Recently, one of the most successful services of the Saigon Securities Incorporation (SSI) is financial consultancy, and in particular, State-owned enterprise equitisation consultancy. SSI has gradually created a difference for its consultancy services.
Accordingly, when providing equitisation consultancy services, SSI provides consultancy not only about procedures and methods, but also financial and capital market services for enterprises after their equitisation. In particular, SSI made a significant contribution to auctioning shares of such major electric power plants as the Vinh Son-Song Hinh hydro-electric power plant and the Pha Lai thermo-electric power plant. SSI underwrote the issue of VND 240 billion shares of the Cable and Telecommunication Material Company in the stock market. This was the biggest underwriting in the stock market in 2005.
The company’s achievements resulted from its efforts to invest in human resources development by recruiting qualified and experienced financial and economic analysts, who are trained in famous Vietnamese and foreign universities. In addition, SSI has dynamic and flexible mechanisms for creating attractive financial products for investors.
The most important landmark of SSI was between late 2003 and early 2004, when the Vietnamese stock market faced many difficulties and the VN Index reached only 130 points. Not discouraged by the difficulties in the stock market, SSI decided to promote its investment in human resources development and capability building to wait for new opportunities and challenges. By 2005, total value of securities on the Vietnamese stock market had reached around VND 40, 000 billion, occupying one per cent of Vietnam’s GDP. Of the figure, VND 4,500 billion came from stocks; VND 300 billion, from certificates of investment funds, and around VND 35,000 billion, from the governmental and local bonds. SSI now has 31,316 accounts on the stock markets, or 7,000 accounts more than 2004. It has established 14 securities companies and six fund management companies with 32 stocks listed on the Ho Chi Minh City Securities Trading Centre and nine stocks listed on the Hanoi Securities Trading Centre. SSI’s profits increased from VND 108 million in 2003 to VND 13 billion in 2004 and VND 27 billion in 2005. The incorporation is to increase its capital from VND 52 billion to 100 billion, and then 200 billion in 2006, perfecting its existing services and developing into internationally standardised investment bank.
SSI is developing its activities, such as securities brokerage, investment consultancy and capital management, financial consultancy, capital market services and issue underwriting. With its high quality, SSI’s investment management service has attracted a certain number of potential investors. At the same time, securities brokerage service has seen rapid development. SSI not only provides brokerage services but also helps customers develop investment norms and advises customers to buy stocks suitable with their investment norms for maximising their profits. At present, the number of accounts opened at SSI accounts for around 20 per cent of the market and around 70 per cent of foreign investors in the Vietnamese stock market have their accounts opened at SSI. This is evidence for the incorporation’s excellent services. Apart from developing flexible business strategies, suitable with the development of the market, SSI needs further synchronous management from the Ministry of Finance and the State Securities Commission to facilitate its operation.
M.N
Vietnamese
