BVSC has advised on many capital sales deals for foreign investors. How do you evaluate the investment wave of foreign businesses into the Vietnamese market in the recent period and forecast in the near future?
"A good land for birds to perch on", in recent years, Vietnam has been the destination for many foreign investors, as shown by FDI figures that continuously set new records.
By the end of November 2019, the total newly registered, adjusted foreign direct investment capital and capital contributions and share purchases of foreign investors reached nearly 31.8 billion USD, an increase of 3.1% over the same period last year. period of 2018.
That is the result of continuous efforts to reform institutions, policies, and administrative procedures from the Government to improve Vietnam's competitiveness in the international arena.
In addition, foreign indirect investment capital invested in the stock market reached approximately 3 billion USD/year for 2 consecutive years, the number of foreign investor accounts also increased from more than 17,000 accounts last year. 2015 to over 32,000 accounts today.
Attracting foreign investment through M&A channels has also achieved remarkable results. According to FiinGroup statistics, in the period from 2011 to the first half of 2019, the total value of M&A transactions by foreign investors in Vietnam reached over 38 billion USD.
The picture of foreign investment in recent times in Vietnam is quite comprehensive, including both direct and indirect investment capital flows. IB departments of securities companies play a significant role in promoting foreign investment in Vietnam.
Vietnam is a developing country with a young population structure, per capita income approaching the world average, and the middle class is growing rapidly.
Fields that take advantage of these advantages have been and will be the top priority of foreign investors when looking for investment opportunities in Vietnam.
Recent major deals have clearly shown that investment strategy.
For example, Thaibev invested nearly 5 billion USD to buy a controlling stake in Sabeco in 2017, SK Holdings poured 470 million USD into Masan Group in 2018 and 1 billion USD into Vingroup in 2019, and GIC invested over 1.3 billion USD. USD into Vinhomes in 2018 in the form of buying shares and providing debt instruments and 500 million USD into Vincommerce in 2019;
GIC and Mizuho Bank invested nearly 270 million USD in Vietcombank at the end of 2018, KEB Hana Bank bought shares in BIDV worth over 900 million USD in 2019, and the most recent deal was Sumitomo Life Insurance Company (SML) spending 173 million USD Buy privately issued shares and increase the charter capital holding ratio of Bao Viet Group (BVH).
It can be seen that investors from Asia, especially Korea, Japan, Singapore, and China... show positivity and initiative in finding investment opportunities in Vietnam.
Grasping that trend, BVSC's IB department soon established a wide system of partners in these countries and many other countries around the world to support and advise foreign investors looking to find investment opportunities.
Regarding the SML - BVH deal, in your opinion, why did the Japanese partners choose this time to increase investment, with high bid prices?
Mr. Nhu Dinh Hoa
As a consultant for the SML - BVH deal, I have the following observations: Market factors are always the key point that investors will have to consider very carefully for investments in Vietnam. market in general and in Vietnam in particular.
According to research by BVSC's analysis department, Vietnam's population reached over 96 million people in 2019 and is expected to increase to 100 million people by 2022.
GDP growth in recent years has always reached a high level of 6-7%/year.
The population structure is young with a rapidly growing middle class, reaching 1.5 million new people joining this class each year and expected to account for 33% of the population by 2020.
The average income per capita reached 2,600 USD/person/year, not equal to the average income in the world (about 3,000 USD/person/year), but many people have a need to buy life insurance and health insurance. Non-life.
Vietnam's current per capita income is only equivalent to Malaysia in 1990, China in 2007, and Indonesia in 2010. Thus, the market capacity to develop both life and non-life insurance is very abundant. Wow.
BVH is a pioneer and leader in providing insurance products. With the largest team of consultants and the most diverse product portfolio, this group holds the largest market share in both insurance segments.
In addition, Bao Viet Fund Management Company is managing the largest total assets in the market and BVSC is always in the Top 10 brokerage market shares, contributing to implementing BVH's orientation to become a financial - insurance group. Top in Vietnam.
