Johnson Controls opens automotive interiors plant in Binh Duong

The Viet Nam-Singapore industrial zone in southern Binh Duong province. The US-based Johnson Controls group has recently inaugurated a plant producing automotive interiors in the Viet Nam-Singapore industrial zone in southern Binh Duong province. The US$8 million Jonhson Controls Viet Nam has a capacity of churning out 833,000 products per year and generates jobs for 530 workers. Its products are not only geared to foreign customers in Japan and Malaysia but also potential ones in Viet Nam. The corporation's board of managers highlighted Viet Nam's propitious investment environment, intensive labour force and promising market of over 80 million people as the main factors prodding them to increase investment in Viet Nam. A global leader in automotive devices and power solutions, Johnson Controls also plans to expand their business to other fields in Viet Nam, including production of power equipment like batteries and power solutions for the automobile sector in the future, said the managers. Jonhson Controls has an annual turnover amounting to more than US$32 billion.

Source: Vietnam Agency

Stock market will develop but not make rapid leaps: expert

Mr Nghia started the interview with the press by saying that the stock market will see further increases. The P/E (price on equity) index is now 38, quite high if compared to the normal level (12-17 times higher). However, the stock market will still see further increases since Vietnam is an emerging market, while the international capital flow is moving towards Asia. A watchdog specializing in supervising the financial market will be set up in the near future, which will not directly interfere in the market, but will only support the market development. Vietnam’s stock market has not been so hot that it needs to be restrained. Do you mean that Vietnam will have a watchdog to supervise financial activities? The Government plans to set up a committee in charge of supervising the financial market operation (securities, banking and insurance). The committee will take remote supervision over the management agencies like the Ministry of Finance and the State Bank of Vietnam (SBV). SBV is also considering setting up a supervision and inspection agency, which will be the result of the reunification of the departments with the same functions. Is it true that the establishment of the financial supervision committee aims to receive the new capital flows and assist the development of the stock market? The international capital is now flowing into Asia. In Asia, China and Vietnam prove to be the two most attractive destinations. Vietnam’s stock market will develop quickly for two reasons. First, Vietnam plans to equitze 70 groups and big generations. If one third of the 70 units list on the bourse, it would be enough to make the total supplies in the market increase sharply. I think this will happen from July towards the years end. The profuse supplies will make the market less hot. Second, there will be several hundreds of foreign investors coming to Vietnam. Many famous financial consultancy groups and banks will be present on the market. Their clients are big investors, who will ask them to do research about Vietnam. There will be a big capital flow into Vietnam’s securities. The stock market will develop strongly, and it will need to be supervised in order to avoid sudden changes, that can cause shocks. You seem to be very optimistic. But why does SBV plan to control the commercial banks that make investment in securities if you believe that the stock market will develop? The Government has been aware of the need to keep the stock market in stable operation. Any troubles in the stock market will directly influence the monetary market. It is the SBV’s task to guarantee the capital raised from the public. Commercial banks have been advised to think carefully before making decisions on funding securities trading deals. For example, when the P/E is three times higher than the normal level, banks should give the loans valued at 1/3 of the securities’ market values. If banks keeps cautious with the loans mortgaged by securities, it would be safer for investors, the stock market and banks as well. Do you mean that SBV will not ask banks to tighten the funding of securities trading deals? No, not to tighten the loaning to securities traders, but to protect them, give advice in order to avoid risks. Foreign investors always are methodical when making investments, even if they just make short term investment. Meanwhile, domestic investors buy or sell securities just by feelings or follow the moves of someone else. It is very risky. Will the Government consider raising the maximum foreign ownership ratio in local banks from the current 30% limit? From April 2007, foreign bankers will have the right to set up 100% foreign owned bank entities in Vietnam. However, I think that many foreign banks will be set up in the first years after Vietnam joins the WTO as they still expect that the 30% foreign ownership ratio will be raised. You may see that the current laws allow local banks to get M&A (merge and acquisition), but aim to prevent foreign banks from swallowing domestic banks.

