VietnamNewsToday.com

Local firms seek alternative investment abroad

As sources of investment in Vietnam are shrinking, companies such as food producer Kinh Do Joint Stock Company are starting to enter foreign stock exchanges indirectly to find investors.

Tran Le Nguyen, President of Kinh Do Joint Stock (KDC), said if there wasn’t anything “unexpected,” KDC stocks will be listed on a foreign stock exchange this year.

What KDC did and others are starting to follow suit, was to sell its stocks to a foreign investor who will list them on a foreign stock exchange using Global Depositary Receipts (GDRs).

Nguyen said KDC had sold 20 million shares to a foreign investor for this purpose.

As KDC plans to expand and it’s hard to find large amounts of capital at this moment through local stock exchanges or bank loans, Nguyen said finding investment through GDRs was the best way out.

KDC, however, wasn’t the first company to carry this out. Nguyen said his company learned from Hoang Anh Gia Lai Joint Stock Company (HAG), which also listed 24 million GDRs on the London Stock Exchange in March.

This amount is based on the 16.2 million shares HAG sold to Deutsche Bank Trust Company Americas last December for 72.000 dong per share as well as 8 million bonus shares.

Besides KDC, Phat Dat Real Estate Company (PDR) also plans to offer 18 million shares to foreign investors in order to enter a foreign stock exchange.

Nguyen said listing through GDRs was a preliminary step for Vietnamese companies before they can directly enter foreign stock exchanges.

President of a stock company agreed. He said local companies now have a great demand for capital, but Vietnamese stock exchanges are too small to attract big foreign investors.

Vietnam is also yet to have a legal framework to regulate listing on foreign stock exchanges, so local companies can’t wait until they can directly mobilize capital abroad.

Experts say GDRs are a merely derivative product and don’t affect directly domestic shares or interests of shareholders right here in Vietnam.

On the other hand, listing on important stock exchanges through GDRs only helps to market Vietnamese companies to foreign investors.

However, not all Vietnamese companies are financially strong enough to follow this route.

From VietNamBusiness

Newer Articles
  • EVNTelecom asks for government’s approval to sell 12pct stake for VTC
  • Vietnamese enterprises expanding into international markets
  • Ernst & Young Vietnam role to be examined
  • Vietnamese firms invest over $24.5b in foreign countries as of July-end
  • Vietnam Insurance Market: Keeping Double-digit Growth
  • Vietnam’s economy looks grim with ADB’s forecast
  • Fearing recession in EU, Vietnamese businesses try to seek new markets
  • Rise in bad bank debt exposes economy
  • Tighter spending helps curb inflation
  • Expert predicts inflation at single-digit rate in 2012
Older Articles
  • Vietnam should stick with tight monetary policy: economists
  • Transparency in Vietnam’s extractive industry
  • Ending the nation’s love affair with gold
  • Some bankers had plenty of dollars but had to restrict their loans
  • Capital-starved projects becoming a waste
  • Compulsory reserves for foreign currencies may be raised 1-2pct in May
  • Economic woes deflate bond market
  • Gold bullion ban a bad idea, warn experts
  • First Inclusive Business Investment Forum held in Vietnam
  • More investors coming to VSIP
Latest News
  • Vietnamese software firms consider Japan as the major market
  • Despite problems, 2011 FDI spending equals 2010
  • EVNTelecom asks for government’s approval to sell 12pct stake for VTC
  • Vietnamese enterprises expanding into international markets
  • Ernst & Young Vietnam role to be examined
  • Vietnamese firms invest over $24.5b in foreign countries as of July-end
  • Vietnam Insurance Market: Keeping Double-digit Growth
  • Vietnam’s economy looks grim with ADB’s forecast
  • Ministry rejects import-export tax changes
  • Government okays anti-dumping suit against US
For Foreigners
  • Adb: policy tightening will lower inflation
  • HSBC, Barclays to advise Vietinbank’s planned overseas dollar bond sale
  • Vietnam govt to service debt for troubled cement projects
  • Calm heads prevail as the forex market to remain cool
  • Further fiscal & monetary tightening in coming months
  • IMF cuts Vietnam’s inflation forecast to 9.5pct in 2011
  • Vietnam’s dong has best week since 1997 after dollar rates curb
  • Vietnam tightens control over state-bank partnership
  • Foreign investors list problems in Vietnam
  • Foreign invested enterprises complain about customs procedures

BusinessTradeVietnamGovernmentFDIWorld economyVietnamese PartyEconomyEconomicMarketState managementPrime MinisterHCM cityHanoiHo Chi MinhCPIAsianWorldAmericaEuropeNguyen Tan DungHau GiangMekong DeltariceStandingMekongCambodiausajapanchinakoreaLai ChauHoa BinhHoi AnChu LaiQuang NamDa nangCan thoSon LaPower PlantMinistry of IndustryDung QuatOilSingaporeThailandMalaysiaIndonesiaLaosVietnameseFDI capitalinvestorsforeign investorNetherlandsUSservicetransportationinfrastructuretourismVNPostExpressSpainGoldTra fishexportcontractstouristMiddle AreaConstructionShipbuildingIndustryCompanyIndustrial ZonebudgetDong NaiBinh DuongVung TauTay NinhBinh PhuocTay NinhLong AnTien GiangUS investorshydropower plantQuang NinhNha TrangStock ExchangeHNXIndexcapitalAgricultureDong ThapAn GiangExport-Processing ZoneYen BaiLao CaiLai ChauDien BienSon LaHoa BinhPhu ThoHa GiangTuyen QuangBac KanLang SonCao BangmanufacturersAseanRussiadevelopmentAviationinflationHong KongAmericanChamber of CommerceSeafoodODAWBIMFFEDAsia-PacificAssociationcountriesEuropeanmarine economyThanh HoaNghe AnNam DinhHa TinhPhu LýVinh PhucBac NinhBac GiangHung YenHai DuongBinh ThuanBinh PhuocLam DongGia LaiKon tumQuang NgaiQuang BinhQuang TriNinh ThuanCa MauBac LieuSoc TrangTra VinhKien GiangVinh LongBen TreincomespoliciesLawassetsNatural GasBuildingstatisticsstrategyDa Latmineral exploitationprocessingindustrieselectricitywatersupplyEnterprisesforestryfisherycommunicationsreal estatetransportationCorruptionbauxiteSecuritiesInsuranceBankFinanceAccountgoodsTrade BalancecoffeeCoalfestivalHa NamNinh BinhHoa BinhUniversityArtsBooktravelVietnam VisaVisaPagodaCommitteePeople's CommitteeVinashincompaniesHoa PhatHSBCACBvietcombankvietinbank

Copyright 2010 © VietnamNewsToday.com 
Powered by: CIINS Design by: Webdesign.vn