Vietnam Oppurtunity fund...trading on AIM in US Dollars. From Annual report in Dec 2004

"The economy has continued its impressive run of stable high growth, second only to that of China. This growth is now supported by three legs - most importantly the domestic private sector, but now also increasingly exports and FDI. The domestic private sector expanded 21.8 percent for the first half of 2004, exports grew by 16.9 percent and FDI grew 11.4 percent and is now higher than China as a percentage of GDP. It is encouraging that Vietnam is starting to be seen as a serious investment destination.

Government reforms have continued their slow but steady trajectory, most notably in pushing forward with the privatization effort. The privatization of Vinamilk and Bao Minh insurance heralded the beginning of the final phase of
privatization, with the largest companies in the key sectors being sold down.

In terms of investment opportunities the Company has not been opportunity
constrained. It is encouraging to see Vietnamese companies performing well while valuations are among the lowest in the region and dividend yields among the highest. In fact, the average ROEs of Vietnam's listed companies are almost four times those of average Chinese listed companies. Furthermore, the fledgling real estate market is showing signs of growth as mortgages allow the average citizen to now more easily buy their own homes"

IMHO Vietnam is one of the last South East Asian Tigers that has yet to roar! And when it does it could be huge. Obviously this is a long term investment and not for the risk-averse...but wouldnt it have been nice to get into China when it was just beginning to stir? Well in my opinion this is now possible with Vietnam, and VOF is a great way of having direct access to this very interesting and expanding market! DYOR

Any thoughts/opinions?

Malls hit a privatizing Vietnam

Economic reforms have yielded an annual growth rate of more than 7 percent.

By Donald Kirk | Correspondent of The Christian Science Monitor

HANOI, VIETNAM Dong Minh Ha is busy at the cash register of the newly opened Levi's store here, one of a row of glittering shops displaying products from Givenchy perfumes to Adidas sneakers in Vincom City Towers, a sparkling mall looming above a maze of streets here.
"I think every young person likes these," says Miss Ha, pointing to jeans at prices - marked in US dollars - from $70 to $129. "Many people come here to buy. The standard of living is higher."

In a country where the average per-capita income is $450 a year, a newly well-to-do elite is emerging as the economy races ahead at an average annual growth rate of more than 7 percent.

"The place is booming," says Jonathan Pincus, an economist for the UN Development Program here. He notes that it's one of the fastest-growing economies in Asia.

The boom reflects what business people and analysts say is a carefully planned reversal in policies since the first decade or so of economic hard times after the final defeat of the US-backed Saigon government on April 30, 1975.

The UN team here dates the economic surge from the onset of reforms known as "doi moi" - renovation - in the late 1980s.

UN and World Bank economists worry that the wealthiest Vietnamese are seeing their incomes grow most rapidly. But, they say, most of the country's 83 million people are sharing in economic success.

"The incidence of recorded poverty has fallen sharply and living standards are now more than three times higher than they were 20 years ago," says a UN report. It adds that Vietnam "is increasingly integrated into the global economy."

Raymond Mallon, a consultant for the World Bank, recalls "abject poverty" in 1988 as the economy hovered on the brink of disaster. One critical change at the time was designating the household, not the commune, as the basic economic unit, encouraging families and individuals in small and medium enterprises.

"You don't see much poverty now," says Mr. Mallon. "The changes are fairly dramatic."

Although Vietnam's gross domestic product of $40 billion last year was still only half that of the Philippines, an economically troubled country with approximately the same population, the country shows remarkable promise in areas that are expected to keep growing for years.

From such labor-intensive industries as footwear and clothing, Vietnam is moving into electronics. Crude oil, most of which was imported during and before the war, is now drilled offshore and ranks as the country's biggest export, followed by textiles, shoes, fish products, rice, coffee, and rubber.

Vietnam's search for foreign trade and investment is also drawing international names on a once-unimaginable scale.

"Over the past year or two, more and more people are putting up factories," says Sesto Vecchi, a US lawyer who has practiced here for the past 12 years, with Singapore, Korea, and Taiwan leading the way.

Mr. Vecchi notes, however, that while the government has joined the Association of Southeast Asian Nations and the Asian Free Trade Area, and has formed bilateral trade agreements with a number of countries, including the US, it will have to reform further to join the World Trade Organization. "Whether they like it or not, they've got to accelerate change in a lot of laws," he says.

