<article>Foreign investors who have been flocking to Vietnam in large numbers in the recent past may soon have more reasons to cheer. The country’s securities watchdog plans to allow investment companies from abroad hold controlling stakes in local brokerages.</article>

Foreign investors who have been flocking to Vietnam in large numbers in the recent past may soon have more reasons to cheer. The country’s securities watchdog plans to allow investment companies from abroad hold controlling stakes in local brokerages.
Foreign companies can currently hold majority stakes, but it has to be wholly owned. Put simply, they can either own up to 49 per cent or only 100 per cent.
Vietnam’s fund management sector has also witnessed deals with two new transactions this week. They are along with several other private deals.
DEALSTREETASIA’s Vietnam dealbook takes stock as the action around the country this week.
<h2>Foreign investors to hold more than half in securities&#8217; firms</h2>
 Vietnamese authorities are considering allowing foreign securities&#8217; investment companies to hold more than half in its domestic brokerages. Under current legislation, technically called &#8211; Decree 58/2012/ND-CP &#8211; foreign investors have two options of ownership, up to 49 per cent or 100 per cent in securities companies in Vietnam.
However, the State Securities Commission has released a draft document that might open a door for foreign organisations to hold 51 per cent or more in a securities firm.
Currently, there are two wholly foreign owned securities companies in the country, <a href="http://www.maybank-ke.com.sg/">Maybank Kim Eng</a> from Singapore and <a href="http://www.kisvn.vn/kisportal/?l=2">KIS Vietnam Securities Corp</a> from South Korea.
<h2>Hung Viet Capital acquires 13pct in HAGL Land</h2>
<a href="http://www.hvcapital.vn/">Hung Viet Capital</a> has announced it has bought 29 million HAGL Land shares to hold a 12.66 per cent stake in the company.
In the recently released financial report for the fourth quarter last year, Hung Viet Capital said it had entrusted VND1.1 trillion from a domestic investor to buy the shares. The trustee was not disclosed. The investment was the fund management company’s only entrustment in the fourth quarter last year.
HAGL Land, a subsidiary of the well-known blue chip <a href="http://www.hagl.com.vn/">Hoang Anh Gia Lai Group</a>, had planned to issue a private placement of 80 million shares, expecting to earn more than VND3.2 trillion. After the aforementioned transaction, the mother company reduced its ownership in HAGL Land from 96.2 per cent to 85.7 per cent.
Hung Viet Capital was set up in 2008 with a charter capital of merely VND25 billion. Its total asset as of last year reached VND25.8 billion. Among the four individuals who are holding stakes in the fund management company, Mai Huu Tin is chairman of multi-sector investment firm U&amp;I Group and vice chairman of <a href="https://kienlongbank.com/">Kien Long Bank</a>.
<h2>Stake transfers takes place in various companies</h2>
FIT Investment Corp has bought nearly 1.6 million shares of Cuu Long Pharmaceutical to hold 16.13 per cent in the HCM City Stock Exchange listed firm. Cuu Long Pharmaceutical recorded a profit of VND10.3 billion in the third quarter last year, a 17 per cent increase y-o-y.
AFC Umbrella Fund increased its stake in Hai Duong Pump Manufacturing JSC (CTB) from 5.92 per cent to 7.5 per cent after buying 43,551 CTB shares from its additional offering. The Hai Duong-based company has continuously seen growth in profit since 2012, reaching VND9.4 billion ($441,300) in 2014.
Meanwhile, timber company Long Hung Co Ltd and Long Hiep JSC are selling a combined stake of 5 per cent in HAI Agrochem. Notably, Mai Tri Dung, who is entitled as a board member of HAI Agrochem, is chairman of Long Hung Co Ltd and CEO of Long Hiep JSC.
<h2>TPBank offers $400m aircraft purchase loan to VIetJet</h2>
Vietnam’s low-cost airline <a href="http://www.vietjetair.com/Sites/Web/en-US/Home">VietJet</a> and <a href="https://tpb.vn/english/">TPBank</a> on Thursday announced their aircraft purchase credit agreement for the period of 2015-20. TPBank will arrange $400 million for the airline to continue buying planes from the European consortium Airbus.
The bustling, complex airline finance industry has been for long dominated by international financial institutions. That Vietnamese banks have managed to get a foothold in this sector indicates they have gained stronger capacity to compete with foreign players.
In 2014, TPBank’s breakthroughs included over VND50 trillion ($2.35 billion) in total assets, 50 per cent credit growth and a non-performing loan ratio of just 1 per cent. Meanwhile, VietJet is betting on its young but most fuel-efficient fleet in the country. VietJet is operating 20 Airbus aircrafts, and is expected to add 9-10 units each year. On January 31, the private airline will welcome its 10 millionth passenger.
<h2> DongA Capital suspended</h2>
The State Securities Commission has announced that it has suspended operations of <a href="http://www.dongacapital.vn/">DongA Capital</a>, the fund management arm of DongA Securities Company, for a year-long period beginning January 23.
Handling securities investment portfolios, DongA Capital had submitted for suspension permission due to the disqualification of capital and personnel. The fund’s equity and total asset as of June 30 last year were reported at VND18.96 billion and VND18.58 billion respectively, much lower than its charter capital is VND30 billion. Simultaneously, it has an accumulated loss of VND12.34 billion. The fund no longer has any entrusted investment arrangement.
Also as of June 30, the number of DongA Capital employee reduced to just five people.
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Vietnam Dealbook: Hung Viet Capital, FIT, AFC Umbrella Fund

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