3:59:23 PM | 24/10/2008
Many foreign funds in Vietnam currently can not withdraw their capital invested in local private enterprises which have delayed their listings in the stock market due to bad situation, the Saigon Marketing newspaper said.
“We can not take back money from our stake investment, so we have to wait more time,” director of a fund complained.
Many funds had previously bought stakes in pre-IPO companies during a period of 2-3 years on a hope that they can sell the stake at higher prices after the enterprises list on bourse.
However, the plunging stock market in Vietnam since the start of the year has depressed enterprises seeking for listings. Many had delayed the process for several times.
According to LCF Rothschild Emerging Market Funds Research in September, the net asset value (NAV) of foreign investment funds in Vietnam has decreased by average 39.5 per cent since the early this year as share prices kept decreasing. The VN-index even hit the lowest level so far this year, at 360.43 on October 23.
Foreign investors have also sought to sell out their bonds in Vietnam. From September 1 to October 16, they were net sellers of VND9 trillion of bonds on HASTC and VND291 billion on HOSE. People stirred up concern that foreign funds were selling shares and bonds for fund to buy back strongly depreciating assets in the U.S. (Saigon Marketing,
www.vneconomy.vn) )
Vietnamese
