VietNamNet Bridge – Viet Nam's stock market has attracted US$13 billion from foreign investors, both individual and institutional, according to an official.

Viet Nam's stock market has attracted US$13 billion from foreign investors, both individual and institutional, according to an official.— Photo baodautu

Minister of Finance Dinh Tien Dung, speaking at last Saturday's ceremony celebrating the 14th anniversary of the HCM Stock Exchange (HOSE), the first securities exchange in Viet Nam, noted that the large foreign investment was a positive development, reflecting the increasing growth in the stock market.

Beginning operations in late July 2000, the exchange had only two listed companies and no participation from foreign investors.

Indeed, in 2003, foreign investors' daily trading value stood at VND41 million ($2,000), while this figure has since risen to VND250.6 billion ($10.2 million).

Currently, 700 companies are listed at HOSE and the exchange in Ha Noi. Also, almost 150 companies have registered to trade on the UPCom.

"The market capitalization of all listed shares is $52 billion, around 32 per cent of the GDP, and bonds are 17 per cent," said the minister. He added that the share trading value in the first six months went up 58 per cent, compared to the same period last year.

Currently, HOSE represents some 70 per cent of the total market trading value.

"As the first stock exchange in the country, HOSE has been increasingly improving itself in terms of trading and supervision systems, information releases, product development and upgrading its infrastructure and operation management," said Vu Bang, Chairman of the State Securities Commission.

HOSE also inaugurated its new building, the Exchange Tower, the same day. This new HOSE headquarters is located in a grade A modern building, offering more than 26,000 sq.m. of office space to enable the development of its Data Center.

Together with the older building, HOSE now occupies more than 32,000 sq.m.During the ceremony, 50 listed firms from almost 700 entries from the Annual Report Awards 2014 were honoured with best annual reports, including 38 from HOSE and 12 from HNX. Vinamilk, Bao Viet Holdings, DHG Pharma and Sai Gon Securities Inc. were among the top honourees.

Meanwhile, first prize for the Sustainability Reporting Awards went to Bao Viet Holding, and second prize to Vinamilk. Three consolation prizes were granted to DHG Pharma, Sacombank and Imexpharm.

HOSE, in coordination with Dau Tu Chung Khoan (Securities Investment), a publication of Viet Nam Investment Review and Ha Noi Stock Exchange, have organised this annual contest since 2008.

FDI sinks despite new projects

Total registered capital of foreign direct investment (FDI) projects in the first seven months this year decreased by 20 per cent year-on-year to US$9.53 billion, according to the Ministry of Planning and Investment's Foreign Investment Agency (FIA).

However, total disbursements from FDI firms were estimated at $6.8 billion, increasing 2.3 per cent against the corresponding period last year. FDI businesses generated an export turnover of $55.83 billion and incurred around $46.04 in imports, resulting in a trade surplus of $9.78 billion.

In the reviewed period, as many as 889 new FDI projects were licensed with total registered capital of $6.85 billion, representing 0.9 per cent year-on-year decrease. About 300 projects increased their investment by $2.67 billion, reducing 46 per cent in comparison with the same period last year.

The processing and manufacturing industries took the lead in attracting FDI with 448 newly-licensed projects with new registered and additional capital of $6.66 billion that accounted for 70 per cent of the total FDI. They were followed by the real estate sector with $1.13 billion, accounting for 12 per cent of the total and the construction sector with $547.58 million.

At present, 46 countries and territories have been investing in Viet Nam. South Korea took first place in terms of total registered investment of around $3.13 billion, accounting for 33 per cent of the country's total FDI inflow. Hong Kong ranked second, followed by Japan and Singapore.

The northern Bac Ninh Province led the country in FDI with $1.33 billion, accounting for 14 per cent of the country's total inflow. HCM City was second with total registered and additional capital of $1.07 billion, followed by Binh Duong, Dong Nai, Hai Phong and Ha Noi.

Some big FDI projects that were granted licences in July included South Korean investor's Samsung Display Company in Bac Ninh Province with $1 billion, Thang Long Cement Factory funded by an Indonesian investor in north-eastern Quang Ninh Province with $325.75 million and Dai An Viet Nam – Canada International Hospital Company in northern Hai Duong Province with $225 million.

VNS/VNN