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Banks sprint to transfer listing to official bourses



Banks are pushing up the listing of shares on official markets in the last month of this year to meet the Government’s deadline. — Photo

HÀ NỘI — Banks are sprinting to transfer the listing of shares from Unlisted Public Company Market (UpCom) to official bourses before the Law on Securities takes effect from the beginning of 2021, which would require two-year listing on UpCom before a public company could go to official bourses.

Hà Nội Stock Exchange (HNX) said on December 16 that Bắc Á Bank (BAB) registered to list more than 708.5 million shares on HNX. BAB was currently traded on UpCom with an estimated market capitalisation of VNĐ12.7 trillion

HCM City Stock Exchange (HOSE) recently received an application for listing of 456.4 million shares of Nam Á Bank (NAB), worth around VNĐ4.56 trillion.

NAB was listed on UpCom from October 9 at the referece price of VND13,500 per share.

According to BIDV Securities Company, tranfering the listing of shares from UpCom to official bourses, especially HOSE, would help stocks have higher valuations thank to better transparency and liquidity, adding that the share valuation of Vietnamese banks was still at a low level compared to the region and banking stocks were promising to increase next year.

Asia Commercial Bank (ACB) completed the transfer of share listing from HNX to HOSE earlier this month.

Banks were also racing to speed up listing on offical markets when the deadline was approaching. Under the project of restructuring the securities and insurance market to 2020 with a vision to 2025 approved in February 2019, all commercial banks must be listed and registered for trading in official markets.

About 1.175 billion shares of Việt Nam Maritime Commercial Joint Stock Bank (MSB) were officialy traded on HOSE from Wednesday at the reference price of VNĐ15,000 per share, equivalent to a market capitalisation of more than VNĐ17.625 trillion. MSB was the first bank newly listed on HOSE this year.

After many years of delay, Orient Commercial Joint Stock Bank (OCB) decided to list its shares on HOSE. Trịnh Văn Tuấn, OCB’s chairman, said that the bank was expected to be listed on the southern bourse this month after receiving HOSE’s approval.

The Việt Nam Securities Depository (VDS) has announced to grant code ABB for An Bình Commercial Joint Stock Bank. Accordingly, ABB registered to trade more than 571.3 million shares on UpCom with a total market capitalisation of VNĐ5.73 trillion.

HNX approved the trading of 300 million shares of PG Bank on UpCom starting from Thursday at the reference price of VND15,500 per share.

Southeast Asia Bank (SeABank) also registered for the listing of nearly 1.2 billion shares on HOSE.

In November, LienVietPostBank and Việt Nam International Bank were officially listed on HOSE.

There was also a wave of transfering the listing of shares to HOSE recently.

HNX approved the delisting of 441.7 million shares of Vinaconex (VCG) from Tuesday and VCG would be transferred to HOSE.

First listed on HNX in mid-2018, Vinaconex’s charter capital increased from VNĐ1.5 trillion to more than VNĐ4.4 trillion.

In October, Bến Tre Pharmaceutical Company (Bepharco) transferred the listing of shares to HOSE after more than 11 years on HNX.

HOSE also received the application of Hà Nội South Housing and Urban Development Corporation and Vicostone to transfer their listings from HNX.

HOSE is the largest bourse in Việt Nam, accounting for more than 75 per cent of the market capitalisation, equivalent to 63 per cent of GDP in 2019, statistics showed.

The southern bourse also had higher requirements than HNX, such as minimum charter capital of VNĐ120 billion, compared to VNĐ30 billion on the northern bourse. —



UK investors eye renewable energy in Vietnam



Investors from the UK were showing significant interest in investing in renewable energy projects in Vietnam, especially wind power, 

expecting the Vietnamese Government to introduce long-term support policies as well as simplification of procedures for project implementation.

UK investors eye renewable energy in Vietnam hinh anh 1

A wind farm in Binh Thuan province (Photo: VNA)

British Ambassador to Vietnam Gareth Ward said at the UK – Vietnam Renewable Energy Dialogue on Wednesday that clean energy was becoming a global trend, adding that every 1 investment USD in clean energy would help generate from 3-8 USD.

The Vietnamese Government in 2015 approved the renewable energy development strategy to 2030 with a vision to 2050 which aimed to increase the percentage of renewable power from 35 percent in 2015 to 38 percent in 2020 and 43 percent in 2050.

The Government also introduced incentive policies to encourage the development of wind power, biomass energy, energy from waste and solar power.

Hoang Tien Dung, Director of the Ministry of Industry and Trade’s Electricity and Renewable Energy Authority, said developing renewable energy was important in the context that sources for hydropower were being exhausted, thermopower was limited due to commitments to global climate change and gas-fired power had high production costs.

According to the draft national power development planning for 2021-30 period with a vision to 2045, Vietnam had large potential for renewable energy development which was estimated to amount up to 855GW, mostly solar power (434GW), and wind power (375GW). The potential for off-shore wind power was estimated at 158GW.

Off-shore power was attracting increasing interest from foreign organisations and investors, Nguyen Ninh Hai, Head of the Renewable Energy Department under the Electricity and Renewable Energy Authority, said.

