Vietnam’s DongA Bank Seeks Foreign Investors

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Mar. 17 – Vietnam’s DongA Commercial Joint Stock Bank is seeking more foreign investors to participate in its capital raising program. The bank announced on Wednesday that it plans to sell 15 percent of its stake to foreign investors during the fourth quarter of 2011, but did not name any possible buyers.

As DongA looks to raise another VND1.5 trillion in 2011 to add to its current VND4.5 trillion of registered capital, it hopes the VND900 billion-revenue from its share sale to foreign buyers will help realize the fund-raising goal.

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The bank is also targeting a more ambitious goal in its profit and asset increase. In 2011, it aims a VND858 billion profit growth from last year to VND1.3 trillion, and expects its total assets to amount to VND70 trillion, a 27 percent rise from a year earlier.

DongA releases no information on any listing plans in its latest announcement as it failed to realize its plan to get listed on the Ho Chi Minh Stock Exchange by the end of last year.

Foreign investors are growing to become important players in Vietnam’s capital market. Nasdaq statistics show that during the first half of March, foreign investors were net buyers of VND5.05 billion of stocks on the Ho Chi Minh Stock Exchange.