Managing Vietnam Fund

True Friend Reaping Benefits from Vietnam's economic opportunities

Korea Investment and Securities Co. said President Ryu Sang-ho visited Vietnamese Senior Deputy Premier for Life Nguyen Sinh Hung at his residence in Hanoi and discussed various matters that KISC plans to engage in Vietnam. Some of the plans are to set up a joint-venture securities firm, investment in harbor development projects and oil refining projects and other SOC projects in the Southeast Asian country.
The company said President Ryu expressed his praise on Vietnam's rapid economic growth led by senior deputy premier Hung and explained to him that KISC was the first Korean financial firm that launched the Vietnam investment fund that began successful Korean investment in Vietnam, along with its contribution to the exchange of personnel and social service between Korea and Vietnam.
KISC President Ryu told the senior deputy premier that the joint-venture securities firm being promoted by KISC will contribute to the development of Vietnamese capital market and will participate in Vietnam's SOC projects. KISC's involvement in these SOC projects include building harbors and oil refinery plants as a project financing firm and requested the support of the Vietnamese government.
Senior Deputy Premier Hung told President Ryu that KISC has made a large contribution to the development of Vietnam's economy and the capital market. He said the Vietnamese government has a great interest in the SOC infrastructure projects and will study the proposals made by KISC and would not spare efforts to support the projects.
Hung took over the current position in May of last year after having served as the finance minister for a long time and is being touted as a future leader of the country. He was responsible for the development of Vietnam's stock market and he is known as a prominent friend of Korea.
KISC has been managing the installment-type Worldwide Vietnam Fund since its set up November, 2006 in the amount of 245.1 billion won.
Vietnam launched reform and liberalization of its economy, society and politics including its capital market since 1986. The country began to develop its infrastructure to help industrialize and modernize itself by 2020 along with the promotion of foreign investment-friendly government policies including the reform of foreign investment climate and reform of its state-owned companies.
Vietnam has been recording the economic growth rate second to China's in recent years thanks to rising foreign investment and technologies matching its abundant natural resources and a good-quality workforce.
Vietnam has been regarded as the last emerging market in Asia and therefore, it would be a wide move to invest in the Southeast Asian country early to maximize the return.
Vietnam's capital market is likely to sustain its growth continuously in the future due to its joining the World Trade Organization and continuous privatization of it's state-run companies.
The capitalization of the securities market in Ho Chi Minh city has expanded to 3.4 trillion won from 500 billion won recently and was likely to have expanded to 5 trillion won, which only comes to 8.2 percent of GDP, far lower than other countries such as the Philippines (117 percent), Malaysia (141 percent), Thailand (67 percent), and Indonesia (31 percent). Many foreign investors have been drawn to the country, showing that its capital market will grow rapidly with the influx of foreign investment. nw

President Ryu Sang-ho of Korea Investment & Securities Co., left, shakes hands with Senior Deputy Premier of Vietnam Nguyen Sinh Hung at his residence in Hanoi on July 4.