Prudential, Citibank sign deal

Prudential Viet Nam Assurance and Citibank Viet Nam announced their partnership in a ceremony held in Ha Noi, yesterday.

Prudential insurance packages will now be available at Citibank branches.

Dak Lak tops export league

The Tay Nguyen (Central Highlands) province of Dak Lak reported on Monday that the province's export turnover in the first 10 months of this year reached US$620 million, ranking first in the central highlands region.

It was a 28.9 per cent year-on-year increase, gaining nearly 96 per cent of the annual target.

The major exporting items were coffee, pepper, rubber, cashew, tapioca and honey.

Banks sign co-operative deal

The Bank for Investment and Development of Viet Nam (BIDV) has signed bilateral co-operative agreements with North Asia Commercial Bank (ACB) and the Global Petroleum Commercial Bank (GP Bank).

Under the agreements, BIDV has pledged to lend ACB VND3 trillion (US$144 million) and GP Bank VND5 trillion ($240 million) to improve their liquidity.

They will also share experiences on risk prevention, investment and information on exchange and interest rates.

New phone subscribers down

The number of new phone subscribers is estimated by the Viet Nam General Statistics Office (GSO) to reach 9.3 million in the first 10 months, a year-on-year decrease of 17.2 per cent.

The number includes 46,100 fixed line phone subscribers, reduced by 76.2 per cent and 9.3 million mobilephone subscribers, decreased by 16.1 per cent.

By late October, the country's total phone subscribers reached 130.7 million, a 3.9 per cent year-on-year increase.

Foreign currency report required

The State Bank of Viet Nam issued Document No 8402/NHNN-QLNH on Thursday, which would require forex-licensed credit institutions and foreign bank branches to report and register their demands for the purchase of foreign currency. The State Bank would monitor the demand for foreign currency in order to produce better forecasts.

Sugar pours across border
 
A record volume of sugar was exported to China over the past three months, according to the Viet Nam Sugar and Sugarcane Association.

The association reported that from July to the beginning of October, 100,000 tonnes of sugar was exported to China, boosting the total figure for the year to date to over 200,000 tonnes.

This was a record for Viet Nam, the association said.

However, the association's secretary Nguyen Hai said this could lead to problems.

"If the volume of sugar exported to China continues to increase in the last months of this year, the domestic sugar price will surely increase," Hai said, adding that it was abnormal to export more than 30,000 tonnes of sugar to the northern neighbour in one month.

Hai explained that part of this sugar was domestically produced while the rest was imported from Thailand.

Hai noted that although the country had large volumes of stockpiled sugar, there was not enough to meet domestic demand and it was still necessary to import stock from other countries.

"The shortage in the domestic market has pushed the price up," he added.

According to the Ministry of Agriculture and Rural Development, the 2011-12 crop has already started, and some manufacturers have produced up to 30,000 tonnes. This crop is estimated at 1.3-1.4 million tonnes in total, an increase of 150,000-200,000 tonnes over the previous crop.

Slower inflation helps boost retail sales

The country's retail sales value of goods and services last month increased 1.92 per cent over the previous month to nearly VND167.6 trillion (US$8.56 billion), thanks to a continuous deceleration of the Consumer Price Index (CPI), according to the General Statistics Office (GSO).

Vu Manh Ha, a GSO expert, said that the CPI slowdown in October, which reduced prices of certain consumer goods, contributed significantly to the surge in retail sales value. Last month was the third consecutive month that the CPI growth rate went down. The General Statistics Office reported that CPI last month surged only 0.36 per cent against September, the lowest level since July 2010.

October's figure lifted the total retail sales value of goods and services in the first 10 months of the year to VND1,561 trillion ($75.48 billion), up 23.1 per cent over the same period last year. However, considering the inflation, the surge was only 3.9 per cent, much lower than the rate of 15 per cent in the first 10 months of last year. The 3.9 per cent rise has been unchanged since August and equal to only half of the increasing rate in the first seven months of the year.

With a growth rate of more than 23.3 per cent during the first 10 months, the commercial and hotel-restaurant sectors contributed more than 90 per cent of the nation's total consumption revenue.

Ha projected that the growth rate would be higher in the next two months, explaining that CPI was continuously decreasing and that consumption demand often increased significantly at the end of the year during the holiday season.

Last year, the country's total retail sales value of goods and services jumped by 24.5 per cent against the previous year to VND1,561 trillion ($74.3 billion).