Source: Thời báo Kinh tế Sài Gòn

Bank revenues drive up dividends

Following announcements of double and even triple annual earnings growth over the last few weeks, bank stocks are again in vogue as investors prepare to reap high dividends payments. Asia Commercial Bank (ACB) topped the money list, reporting VND568 billion (US$35.5 million) in 2006 pre-tax profits. ACB mobilised nearly VND39.5 trillion (US$2.5 billion) through selling shares and deposit services, and provided VND17.1 trillion (US$1.1 billion) in loans, a 77 and 79 percent year-on-year increase respectively. The bank is expected to issue a 38 percent dividend payment, 8 percent of which will be issued in cash while the remaining 30 percent will be through share options. With pre-tax profits at VND447 billion (US$27.93 million), Sai Gon Thuong Tin Commercial Bank (Sacombank) plans a 20-22 percent dividend issuance. Sacombank intends to use much of last year's earnings as legal and working capital. Meanwhile, shareholders of the Export and Import Commercial Bank (Eximbank) expect to receive a 55 percent dividend payment on the back of VND340 billion (US$21.3 million) in pre-tax profits. In addition to strong profits, banks also reported strong asset accumulation. ACB reported VND42.5 trillion (US$2.65 million) in assets, more than double from where it was at the start of 2006. Sacombank and Eximbank saw similar results with VND24 trillion (US$1.5 million) and VND17 trillion (US$1.06 million) in assets, up 58 percent and 49 percent respectively over the previous year. Industry insiders attributed the impressive results to the country's economic growth, and the development of financial products and services, like term deposit accounts and preferential credit policies.

Source: Vietnam Agency

Exchange expands to 3x daily

Vietnam’s burgeoning stock market plans to raise order matching from twice a day to thrice daily to meet increasing demand from investors, the exchange’s watchdog body has said. The Vietnam Stock Exchange is changing with the times. “Investors have now placed so many orders that brokers can hardly handle them in two sessions, so an increase in order matching is inevitable,” Tran Dac Sinh, director of the Ho Chi Minh City Securities Trading Centre (HSTC), said when he unveiled the plan last week. “The change will possibly start from mid-June this year,” he told Vietnam Investment Review, but declined to give an exact date for the change. He said other share trading rules will remained unchanged. The change is also a preparatory step to develop the trading centre, which was launched in July 2000 and now has 35 listed companies with a market capitalisation of more than $1.5 billion, into a national stock exchange by early 2007, the director said. Under the project, which is to be sent to the Ministry of Finance for consideration by June, the exchange will adopt an automatic order matching approach, which will enable investors to place both market and limit orders. The exchange will operate under the form of a limited liability company in the first three years and then sell shares to the public to transform itself into a shareholding concern. The exchange will be subject to both the Unified Enterprise Law, which will come into force in July, and the Law on Securities, which is expected to be passed next month. It can issue listing conditions and licences as well as supervise stock transactions and the activities of its members. It will also allow investors to trade not only bonds, fund units and corporate shares but also their derivatives like forwards, futures and options, he said. The trading centre now acts both as a regulator and a service provider, which Sinh said was no longer suitable. “The State Securities Commission should serve as a regulatory body while the exchange will be tasked with creating more commodities and supporting transactions to go smoothly,” he said. He said to develop the centre into an exchange was inevitable as many more investors and companies had been joining the market. In preparation for the development, in the first quarter of this year, the trading floor was moved to a larger hall at 45-47 Ben Chuong Duong Street, District 1, which also has better technical facilities. Sinh said a project, in cooperation with domestic and foreign partners, to provide a new, modern trading system is under development. “The new project will enable securities companies to send in more trading orders and the centre to carry out automatic order matching,” said the director. Vietnam’s stock market has seen strong development in recent months, with the benchmark VN-Index rising more than 100 per cent over last year-end period. It broke the old all-time high of 571.04 point set five years ago to close at 591.39 last Friday and experts predict it will breach the 600 level soon. Market capitalisation has increased from a level of $144 million two years ago to more than $1.5bn and is expected to rise by nearly 30 per cent to $2.3bn in June with the expected listing of the Ho Chi Minh City-based Sacombank. No. 758/April 24-30, 2006 By Duong Nguyen - Vietnam Investment Review

HCM City stock exchange ups ante

HCM CITY — Onlycompanies with at least VND80 billion (US$5 million) in authorised capital will
be allowed to list in HCM City.

State Securities Commission Chairman Vu Bang told reporters on the sidelines of a Listed Company Club and investors’ meeting last Saturday in HCM City that a draft decree to guide the Securities Law had been submitted to the Government.

Under the decree, expected to be approved early next year, companies already listed but with less than
VND80 billion equity would have two years to increase their capital failing which they would be moved to the Ha Noi exchange.

