Drug firms spend huge sums to drive growth
After making an entry into the automobile manufacturing industry, Vingroup, the country’s leading property company, has set its sights on the US$5.3 billion pharmaceutical sector.
Many other companies too have opted to go down the equity path to raise funds rather than borrow from banks. Intriguingly, many of them have sold their stakes to strategic partners at several times higher than the market price.
The Ministry of Industry and Trade confirms this saying more than 160 franchises have come to Việt Nam so far. But the movement in the reverse direction has been very modest.
The global price of oil has increased from US$60 per barrel early this year to $70 now, and the uptrend is forecast to continue.
Uber’s withdrawal from the Asian market is expected to redraw the ride-hailing market including in Việt Nam.
The central bank has instructed commercial banks to maintain credit growth in these sectors within safe limits.
Since last year there has been a churn in the banking sector with some foreign investors selling their stakes in local banks and others buying in.
After stopping car exports to Việt Nam for more than a month, Japanese auto giant Honda Motor suddenly decided to import around 2,000 vehicles from Thailand in early March.
Vietnam Oil and Gas Group (Petro Vietnam or PVN) plans to reduce its ownership of Petro Vietnam Gas Joint Stock Company (PV Gas) from the current 97 per cent to 65 per cent.
Last year saw a lot of merger and acquisition (M&A) activities in the Vietnamese property sector, with transactions totalling US$1.5 billion and the participation of many major foreign players.