The Vietnamese investment ecosystem has a new retailer from South Korea, the Shinsegae Corporation-led Emart. Meanwhile, another Vietnamese commercial bank, Sacombank, plans to develop its current branch in Laos, into a fully private own bank. Tuesday marked the most successful initial public offer (Hanoi Tourist Service Company), since earlier this year.
Skorea’s Emart opens supermarket in Ho Chi Minh City
South Korea’s biggest discount retailer Emart has confirmed its presence in the Vietnamese market by opening its first $60 million supermarket in Ho Chi Minh City. The company received its investment license in October, last year and construction permit in February.
The supermarket aims at providing low-cost, one-stop shopping for household goods, food and clothing, especially products originating from South Korea, once it is completed.
During the Emart Partners’ Day on Tuesday, the Korean retailer introduced opportunities for Vietnamese suppliers to join its supply chain in its native country, in Vietnam and China.
Established in 1993, Emart has developed 153 shopping centres in South Korea and 10 others in China, which contributed to its total sales as of 2014 of $13.2 billion.
In 2006, Emart acquired Walmart South Korea and gained the number one position in the local retail market, as stated by the company during Tuesday meeting.
It also revealed that it is planning another supermarket in a southern city of Vietnam.
Sacombank to open subsidiary bank in Laos
Sacombank will establish a subsidiary in Laos within the next two years, as approved by the State Bank of Vietnam. Accordingly, the Vietnamese central bank has agreed to allow the commercial bank to transform its current branch in the neighboring country, into a Sacombank-owned subsidiary.
The charter capital of the new bank is $39 million.
Laos authorities have also approved the plan of the first Vietnamese investor in the country’s banking industry, said Sacombank CEO Phan Huy Khang.
Also read: Vietnamese banks expand in Indochina
Hanoi Toserco IPO set records
The Hanoi Tourist Service Company (Hanoi Toserco) had a successful initial public offer (IPO) Tuesday morning on the Hanoi Stock Exchange. With nearly 20.7 million shares sold out, the company collected VND299.2 billion ($13.9 million).
By earning the proceeds which are 45 per cent beyond the reference price (VND10,000), Hanoi Toserco IPO has created a record of sorts for this year, the exchange said.
The IPO attracted 18 investors, who registered to buy a volume (another record high) that was four times of the shares offered. Two of the investors wished to purchase 100 per cent of the 20.7 shares batch.
Concluding the session, nine individual investors bought the shares at the average price of VND14,469 ($0.67), while the highest bidding price was VND21,500 ($1).
After the IPO, the state holding stands at 45 per cent.