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More and more foreign and domestic companies see M&A as an effective channel to fast-track their growth, Photo: Le Toan Vietnam’s largest dairy producer Vinamilk has recently snapped up over 90 million shares of GTNFoods, which holds Moc Chau Milk, Vinatea, and Ladofoods brands. With the share price of VND13,000 ($0.56), the total value of the deal is VND1.171 trillion ($50.91 million). Following the deal, Vinamilk has increased its holding in the dairy producer from 2.32 to 38.34 per cent. The move is significant as it reflects Vinamilk’s intention to milk the demand for dairy products in Vietnam amid unfavourable market conditions throughout 2018. According to its 2018 annual report, since the fourth quarter of 2017, the dairy industry had recorded negative growth, and there have only been signs of significant positive change only since the fourth quarter of 2018. To battle the dairy industry’s slowdown in 2018, Vinamilk is ready for mergers and … [Read more...] about M&A gateway to firms’ growth and expansion

As the State Bank of Vietnam (SBV) has ordered tight control over real estate loans by credit institutions, property firms and developers have to seek alternative ways to raise their capital. Real estate firms must seek alternative ways to raise their capital as the State Bank of Vietnam (SBV) has ordered tight control over real estate loans.  The central bank increased the risk weighting of real estate loans from 200 percent to 250 percent in 2019, which is a significant disincentive for banks to make loans to the property sector since their minimum capital requirement is a ratio of their risk-weighted assets under the Basel norms. Meanwhile, the SBV’s regulation on reducing the maximum quantum of short-term deposits that can be used for medium- and long-term loans from 45 percent to 40 percent will reduce banks’ liquidity. To that end, realty enterprises need to count on other source, especially when the interest rate risks are high. Phat Dat Real Estate … [Read more...] about Vietnam real estate firms issue bonds to raise capital

The cyber-physical learning factory of Festo (Photo courtesy of the company) Ansgar Kriwet, member of the management board of Festo, said Vietnam has the fastest growing economy in Southeast Asia with a growth rate of 6.5 per cent. Manufacturing is its strongest sector and accounts for more than 50 per cent of FDI, he said. As Asia’s new manufacturing hub, Vietnam requires strong support from motion automation, he said. Putting industry 4.0 into action means both intensively investigating new technologies and preparing employees for the challenges of future production, he added. Festo’s cyber-physical systems encompass the new developments of networked production in industry 4.0 and offer a modular smart factory system for teaching and research purposes. In Vietnam the company has partnered with 25 schools, universities, and industry-wide institutes to train specialists. It annually invests around 8 per cent of its revenues into research and development and … [Read more...] about Germany automation firm Festo to expand investment in Vietnam

A corner of the Phu My Hung residential area in District 7, HCM City (Photo: VNA) Hanoi (VNA) – Since the Investment Law took effect in July 2015, Vietnam’s FDI inflows, and the real estate sector in particular, have significantly increased in terms of merger and acquisition (M&A) activities. Statistics released at the Vietnam M&A Forum in Ho Chi Minh City in August 2018 showed that in the first five months of the year, the total value of M&A transactions in the Vietnamese market had reached 3.55 billion USD, equivalent to 155 percent of the figure recorded in the same period last year. Of the sum, property deals made up 66.75 percent. Meanwhile, in 2017, M&A deals were valued at 10.2 billion USD, up 175 percent against 2016, with real estate accounting for only 27 percent following consumer goods production with 57 percent. Therefore, the numbers reported in the first half of the year demonstrate that the real estate sector has attracted greater … [Read more...] about Real estate sees rise in M&A deals

The path for domestic and international investors like Saigon Newport and Lotte to join railway projects in Vietnam remains arduous, urging authorised agencies to make more positive changes to unlock private investment.  Specifically, VNR proposed to the MoT to hand over 297 railway stations, warehouses, inland container depots (ICDs), and all the assets of the Da Lat-Trai Mat railway route to the giant to own, use, and develop, with the assets to be recorded as state capital contribution to the operator as ruled in Article 5(1a) of Decree 46/2018/ND-CP governing the management and use of railway infrastructure assets. Meanwhile, the remaining assets, including bridges, tunnels, rail system, signal systems, and others, should be handed over to VNR to manage, use, and develop without being recorded as state capital contribution to the operator as ruled in Article 5(1c) of Decree 46. Approving these points would break with many previous rules in the railway sector (as these assets … [Read more...] about Railway development yet to overcome legal hindrances