The Ho Chi Minh City Branch of the Vietnam Chamber of Commerce and Industry (VCCI-HCM) in collaboration with the U.S. Consulate General organised a seminar on “Methods and skills to seek and access to capital sources." Attending businesses shared experiences in approaching new capital sources.
Mr Vo Tan Thanh, Director of VCCI-HCM, said: There is a dire need that businesses need more capital in the last five months of 2012 because they need money to survive on. Companies must learn how to access lending sources effectively to continue production and business activities.
Addressing at the workshop, Dr Robert D. Hisrich emphasised that to access different capital sources, Vietnamese businesses must know how to make their products and services better than competitors when they are formed. Does a company make a profit from the start? To have money for development investment, businesses can access bank loans, and seek from private equity, hedge ventures, and equity public offering.
He said that when they apply for credit loans, banks will consider their operating history and development prospects in their industries. Banks will also look into leaderships and business aspirations. “I have a friend setting up four very successful pharmaceutical companies. He told me that he used other capital as carefully as his. Therefore, my friend gained the trust of investors as well as credit institutions.
He added that companies can raise fund from private equity. In the US, individual investors spend as much as the total amount of money kept by funds. Individuals are interested in investing in start-up companies operating in new, attractive and profitable industries. A venture fund usually looks into moneymaking methods, strengths, attributes of goods, markets and growth prospects.
Answering a question about intangible asset determination from an representative in HCM City, Hisrich said: “Intangible assets will be determined by assessing skills and levels of leaders; professional knowledge; customer support, efforts to promote services and goods; the introduction of new services; corporate information control; and employees’ knowledge about the company.”
Dr Hisrich said a corporate valuation is based on qualitative and quantitative measurements. If quantitative valuation is based on a general formula, valuation is based on differences of companies like customer tastes for products, growth pace (3-4 years since inception), profit and development outlook.
When a company is acquired by organisations, companies and individuals investors, it will lose control power. He said this matter is not very important because “You love to get 20 percent of the total investment of US$100 million or 50 percent of a US$10 million business.” Dr. Hisrich said: “I don’t care about controlling power.”
Ha Linh
Vietnamese
