VCN- On September 20, 2017, Minister Dinh Tien Dung had a meeting with Mr. Timothy Franz Geithner- former United States Secretary of Treasury, President of Warburg Pincus Investment Group and the visiting delegation to learn about financial markets and investment opportunities in Vietnam, especially in commercial banks as well as the deployment of Warburg Pincus’ cooperation strategy with VinaCapital in Vietnam.
|Minister Dinh Tien Dung: committed to issue many policies to attract Japanese investors|
|A challenging and successful year of Finance sector|
|Securities market provides important capital source|
|Overview of the meeting|
At the meeting, Minister Dinh Tien Dung highly appreciated the investments of the Group in Vietnam such as share acquisition of retail company under VinGroup or establishment of a joint venture company with Vina Capital operating in hotel investment and management in 2016. These investments contributed to the economic development of Vietnam in the recent years.
Sharing about the financial market of Vietnam, the Minister said the Government focused on implementing the plan on economic restructuring and regulation completing to synchronously develop market factors, in which continued to develop the financial market and effectively enhance the performance of the monetary market, credit, banking service, debt trading, securities, bond, and insurance.
In addition, in order to promote the restructuring of State-owned enterprises, including the restructuring of the financial sector, the Government issued many breakthrough mechanisms and policies to minimize losses and ensure the benefit of the State. The Government is implementing withdrawal of state capital in unnecessary enterprises. The arrangement and equitization contributed to the development of the capital market and securities market through the listing and issuing of shares to equitized SOEs.
Regarding the orientation for development of financial services in the coming time, Minister Dinh Tien Dung confirmed that Vietnam would focus on developing the revised law on securities, in which focused on raising foreign ownership ratio in public companies and attracting foreign and domestic capital by policies on raising the rank of securities markets. It also studied to revise Law on Insurance Business to expand scope and associate financial services in accordance with international economic integration commitments.
For foreign investors, the Government determined that the investment capital attraction was a key task and had great significance in the socio-economic development of the country. In the past times, the Government paid attention and completed the mechanism of equitization toward facilitating foreign investors to invest and purchase shares. In addition, the equitization must ensure transparency and publicity. When investors purchased shares, they must be fully accessed to information about enterprises. The Government always encouraged foreign investors participating in capital and bond markets.
Mr. Timothy Franz Geithner said that Warburg Pincus Investment Group was established in 1966 with total assets of US$ 44 billion. Currently, the Group managed 15 private equity funds and invested in 780 companies in 40 countries around the world with total investment capital more than US $ 60 billion. Warburg Pincus was a multinational group having wide-ranged experience in various areas such retail, industrial production, energy, financial services, medical, technology, communication and real estate and etc.
|Finance Ministry wants 1% tax on transfer price in M&A deals
In an effort to prevent involved parties from evading tax by inaccurately declaring profits from M A ...
In 2013, Warburg Pincus spent US$ 200 million to acquire a 20% stake in Vincom Retail - one of the largest investments in Vietnam. In 2015, this Group invested more US$ 100 million to this Vingroup’s company. In 2016, Warburg Pincus and VinaCapital established a joint venture specializing in hotel investment and management with valued at US $ 300 million. One of the largest investments of this joint venture was 100% stake in Serenity Holding Hotel. Therefore, Warburg Pincus paid attention and sought for opportunities to invest long-term business in Vietnam. Mr.Timothy President Franz Geithner looked forward to the support and recommendations from Ministry of Finance concerning the investment environment in Vietnam.
Ending the meeting, Minister Dinh Tien Dung expressed the Ministry’s willingness to assist enterprises and foreign investors to create a healthy business environment and facilitate enterprises for investment and business in Vietnam.
By Hong Van/Ngoc Loan