Vietnam’s stock market to welcome a Taiwan fund with a scale of trillions dong

The fund started to raise capital for investment in Vietnam’s stock market with a par value of about NT$6 billion (equivalent to about VND 5,000 billion). The fund is advised by VinaCapital.

The expected start date of disbursement is January 26.

The fund’s portfolio is distributed across many industries such as construction materials, real estate, banking, and securities. In which, Top 10 stocks with the largest proportion include HPG (9%), VHM (6%), MBB (5%), VCB (5%), KBC (4%), KDH (4%), NLG (4%), SSO (4%), CTG (3%), DGC (3%).

Jih Sun Vietnam Opportunity Fund assesses Vietnam as the diamond of Asia, developing rapidly and amazingly, possessing four outstanding factors: economic growth, population, foreign capital, and stock market. stock.

Vietnam’s GDP growth rate in the past 3 years averaged 5.7% – the highest among Asian countries. It is estimated that by 2050, the average growth rate of Vietnam will be higher than that of India and China

Vietnam is also the only country in Asia that has been upgraded to positive by three major credit rating agencies, Moody’s, S&P, and Fitch, reflecting the country’s efforts in epidemic prevention and control. Covid-19 and economic resilience.

Forecasting in 2022, EPS growth rate is estimated at 23.4%, P/E is only about 16.8 times, which is an attractive valuation compared to other countries in the region.

Taiwanese capital in recent years is actively flowing into the Vietnamese market through active funds such as CTBC Vietnam Equity Fund (mid-2020) has The initial committed capital size of the fund is 160 million USD (about VND3,700 billion).

At the end of December 2021, the fund’s assets reached TWD 18.7 billion (more than VND 15,400 billion). Nice like Fubon FTSE Vietnam referenced by the FTSE Vietnam 30 index. Currently, the fund’s net asset value (NAV) reached NT$12.4 billion, or VND10,200 billion, doubling in nearly a year.

In addition, Taiwanese capital flows into the Vietnamese market through syndicated loans to securities companies. Such as. At the end of 2021, VNDIRECT Securities Company successfully mobilized unsecured syndicated loans with a total value of up to USD 100 million with a group of foreign financial institutions. 

The deal attracted the participation of 11 foreign financial institutions from Taiwan (China), Hong Kong (China), and Europe. Accordingly, an unsecured loan of $98 million with greenshoe options of up to $100 million.

HSC Securities also signed an unsecured loan contract worth USD 104 million – equivalent to VND 2,374 billion with a group of 12 Taiwanese financial institutions, led by Cathay United Bank (CUB).

In mid-July 2021, SSI Securities JSC also officially announced the successful signing of a loan contract with a limit of up to USD 100 million – equivalent to VND 2,300 billion – unsecured capital from a group of leading banks in Taiwan.

Leading the loan arrangement and focal point are Union Bank of Taiwan (UBOT) and Taipei Fubon Commercial Bank Co., Ltd (Fubon).