Drug maker fails to land strategic partner

Ha Tay Pharmaceutical Co (DHT) was only able to sell 20 per cent of it recent issue of 6.7 million shares, all bought by existing shareholders. The remaining 80 per cent, intended for sale to one or more strategic partners, failed to find any takers, the company announced.

DHT had hoped to raise VND66.7 billion (US$3.2 million) from the issue but ultimately brought in only VND16 billion ($760,000).

Company chairman Le Van Lo blamed the tumbling stock market for hindering his company's efforts to raise capital and find strategic partners.

However, according to a representative of Thang Long Securities Co, DHT's failure to find investors is due to its insufficient preparation for its offering.

"Investors always spend a lot of time assessing a company they will invest in, so a careful preparation or asking a professional intermediary will help enterprises succeed," he said.

Few details were released about DHT's offer besides share price and volume. The shares were offered at VND15,000 per share – 40 per cent lower than their trading price at the time on the Ha Noi Stock Exchange.

"There are potentials for pharmaceutical companies to find strategic partners since foreign investors, especially the Japanese, are keen on the sector," said Domesco Medical Import=Export Co chief financial officer Nguyen Van Hoa, in comments to the newspaper Dau tu Chung khoan (Securities Investment).

Investors may have hesitated over rumours that DHT shares were being manipulated, after its board members registered to buy 1.25 million shares. Shares hit their ceiling prices for five consecutive sessions despite no significant changes in business results.

DHT's leading shareholder holds a 5.3 per cent stake in the company.

Are apartment prices headed down?

With some Ho Chi Minh City apartment developers offering discounts of up to 35 percent, buyers anticipate a firm downward trend in apartment prices.

The Saigon Times daily quoted Fiachra Mac Cana, CEO of Ho Chi Minh Securities Corp, as saying the housing market would see a rash of discounts by the end of the second quarter next year since developers were under pressure to clear their bank loans.

PetroVietnam Power Land (PVL), for instance, recently announced a discount of 34 percent on units in its Petro Vietnam Landmark apartment in District 2.

It is offering 85 apartments at VND15.5 million (US$756) a square meter, VND5.8 million a square meter lower than the price it paid to buy them from PetroVietNam Construction Land Corporation and VND8.3 million lower than the price it initially announced. But the discount is only offered to buyers of at least five units.

PVL said it would lose VND70 billion but had to resort to the price cut because it could no longer cope with the pressure from its VND100-billion loan from Lien Viet Bank.

Saigon Mekong Co cut prices by VND4 million a square meter to VND14.5 million for the 500 units in its An Tien apartment project in Nha Be District.

But the Saigon Times pointed out that many developers had begun to cut prices earlier in the form of promotions.

The director of a real estate company said the price-cutting trend was not new since many real-estate investors could no longer bear the loan pressure.

Insiders said the price cuts would not improve market liquidity this year since prospective buyers would wait for prices to slump further.

Chris Brown, deputy director of housing at Cushman & Wakefield Co, said investors had shown little interest in property though the stock and gold markets were volatile.

This had hit the HCMC apartment market, with prices declining by up to 20 percent in the third quarter, he added.

Meanwhile, due to the market slump, many real-estate companies reported big losses in the third quarter even without cutting prices.

Phat Dat Real Estate Development Corporation, for instance, reported a loss of VND7 billion in the third quarter since it managed to sell almost no apartments in that period. In the first quarter it had incurred a VND14-billion loss.

The 584 Investment and Exploitation Traffic Construction Co reported a VND6-billion loss, saying it was mainly due to the high loan interest rates.

But VietCapital Securities Co said in a recent report it was too early to declare a downward trend in apartment prices.

Metro opens fish transshipment center in Can Tho

German retailer Metro Cash & Carry Vietnam yesterday opened a fish transshipment center in Can Tho under a public-private partnership meant to ensure sustainable development of seafood in Vietnam.

The center, at Metro’s outlet in the city, has been set up in partnership with the Ministry of Agriculture and Rural Development, the Vietnam Challenge Fund, Cargill Vietnam Co, and Fresh Studio Innovation Asia.

It consists of a processing section, a cold storage, and a sorting section, and will provide around 1,000 jobs.

In the beginning the center will deliver fresh and processed fish caught in the Mekong Delta to Metro’s 15 outlets countrywide.

Over the longer term products will be delivered to Metro’s global distribution system, which consists of 700 outlets in 30 countries and territories.

The Saigon Times Online quoted a Metro spokesperson as saying that all products transshipped from the center would be processed to international food-hygiene and safety standards and consumers could trace back the product origin.

