Thread: Latest news on the Dong!

Tom Dyson's note: Emerging markets are volatile and fully priced right now... so this weekend's idea is for adventurous investors with long-term horizons only.

Vietnam is offering huge potential to investors. Problem is, it's hard to invest in the country. Today, Martin Spring, godfather of South Africa's financial publishing industry, shows us how...

How To Invest In Vietnam
By Martin Spring

Vietnam is attracting increasing – some would say "frantic" – interest from international investors, lifting its stock market by 144% last year.

Government finances are healthy, public indebtedness is low, foreign trade balances are positive, the savings rate is high and rising – providing strong economic foundations. But perhaps the most exciting thing about Vietnam for international investors is that the country has so much future growth potential.

Annual GDP per person is still only $790, compared to Thailand's $3,420 and South Korea's $20,240. A survey made not long ago reported that semi-skilled workers cost only $73 a month to employ, compared to $375 in Thailand.

Although the stock market has exploded over the past year, reaching a market capitalization of about $14 billion now, it's still tiny compared to its regional neighbors.

Also, the market recently has corrected after peaking on euphoria over World Trade Organization membership, and now seems to offer an opportunity for investors who are able to live with the risks to place their bets.

Although foreigners can buy Vietnamese stocks, it isn't easy.

Firstly, you can only do so by opening a custodian account at a Vietnamese bank. To do that, you must go to Vietnam in person to have your birth certificate and passport notarized at your embassy or consulate there.

Secondly, there's a limit on the proportion of the stock of a listed company that may be owned by foreigners – 49% generally and 30% in the case of banks.

Thirdly, you must leave your invested capital in the country for at least 12 months. However after that, it may be freely exported, as dividends can be.

According to a recent count, only a few hundred of the many thousands of custodian accounts were held by foreigners – most of them individuals.

It's likely to get easier for foreigners to invest as the government has set a target of having 1,200 listed companies by 2010, compared to about 150 now.

There are already several hundred companies that, although not listed, are trading on the informal OTC (over-the-counter) market. They are former state enterprises that have been privatized. According to stockbrokers Saigon Securities, they are mostly profitable.

As most listed companies have many thousands of shareholders, there is a remarkable degree of transparency and pressure to raise accounting standards.

The largest companies, either listed or OTC-traded, are: FPT, the biggest telecoms and infotech company, with a market cap of $2 billion; Vietnam Dairy Product, the No. 1 in its field; PetroVietnam, in oil exploration; Sacombank; Vinh Son Song Hinh Hydropower; Cables & Telecom; and the KinhDo bakery.

Unfortunately there are few single-country funds for individual foreign investors seeking a stake in this new tiger economy. The most reputable and successful seem to be the Dublin-listed investment trusts managed by Dragon Capital (Vietnam Enterprise Investments and Vietnam Growth) and by PXP Vietnam Asset Management (PXP Vietnam and Vietnam Emerging Equity). VinaCapital Investment Management has a similar trust, Vietnam Opportunity, listed in London.

Some of these funds tell you that they have high minimums, such as $100,000 or €100,000, but that is misleading. You can buy smaller stakes through stock exchanges, as I have done for family portfolios.

Major investment banks also offer participatory notes, certificates reflecting their own holdings of Vietnamese shares.

As the Vietnam story gains traction, we'll see new instruments introduced, but for now, this is how you play Vietnam.

Good investing,

Martin Spring

Originally Posted by petunia

Tom Dyson's note: Emerging markets are volatile and fully priced right now... so this weekend's idea is for adventurous investors with long-term horizons only.

Vietnam is offering huge potential to investors. Problem is, it's hard to invest in the country. Today, Martin Spring, godfather of South Africa's financial publishing industry, shows us how...

How To Invest In Vietnam
By Martin Spring

Vietnam is attracting increasing – some would say "frantic" – interest from international investors, lifting its stock market by 144% last year.

Government finances are healthy, public indebtedness is low, foreign trade balances are positive, the savings rate is high and rising – providing strong economic foundations. But perhaps the most exciting thing about Vietnam for international investors is that the country has so much future growth potential.

Annual GDP per person is still only $790, compared to Thailand's $3,420 and South Korea's $20,240. A survey made not long ago reported that semi-skilled workers cost only $73 a month to employ, compared to $375 in Thailand.

Although the stock market has exploded over the past year, reaching a market capitalization of about $14 billion now, it's still tiny compared to its regional neighbors.

