment forinvestment and business.
"Vietnam has also shown great initiativein deepening international integration through its membership in ASEAN,ASEM, APEC, and the WTO as well as its involvement in Trans-PacificPartnership negotiations. We plan to sign 16 FTAs with 55 countries andterritories by the end of 2015," he said.
"Alongside itsadvantages, Vietnam is also confronting a complex challenge in the EastSea after China illegally placed oil rig Haiyang Shiyou-981 in ourexclusive economic zone and continental shelf in early May. Our constantpolicy to safeguard our territorial integrity via peaceful measures ledus to demand China observe international laws and the Declaration onthe Conduct of Parties in the East Sea (DOC), of which China was asignatory," the Deputy Minister said.
Chairman of the State Securities Commission Vu Bang spoke about solutions to attract foreign investment.
"Wecontinue to review and simplify administrative procedures for foreigninvestor transactions, and to apply a code registration method forforeign investors to conduct online transactions," he said.
Also,they will continue to review and classify companies in order to raisethe ownership cap for foreign investors in Vietnamese enterprises,especially in sectors that do not need State control.
Methods tovaluate equitised SOEs will be upgraded and their IPOs will be linkedwith their listings on the stock market, said the chairman.
Inaddition, market infrastructure will also be improved and marketorganisation will be restructured into one exchange featuring share,bond and derivative markets, said Bang.
Currently, foreign investors have opened 16,000 securities trading accounts.-VNA
Le Hai, the bank'sdeputy general director, took questions from foreign investors at theevent held by Vietnam Investment Review, which included matters aboutcorporate restructuring and business development strategies.
Othercompanies like Hoang Anh Gia Lai (HAG) and the Financing and PromotingTechnology Corp. (FPT) attracted the interest of investors present atthe event, an indication of the attractiveness of the country's stockmarket.
Speaking on Vietnam's economic outlook, Don Lam, CEO ofthe asset management and real estate development firm VinaCapital, saidthat medium- and long-term economic prospects remained positive.
Henoted that the banking system was making progress in its restructuringprocess, with the nine weakest banks having gone through mergers andacquisition or major restructuring.
"The Vietnam Asset ManagementCompany (established in May 2013) continues to purchase and resolveNPLs and with a fairly small capital of 25 million USD, it would likelyuse bonds for most purchases," he said, adding that a mechanism forforeign institutions to buy NPLs should be accelerated.
As forthe stock market, the VN Index rose to 562 at the end of May, up 11percent year-to-date. Last year's figure was 22 percent.
Meanwhile,PE (price on earnings) valuation has increased to over 13, up from 12last December, which is still attractive compared to the average of 18.8for other emerging markets in the region, including Thailand, thePhilippines, Malaysia and Indonesia.
The equitisation ofState-owned enterprises is an important aspect of Vietnam's emergingcapital markets, and the Government is entering the important phase ofequitisation involving the sale of the largest and most attractive SOEsduring 2014 and 2015, he said.
Progress, however, was slow due tothe lack of motivation, chronic procedural issues (state audits cantake up to 75 days) and a valuation methodology that is not aligned witha market-oriented approach, he said.
Improved efficiency of the equitisation process SOEs represents unique opportunities for private equity investment, he said.
Meanwhile,Thomas Hugger, CEO of Asia Frontier Capital, said he saw opportunities,as the market and the economy are at the bottom and not at the top likein other Asian emerging or developed markets.
He noted theimproving business environment with positive aspects, especially therestructuring of the banking sector, which includes the taking over ofnon-performing loans from commercial banks by the State asset managementcompany and consolidation of banks via mergers and acquisitions, aswell as better supervision and severe punishment of banking misconduct.
TheGovernment has been supporting economic recovery through the loweringof lending rates, tax cuts and stimulus packages for various industrysectors as well.
Nguyen Chi Dung, Deputy Minister of Planning andInvestment, stressed that the Vietnamese Government had implementedcomprehensive economic restructuring based on three pillars:restructuring investment, restructuring SOEs, and restructuring thefinance-banking sector.
In terms of restructuring SOEs, he said:"The Government has approved a comprehensive equitisation programmethat aims to reform 432 SOEs in the 2014-2015 period."
Theprogramme is a great opportunity for both local and foreign investorswho are doing business in Vietnam by allowing them to buy stakes andbecome foreign strategic investors of SOEs.
This process issupported by ongoing institutional reforms, and particularly the factthat this year the National Assembly is considering major amendments tothe Enterprise Law, Investment Law, Law on Real Estate Trading, Law onHousing and more to improve the local regulatory environment forinvestment and business.
"Vietnam has also shown great initiativein deepening international integration through its membership in ASEAN,ASEM, APEC, and the WTO as well as its involvement in Trans-PacificPartnership negotiations. We plan to sign 16 FTAs with 55 countries andterritories by the end of 2015," he said.
"Alongside itsadvantages, Vietnam is also confronting a complex challenge in the EastSea after China illegally placed oil rig Haiyang Shiyou-981 in ourexclusive economic zone and continental shelf in early May. Our constantpolicy to safeguard our territorial integrity via peaceful measures ledus to demand China observe international laws and the Declaration onthe Conduct of Parties in the East Sea (DOC), of which China was asignatory," the Deputy Minister said.
Chairman of the State Securities Commission Vu Bang spoke about solutions to attract foreign investment.
"Wecontinue to review and simplify administrative procedures for foreigninvestor transactions, and to apply a code registration method forforeign investors to conduct online transactions," he said.
Also,they will continue to review and classify companies in order to raisethe ownership cap for foreign investors in Vietnamese enterprises,especially in sectors that do not need State control.
Methods tovaluate equitised SOEs will be upgraded and their IPOs will be linkedwith their listings on the stock market, said the chairman.
Inaddition, market infrastructure will also be improved and marketorganisation will be restructured into one exchange featuring share,bond and derivative markets, said Bang.
Currently, foreign investors have opened 16,000 securities trading accounts.-VNA