Randy Guttery, CEO of Metro Cash & Carry Vietnam, said the center was a typical example of the public-private partnership model in sustainable agricultural development that had been hailed at the World Economic Forum held in Ho Chi Minh City last year.

Central province to sue Chinese firm over coffee brand

Authorities in the Central Highlands province of Dak Lak will sue a Chinese company  for a patent on the renowned Buon Ma Thuot coffee brand.

Two Vietnamese brand names, the geographical indication of which had been patented in Vietnam, “BUON MA THUOT” and “BUON MA THUOT COFFEE 1896” have been registered by Guangzhou Buon Ma Thuot Co. Ltd, the Chinese company, as an exclusive trademark in China for ten years.

Four or five law firms are now willing to help file a lawsuit against the Chinese company, the authorities said, adding a capable one having partners in China would be preferred.

The authorities said it is going to take time to take the names back, beginning with asking the Chinese company to cancel their patent in China. Failing that, they said, legal proceedings would follow.

“The suit can last two to three years and it would cost around VND600 million (US$28,800),” according to an official with the People’s Committee of Dak Lak Province.

An industry professional said there had been several “thefts” of coffee brand names like this in other countries but this lawsuit would be the first of its kind.

“Vietnamese coffee exports from Buon Ma Thuot would meet with troubles if we lost the brand,” he warned.

The Buon Ma Thuot Coffee Association has been authorized to be in charge of the suit.

Buon Ma Thuot is a city that spans more than 100,000 hectares of Dak Lak and is considered Vietnam’s largest coffee growing area with an annual production of 300,000 tonnes and exports to 60 countries.

Soco delays Vietnam field production ramp up

British oil firm Soco International has delayed a ramp up in production at its key oil field off the Vietnam coast but said it was confident of achieving target output during 2012.

Soco, which in August said it could reach its target of producing 55,000 barrels of oil per day (bopd) from the first phase of its Te Giac Te oil field by the end of 2011, said it wanted to understand the field better before raising output to that level.

"We can get to 55,000 bopd. It's a very simple process but it really is a factor of the information gain," Chief Executive Ed Story said in an interview with Reuters on Tuesday.

Production from the field, which Soco co-owns with Vietnam's state oil group Petrovietnam and Thailand's state-run PTT Exploration and Production, is currently at 35,000 bopd, the company said.

"We are certainly capable of having a substantial increase by the second quarter," Story added, declining to give a specific date during 2012 when the 55,000 level would be reached.

"The field could easily be, assuming the floating production storage and offloading vessel can handle it, could be in the 60,000 bopd plus range," said Story when asked where he sees production at the end of 2012.

Shares in Soco traded down 8.8 percent to 301.2 pence at 1027 GMT, topping Britain's mid-cap fallers board.

Royal Bank of Scotland analyst Phil Corbett called Soco's update "a touch disappointing", while Numis Securities analyst Sanjeev Bahl said he believed uncertainty remains over 2012 full-year production from the Te Giac Te field.

Production from Te Giac Te started in August and with output at 35,000 bopd, the company has started to generate substantial revenues.

Story said the company would look to spend its cashflow on new exploration projects.

"New licences in areas where we're familiar and potential other ventures with third parties," he said, adding that the company was in discussions about a joint venture in Africa.

Recent drilling off the coast of Congo has not been successful, however, Soco said, as the Mindou Marine 1 well did not find oil or gas in a reservoir. It plans to drill two other wells in the area at a cost of around US$25 million per well.

Foreign investment in HCM City increases in 10 months

Ho Chi Minh City has licensed more than 300 foreign-directed investment (FDI) projects with a total registered capitalization of over US$2 billion so far this year, a year-on-year increase of 4 percent.

In addition, 104 projects asked for an expansion of their capital, bringing the total number of FDI capital over the past 10 months to US$2.46 billion, an increase of 33 percent compared to the same period last year.

FDI mainly focuses on the processing,  consultant services, trade, medical, and banking industries.

The Director of the City’s Trade and Investment Promotion Centre, Tu Minh Thien, said increasing FDI in the fields of industry and processing is a good signal, which demonstrates that the city is on the right track to attracting increased foreign investment.

Garment and textile exports reach record of US$11.7 billion

Vietnam’s garment and textile exports earned US$11.7 billion in the first ten months of 2011, US$500 million higher than the projected target for the whole year.

This was announced by the Ministry of Industry and Trade (MoIT) which predicted the sector’s exports would reach US$13.5 billion this year.  

