Stock market Vietnamese stock market attracts foreign investors 10/Apr/2017 Intellasia | SGGP The Vietnamese stock market has reached nine year peak with the strong purchase from foreign sector, who has posted the net purchase of VND3,478 billion (US$153 million) on two bourses in the first quarter. On April 5, the VN Index hit 724.14 points increasing 8.64 percent over last yearend. Statistics by stock companies show that net foreign purchase was $106 million in March, the highest level since May 2014. So far, capitalisation in the Vietnamese stock market has topped VND2,260 trillion ($99.51 billion), equivalent to 50.3 percent gross domestic product (GDP) and up 16 percent over the end of 2016. It is the highest level since the Vietnamese stock market was established. Information from the State Securities Commission of Vietnam shows that capital mobilisation touched VND40.7 trillion ($1.79 billion) in the first two months this year. Of these, the value in February accounted for 79 percent. One of reasons for the increase has been up foreign investment funds. At a press conference early March, chair of the commission Vu Bang reported continuous net foreign purchase of local stocks. In January, the net buying value topped $18.4 billion, the highest ever. The most purchased shares in HCM City Stock Exchange (Hose) is VNM of Vietnam Dairy Products Joint Stock Company with the total net purchase of VND2,654 billion ($117 million) in the first quarter. Besides, stocks having large capitalisation and listed on bourses for a couple of months have also lured much foreign capital. They comprise NVL of Novaland Investment Joint Stock Company, SAB of Saigon Beer, Alcohol and Beverage Corporation and VJC of Vietjet airline with the net purchase values of VND353.6 billion, VND340.9 billion and VND205 billion respectively. Of them NVL and SAB have officially been traded in HOSE since December last year and VJC has been listed for a month. Wiston Lu, an analyst from Phu Hung Securities Corporation, said that the stock market has opened many opportunities for investors with capital withdrawal and listing wave of large stated owned enterprises (SOEs). In addition, the extension of foreign ownership room is expected to lure more foreign capital flow. They have brought the stock market a volume of new capital attracting advantage especially when more large SOEs will list their shares on bourses this year, he added. Last year, the stock market officially saw the attendance of large state owned corporations such as Sabeco, Habeco, ACV, Seaprodex and Vinatex. This year it is expected to receive large scope listings from other stated owned enterprises with the drastic instruction by the government. Don Lam, director general of Vinacapital, says that SOEs equalisation and listing will continue benefiting the stock market and the state asset value. These important steps will create faith for investors and increase the market liquidity. Barry Weisblatt, director of analysis and study department of Viet Capital Securities Company, said that the stock market will continue welcoming large companies such as MobiFone and Petrolimex. In addition, the regulation requiring public companies to list on UpCoM is forecast to bring this bourse attractive shares from well-known companies such as PV Power, Techcombank, VPBank, Vietnam Airlines, Masan Consumer and FPT Telecom, creating a motive power for the market to increase points in 2017. New shares will make the market noisier because the 15.7 percent increase of the Vn-Index last year was partly due to stocks with large capitalisation value such as ROS and SAB listed by the end of 2016. Without these two stocks, the Vn-Index will increase only 8.5 percent, he said. Still, experts said that foreign capital flow has just concentrated on few large stocks such as VNM, SAB and VJC. The government should step up SOEs equitisation and urgently divest state capital from companies out from the list which the state hold shares. It will be difficult to lure foreign investors if the state just sells 5-10 percent shares of good companies because they cannot attend in the management. http://english.vietnamnet.vn/fms/business/176144/vietnamese-stock-market-attracts-foreign- investors.html Foreign investors rush to buy stake in Vietnamese businesses 10/Apr/2017 Intellasia | Vietnamnet The wave of foreign investors making capital contributions and buying a stake in Vietnamese businesses began in 2015 and increased significantly last year. FIA (the Foreign Investment Agency) said there were 654 deals of foreigners' capital contribution and share purchase in the first two months of the year, with the total contributed capital of $619 million, four times higher than that of the same period of last year. Foreign investors mostly targeted businesses in the manufacturing and processing sector with 220 deals made in the field, worth $292 million. The fields of wholesale & retail and vehicle repair also attracted foreign investments with 197 deals made, worth $124 