Bang said the HCM City bourse would target major institutions in industries like banking, insurance,
and telecom.

FPT lists this week

The Vietnamese markets moved erratically during the past week but with more ups than downs, propelled
by the impending listing of several blue chips.

The VN Index closed almost 65 points higher at 696.12 even though two out of the three trading sessions
last Friday were cancelled due to technical problems at the HCM City Securities Trading Centre.

The Corporation for Financing and Promoting Technology (FPT) will list in HCM City on Wednesday.

FPT is a market leader in systems integration, mobile phone distribution, software production, and telecom
and internet services. It recently opened a software engineering university.

Big names like Intel Capital and Texas Pacific Group have invested US$36.5 million in FPT, whose
equity capital now stands at over VND608 billion ($38 million). Its shares were traded unofficially at 20 times their face value.

It will be followed the next day by Thu Duc Housing Development Corporation (TDH). With capital of
VND170 billion ($10.6 million) it will be the first property company to list. It is owned by various institutional and individual investors including major companies like the HCM City Securities Company, Saigon Securities Inc, Amersham Industries Ltd, and Vietnam Dragon Fund Ltd.

The Hong Kong and Shanghai Banking Corp rates TDH as one of Viet Nam’s top 15 blue chip companies.

The 16-year-old joint-stock company has invested in more than 30 housing projects including An Phu and Binh An, and has eight others under construction, including Cantavil and Hiep Phu.

It is also a major financial investor with VND250 billion ($15.6 million) in Phuoc Long Textile Joint Stock Co., HCM City Housing Development Bank, and Prudential Balanced Investment Fund 1. Its chairman, Le Chi Hieu, said the company would begin to offer new services like property management and brokerage.

It made a profit of VND38 billion ($2.7 million) last year and VND40 billion in the first three quarters
this year.

Securities firm to debut

Saigon Securities (SSI), among Viet Nam’s first securities companies, will this Friday become the first
company from the industry to list on the Ha Noi Securities Trading Centre.

SSI has an equity of VND500 billion ($31.25 million) and total assets of over VND2.5 trillion ($156.25 million).

It services over two-thirds of all foreign stock market investors and consulted for 17 major companies listed in HCM City.

It expects net profits this year of VND148 billion ($9.25 million) and VND302 billion next year, and to
pay annual dividends of 30 per cent until 2009. — VNS

see details: VietNam News

Hanoi Securities Trading Center

Hanoi Securities Trading Center (Hanoi STC) located in Hanoi, Vietnam was launched in March 2005 and handles auctions and trading of stocks and bonds. It was the second securities trading center to open in Vietnam after to Ho Chi Minh City Securities Trading Center.

Ho Chi Minh City Securities Trading Center

Ho Chi Minh City Securities Trading Center (HSTC) in Ho Chi Minh City, Vietnam was established in July 2000. It is an administrative agency of the Vietnam State Securities Commission, and manages Vietnam's securities trading systems.

The Stock Trading Center of Vietnam (‘STC’), located in Ho Chi Minh City, was officially inaugurated on July 20, 2000, and trading commenced on July 28, 2000. Initially, two equity issues were listed, Refrigeration Electrical Engineering Joint Stock Corporation (‘REE’) and Saigon Cable and Telecommunication Material Joint Stock Company (‘SACOM’). As of this date, an additional 20 issues are also listed with a current market capitalization of US$239m.

The Stock Trading Center of Vietnam is also the official mechanism through which new government bonds are issued, and it functions as the secondary market for a number of existing bond issues. As of this date there are 120 listed bonds with a total market capitalization of US$866m. All securities traded on the Stock Trading Center of Vietnam are denominated in Vietnamese Dong. Par valued is standardized at VND10,000 for equities and VND100,000 for bonds. Trading is conducted daily with two matchings in a morning session, from 9A.M. to 11A.M.

The State Securities Commission (‘SSC’), a body established formally in 1996, is responsible for capital markets development, licensing of participants, and the issue and enforcement of regulations. A wide range of regulations, with significant input from multilateral bodies such as the International Finance Corporation, have been promulgated, including those dealing with such issues as insider trading, take-over trigger points and margin lending. In order to be listed, a company must have been profitable for at least 2 years, have a minimum capitalization of VND5b (approximately US$318,000), and have at least 50 shareholders who are not employees of the company, holding at least 20% of stake. Foreign invested joint venture companies are technically qualified to list, but in order to do so, they must be reorganized into joint stock company status. Companies intending to list must also submit to audit by an approved, independent auditing company.