Vietnam sees greater production, inventory

Vietnam's indices of industrial production and inventory have both increased in the first 10 months of this year compared to the same period last year, the General Statistics Office said.

In particular, the index of industrial production (IIP) increased 7 percent. IIP in October rose 5.2 percent compared to September, which was the highest rise since April.

The sectors that saw a rising IIP compared to the same period last year include pottery, non-refractory ceramics (excluding ceramics used in construction) (86 percent), sugar (42.4 percent), motorcycle (19.9 percent), crude flour (19.5 percent), pre-cast metals (15.4 percent), garment (excluding fur apparel) (15.1 percent), processing industry (10.2 percent), and production and distribution of electricity, gas, and water (9.4 percent).

But IIP in shipbuilding and repairing, electric cable, medicine andpharmaceutical, crude oil and natural gas exploitation, and mining all decreased.

The consumption of industrial processing and manufacturing sectors in the first 9 months also increased by 15.6 percent compared to the same period last year.

The sectors with a higher consumption index are non-refractory ceramics (excluding ceramics used in construction) (76.4 percent), pre-cast metals (50.8 percent), and sugar (39.9 percent).

However, as production increased faster than consumption, the inventory index of the processing and manufacturing industry jumped by 21.1 percent month on month.

Pham Dinh Thuy, head of the GSO's Industry and Construction Statistics Department, said an imbalance between production and inventory might affect the stability of supply and demand in the near future and might cause lower or flat production.

Some sectors having a rising inventory index include insulated electricity cables and wires; cement; pulp, paper and paperboard; bed and furniture; non-refractory ceramics (excluding ceramics for construction); brewing; footwear; motors and motorcycles; plastic products; forage, and packaging.

Vietnamese consumer confidence remains low: survey

Only 37 percent of Vietnamese consumers believe that the economy can get out of the recession in the next 12 months, a survey by Nielsen Vietnam has found.

In the Nielsen Global Consumer Confidence Survey for the third quarter, the Vietnamese consumer confidence index remained unchanged at 97 points from the previous quarter due to concerns over the economic volatility.

A score of 100 is neutral and scores above and below it indicate optimism and pessimism.

The consumer confidence index has totally dropped by six points this year.

The survey found that 69 percent of consumers believe the economy is in a recession, up by 3 percentage points from the previous quarter.

But more than 57 percent thought their job prospects were good in the coming 12 months, an increase of 5 percentage points.

Around 53 percent believed that their personal finances would be good or excellent in 12 months’ time, down from 56 percent.

However, 61 percent said it was not the right time to buy things.

Vietnamese consumers planned to cut spending on household expenses more than in neighboring countries: 66 percent said they would save spending on gas and electricity while the figure for the Asia Pacific is 45 percent.

Almost half of Vietnamese consumers planned to delay replacement of major household items, 16 percentage points higher than the regional figure, while 40 percent would cut down on vacations against 21 percent for the region.

The survey found that the Asia – Pacific was the world’s most optimistic region with an average consumer confidence index of 97 points.

It was also the region with the highest number of consumers willing to practice thrift, with 61 percent claiming they will cut down on spending, while the global figure is only 46 percent.

Around one third of consumers in Asia – Pacific said they would invest in stocks and mutual funds after covering essential living expenses. This is the highest rate of all regions worldwide and nearly double the global rate of 18 percent.

The Nielsen Global Consumer Confidence Survey, done between August 30 and September 16, polled 28,000 consumers in 56 countries in the Asia-Pacific, Europe, Latin America, the Middle East, and North America.

EuroCham helps local businesses extend capacity

Vietnamese businesses were provided with information about exports to the European market at a seminar held by the European Chamber of Commerce in Vietnam (EuroCham) in Ho Chi Minh City on November 2.

The seminar was as part of the “Capacity Building on Trade Policy for Vietnamese Business Associations” project and the “EU-Vietnam Multilateral Trade Assistance Project III” (MUTRAP III).

Speaking at the seminar, Dr. Vo Tri Thanh, Deputy Head of the Central Institute for Economic Management, said the EU market still holds much potential although the world’s economic growth in the fourth quarter of 2011 and 2012 signals a downward trend.

He underlined the need for Vietnamese businesses to carry out flexible strategies to seek markets and partners in the 27-nation EU region, with a focus on potential markets.

Apart from pricing, the quality and design of products play an important role in raising the competitiveness of Vietnamese goods, Thanh said.