million. Real estate was the third attractive sector which had 14 deals, valued at $60 million. HCM City saw the highest number of capital contribution deals (322 deals, $313 million), followed by Hanoi, Binh Duong, Nghe An and Quang Binh. In fact, foreign investors began buying into Vietnam's businesses many years ago, but the movement only became clearer in 2015. In M&A deals, for example, Vietnam's businesses seek capable partners in the context of global integration. From July 1, 2015 to July 20, 2016, foreign investors contributed capital and bought into 3,000 businesses with the total value of $2.9 billion. In 2016 alone, 2,547 Vietnam's businesses received foreign shareholders with foreign ownership ratios at over 50 percent or in conditional investment fields, valued at $3.425 billion in total. This occurred after the 2014 Investment Law took effect. Under the new regulations, foreign investors don't have to apply for investment registration certificates when contributing capital or buying into Vietnam's businesses. They only have to follow registration procedures at state management agencies. Analysts said simple administrative procedures have prompted foreign investors to buy a stake in Vietnamese businesses. However, Nguyen Tri Hieu, an economist, warned that state management agencies should not be too optimistic about the foreigners' capital contribution, because no one can say for sure if the capital will keep flowing into Vietnam in the last months of the year. The changes in the world's economies and unpredictable policies applied by the US administration are contributing to an uncertain atmosphere. If foreign investors are uncomfortable about new policies, they may withdraw capital from new emerging markets, including Vietnam. According to Hieu, simplified laws affect foreign investors' decisions. However, they will only make investments if they can see bright prospects in Vietnam's economy. Therefore, in order to encourage foreign investors to pour money into Vietnam, the country should try to enhance its national credibility. To date, Vietnam still is not among the countries that Standard & Poor's, Moody's and Fitch have advised investing in. english.vov.vn/economy/foreign-investors-rush-to-buy-stake-in-vietnamese-businesses-347213.vov VSD issues trading codes to 228 foreign investors 10/Apr/2017 Intellasia| Vneconomy The Vietnam Securities Depository (VSD) has announced the issuance of securities trading codes for foreign investors in March 2017. Accordingly, in March, VSD granted trading codes to 228 foreign investors, including 40 organisations and 188 individuals. In addition, VSD approved the change of information for 36 investors, including seven organisations and 29 individuals; and cancelled trading codes for two investors, including one organisation and one individual. Currently, the current total number of securities trading codes is 20,798 codes; including 3,247 organisations and 17,551 individuals. Previously, in February 2017, VSD granted securities trading codes to 200 foreign investors, including 44 organisations and 156 individuals. Stocks set to rise on first quarter hopes 10/Apr/2017 Intellasia | VNS Shares will continue to rise this week as investor sentiment remains positive, analysts say, driven by expectations that good earnings reports will be released in the "shareholder meeting season." Analysts with BIDV Securities Corp (BSC) say that the high expectations of good first quarter performances is directing the flow of money in the market towards companies that had been forecast to do well but are yet to produce expected figures. For example, steel producers' stocks are moving up after underperforming for a while. "The stock market will likely increase this week as listed large-cap firms are about to reveal their first quarter performances," said Nguyễn Ngọc Lan, head of the brokerage division at Agribank Securities Company. The market could increase further after blue chips ended Friday in the positive territory and foreign investors remained net buyers though their purchases declined sharply, Lan said. Foreign investors recorded a net buy value of VND225.6 billion in Vietnam's stock market last week, down 74.5 per cent from the previous week. It is not surprising that the benchmark VN Index has reached new heights recently, said Vu Minh Duc, head of individual customers division with Viet Capital Securities Company (VCSC). The benchmark index has entered a development stage that could range between six and 12 months since it successfully overcame the mid-term resistance range of 690-695 points, he said. The short-term resistance level for the VN Index is 730 points for now and 750 points for the next one or two months, Duc added. However, BSC analysts have warned that the market could also face a correction if the released earnings reports fail to meet investor expectations. The market could also be pulled down by the pressure of profit-taking that targets stocks that have risen recently based on forecast first-quarter earnings.