Jeff Puchalski, chairman of the American Chamber of Commerce in Ho Chi Minh City, says membership in the WTO "is still achievable." As general manager of a company that owns three luxury hotels and two golf courses, he adds, "I don't find [doing business here] as hard as it used to be; a lot of rules are changing."

The banking system is viewed as a weak link in the drive for lasting economic success. The government now is preparing to sell off some of its banks to private commercial interests.

"This is still a socialist-oriented market economy," with 40 percent of the economy in government hands, says a foreign financial analyst. Corruption is also a problem. "A lot of government officials in Hanoi are getting richer faster because of land deals," says one UN official.

But an increasingly consumer-driven economy is a lure for such brands as Levi's. The Vietnamese firm that got the franchise plans to open six more Levi's shops throughout the country.

"Everybody can do business," says Hoang Van Cung, an antique dealer in Saigon. "There are lots of poor people, but things are better than 10 years ago."

Mr. Cung hid out for nine years after 1975 because of his work as a photographer for United Press International during the war. He was caught and sent to a reeducation camp until his release in 1992.

"It was horrible," he says. "Many people died there. Now it's better. They want to open up. I am no longer afraid."

Standard Chartered takes stake in

Asia Commercial Bank, Vietnam

International bank to provide technical assistance to Vietnamese bank

Friday 17 June 2005, Ho Chi Minh City - Standard Chartered and Asia Commercial
Bank, Vietnam ('ACB') announced today that Standard Chartered has acquired a
stake in ACB, one of the leading joint stock banks in the country. Standard
Chartered is the first foreign bank to be allowed by the Government and the
State Bank of Vietnam to purchase a stake in a domestic financial institution.

As part of the agreement, Standard Chartered is introducing fresh capital into
the bank such that post-acquisition, it will own 8.56 per cent of the enlarged
capital of ACB. The total investment will be approximately US$22 million, in
cash. In addition Standard Chartered will provide technical assistance in the
areas of risk management, consumer banking, brand and distribution.

Commenting on the partnership, Mervyn Davies Group Chief Executive of Standard
Chartered said, 'With a population of over 80 million people, Vietnam is one of
the fastest growing economies in Asia with huge potential in consumer banking.
ACB is one of the premier banks in the Country, and its growth and development
will benefit both the consumers and the industry in Vietnam.'

'ACB is taking the lead to be international standards in risk and compliance
management, sales and marketing, human resource management, as well as product
development, brand and distribution. We believe our global expertise and
experience in Asia will provide a strong complement to support these
objectives.'

Mr Tran Mong Hung, Chairman of Asia Commercial Bank said, 'We are delighted to
have Standard Chartered as our partner. We intend to leverage strengths of
Standard Chartered to drive the growth of ACB for the benefit of all our
stakeholders. We will work with Standard Chartered to enhance our product range,
services and delivery standards to become the best bank in our country.'



-END-

i wonder what sort of natural rescources this country has?

PCF Last week issues an RNS stating that they had been approached in the early stages of a bid. The current valuation is way to low and is about to rocket with the full bid any day. The company is moving back into profit and several broker/tipster recommended it as a buy prior to the bid news

On top of this there is a rumour of a second bidder in the wings going about

This will reach new highs this week, now is the time to get in before it heads toward 100p, current sp is 32p

IMHO

Petravla...they are quiet a few oil exploration sites along the eastern coast of vietnam, with some successes already, and rumours of more big finds to come! And for an energy hungry country this will come in very handy for the future.

Bush Vows Increased Ties With Vietnam
Protests Mark Leader's Visit to White House

By Jim VandeHei
Washington Post Staff Writer
Wednesday, June 22, 2005; Page A01

Thirty years after the end of a war that divided the United States and ravaged his own country, Vietnamese Prime Minister Phan Van Khai yesterday became the first leader of his nation to visit the White House and won promises from President Bush to bolster economic and military ties between the former enemies.

With hundreds of Vietnam War veterans and pro-democracy protesters rallying outside the White House gates, Bush announced plans to visit Vietnam next year and support Vietnam's admission to the World Trade Organization, a big victory for Khai.

"This event, in itself, shows that Vietnam-U.S. relations have in fact entered a new stage of development," said Khai, the highest-ranking Vietnamese official to visit the White House since the Communists won the war in 1975. "I'm fully confident that my visit to America this time will help uplift the relationship between our two countries to a new height."

