return icon Vietnamnet.vn

South Korean investors pour big money into Vietnam

South Korean investors are continuing to inject billions of dollars into Vietnam, including the stock market, to seek opportunities from one of the fastest growing economies in the world.

{keywords}

 

Pinetree Securities has announced its holding company - Hanwha Investment & Securities in South Korea – has pumped more capital into it to raise its total capital to VND1 trillion.

The move was expected as most securities companies in Vietnam have experienced a prosperous year with revenue soaring thanks to a sharp rise in the number of transactions.

Reports show that in the last months of 2020, trading value reached nearly $1 billion each trading session, much higher than the VND4-6 trillion level before.

The increase in charter capital allows securities companies to have more capital to expand portfolios of margin loans, an operation which can bring high profit.

As such, Hanwha, the seventh largest economic group in South Korea, has taken steps to scale up its business in Vietnam. After pouring money into insurance and investment, the big player from South Korea has jumped into the field of securities with the stronger presence in Pinetree Securities.

Hanwha Investment & Securities completed the 90 percent takeover of HFT securities company in May 2019.

The decision to expand business to Vietnam is due to the great potential of the Vietnamese stock market.

Prior to that, a number of foreign big players joined the market, such as KB Financial Group Inc which took over MSI and renamed it KBSV.

A lot of other South Korean invested securities companies also appeared in Vietnam, including KIS, Mirae Asset, Shinhan Vietnam (the predecessor was Nam An Securities), and NH Securities (Woori CBV).

Analysts noted that all South Korean invested securities companies are backed by large economic groups and all increased capital rapidly after taking over Vietnamese companies.

In late September 2019, Mirae Asset approved a plan to increase its charter capital from VND4.3 trillion to VND5.5 trillion with capital sourced from its holding company, becoming the securities company with the biggest charter capital in Vietnam.

KBSV and KIS both have increased their capital to VND1.7-1.9 trillion, among the top 10 largest companies.

Yuanta Securities, in its latest report, predicted that the VN Index may reach 1,705 points in 2021, and that with cash flow from new investors, the P/E (price/earnings) index may reach the highest level in history of 22.5x.

South Korean capital keeps flowing strongly into Vietnam. A lot of South Korean investment funds are here, including Korea Investment Management Co Ltd (KIM) with a portfolio of roughly $1 billion.

KEB Hana Bank has spent VND20.3 trillion to acquire 15 percent of capital of BIDV, one of the big four in Vietnam. 

V. Ha

Top 10 events of the Vietnamese securities market in 2020

Top 10 events of the Vietnamese securities market in 2020

The following are the top 10 events of the Vietnamese securities market in 2020, selected by the Securities Journalist Club of Vietnam.

The VND to strengthen in 2021: VNDirect Securities

The VND to strengthen in 2021: VNDirect Securities

The Vietnamese dong will remain stable for the rest of the year but may appreciate by 0.5 per cent in 2021, VNDirect Securities Corp forecast.

MORE NEWS

Discovering craft villages in Buddhist centre in Quang Ninh

Coming to Yen Tu relic site in Quang Ninh province – Vietnam’s major Buddhist centre, tourists can also experience traditional crafts such as making hats, bamboo handicrafts, and wood carvings.

Ministry drafts mechanism to adjust average retail power price

The Ministry of Industry and Trade (MoIT) is drafting a Prime Minister's Decision on the mechanism for adjusting the average retail electricity price.

Foreign investment disbursement hits record high in nine months

Disbursement of foreign direct investment (FDI) in the first nine months of this year reached 15.4 billion USD, up 16.2 % year-on-year and marking a record high, a report from the Foreign Investment Department (FIA) has shown.

Foreign Minister Bui Thanh Son pays visit to Germany

Minister of Foreign Affairs Bui Thanh Son paid an official visit to Germany from September 26-27 at the invitation of his German counterpart Annalena Baerbock.

2,500 children suffer from cancer in Vietnam every year

The Cancer Centre under the National Paediatrics Hospital, revealed the information in the programme "Con thuyền mơ ước" (Ship of Dreams) to improve people's awareness of children's cancer on Sunday in Hanoi.

New Vietnam-Japan cooperation era: Japanese Vice Minister of Defense

“Let's make 2023 the year that marks the beginning of a new era for both Japan and Vietnam," said Japanese Vice Minister of Defense Yasuhide Nakayama in a talk with VietNamNet.

Challenges ahead for Vietnam this year

“Pressure”, “increased difficulties” and “high risks and challenges”: these are the words used by the Minister of Planning and Investment to describe how hard it will be to fulfill Vietnam’s growth goals this year.

Some industries lack orders, others cannot take more

While woodwork companies are lacking new export orders amid high inflation in the US and Europe, food-processing companies are not receiving new orders because of rising input material prices.

Wholesale and retail sectors lead in new foreign investment approvals

The wholesale and retail industries took the lead in new foreign-invested projects in the January-September period, according to the Ministry of Planning and Investment.

Vietnam cracks down on IUU fishing ahead of EC inspectors’ visit

Deputy Prime Minister Le Van Thanh has ordered strengthening inspections to ward off illegal, unreported and unregulated (IUU) fishing as European Commission (EC) inspectors are coming to Vietnam in October.

Phuoc Thinh to represent Vietnam at Mister Tourism World 2022

Vietnamese model Phung Phuoc Thinh is set to compete for a title at Mister Tourism World 2022 due to take place in the Philippines this December.

Vietnam, Kazakhstan to open direct flights in October 2022

The Civil Aviation Committee of Kazakhstan has officially licensed Vietjet Air to launch direct flights between Vietnam and Kazakhstan.

Vietnam among seven economic wonders of worried world: Financial Times

A writing published by the London-based Financial Times on September 26 described Vietnam as one of the seven economic wonders of a worried world.

UNICEF vows to support Vietnam in response to Typhoon Noru

UNICEF Vietnam expressed its concern over children and families in the country vulnerable to Typhoon Noru, saying it stands ready to support the Government of Vietnam in responding to the most powerful storm to hit Vietnam in 20 years.

President Nguyen Xuan Phuc attends state funeral of late Japanese Prime Minister

Politburo member and President Nguyen Xuan Phuc led the Vietnamese delegation to attend the state funeral of late Japanese Prime Minister Abe Shinzo in Tokyo on September 27.
back_to_top