The Vietnamese Government is implementing many solutions to support small and medium-sized enterprises through export tax and credits, he added.

Albert Franceskinj, a lawyer from Fidal Franceskinj Chazard and Partners law firm, suggested Vietnamese businesses operate in groups and sectors or join associations to access more information about potential business partners.

Vietnamese enterprises need to make greater efforts in improving professional production activities, meeting regulations of the export market and avoiding risks regarding competition and anti-dumping laws of the respective country, the lawyer said.

In the January-October period, Vietnam’s exports to the EU recorded a year-on-year increase of 30 percent. The EU is seen as an important market of Vietnam’s footwear, garment and textiles, aquatic products, coffee and wood products.

Vietnam and the EU are negotiating free trade agreements to expand export markets for businesses.

Strong Vietnamese trademark Eurowindow enters Cambodia

European Plastics Window Company Ltd (Eurowindow) organized a seminar in Phnom Penh, Cambodia on November 2, seeking ways to penetrate this market.

A representative of the company said with the trademark confirmed in Vietnam over the past 10 years, Eurowindow is now attempting to increase its market share in some regional countries, and Cambodia has been chosen as the first destination.

Cambodia is a neighbouring country that has a special friendship and maintains close relations with Vietnam. The two countries have many similarities in terms of traffic, geography, and consumption habits in daily life.

Nguyen Duc Chung, Deputy General Director of Eurowindow said developing the trademark in Cambodia will also help its consumers to have access to the high-quality products of Vietnam.

Eurowindow is trying to establish its branch in Cambodia before building a factory to produce plastic windows and partitions.

Vietnam welcomes Japanese insurers

Vietnam’s Ministry of Finance (MoF) will create favourable conditions for Japanese insurance businesses to operate in Vietnam.

MoF Minister Vuong Dinh Hue recentlymade the statement at a meeting with leaders of Sumitomo and Daiichi Life groups in Tokyo on November 1.

According to Minister Hue, Vietnam’s insurance market opens its doors to foreign investors and holds great potential for Japanese businesses.

He welcomed Sumitomo group’s decision to increase its market share in Vietnam and acknowledged Daiichi Life group’s social and charitable activities in the country.

Leaders from the two groups expressed wishesto expand their long-term operation in Vietnam and their willingness to share experiences with the MoF and other relevant authorities in promoting socialization of the insurance market.

Sumitomo Group has just been licensed to open its representative office in Vietnam while Daiichi Life has had its subsidiary company operating in the country after when it purchased Bao Minh CMG Life Insurance Company in 2007.

Promotion center needed for MICE tourism

HCMC needs a promotion center for MICE (meeting, incentive, convention and exhibition) tourism, which will play a leading role in the development of this important type of tourism in the future.

In a study on MICE tourism in the city, the Hotel Management Division under the HCMC Department of Culture, Sports and Tourism has mentioned the role of such a center to host conferences and exhibitions.

The parties that benefit from MICE tourism, namely hotels, tour operators, transport firms and shopping centers, will make annual contributions to the operation of this promotion center. This method is applied in Thailand, Singapore and Malaysia to develop MICE tourism.

The Hotel Management Division suggested a number of activities to promote this type of tourism, such as creating a website and literature, organizing specialized fairs as well as investing in infrastructure and human resources.

The agency set a goal to serve cloe to one million business visitors in 2015, compared to 520,000 in 2009.

The study also indicated the many shortcomings of the city tourism in developing MICE, including the meeting room and hotel room systems.

HCMC is lacking facilities for conferences, seminars and exhibitions. International conferences in HCMC are usually held at four or five-star hotels. Smaller scale hotels can only supply up to five meeting rooms for 20-50 delegates.

Also, there has not been sufficient investment in essential equipment for conferences.

Since the beginning of 2010, the city has not had sufficient facilities for conferences, seminars, and exhibitions apart from the conference rooms belonging to the three to five-star hotels.

Meanwhile in Hanoi, the National Conventions Center alone has the total floor area of 60,000 square meters and an official meeting room with a seating capacity of 3,800.

Hanoi has already invested in these facilities with 200 meeting rooms in the city, covering over 28,000 square meters.

Axe falls on four resort projects in Ba Ria-Vung Tau

Ba Ria-Vung Tau Province has issued a decision to cancel four resort projects in the province due to slow implementation and incapability of investors, according to the provincial Department of Planning and Investment.