I think that SML has thoroughly researched the Vietnamese insurance market as well as BVH's operating model and the business situation of the Group's subsidiaries before making an investment decision.
The price they ordered was 30% higher than the market price of BVH shares, demonstrating the confidence of the SML Board of Directors in the development direction and vision of BVH.
In addition to equitized enterprises and capital restructuring, foreign capital flowing into Vietnamese enterprises through capital contribution and share purchases is increasing strongly, in the first 11 months of 2019 increased by 47% compared to the same period in 2018. He assessed What do you think about the role of IB services in these deals and forecasted the IB development space.
We often say that IB department specialists are "Mr. To and Mrs. Nguyet", bringing fate to Vietnamese businesses and foreign investors.
Accompanying the development of the capital market, the role of IB is becoming increasingly important for businesses, investors, and even managers.
For businesses wishing to mobilize capital, in addition to consulting on plans and legal procedures, IB specialists must also play a larger role in finding suitable investors to participate in each deal.
For investors, especially foreign investors, the role of IB is clearly demonstrated through consulting on the investment environment, investment risks, and investment regulations in the host country.
IBs are the bridge between the two sides of buying and selling, reconciling, supporting and promoting the process of both sides learning about each other and making investment decisions.
In addition, IBs are directly involved in transactions and understand the problems that buyers and sellers encounter, so they are also an effective feedback channel to market managers, aiming to The purpose is to update policies in accordance with market flows and develop sustainable markets.
In the coming time, along with the general development of Vietnam's financial market, the capital market including the equity capital market and debt capital market will have outstanding development. Therefore, the development space of the IB segment will clearly have many opportunities to expand.
Many IPO plans (Genco 1, Genco 2, Vincem, Mobiphone...), and divestment of state capital (PVI, BMI, Steel Corporations, Textiles, Petroleum, Airlines...) in 2019 were not implemented, causing the opportunity for the IB segment of securities companies to be transferred to 2020. As one of the largest IB consultants in the market, how is BVSC prepared to welcome this opportunity?
The picture of state capital divestment and IPO in 2019 did not maintain the prosperity like a few years ago when the number of enterprises divesting state capital did not reach the plan.
However, the Government shows determination in implementing the policy of divesting state capital in enterprises where the State does not need to keep capital contributions. Therefore, I believe that the process of state capital divestment will be accelerated in the near future.
Faced with that context, BVSC in the past few months has proactively worked with ministries, departments, branches, SCIC, and enterprises on the list of state-owned enterprises that need to divest capital to access needs and take steps. First consultation to serve the process of implementing the deal later.
Corporate bond issuance in 2019 emerged as a major phenomenon in Vietnam's capital market. How do you view the current bond market?
2019 can be considered a boom year for the corporate bond market.
In the context of credit capital gradually tightening, bonds are seen as a "lifesaver" measure for many businesses, especially real estate businesses.
Many businesses have successfully issued bonds through private placement, attracting the attention of investors. Besides professional institutional investors, the retail market for individual investors has unexpectedly vibrant developments.
On the one hand, this brings a larger volume of accessible capital to businesses, but also poses risks to individual investors in the context of an unorganized bond distribution market.
I think that individual investors and distribution agents should view bonds as their true nature as an investment with many potential risk factors.
The mindset and professional ethics of distribution agents towards individual bond investors are factors that need attention.
Before making a decision, individual investors need to research, learn, and consult professional consultants about the issuer's operations, corporate cash flow as well as risks related to the company's operations. businesses and issuances.
The new Securities Law effective from January 1, 2021, also has more specific and tighter regulations related to individual bond investment.
In addition, the Government is considering amending Decree 163/2018/ND-CP on the private placement of corporate bonds in synchronization with the new Securities Law.
That will contribute to standardizing the bond market in Vietnam, helping the privately issued corporate bond market operate more healthily.
