Vinacapital Vietnam Oppo... Share Discussion Threads

[andyj] 21/12/2018 11:20

All gone very quiet here, but VN holding up pretty well in the face of the global sell off. That said, I have slightly reduced my exposure here.

[hydrogen economy] 06/10/2018 06:59

VN News reporting proposed law change to remove foreign ownership limits on securities, will help gain inclusion in MSCI EM index. Not likely enacted before Q4 2019 but moves in that direction should attract more interest in Vn investments.

Good recovery last few weeks, until this week's dip. I think Vn remains one of the best places to invest long term, holding VOF and VEIL.

H2

Relaxation of foreign ownership cap helps VN market raise status

HÀ NỘI — The new amended draft law on securities allowing full foreign ownership at public companies and investment funds would help Việt Nam’s securities market be included in the Morgan Stanley Capital International (MSCI)’s review list for a potential reclassification to Emerging Markets status.
The draft removed limits on how many voting shares foreign investors can buy in public Vietnamese companies. Previous regulations had capped foreign ownership at 49 per cent.

According to MSCI’s recently published Market Rank Report, the Vietnamese market needs to improve on several issues, one of which refers to the foreign ownership limit in Vietnamese companies. According to MSCI, the stock market is significantly impacted by foreign ownership issues.

Statistics from the SSC show that the value of foreign investors’ investment portfolios reached $34.2 billion by the end of July.

As planned, the new amended draft Law on Securities will be submitted to the Government in the second quarter of 2019 and submitted to the National Assembly for consideration and approval in the fourth quarter of 2019.

hxxps://vietnamnews.vn/economy/467323/relaxation-of-foreign-ownership-cap-helps-vn-market-raise-status.html#uPvcBPIv1IhdI7Ec.97

[robsy2] 21/9/2018 12:04

Ok, so vof (and other non foreign investors) don’t have any restrictions.
I see that as a good thing for vof. Andy Ho makes a strong case for the advantages of their approach.
R2

[hydrogen economy] 21/9/2018 11:15

Rosby
I don't think so. VEIL list 41 equity holdings and VNH 24.

The issue of foreign shareholder limits is on % of total equity in foreign hands and lack of control by investors. Many companies allow 20-30% of equity in foreign hands.

In any case VOF and VEIL have recovered well from the drop during 2018, outlook is very strong due to local economic growth and FDI, with investment in alternative production to China because of tariffs and cost rise.

H2


“Foreign shareholding limited at 20-30 per cent, requiring hundreds of millions of dollars from foreign investors, were one of the causes that drove foreign investors away from the country’s financial institutions. As long as this cap remains shy of 50 per cent, foreign investors will not be able to sway the decision making process or the banks’ boards of directors and they will not be capable of gaining any substantial investment benefits from a strategic partnership.”

hxxp://www.vir.com.vn/foreign-ownership-limit-drives-investors-from-vietnamese-banks-55575.html

[roman2325] 20/9/2018 14:58

Thats my understanding Robsy yes

[robsy2] 19/9/2018 09:20

Worth a look , has an interview with Andy Ho who comes over very well.He made a point about how VOF isn't subject to foreign ownership limits(because it is considered Vietnamese?) and that while these limits were lifted in 2015, the lifting was left at the discretion of each and every one of the 700 or so publically quoted companies in Vietnam.... So far,he says, only 15 have lifted them.

Is the upshot of this ( I am asking ) that VOF has access to the full market whereas the foreign registered funds can only invest in 15 companies?

Any answers?

Best
R

[corguv] 18/9/2018 09:49

Pleased with VOF it continues to show more resilience than any of my other holdings,
With great growth potential, a substantial discount to NAV of around 18% and a current 2.4% dividend. Added over the last week.

[amt] 13/9/2018 08:22

Given the rise in Vietnam in the last few days the discount must be well over 20%

[roman2325] 11/9/2018 10:53

Vietnam shines despite Southeast Asia's struggles with trade and emerging market pressures

[roman2325] 30/8/2018 16:21

Nice little bounce back the last few days, assume more dollar driven than anything else

[red ninja] 16/8/2018 12:08

VOF July monthly report is out :-

hxxps://vof.vinacapital.com/wp-content/uploads/sites/2/2018/08/VOF-July-2018-1.pdf

It attempts to be relatively upbeat in the face of US - China trade war.

[roman2325] 14/8/2018 15:12

Appreciate that Andy, I'm still plenty long

[andyj] 14/8/2018 05:04

The most recent survey is apparently noticeably less positive according to a newspaper in Thailand. I have to admit that is at odds with what I witness daily here and I have yet to be able to investigate the survey, but it suggested the numbers of Vietnamese who described themselves as earning enough to live on have suddenly fallen. In fact, in every category they described themselves as financially worse off. Different factors could be at play. Short term thinking is predominant here and it might be that previous expectations were set too high too quickly. There are forests of modern apartment blocks and many have borrowed to buy in the hope of renting them out, but that will take patience given the sheer numbers. It could be that rising inflation has worried people. It could reflect the protests seen over the summer. It could reflect the sample size of the survey.I remain long having recently added.

[roman2325] 24/7/2018 08:45

If this isnt a reason to buy VOF then I don't know what is:

[amt] 20/7/2018 23:13

A survey by Gallup in 2017 revealed that the Vietnamese were the fifth-happiest among nations, with high hopes for economic prosperity in 2018.

[roman2325] 26/6/2018 20:13

Agree with that Andy - all noise

[andyj] 21/6/2018 13:55

Possibly, or perhaps news closer to home worrying the market, news which has not reached the UK yet. At this point I don't see any reason for long term investments to be reconsidered. In my experience these things are nipped in the bud fairly quickly, but at the moment that isn't happening. A seemingly mild, but extremely rare protest a couple of weeks ago did not go away as it usually does. Indeed it appears to be spreading very quickly and it is the first time in 15 years I have seen riot police here. It is also the first time I have heard of people striking. I reiterate I see no reason for longer term investors to worry at the moment.

[ashbox] 19/6/2018 13:56

Trump's antics affecting the price again today?

[roman2325] 11/6/2018 12:36

NAV up 4.6% on the week - round of applause please

[roman2325] 06/6/2018 14:17

Some better volume last couple of days, obviously a buyer out there

[loganair] 03/6/2018 10:38

Mark Mobius tilts towards China, South Korea and is also bullish on Brazil and Russia where consumer Discretionary goods and services benefiting from domestic consumption growth in these countries.

"The opportunities are incredible for the right investment."

He remains optimistic in the emerging markets of Vietnam, China and India and believes we're going to see lot's of opportunities in these markets down the road especially India has got tremendous opportunities.

Mobius also small- and mid-size mainland Chinese companies public in Hong Kong. Fintech is a focus area, as is firms that assist traditional corporations to better deploy internet technologies. "That's where the growth opportunities are," he said.

"China is now a huge market, and it's growing because we are now getting more and more access," he said. “With the A-share market coming into the availability of foreign investors, the opportunities are incredible”.


He also says he expects a 30% correction in the US market as a result of massive out flows from ETF's. Currently global ETF stock assets stand at $4.7 trillion.

[timnet] 22/5/2018 16:49

Thanks for this, ep

[cfro] 17/5/2018 17:56

Thanks for the interview link..

I see a nice director share purchase announced too.