The four cancelled projects, located in Xuyen Moc District, are Phu My Land SJC Resort invested by Phu My Land Investment Corp., Hong Nhung Goft Resort by Phu Thinh Investment Corp., Apec Vietnam Resort of Hai Duong Vina Project Corp., and Vietsovpetro Resort of Vietsovpetro Joint Venture Co.

Dang Minh Thong, deputy director of the department, told the Daily that among the four projects, Vietsovpetro Co. proposed to refrain from its project after failing to find a hot mineral spring as earlier expected for its resort project.

For the three others, the investors after obtaining the licenses failed to carry out procedures to develop the projects. Furthermore, a golf resort project is not listed in the Government’s golf course development plan, he added.

Besides the four above projects, the US$1.3-billion Vung Tau Wonderful World Theme Park invested by Good Choice Co. may be subject to license revoking, said the department.

Thong said the department and Vung Tau City had agreed on revoking the investment license of Good Choice’s theme park project but still had to collect the opinion from relevant agencies before asking for the provincial government’s decision.

The 130-hectare park, located in Vung Tau City’s Nguyen An Ninh Ward, consists of many components such as a five-star hotel with 2,500 rooms, four-star hotels with 4,000 rooms, international convention center, entertainment section, aquarium and replicas of the world’s famous tourist sites. This project is a huge complex of tourism and entertainment facilities in the province but has yet to be developed since being licensed in early 2008.

Besides, the Saigon Atlantis Hotel, one of the two biggest projects in Vung Tau Province, invested by Winwest Vietnam Co. with an investment amounting to US$4.1 billion, has not been started due to difficulties in site clearance. Due to this problem, the province has not been able to hand over land to the investor on time. However, construction of this project will also be started this month.

Ba Ria-Vung Tau is checking all projects to boost the implementation progress, give supports to investors as well as cancel projects of incapable investors, Thong said.

Province halts lagging rubber cultivation

The Central Highland province of Dak Lak has halted 28 rubber-planting projects in its Ea Sup, Buon Don and Ea H'Leo districts, chairman of the provincial People's Committee Lu Ngoc Cu said yesterday.

Cu said the province decided to put an end to the projects because of investors' lack of capital, their inexperience in rubber production and slow progress.

Besides, illegal logging was still a problem due to poor forest management and investment policies, he added.

So far this year, the provincial authorities have dealt with 1,500 forest violations. Altogether 24 people have been prosecuted, 676 vehicles seized and more than 2.5 million cubic metres of timber and 400kg of wild animal meat confiscated.

Analysts recommend Military Bank shares

Making its debut on the HCM City Stock Exchange this past Monday, Military Bank (MBB) went from being king of the over-the-counter market to the most noteworthy new share on the stock exchange.

After one day of trading, MBB became the market's 11th leading share by capitalisation, representing 2.13 per cent of total market value. (The market leader, food processor Masan Group (MSN), accounts for 13.6 per cent.) After moving into positive territory on its first day of trading, MBB bottomed out yesterday at VND13,200 per share, although its trading volume surged over other codes on the board.

Nevertheless, many analysts see the share as a good investment choice.

"With cautious consideration, we value MBB at VND16,833 per share, 22 per cent higher than the reference price," said ACB Securities Co analyst Nguyen Thi Lan Huong in giving a buy recommendation on this stock.

"It's even more attractive since the 10-per-cent ceiling on foreign investment is still far away," Huong said, noting that, prior to listing, the bank had no foreign shareholders.

"Finding a foreign partners is in our strategy to develop in both domestic and foreign markets, but no foreign organisations have met our criteria so far," said Military Bank chairman Le Van Be.

The bank had set aside a 20-per-cent stake for a foreign strategic partner in addition to the statutory 10 per cent which other foreign investors would be allowed to hold, he said.

The risk of investing in MBB was its rising bad debt ratio, said Maritime Bank Securities Co analyst Tran Quoc Hoan. However, he said, that was a common trend throughout the banking industry.

"Regarding the strengths of the bank in fund management, risk management and good liquidity, I believe MBB is a good investment choice among listed banking stocks," said Vietcombank Securities Co analyst Quach Thuy Linh.

MBB plans to increase its charter capital from VND7.3 trillion (US$374 million) to VND10 trillion ($476 million) this year, with the increase to come primarily from one of its leading shareholders, military-owned telecommunications giant Viettel.

Viettel currently holds a 10-per-cent stake in the bank, following by Vietcombank (VCB) with 11 per cent, but the additional investment by Viettel would move it into the position as the bank's top shareholder.