Hai said that as off-shore wind power was a new thing to Vietnam, the Ministry of Industry and Trade was cooperating with some research organisations to have a comprehensive evaluation about the off-shore wind power development potential in the country.

Bui Vinh Thang, Director of Mainstream Renewable Power Vietnam, said that the Government’s planning and policies played a very important role for renewable energy investors, especially in wind power and off-shore wind power.

Benjamin Dubas, a representative from Lightsource BP, said that renewable energy investors expected the transparency and stability of policies in the long term to invest in Vietnam, especially feed-in tariffs (FIT).

According to Dung, FIT pricing was applied to accelerate investment in renewable energy in the first stage in Vietnam but this mechanism would not be maintained for a long period and be replaced by competitive bidding when the technology development helped push down prices of solar and wind power.

He added that the national power development planning which was being completed would give priority to renewable energy on the basis of ensuring balance of power sources and the power transmission between regions.

The ministry expected to continue receiving support from the UK in renewable energy, especially off-shore wind power which the UK had experience in and Vietnam had large potential.

By the end of 2020, the total renewable energy output accounted for around 25 percent of the total output worth 69,000MW of the Vietnam’s power system. There were 148 solar power projects with a total capacity of more than 8,800MW, 100,000 rooftop solar power projects with a total capacity of 9,300MW, and 11 wind power projects with a total capacity of 511MW./.VNS


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Mitsubishi pulls out of central Vietnam coal plant



Mitsubishi pulls out of central Vietnam coal plant

The logo of Mitsubishi Corporation is displayed at the entrance of the company headquarters building in Tokyo, Japan, April 26, 2016. Photo by Reuters/Issei Kato.

Japan’s Mitsubishi Corp has decided to pull out of a coal-fired power plant in central Vietnam amid growing international concern about environmental impacts.

The Japanese trading house will pull out of the 2-gigawatt Vinh Tan 3 project, planned to be located in the southern province of Binh Thuan, because of climate change targets, Reuters reported, citing two anonymous sources.

Without mentioning Vinh Tan 3 specifically, Mitsubishi said in a statement that it was committed to reducing its investment in coal power in line with international climate goals.

The 2-gigawatt plant was originally scheduled to come online in 2024.

OneEnergy, a joint venture of Mitsubishi and Hong Kong’s CLP group, holds a 49 percent interest in the $2 billion project. State-owned utility Vietnam Electricity owns another 29 percent. Chinese companies are handling materials procurement, construction and equipment delivery.

This marks Mitsubishi’s first withdrawal from a coal plant project. The trading house has said it will not build any new facilities of this type after Vung Ang 2, a Nikkei report said.

Mitsubishi still has a stake in the Vung Ang 2 coal power plant being built in the central province of Ha Tinh, which is more widely known after being subject to critical scrutiny by environmental and other groups as well as investors.


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Unable to cover expenses during Covid-19, owners sell hotels at cheap prices



Many offers to sell coastal hotels in Da Nang have appeared on real estate forums these days. Most of them are located in districts Son Tra and Ngu Hanh Son.

Unable to cover expenses during Covid-19, owners sell hotels at cheap prices

A hotel put up on sale

On just one real estate website on February 22 many ads were listed.

A 4-star hotel on Vo Nguyen Giap street, 600 square meters, with 19 stories, 125 rooms and 2 conference rooms is offered at VND440 billion.

Hotels on the major streets of Ha Bong, Tran Bach Dang, Ho Nghinh, Vo Nguyen Giap and Ho Xuan Huong are offered at tens or hundreds of billions of dong.

Hoang Lam, the owner of a hotel on Tran Bach Dang street, said accommodation service providers have been hit hard by Covid-19.

“We have been struggling to survive by cutting costs. However, as capital is getting exhausted, hotel owners have to liquidate assets to pay bank debts,” he said.

“Selling hotels is unavoidable as there is no source of revenue, and the operation cost is high,” he said.

Do Van Hien from Dana Hotel, a broker, said a lot of hotels in Da Nang have been put up for sale since the second Covid-19 outbreak.

“The hotels for sale are 2-4-star. The prices have fallen by 20 percent and buyers are mostly from northern provinces,” Hien said.

According to Hien, 3-star hotels are priced at VND20-100 billion, while 4-star hotels are at least VND280 billion. The value of hotels depends on the locations, area, quality, numbers of rooms and brands.

The transactions of 4-5-star hotels, which have strong brands, are confidential. Hotel owners only work with prestigious brokers, and buyers have to prove their financial capability.

Hien said no one wanted to sell hotels in 2016-2019 because they could make a high profit from the business. But since 2020, guests are coming in dribs and drabs, and operation costs and loan interest rates are high.

Cao Tri Dung, chair of the Da Nang Tourism Association, admitted that tourism services have become nearly frozen and many hotels have been put up on sale.

“The pandemic resurgence before Tet blocked sources of guests. Ninety percent of clients cancelled or postponed plans to come to Da Nang,” he said.

He said this is common in a market economy, and that it is time to restructure the accommodation segment.

According to Da Nang People’s Committee, the total number of guests staying at accommodation facilities in the city in January 2021 was 251,094, a 65.6 percent decrease compared with the same period last year. 

Ho Giap


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