In the beginning, an overall foreign ownership limit of 20% for equities and 40% for bonds were implemented. In July 2003, in a bid to improve liquidity, the government raised the foreign ownership limit for equities to 30% and totally removed foreign ownership limit of a particular issuer’s bonds. Foreign participants on the Stock Trading Center of Vietnam must register through a custodian licensed to hold securities on behalf of foreigners. Once registered, a securities transaction code is issued to the foreign investor that will permit securities trading.

The mechanism of trading on the Stock Trading Center of Vietnam is via an automated order-matching system. The capacity of the system is 300,000 orders per day. Currently, trading limits of 5% (for bonds and equities) either side of the previous close apply. No price restrictions have been set for newly listed securities but price caps were applied in the case of the very first day of the market’s operations.

Settlement is centralized through the Stock Trading Center of Vietnam using the Bank of Investment and Development of Vietnam (BIDV), a state-owned commercial bank. Several other domestic banks and securities companies have been authorized to accept custody of securities, with HSBC’s and Deutsche bank’s Ho Chi Minh City branches currently the only banks providing custody services for foreign investors. Custody is based on a central depository, central registry book entry system.

Presently, there are thirteen licensed securities companies. Of these, nine have been licensed to conduct a full range of securities services including underwriting, brokerage, custody, research, portfolio management and trading. The minimum capital required to operate effectively as an investment bank is VND43b (c. US$2.7m).

The current market capitalization is now US$239m for equities and US$866m for government bonds.

Official Website

http://www.vse.org.vn

See also

• Hanoi Securities Trading Center
  

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This article about stock exchanges is a stub. You can help Wikipedia by expanding it.

List of Vietnamese companies - Stock Exchange

Stock Exchange

This is a list of companies that are listed on the Ho Chi Minh City Securities Trading Center and Hanoi Securities Trading Center.

A

• ACB: Asia Commercial Bank (aka ‘ACB’)



• AGF: An Giang Fisheries Import & Export Joint Stock Company (aka ‘Agifish Co.’)


• ALT: ALTA Company


• Advertising Company-

XPR CAMPAIGNS_ Marketing and Communication

B

• BBC: Bien Hoa Confectionery Corporation (aka ‘Bibica’)


• BBS: But Son Cement Packing Joint Stock Company


• BBT: Bach Tuyet Cotton Corporation


• BMP: Binh Minh Plastic Joint Stock Company


• BPC: Bim Son Packaging Joint Stock Company


• BT6: Chau Thoi Concrete Corporation No.620 (aka 620 – CCC)


• BTC: Binh Trieu Construction And Engineering Joint Stock Company
  

C

• CAN: Halong Canned Food Corporation (aka ‘Canfoco’)


• CID: Construction & Infrastructure Development Joint Stock Company


• CII: Hochiminh City Infrastructure Investment Joint Stock Company


• COM: Comeco Joint Stock Company



• CTB: Hai Duong Pump Manufacturing Joint Stock Company


• CYC: Chang Yih Ceramic Joint Stock Company


• CLC: Cat Loi Joint Stock Company
  

D

• DAC: Dong Anh Ceramic Joint Stock Company



• DCT: Dong Nai Roofsheets and Construction Materials Joint Stock Company (aka ‘Donac’)


• DHA: Hoa An Joint Stock Company


• DPC: Da Nang Plastic Joint Stock Company


• DXP: Doan Xa Port Joint Stock Company

F

• FMC: Sao Ta Foods Joint Stock Company (aka ‘Fimex VN’)


• FPC: Full Power Joint Stock Company

G

• GHA: Hai Au Paper Joint Stock Company


• GIL: Binh Thanh Import Export, Production And Trade Joint Stock Company (aka ‘Gilimex’)


• GMD: General Forwarding & Agency Corporation (aka ‘Gemadept’)


• G7 Mart: G7 Trading & Service Company Limited.,

H

• HAP: Hai Phong Paper Joint Stock Company (aka ‘Hapaco’)


• HAS: Hanoi P&T Construction & Installation Joint Stock Company (aka ‘Hacisco’)


• HSC: Hacinco Joint Stock Company


• HTV: Hatien Transport Joint Stock Company (aka ‘Hatien Transco’)

I

• IFS: Interfood Shareholding Company


• ILC: International Labour & Services Joint Stock Company (aka ‘Inlaco Hai Phong’)