Also, the market recently has corrected after peaking on euphoria over World Trade Organization membership, and now seems to offer an opportunity for investors who are able to live with the risks to place their bets.

Although foreigners can buy Vietnamese stocks, it isn't easy.

Firstly, you can only do so by opening a custodian account at a Vietnamese bank. To do that, you must go to Vietnam in person to have your birth certificate and passport notarized at your embassy or consulate there.

Secondly, there's a limit on the proportion of the stock of a listed company that may be owned by foreigners – 49% generally and 30% in the case of banks.

Thirdly, you must leave your invested capital in the country for at least 12 months. However after that, it may be freely exported, as dividends can be.

According to a recent count, only a few hundred of the many thousands of custodian accounts were held by foreigners – most of them individuals.

It's likely to get easier for foreigners to invest as the government has set a target of having 1,200 listed companies by 2010, compared to about 150 now.

There are already several hundred companies that, although not listed, are trading on the informal OTC (over-the-counter) market. They are former state enterprises that have been privatized. According to stockbrokers Saigon Securities, they are mostly profitable.

As most listed companies have many thousands of shareholders, there is a remarkable degree of transparency and pressure to raise accounting standards.

The largest companies, either listed or OTC-traded, are: FPT, the biggest telecoms and infotech company, with a market cap of $2 billion; Vietnam Dairy Product, the No. 1 in its field; PetroVietnam, in oil exploration; Sacombank; Vinh Son Song Hinh Hydropower; Cables & Telecom; and the KinhDo bakery.

Unfortunately there are few single-country funds for individual foreign investors seeking a stake in this new tiger economy. The most reputable and successful seem to be the Dublin-listed investment trusts managed by Dragon Capital (Vietnam Enterprise Investments and Vietnam Growth) and by PXP Vietnam Asset Management (PXP Vietnam and Vietnam Emerging Equity). VinaCapital Investment Management has a similar trust, Vietnam Opportunity, listed in London.

Some of these funds tell you that they have high minimums, such as $100,000 or €100,000, but that is misleading. You can buy smaller stakes through stock exchanges, as I have done for family portfolios.

Major investment banks also offer participatory notes, certificates reflecting their own holdings of Vietnamese shares.

As the Vietnam story gains traction, we'll see new instruments introduced, but for now, this is how you play Vietnam.

Good investing,

Martin Spring

Does "Vietnomese stock" mean Dong?
Leann

Ordered my first 10 mil of dong yesterday. Should have my dong today. Dinar Trade Inc. was very good to deal with and they gave me a discount for being a Rol Club member. If all plays out as it should the dong should be here sometime today.

I've invested in Dong as well. Here is to having something else to keep track of. Yeah, Right...

Originally Posted by YogiBrood

I hope you do, just let us here in the Forum know what develops after you get a good deal from Dinar Trade....


YB. -

i ordered some from dinartrade $105.00 for a million u get a $5.00 discount cod is $24.00 cost me total $124.00

Originally Posted by Jason Lee

Ordered my first 10 mil of dong yesterday. Should have my dong today. Dinar Trade Inc. was very good to deal with and they gave me a discount for being a Rol Club member. If all plays out as it should the dong should be here sometime today.

Originally Posted by Maddawg

I've invested in Dong as well. Here is to having something else to keep track of. Yeah, Right...

Originally Posted by buddy54

i ordered some from dinartrade $105.00 for a million u get a $5.00 discount cod is $24.00 cost me total $124.00

I'm going to just sit back, and hold on to my dong! Until it starts to grow to enormous porportions..................

Originally Posted by buddy54

i ordered some from dinartrade $105.00 for a million u get a $5.00 discount cod is $24.00 cost me total $124.00

Good going there buddy!!!


U R on a safe spending spree while your partner sits back and watch...let her on too... step on it, put yr finger on that pitch and let it happen!!

(one needs some smart thinking on this, clue is in the link below... )

Originally Posted by goldraker

I'm going to just sit back, and hold on to my dong! Until it starts to grow to enormous porportions..................

I agree totally.

Well, stop traffic my dong is here. Had to go pick it up today at my local fedex due to the fact I wasn't home during the drop off time yesterday. I did find out that fedex did try to deliver the dong around 1:00 pm which would be 27 hrs. it took to get here. That is great service. I'v ordered dinar from other places that took longer and cost more. The dong is in very good shape like it's not been used much if at all. If you want dong you can't go wrong with Dinar Trade Inc.