For many years, Viet Nam’s Government has been acting as a guarantor for a lot of investment projects. This has increased confidence of both lenders and investors in the implementation and success of the projects. However, experts recently argued that because public debts are rising, private companies should carry out infrastructure projects without Government guarantees. So are the Government’s sovereign guarantees necessary anymore, when the country still needs capital for infrastructure development? It is undeniable that foreign loans have contributed significantly to the country’s infrastructure construction. Major projects have been implemented with preferential loans from foreign partners, especially in construction of highways, airports, bridges and power plants. They are key and priority sectors that are essential to ensure the nation’s economic development. The majority of these projects have been carried out by State-owned enterprises, while the … [Read more...] about A broader view on Gov’t guarantees required
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The Hanoitimes - If Vietnam is included in the emerging market index of FTSE and MSCI in March 2020, the VN-Index may begin to surge in the fourth quarter of 2019. Vietnam’s benchmark VN-Index is projected to be under strong influence by foreign capital flows, which are affected by the global interest rate hike, the prospect of an inclusion to emerging market index, state capital divestment or the adoption of the amended Securities Law, according to Bao Viet Securities Company (BVSC). The VN-Index is expected to decline or grow at a slow pace when interest rate increases. Source: BVSC. Based on the brokerage’s observation since 2009, the movement of the VN-Index has reflected expectation about GDP in the following year and reflected earnings-per-share (EPS) growth (about 6 months earlier). Under this context, the VN-Index normally has positive movement if the USD/VND exchange rate fluctuates within a range of 3% and deposit interest rates are below 10%. The … [Read more...] about Foreign capital flows to have strong effects on Vietnam’s VN-Index in 2019
Samsung concludes third training course for Vietnamese consultants Samsung Vietnam and the Ministry of Industry and Trade (MoIT) rounded off its third training course for Vietnamese consultants in the supporting industry with a ceremony in Ho Chi Minh City on October 19. Speaking at the ceremony, Truong Thanh Hoai, Director of the MoIT’s Heavy Industries Department, pointed out some of the industry’s weak points in terms of competitiveness and spare parts materials, attributing them to the limited management and investment capacity of local companies. He said the Government and other relevant ministries have issued many policies to support the growth of the sector, adding that Samsung’s courses are an important part of such efforts. Eight courses of this kind are scheduled to take place in 2018 and 2019, each lasting for three months, aiming to train 200 consultants in total. They are part of a memorandum of understanding (MoU) between the MoIT and Samsung … [Read more...] about BUSINESS NEWS IN BRIEF 21/10
Covered warrants is a new investment tool that on the face of it, appears to be an effective hedging and investment instrument. It offers lower investment costs and higher leverageability than conventional financial products, and expects to help investors limit losses and make higher profit. Covered warrants were allowed to start trading on the HCM Stock Exchange in Q3, beginning this month. It is the fourth product traded on the HCM City’s bourse, together with stocks, bonds and fund certificates. The new product is expected to provide investors with more investment and hedge options, while helping draw foreign investment as there is no cap on foreign ownership of this product. Covered warrants, issued by a securities company, allow the holder to buy (call warrant) or sell (put warrant) the underlying stock (including shares, bonds or other securities) at a specific price on or before a pre-determined date. As many as 10 securities companies will issue covered warrants, … [Read more...] about Covered warrants: the answer to investors prayers?
Market adjustments over the past few weeks has brought many stocks down to attractive price levels compared to the beginning of the year, but investors should remain cautious. On the Ho Chi Minh Stock Exchange, the benchmark VN-Index rose 2.01 per cent to close at 917.51 points on Friday. On the Ha Noi Stock Exchange, the HNX Index increased by 4.47 per cent to end at 100.70 points. The VN Index and the HNX Index finished the week 4.5 per cent and 5.15 per cent lower than the previous week. Some 194.1 million stocks worth VND4.3 trillion (US$190 million) were traded on average each session last week. Ngo The Hien, deputy head of analysis at Sai Gon – Ha Noi Securities Company (SHS), told tinnhanhchungkhoan.vn that the market had experinced a four-week decline with depleting liquidity, and cash flow had not returned to the market. Nguyen Trung Du, senior expert at VNDirect Securities Co (VNDS), said the market had been bearing the burden of the massive net selling by foreign … [Read more...] about Investors should think before snapping up cheap stocks