BVSC has advised on many capital sales deals for foreign investors. How do you evaluate the investment wave of foreign businesses into the Vietnamese market in the recent period and forecast in the near future?
"A good land for birds to perch on", in recent years, Vietnam has been the destination for many foreign investors, as shown by FDI figures that continuously set new records.
By the end of November 2019, the total newly registered, adjusted foreign direct investment capital and capital contributions and share purchases of foreign investors reached nearly 31.8 billion USD, an increase of 3.1% over the same period last year. period of 2018.
That is the result of continuous efforts to reform institutions, policies, and administrative procedures from the Government to improve Vietnam's competitiveness in the international arena.
In addition, foreign indirect investment capital invested in the stock market reached approximately 3 billion USD/year for 2 consecutive years, the number of foreign investor accounts also increased from more than 17,000 accounts last year. 2015 to over 32,000 accounts today.
Attracting foreign investment through M&A channels has also achieved remarkable results. According to FiinGroup statistics, in the period from 2011 to the first half of 2019, the total value of M&A transactions by foreign investors in Vietnam reached over 38 billion USD.
The picture of foreign investment in recent times in Vietnam is quite comprehensive, including both direct and indirect investment capital flows. IB departments of securities companies play a significant role in promoting foreign investment in Vietnam.
Vietnam is a developing country with a young population structure, per capita income approaching the world average, and the middle class is growing rapidly.
Fields that take advantage of these advantages have been and will be the top priority of foreign investors when looking for investment opportunities in Vietnam.
Recent major deals have clearly shown that investment strategy.
For example, Thaibev invested nearly 5 billion USD to buy a controlling stake in Sabeco in 2017, SK Holdings poured 470 million USD into Masan Group in 2018 and 1 billion USD into Vingroup in 2019, and GIC invested over 1.3 billion USD. USD into Vinhomes in 2018 in the form of buying shares and providing debt instruments and 500 million USD into Vincommerce in 2019;
GIC and Mizuho Bank invested nearly 270 million USD in Vietcombank at the end of 2018, KEB Hana Bank bought shares in BIDV worth over 900 million USD in 2019, and the most recent deal was Sumitomo Life Insurance Company (SML) spending 173 million USD Buy privately issued shares and increase the charter capital holding ratio of Bao Viet Group (BVH).
It can be seen that investors from Asia, especially Korea, Japan, Singapore, and China... show positivity and initiative in finding investment opportunities in Vietnam.
Grasping that trend, BVSC's IB department soon established a wide system of partners in these countries and many other countries around the world to support and advise foreign investors looking to find investment opportunities.
Regarding the SML - BVH deal, in your opinion, why did the Japanese partners choose this time to increase investment, with high bid prices?
Mr. Nhu Dinh Hoa
As a consultant for the SML - BVH deal, I have the following observations: Market factors are always the key point that investors will have to consider very carefully for investments in Vietnam. market in general and in Vietnam in particular.
According to research by BVSC's analysis department, Vietnam's population reached over 96 million people in 2019 and is expected to increase to 100 million people by 2022.
GDP growth in recent years has always reached a high level of 6-7%/year.
The population structure is young with a rapidly growing middle class, reaching 1.5 million new people joining this class each year and expected to account for 33% of the population by 2020.
The average income per capita reached 2,600 USD/person/year, not equal to the average income in the world (about 3,000 USD/person/year), but many people have a need to buy life insurance and health insurance. Non-life.
Vietnam's current per capita income is only equivalent to Malaysia in 1990, China in 2007, and Indonesia in 2010. Thus, the market capacity to develop both life and non-life insurance is very abundant. Wow.
BVH is a pioneer and leader in providing insurance products. With the largest team of consultants and the most diverse product portfolio, this group holds the largest market share in both insurance segments.
In addition, Bao Viet Fund Management Company is managing the largest total assets in the market and BVSC is always in the Top 10 brokerage market shares, contributing to implementing BVH's orientation to become a financial - insurance group. Top in Vietnam.