• ITA: Tan Tao Industrial Park Corporation (aka ‘Itaco’)

K

• KDC: Kinh Do Corporation


• KHA: Khanh Hoi Import Export Joint Stock Company (aka ‘Khahomex’)


• KHP: Khanh Hoa Electric Power Joint Stock Company

L

• LAF: Long An Food Processing Export Joint Stock Company (aka ‘Lafooco’)

M

• MHC: Hanoi Maritime Holding Company (aka ‘Marina Hanoi’)

N

• NHC: Nhi Hiep Brick-Tile Joint Stock Company (aka ‘Brico’)


• NKD: North Kinh Do Food Joint Stock Company

P

• PMS: Petroleum Mechanical Stock Company


• PNC: Phuong Nam Cultural Joint Stock Corporation


• PPC: Pha Lai Thermal Power Joint Stock Company


• Petrolimex Gas Joint Stock Company

R

• REE: Refrigeration Electrical Engineering Corporation (REE Corp.)


• RHC: Ry Ninh II Hydroelectric Joint Stock Company

S

• SAM: Cables And Telecom Materials Joint Stock Company (aka ‘Sacom’)


• SAV: Import Export & Economic Cooperation Joint Stock Company (aka ‘Savimex’)


• SFC: Saigon Fuel Company


• SGC: SaGiang Import Export Corporation (aka ‘Sagimexco Đồng Tháp’)


• SGH: Saigon Hotel Corporation


• SHC: Saigon Maritime Joint Stock Company


• SJS: Song Da Urban & Industrial Zone Investment and Development Joint Stock Company (aka ‘Sudico’)



• SMC: SMC Trading-Investment Joint Stock Company


• SSC: Southern Seed Joint Stock Company


• STB: Sai Gon Thuong Tin Commercial Joint Stock Bank (aka ‘Sacombank’)


• STP: Song Da Packaging Joint Stock Company

T

• TBC: Thac Ba Hydroelectric Joint Stock Company


• TKU: Tung Kuang Industry Joint Stock Company


• TMS: Trans-Forwarding And Warehousing Corporation (aka ‘Transimex’)


• TNA: Thien Nam Trading Import Export Corporation (aka ‘Tenimex’)


• TRI: Sai Gon Beverages Joint Stock Company (aka ‘Tribeco’)


• TS4: Sea Food Joint Stock Company No. 4 (aka ‘Seapriexco No. 4’)


• TTC: Thanh Thanh Ceramic Joint Stock Company


• TYA: Taya (Vietnam) Electric Wire and Cable Joint Stock Company


• TNC: Trung Nguyen Corporation

U

• UNI: Vien Lien Joint Stock Company (aka ‘Unico’)

V

• VFC: VINAFCO Corporation


• VFMVF1: Vietnam Securities Investment Fund


• VNM: Vietnam Dairy Products Joint Stock Company (aka ‘Vinamilk’)


• VNR: Vietnam National Reinsurance Corporation (aka ‘Vinare’)


• VSH: Vinh Son - Song Hinh Hydroelectric Joint Stock Company


• VTC: VTC Telecommunications Joint Stock Company


• VTL: Thang Long Joint Stock Company



• VTS: Tu Son Viglacera Ceramic Joint Stock Company


• VGG: Vietnam Global Gateway

List of African stock exchanges

This is a list of stock exchanges in Africa.

Members of the African Stock Exchanges Association (ASEA) are marked with an asterisk *.

Africa has at least one regional stock exchange, the Bourse Régionale des Valeurs Mobilières, or BRVM, in Abidjan, Cote d'Ivoire. The BRVM serves:

• Benin


• Burkina Faso


• Guinea Bissau


• Côte d'Ivoire


• Mali


• Niger



• Senegal and


• Togo.

