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Vietnam stock market receives huge investment from Singapore

Sat, 19 Apr 2014. Last updated Mon, 01 Jun 2015 13:58

Vietnam is becoming a potential destination for foreign investors. The clearest evidence is that Vietnam stock market continuously receives positive information from Singaporean investors in the early months.

In 2013, Vietnam stock market witnessed a massive land of large corporations of Japan, Thailand, and the US. Typical instances are, namely, Mitsui purchasing shares of Minh Phu Company, Siam Cement Group (SCG) purchasing shares of Prime Group, Binh Minh Plastic Company and Thieu Nien Tien Phong Plastic Company, and Warburg Pincus Fund investing 200 million USD in Vingroup.

In the early 2014, since the macroeconomic environment is more stable and the government is about to allow the proportion of shares of foreign investors to increase, Vietnam market has continuously received positive attention from foreign investors. In particular, the capital flows from Singaporean investors has become a bright spot.

FPT Joint Stock Company (stock code: FPT) has recently welcomed 2 institutional shareholders from Singapore which are GIC, the Government of Singapore Investment Corporation with 3% charter capital and Cashew Investments with 3.6%. In the investment world, GIC is known as an organization of Singapore Government, which is managing a portfolio of over $ 100 billion. Meanwhile, Cashew Investment is a branch of Temasek Holdings, an agency under the department of government investment.

 

Vietnam Stock Market expects to increase in 2014

 

Mr. Nguyen The Phuong, the Deputy General Director of FPT Company, has assessed that two aforementioned funds are major and long-term investors in stock market. He has also stated that the majority of prestigious large investors in the world tend to choose enterprises which have prospective revenues and clear management system. It is the reason why Singapore investors are interested in FPT. The representatives of FPT have said that the company is calling for the help of those shareholders to penetrate Singapore. FPT Company sets the target of $ 100 million revenue in Singapore market.

In March 2014, GIC along with Asian Entrepreneur Legacy (TAEL) Partners also spent VND 300 billion to purchase nearly 10 million shares of Xuyen Thai Binh Joint Stock Company (stock code: PAN). TAEL which is a branch of Temasek, was founded by Mr. Michael Sng, the senior manager of United Overseas Bank (UOB). Mr. Michael Louis Rosen, the General Director of PAN has said that this deal is not a coincidence but the company has initially contacted GIC after the plan to mobilize 650 billion dong in the form of private placement.  Besides investment in PAN, TEAL has become a major shareholder of Vinasun (stock code: VNS) and will participate in the upcoming purchase of shares of Hung Vuong Joint Stock Company (stock code: HVG), the largest pangasius exporter in Vietnam.

Economic experts have emphasized that Singapore Government is very interested in investment in Vietnam, especially fields of food and agriculture. Vietnam economy nowadays has a good condition to attract investment from abroad. The inflation rate is well controlled; the Vietnam currency is stable while consumption is increasing significantly.