Large foreign capital is being poured into Vietnamese enterprises, especially big companies in different business fields.
BIDV is expecting big changes with the presence of a South Korean shareholder – KEB Hana Bank.
BIDV in late October 2019 wrapped up the private offering of 603.3 million shares to the bank from South Korea at the price of VND33,460 per share, collecting VND20.3 trillion (VND870 million). After the deal, BIDV’s charter capital rose from VND34.2 trillion to VND40.2 trillion and the state’s ownership ratio fell from 95 percent to 80.2 percent.
As such, BIDV became the bank with the highest charter capital in the system. KEB Hana Bank is a big shareholder of BIDV with 15 percent of shares.
Also in 2019, Vingroup wrapped up the most valuable M&A deals worth $1 billion after selling shares to SK Group from South Korea.
Vingroup could collect $400 million from issuing preferential shares (VND111,000 per share) to Hanwha fund management company, one of three largest companies in its field in South Korea.
Prior to that, in 2018 Vinhomes, the real estate developer belonging to Vingroup, attracted $1.35 billion from foreign investors.
Techcombank in 2018 sold $920 million worth of shares to foreign investors.
Masan Group sold treasury stocks worth $470 million to SK Group from South Korea and sold 52 million shares worth $200 million to GIC, a fund of the Singaporean government.
|Just over the last two years, $10 billion worth of capital has been poured into Vietnam’s leading corporations, including Vingroup, Masan, Vietjet Air, PAN Group, FPT (IT group) and Vinamilk (dairy producer).|
Just over the last two years, $10 billion worth of capital has been poured into Vietnam’s leading corporations, including Vingroup, Masan, Vietjet Air, PAN Group, FPT (IT group) and Vinamilk (dairy producer).
Vingroup alone in 2018 attracted $4.2 billion worth of capital. Since 2013, it has carried out 13 transactions of attracting capital from foreign institutions with total capital worth $7.6 billion.
Cash flow from Asia
According to DealStreetAsia, Singaporean Temasek, an investment group, plans to pour $100 million into Scommerce, the holding company of Giaohangnhanh, a fast delivery service provider, and AhaMove, after it invested $100 million into VNG, the unicorn technology firm that owns Zalo app.
Analysts noted that Asian capital is heading for Vietnam, an open economy which has had obtains high growth rates for many years. The capital is mostly from South Korea, Japan and Singapore.
According to Huynh Minh Tuan from VnDirect HCM City, foreign investors are interested in FMCG, industrial real estate, offices for rent and energy.
A report from Baker McKenzie showed that Vietnam continues to be an attractive destination for investors, and that M&A activities will continue to be busy thanks to the active market and multilateral FTAs.
The proposal was presented by the NA Economic Committee Chairman Vu Hong Thanh on Monday as a part of the socio-economic development plan for 2020.
Vietnamese banks offer an increasingly rare combination of high and self-sustaining earnings growth, said United States-based investment bank J.P. Morgan.