Despite macroeconomic instability, it is the perfect time for foreign investors to buy shares of major Vietnamese conglomerates since their prices are available at attractive valuations, an analyst said.
Dr Dinh The Hien, director of the HCMC-based Institute of Informatics and Applied Economic Research, told Tuoi Tre that foreign investors could buy into major groups and profit when the stock market rebounds.
VinaCapital CEO Don Lam said foreign investors are moving cautiously due to the dong’s instability.
But the Vietnamese market is very promising, he said. He called on the government to provide more information on macroeconomic indicators and the market’s potential so that investors can make informed decisions.
PV Gas, a subsidiary of the state-owned oil group PetroVietnam, sold 60 million shares at VND31,000 (US$1.58) in its IPO last week at the Ho Chi Minh Stock Exchange.
Around 40 international and domestic organizations registered to buy more than 20 percent of the issue, PV Gas CEO Do Khang Ninh said.
Hoang Anh Gia Lai, Vietnam’s second-biggest listed property developer, is offering 19 million shares to New York-based Deutsche Bank Trust Company Americas, for US$70 million.
The Ho Chi Minh Infrastructure Investment Joint Stock Co signed a deal November 18 to sell convertible bonds worth US$25 million to the US-based Goldman Sachs Investment Partners to finance its projects.
CII is also preparing to get shareholder approval for allowing Goldman Sachs Investment Partners to invest a further US$15 million worth convertible bonds.
Masan Group last month secured a US$30 million, five-year convertible loan from US Goldman Sachs. Earlier this year it had raised $120 million from Goldman Sachs, Orchid Fund Pte Ltd, and the World Bank’s International Finance Corp.