Exchange	Location	Founded	Listings	Link
West African regional stock exchange based in Cote d'Ivoire
Bourse Régionale des Valeurs Mobilières*	Abidjan	1998	39	BRVM
Algeria
Angola
Angola Stock Exchange		proposed		BVA article
Botswana
Botswana Stock Exchange*	Gaborone	1995	44	BSE
Cameroon
Douala Stock Exchange	Douala	2001	1	DSX
Cape Verde
Bolsa de Valores de Cabo Verde	Mindelo			BVC
Egypt
Cairo & Alexandria Stock Exchange*	Cairo, Alexandria	1888	840	CASE
Ethiopia
Equatorial Guinea
Gabon
the Gambia
Ghana
Ghana Stock Exchange*	Accra	1990	28	GSE
Kenya
Nairobi Stock Exchange*	Nairobi	1954	48	NSE
Lesotho
Malawi
Malawi Stock Exchange*	Blantyre	1995	8	MSE
Mauritania
Mauritius
The Stock Exchange of Mauritius*	Port Louis	1988	~ 40	SEM
Morocco
Casablanca Stock Exchange*	Casablanca	1929	14	Central Market
Mozambique
Bolsa de Valores de Mozambique/ Maputo Stock Exchange*	Maputo			BVM
Namibia
Namibia Stock Exchange*	Windhoek	1992		NSX
Nigeria
Abuja Commodities Exchange	Abuja	2001		ASE
Nigerian Stock Exchange*	Lagos	1960	282	NSE
South Africa
Alternative Exchange	Johannesburg	2003	51	ALTX
Bond Exchange of South Africa	Johannesburg	1989	~400	BESA
Johannesburg Securities Exchange*	Johannesburg	1887	472	JSE
The South African Futures Exchange	Johannesburg	1990		SAFEX
Sudan
Khartoum Stock Exchange	Khartoum			KSE
Swaziland
Swaziland Stock Exchange*	Mbabane	1990	10	SSX
Tanzania
Dar es Salaam Stock Exchange*	Dar es Salaam	1998	4	DSE
Tunisia
Bourse de Tunis	Tunis	1969	20	BVMT
Uganda
Uganda Securities Exchange*	Kampala	1997	9	USE
Zambia
Agricultural Commodities Exchange of Zambia	Lusaka		–	ACE (ZACA#)
Lusaka Stock Exchange*	Lusaka	1994	12	LuSE
Zimbabwe
Zimbabwe Stock Exchange*	Harare	1896		ZSE

List of stock exchanges

This is a list of stock exchanges. Those futures exchanges that also offer trading in securities besides trading in futures contracts are listed both here and the List of futures exchanges.

Ten Largest Stock Exchanges by Market Capitalization (in trillions of US dollars)

1. New York Stock Exchange (soon to be combined with Euronext) - $22.6 [1]


2. Tokyo Stock Exchange - $4.5 [2]


3. NASDAQ - $3.6


4. London Stock Exchange - $3.5



5. Euronext (soon to be combined with NYSE) - $3.3


6. Toronto Stock Exchange - $1.83 [3]


7. Hong Kong Stock Exchange - $1.71


8. Frankfurt Stock Exchange (Deutsche Börse) - $1.4



9. Madrid Stock Exchange (BME Spanish Exchanges) - $1.1


10. SWX Swiss Exchange - $1.1

Other Large Regional Stock Exchanges by Market Capitalization (in trillions of US dollars)

• Milan Stock Exchange (Borsa Italiana) - $0.94



• National Stock Exchange of India - $0.76 (December 2006) [4]


• Australian Stock Exchange - $0.73 (June 2005)


• Bombay Stock Exchange - $0.73 (October 2006)


• Korea Stock Exchange - $0.72 (October 2006) [5]



• Shanghai Stock Exchange - $0.7 (November 2006) [6]


• Bovespa - $0.67 (November 2006) [7]


• Johannesburg Securities Exchange - $0.58 (September 2006)

Sources: Wikipedia article for each entry

Promulgated by the Governor of the State Bank of the Socialist

DECISION OF THE GOVERNOR OF THE STATE BANK Of VIETNAM ON THE PROMULGATION OF THE REGULATION ON SHORT TERM CREDITS FOR ECONOMIC ORGANIZATIONS No. 198/QD-NH.1

(Promulgated by the Governor of the State Bank of the Socialist Republic of Vietnam on September 16, 1994)

SUBJECT: BANKING AND FINANCE

ISSUING-DEPT: GOVERNOR OF THE STATE BANK OF VIETNAM

ISSUE-DATE: 09/16/1994

IMPLEMENT-DATE: 09/16/1994

LENGTH: 428 words

TEXT:

The Governor of the State Bank of Vietnam

Pursuant to the Ordinance on State Bank of Vietnam issued in connection
with Order No.37/HDNN8, the ordinance on Banks, Credit Cooperatives
and financial Corporations issued in connection with the Order No.38/HDNN8
dated May 24th, 1990 of the President of the State Council of the Socialist Republic of Vietnam.

