VietNamNet Bridge - Thai businessmen have been pouring money into profitable Vietnamese businesses and strong brands, not just to seek short-term profits.

$500 million worth of Vinamilk shares are being held by Thai billionaire

The trillion-dong shareholders

Soon after the State Capital Investment Corporation (SCIC) announced it would divest Vinamilk shares in a plan to withdraw capital from 10 large state-owned enterprises, Vinamilk share prices have soared, especially when Fraser & Neave (F&N) owned by Thai billionaire Charoen Sirivadhanabhakdi reportedly attempted to buy 45 percent of Vinamilk shares from SCIC.

F&N later denied the information. However, many Vietnamese still believe the Thai billionaire is interested in Vinamilk shares. Prior to that, the billionaire successfully took over Metro Cash & Carry Vietnam and sent word intimating that F&N wants to become a strategic partner of Sabeco, the largest brewery in Vietnam.

F&N is the second largest shareholder and the largest foreign shareholder in Vinamilk with 132.5 million shares, which accounts for 11 percent Vinamilk’s charter capital.

Thai businessmen have been pouring money into profitable Vietnamese businesses and strong brands, not just to seek short-term profits.

SCG has spent VND5 trillion to take over Prime Group. Power Buy, while belonging to Central Group bought 49 percent of Nguyen Kim home appliance chain’s shares.

Analysts said many Thai investment funds have been quietly collecting shares of Vietnamese businesses on the bourse.

The name Ton Poh Thai Fund was only heard by Vietnamese investors for the first time in 2015. However, it has become the large shareholder in a series of profitable businesses. 

The other funds – Finansia Syrus Securities and Chairatchakarn -,have also injected capital into Vietnamese businesses. 

Meanwhile, Nawaplastic Industries, a big plastics manufacturer, is planning to increase its ownership ratios in two Vietnamese leading plastics companies – Binh Minh and Tien Phong.

What do the Thais target in Vietnam?

Just within several months, Ton Poh Thai Fund’s investment value in Vietnam’s Cotec Coteccons increased by 2.4 times to VND400 billion, making it the second largest shareholder in the company.

The sharp increase in the price of Superdong Kien Giang shares is also partially attributed to the presence of Ton Poh Fund. The fund also once held more than 5 percent of Hoang Huy Automobile’s shares.

Thai investors have been interested in the shares of Vietnamese car companies recently. In 2014, Chairatchakarn (Bangkok) Co Ltd began pouring money into Truong Long and now holds 28 percent of the company’s stake. As Truong Long’s share price has increased by six times over the last year, the fund has been making fat profits.  

Analysts believe that Thais don't just make financial investments and seek short-term profit when injecting money into car companies. The capital flow into the companies is believed to relate to Vietnam’s commitments to open its automobile market to ASEAN.

Chairatchakarn, for example, is the largest distributor of Hino trucks in Thailand. And this is the product Truong Long is distributing.


VHa