I think that SML has thoroughly researched the Vietnamese insurance market as well as BVH's operating model and the business situation of the Group's subsidiaries before making an investment decision.
The price they ordered was 30% higher than the market price of BVH shares, demonstrating the confidence of the SML Board of Directors in the development direction and vision of BVH.
In addition to equitized enterprises and capital restructuring, foreign capital flowing into Vietnamese enterprises through capital contribution and share purchases is increasing strongly, in the first 11 months of 2019 increased by 47% compared to the same period in 2018. He assessed What do you think about the role of IB services in these deals and forecasted the IB development space.
We often say that IB department specialists are "Mr. To and Mrs. Nguyet", bringing fate to Vietnamese businesses and foreign investors.
Accompanying the development of the capital market, the role of IB is becoming increasingly important for businesses, investors, and even managers.
For businesses wishing to mobilize capital, in addition to consulting on plans and legal procedures, IB specialists must also play a larger role in finding suitable investors to participate in each deal.
For investors, especially foreign investors, the role of IB is clearly demonstrated through consulting on the investment environment, investment risks, and investment regulations in the host country.
IBs are the bridge between the two sides of buying and selling, reconciling, supporting and promoting the process of both sides learning about each other and making investment decisions.
In addition, IBs are directly involved in transactions and understand the problems that buyers and sellers encounter, so they are also an effective feedback channel to market managers, aiming to The purpose is to update policies in accordance with market flows and develop sustainable markets.
In the coming time, along with the general development of Vietnam's financial market, the capital market including the equity capital market and debt capital market will have outstanding development. Therefore, the development space of the IB segment will clearly have many opportunities to expand.
Many IPO plans (Genco 1, Genco 2, Vincem, Mobiphone...), and divestment of state capital (PVI, BMI, Steel Corporations, Textiles, Petroleum, Airlines...) in 2019 were not implemented, causing the opportunity for the IB segment of securities companies to be transferred to 2020. As one of the largest IB consultants in the market, how is BVSC prepared to welcome this opportunity?
The picture of state capital divestment and IPO in 2019 did not maintain the prosperity like a few years ago when the number of enterprises divesting state capital did not reach the plan.
However, the Government shows determination in implementing the policy of divesting state capital in enterprises where the State does not need to keep capital contributions. Therefore, I believe that the process of state capital divestment will be accelerated in the near future.
Faced with that context, BVSC in the past few months has proactively worked with ministries, departments, branches, SCIC, and enterprises on the list of state-owned enterprises that need to divest capital to access needs and take steps. First consultation to serve the process of implementing the deal later.
Corporate bond issuance in 2019 emerged as a major phenomenon in Vietnam's capital market. How do you view the current bond market?
2019 can be considered a boom year for the corporate bond market.
In the context of credit capital gradually tightening, bonds are seen as a "lifesaver" measure for many businesses, especially real estate businesses.
Many businesses have successfully issued bonds through private placement, attracting the attention of investors. Besides professional institutional investors, the retail market for individual investors has unexpectedly vibrant developments.
On the one hand, this brings a larger volume of accessible capital to businesses, but also poses risks to individual investors in the context of an unorganized bond distribution market.
I think that individual investors and distribution agents should view bonds as their true nature as an investment with many potential risk factors.
The mindset and professional ethics of distribution agents towards individual bond investors are factors that need attention.
Before making a decision, individual investors need to research, learn, and consult professional consultants about the issuer's operations, corporate cash flow as well as risks related to the company's operations. businesses and issuances.
The new Securities Law effective from January 1, 2021, also has more specific and tighter regulations related to individual bond investment.
In addition, the Government is considering amending Decree 163/2018/ND-CP on the private placement of corporate bonds in synchronization with the new Securities Law.
That will contribute to standardizing the bond market in Vietnam, helping the privately issued corporate bond market operate more healthily.
