The State Securities Commission (SSC) has okayed the plan to permit the national insurer Bao Viet to establish its fund management arm, which is the fifth of its kind in Vietnam to date.
Accordingly, Bao Viet Fund Management Company (BVFM) will be set up with a registered capital of VND25 billion (US$1.58 million), which will establish and operate investment funds, along with providing financial and securities investment consultation.
The Ministry of Finance has recently also issued a decision, regulating that a fund management firm, which affiliates to an insurance firm, will be allowed to manage funds and assets entrusted by its mother company.
At present, Bao Viet’s Investment Center are managing around VND10 trillion (US$633 million) in Government bonds and profitable enterprises. Bao Viet will authorize the new fund company to manage the capital.
Before Bao Viet Fund Management, the SSC has granted licence for four other companies, including the VietFund Management, Thanh Viet Management, Prudential Vietnam Fund Management, and Manulife Vietnam Fund Management.
Two large State-owned banks, including the Bank for Foreign Trade of Vietnam (Vietcombank) and Bank for Investment and Development of Vietnam (BIDV) are seeking approval from the SSC.
Vietcapital Management Company of Vietcombank is expected to have a registered capital of VND16 billion (US$1 million), of which Vietcombank will contribute 51 per cent and a foreign partner the remaining 49 per cent.
Vietcombank general director Vu Viet Ngoan said the new business went in line with the bank’s strategic plan to become a strong financial group.
“This will help us to diversify our investment activities and open a channel for businesses with strong financial potential to invest into the economy,” Ngoan said.
Regarding BIDV, the bank plans to joint venture with an American partner to set up the fund management company, which will invest in securities in both listed and non-listed companies, real estate and natural resource exploitation. Contracts are underway with the potential partners for raising a fund of around US$200 million.
According to the SSC, investment institutions are holding 1 per cent of total investment accounts in Vietnam. Securities Investment, VNS
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