CEO Thuan Nguyen Speaks at “Vietnam-Korea Capital Markets & Investment Cooperation Prospects Seminar”, Ho Chi Minh City, 10th March 2016

Vietnam-Korea Capital Markets & Investment Cooperation Prospects Seminar was co-held by Hochiminh Stock Exchange (HOSE) and Korea Financial Investment Association (KOFIA) in Ho Chi Minh City on 10th March 2016.

There are more than 50 top leaders from Korean Financial Institutions and Asset Management firms and nearly 100 representatives from local financial institutions participating in the seminar.

The Korean delegates are members of KOFIA with total asset under management of USD35 billion all expressed their strong interests in exploring investment opportunities in Vietnam’s capital market. The event followed a series of investment and trade promotion activities between the two countries following the Vietnam – Korea Free Trade Agreement (VKFTA) and Trans-Pacific Partnership (TPP).

StoxPlus' CEO Thuan Nguyen discussed about the implication of TPP on the trade between Vietnam and South Korea and indicated some practical examples with how it could make impacts to capital flows into Vietnam. Mr. Thuan also discussed opportunities from the equitisation of State-owned enterprises of Vietnam and the divestment plan from the reduction of state capital in these companies including public companies.

Via the demonstration of FiinPro Platform, StoxPlus also provided various market insights and data factsheets about the stock market valuation, sector earning performance, key macro-economic data and the comprehensive financial database for Korean investors to grasp the opportunities in Vietnam.

At the seminar, the Korean Institutional Investors were deeply interested in the following key issues:

1. ETF funds. On Hochiminh Stock Exchange (HOSE), there are two listed ETFs with increasing liquidity. They would like to know if there were any Vietnamese ETFs be listed on Korean stock exchange. Mr. Tran Dac Sinh, chairman of HOSE, said that in the near future, HOSE would consider the chance to list Vietnam ETFs on Korean market and vice versa. Vietnam and Korea have enjoyed the long time relationship as many key Vietnamese governors in finance were trained in Korea and Korea has also supplied the bourse's integrated trading platform, including trading, settlement and market oversight to Vietnam.
2. Provident funds. In many countries, provident funds take very important roles in the stock markets. It would be the same in Vietnam in the near future. In the view of CEO of Dragon Capital, Mr. Dominic Scriven, there were around USD1.5 billion premium from new sales per year for life insurance in Vietnam which may become the potential cash flow for Vietnamese pension funds.  In comparison, this number was much higher than only USD250 million of FII pouring to stock market last year.
3. TTP and VN-Korea FTA’s followed opportunities. There would be huge chances for supporting industries like logistics, packaging, storage etc. Many companies, both listed and non-listed ones, were enjoying the tax deduction and import – export improvement when Vietnam joins above agreements.
4. Real estate sector. Korean investors made a lot of questions related to commercial offices, condominium, hotel and hospitality market. Korean developers had been active investors in Vietnam for many years and they were seeing renewed interest in Vietnam. This was being driven by the fact that Vietnam had passed the bottom of the real estate market cycle and investors want to explore and take opportunities for the market recovery. There was also strong interest from investors looking to purchase good quality operating assets such as office buildings, serviced apartments and hotels.
5. SOE equitisation and divestment plan from the reduction of state capital.  Vietnam government had showed strong commitment of this plan. Up to March, 2016, the State was holding 34% of listed companies, including a large number of leading/ blue chip companies. Therefore, investors might take abnormal return from the gradual reduction in state ownership.

Presentation handouts of each speakers can be found at: http://stoxvn.stox.vn/store/Datasupport/StoxPlus_HOSESeminar_Vietnam-Korea_Mar2016.zip  

About StoxPlus

StoxPlus, an associate company of Nikkei Inc. and QUICK Corp., is proud of being a leading financial and business information corporation in Vietnam. We provide the most comprehensive ready-to-use Financial Information Platform, Business Information Portal, Standard and Customisable Research Reports and value added services via various devices such as PCs, websites and mobile devices to help clients analysing and making informed decisions. Our customers include securities firms, fund managers, banks, insurance companies, financial and investment institutions, corporate management, import and export traders, NGOs and individual investors, both locally and internationally.

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