Foreign capital ploughed into securities market

March 13, 2013 | 08:59

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Around $2.34 billion of foreign capital was poured into the local securities market last year, including about $340 directly channeled into stock trading on the two bourses, according to an official of the State Securities Commission (SSC).

Foreign investors are seen on a business trip in this fi le photo to get an insight into the Vietnamese securities market

The remaining $2 billion, meanwhile, was pumped into the domestic market via merger and acquisition (M&A) deals between local firms and their foreign strategic partners.

Specifically, Vietcombank last year struck a deal with the highest value of $567 million when transferring 15pct equity to Japan’s Mizuho Bank at VND34,000 a share. Besides, there were many other high-value deals such as Ezaki Glico acquiring 10pct equity from Kinh Do Corporation and Sumitomo Life buying 18pct equity of Bao Viet Corporation from HSBC with $340 million.

The SSC official said the foresaid statistics were recorded as money of the deals was already present in the domestic bank accounts, adding other deals that have been agreed but the payment is yet to be made will not be recorded accordingly.

For instance, he said, the Bank of Tokyo-Mitsubishi UFJ Ltd acquired 20pct equity of Vietinbank with a total value of $743 million but the deal is yet to be complete, so it is not counted in the 2012 figures.

It has been suggested that Sacombank will sell 15pct equity to a foreign partner this year. Although it is not yet certain that Sumitomo Mitsui Banking Corporation will be the buyer, the board of directors of Sacombank informed the would-be partner will come from Japan.

With the big deals at Vietinbank and Sacombank, indirect investment capital into Vietnam in 2013 might be a positive figure.

Foreign capital volumes flown directly into the local securities market via the two bourses were $1 billion in 2010, $240 million in 2011 and $340 million in 2012.

SGT

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