Pursuant to the Decree No. 15/CP dated March 2nd, 1993 of the Government stipulating the task, powers and responsibilities for the State management of the Ministries and Ministerial-ranking bodies.

On the proposal of the Director of the Credit Department for conomic studies.

DECIDED

Article 1 :

To promulgate in connection with this Decision The Regulation on
Short - term credits for economic organizations.

Article 2 :

The Regulation on short - term credits issued in connection with
this Decision are generally applied to State Commercial Banks, Investment
and Development Banks. Commercial Stock Banks, Joint - venture Banks.
Branches of foreign Banks in Vietnam, Credit Cooperatives, financial
Corporations operating in accordance with the ordinance on banks,
credit cooperatives and financial corporations.

Article 3 :

This Decision shall come into effect from the signing date and replace:
the Regulation on short term credit for economic organizations issued
in connection with Decision No.04/QD-NH dated January 8th, 1991 and
other documents relating to this Regulation.

Article 4 :

The Chief of Governor's Office, the General Inspector of the State
Bank, Heads of the sections belonging to the Central State Bank, the
Directors of the provincial and city State Banks, the General Directors
(Directors) of State Commercial Banks, Investm ent and Development
Banks, Commercial Stocks Banks, financial Corporations, joint venture
Banks, the branches of foreign banks in Vietnam and managers of credit
cooperatives shall be responsible for the implementation of this decision.

for The State Bank of Vietnam Governor CAO SY KIEM (Signed)

Vietnam Securities Companies

As of February 2004, thirteen companies have been licensed by both the State Securities Commission and Ho Chi Minh City Stock Trading Center. Of these, nine have capital of VND43bn (US$2.73m) or more and have been licensed to conduct a full range of securities business including brokerage, advisory, fund management, proprietary trading and underwriting. Saigon Securities Incorporation, Hai Phong Securities Joint Stock Company and EAB Securities Company have chartered capital ranging from VND20-22bn (US$1.27m-US$1.4m) while Mekong Securities Joint Stock Company are capitalized at VND6bn (US$0.38m). Neither company is licensed to conduct proprietary trading or underwriting.

Six of Vietnam’s securities companies were licensed ahead of Ho Chi Minh City Stock Trading Center’s opening in July 2000.

All 4 state-owned commercial banks and Vietnam’s largest State-owned Insurance Company established their wholly owned subsidiaries, consisting of Bank for Investment & Development of Vietnam, Industry and Commerce Bank of Vietnam, Bank for Agriculture and Rural Development, Bank for Foreign Trade of Vietnam and Bao Viet Insurance Company. The securities arm of the Bank for Investment and Development of Vietnam and the Bank for Agriculture and Rural Development are the largest ones with chartered capital of VND100bn (US$6.3m) each.

Asia Commercial Bank Securities Company and Thang Long Securities Company are wholly–owned subsidiaries of joint stock banks - Asia Commercial Bank (which is the largest and considered to be amongst the most progressive of Vietnam’s 33 joint stock banks) and Military Bank (which is majority controlled by the army).

First Securities Company is a joint stock company whose major shareholders include Becamex - an enterprise co-owned by the People’s Committee of Binh Duong Province and several business partners. (Binh Duong Province, some 40km from Ho Chi Minh City, is home to Vietnam’s largest concentration of industrial and manufacturing enterprises).

Saigon Securities Incorporation is a privately owned joint stock company founded by Vietnam’s Pan Pacific and Saigon Business Consultancy and is considered the most ‘internationally minded’ of the licensed securities companies. At the end of 2003, SSI’s reported share of order-matching turnover on the Ho Chi Minh City Stock Trading Center was just over 23%; a couple of percentage points ahead of Bao Viet.

During 2003, there were 4 more companies entered the market, including Ho Chi Minh Securities Company (‘HSC’) which is largely controlled by Ho Chi Minh Investment Fund for Urban Development (HIFU), Eastern Asia Bank Securities Company Eastern Asia Bank - a joint stock bank where HCMC Communist Party Economic Committee has major shares and influence and two other companies in the north, Hanoi-based Mekong Securities Company and Hai Phong Securities Company whose headquarter bases in Hai Phong - the second largest city in the north.

Vietnam has thirteen registered securities firms but only four of them - SSI, BVSC, ACBS and BSC - dominate brokerage business, accounting for 71% of all trade.