Ban Viet Securities Fund Plans Full Share Divestment

Ban Viet Investment Management Company (VCAM), chaired by Ms. Nguyen Thanh Phuong, has registered to sell all 580,000 Vietcap shares to restructure its investment portfolio. The transaction is expected to be conducted via order matching from mid-this month, according to VCAM. Ms. Nguyen Thanh Phuong serves as Chairwoman of the Board of Directors at both VCAM and Vietcap. She personally holds nearly 31 million Vietcap shares, equivalent to 2.67% of Vietcap's capital. The registration for divestment by VCAM comes shortly after the company announced its first-half financial report, showing a post-tax loss of over VND 15 billion, nearly three times higher than the same period last year. Founded in 2006, VCAM currently manages three investment funds: Ban Viet Balanced Fund, Ban Viet Bond Fund, and Ban Viet Discovery Fund. The company has total assets of VND 225 billion, with its investment in Vietcap having a book value of nearly VND 15 billion. Vietcap's stock price fell more than 2% on the morning of the announcement, dropping below VND 21,000. The stock has lost approximately 17% since the beginning of the year. Based on the current price, VCAM could collect over VND 12 billion if the divestment is successful. On the other hand, Vietcap reported revenue of nearly VND 2,600 billion and a post-tax profit of over VND 590 billion in the first half, both achieving double-digit growth compared to the same period last year. However, these results are still a considerable distance from the company's revenue target of VND 6,525 billion and pre-tax profit target of VND 2,300 billion. This plan represents the highest ambition in the company's nearly 20 years of operation. Commenting on the stock market outlook for this year, Ms. Nguyen Thanh Phuong believes investors are responding positively to macroeconomic growth information. She forecasts that the stock market could maintain its upward trend, driven by the domestic economy's inherent strength and the return of foreign capital as Vietnam is upgraded from a frontier to a secondary emerging market. In March, Ms. Phuong stated that the determination to stabilize the macroeconomy and reduce corporate dependence on bank loans would create opportunities for the capital market (stocks and bonds) to develop. Additionally, efforts by regulatory bodies to upgrade the stock market, establish an international financial center, and concretize tax regulations for foreign investors would also attract more foreign capital in the long term.