Domestic automobile manufacturer Thanh Cong Group is allegedly expanding its footprint in the Vietnamese finance industry with a potential buyout of HVS Securities and involvement in Eximbank.
|Nguyen Anh Tuan, chairman of the Board of Directors at Thanh Cong Group |
On December 4, brokerage HVS Vietnam Securities received the decision of the State Securities Commission approving the share transfer, accounting for 100 per cent of its charter capital.
The brokerage has not been doing well lately, illustrated by its continuous losses and eroding equity. Last year, the stagnant financial situation pushed the Board of Directors to agree to merge with Sacombank Securities JSC (SBS) for mutual benefits. However, the expected deal has turned sour.
Currently, the total assets of HVS are just over VND10 billion ($434,780), with accumulated losses of more than VND40 billion ($1.74 million).
Furthermore, industry insiders revealed that Thanh Cong Group and related parties held a large amount of shares in privately-held lender Eximbank. The lender has been stuck in the mud due to a throng of scandals that damaged its reputation for years.
The forthcoming move is expected to help Thanh Cong Group to penetrate the financial sector, besides its sound core business in automobiles industry.
Despite being a major player in the mechanical engineering and automobile assembly industry in Vietnam, Thanh Cong Group is keeping a low-profile.
Currently, the firm has a charter capital of VND3.5 trillion ($152.17 million), led by Nguyen Anh Tuan as chairman of the Board of Directors and Le Ngoc Duc as general director.
Last year marked a decade of co-operation between Thanh Cong Group and Hyundai in the manufacturing and distribution of Hyundai products. In addition to cars, Thanh Cong Group is also dealing in realty with some successful projects in 2019 including a resort in the central province of Quang Nam, and the service and apartments for lease complexes in Hanoi and Ho Chi Minh City.