Samsung Securities deepens Vietnam inroads

September 09, 2017 | 11:07

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Aiming to accelerate inroads into the Vietnamese stock market to keep pace with compatriot competition who are already present in Vietnam, Samsung Securities decided to acquire stakes in local asset management companies, one of which is Dragon Capital.

Samsung Securities aims to acquire 40 per cent of Dragon Capital (Source: Business Korea)

According to newswire Business Korea, Samsung Securities will co-operate with Caldera Pacific, a private equity fund from Hong Kong to buy a 40 per cent stake in Dragon Capital to become the second-largest shareholder.

Samsung Securities will hold 10 per cent and Caldera Pacific 30 per cent. It is also known that Samsung Securities will shell out considerable funds for the acquisition.

"The opening of an office or a corporation, a general overseas advancement form, takes a lot of time from the input of money to the results. But the acquisition of stakes in a local asset management company allows a company to efficiently secure a sales network and infrastructure," an official familiar with the acquisition said.

Samsung Securities selected a different way than its countrymen to enter Vietnam. Notably, instead of opening representative offices or establishing subsidiaries in Vietnam, Samsung Securities aims to acquire stakes in a local asset management company.

Market experts forecast that acquiring a stake in Dragon Capital is the beginning of Samsung Securities’ strategy to enter the Vietnamese stock market and the company may additionally acquire stakes in other companies.

Currently, five Korean securities firms are present in Vietnam with seven representative offices and subsidiaries, namely Mirae Asset Daewoo, NH Investment & Securities, Korea Investment and Securities, Golden Bridge, and Shinhan Financial Investment.

Dragon Capital is the largest asset management company in Vietnam. It has poured capital in Vinamilk, FPT Retail, PV Gas, Vietjet Air, Hoa Phat Group, and VPBank, among others. The Vietnamese company also played a role as a bridgehead for capital from Hong Kong to enter Vietnam.

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