Disagreements remain. In a private meeting, Bush pushed Khai to do more to promote human rights and religious freedom in a country accused of stifling dissenting voices and people of faith, White House spokesman Scott McClellan said. At a joint appearance with Bush, Khai attributed the differences to "the different conditions that we have, the different histories and cultures."

The protesters offered a much harsher assessment of Khai's Vietnam, waving signs saying, "Stop Religious Repression." In a full-page ad that ran in yesterday's Washington Post, a group called a Call for Democracy accused the ruling government of adhering to an "obsolescent Communist ideology" that smothers freedom.

Bush, in brief remarks to reporters, said the two leaders signed a "landmark agreement that will make it easier for people to worship freely in Vietnam." The president, whose stateside service in the National Guard during the Vietnam War was an issue in the 2004 election, praised Khai for his government's effort to help find the remains of more than 520 U.S. soldiers who were killed in Vietnam and never found.

"It's very comforting to many families here in America to understand that the government is providing information to help close a sad chapter in their lives," Bush said. Since 1988, Vietnam has helped identify the remains of about 500 U.S. service members missing since the war. More than 58,000 Americans died in Vietnam.

The bitter passions once stoked by Vietnam have faded, as presidents and members of Congress have embraced trade and closer military relations. In a morning appearance on NBC's "Today" show, Sen. John McCain (R-Ariz.), a prisoner of war for nearly six years, struck an ambivalent note -- praising Vietnam's economic progress but remaining skeptical about Vietnam's treatment of its own people. "They have taken steps," he said, but "we expect progress toward democratic freedom, human rights, elections and all the trappings of democracy."

Rep. Christopher H. Smith (R-N.J.) told the Associated Press he also has doubts. He called Khai a "master of deception" and said he would hold hearings to determine whether the agreement on religious freedom was being implemented.

Khai, whose tour of the United States took him from Microsoft Corp. Chairman Bill Gates's office in Redmond, Wash., to the White House and later the Pentagon for talks with Defense Secretary Donald H. Rumsfeld, was on a mission to promote Vietnam's fast-growing economy and desire to forge closer ties with the United States. "We have a population of 80 million people, which means a huge market for American businesses," Khai said.

A decade after diplomatic ties were restored by President Bill Clinton, U.S.-Vietnam trade is booming to the tune of $6.4 billion in 2004. Vietnam is striving to join the WTO at the next ministerial meeting, in December in Hong Kong.

Bush said he will visit Vietnam in 2006 when it hosts the Asia-Pacific Economic Cooperation forum's annual summit, where world trade will be high on the agenda. In a nod to Bush, Khai signaled in advance of yesterday's meeting plans to provide more intelligence on possible terrorists and send military officers to the United States for training. In an interview with The Washington Post last week, Khai, 71, said intelligence-sharing efforts would include the creation of new positions at the U.S. Embassy in Hanoi and the Vietnamese Embassy in Washington.

Vietnam was on Bush's agenda at a time when some voices in both parties are warning that the lessons of the war there remain relevant elsewhere -- in Iraq. McCain and others have said one lesson of Vietnam is to never lose the support of the public by making the situation sound better than it is during armed conflict.

Great article in The Business newspaper on Sunday about the Vietnamese Pemiers, Phan Van Khai, visit to America. Here are a few quotes from the article..."Michael Marine, the American ambassador to Vietnam, sung the former enemy's praises in a recent speech saying "Vietnam represents arguably the most dynamic market in South-east Asia today, second only to China in all of Asia in terms of economic growth rates over the past ten years"...

"While in Washington State, Phan also stopped at BEoing's plant outside Seattle. Back on the East coast he visited Harvard and MIT universities and he took part in an American ritual that would have Ho Spining in his grave; he rang the opening bell at the New York Stock Echange on Wall Street."

It is quiet amazing that thirty years after the end of the Vietnam war, and 3 million Vietnamese lives later, the Premier is so openly embracing Capitalism...Vietnam and the Vietnam Oppurtunity Fund, offer great growth prospects for the future...IMO

Interesting. VOF is doing very well at the moment.

VOF doing amazing things now the share price has skyrocketed since christmas.
Lots of press suggesting emerging markets are the place to put your money but vietnam is not without risk.
Still an interesting put if you feel lucky.

Fair point, I think 8.5 growth pa is gd and the economy should do better, working with investors in Asia, I know this country has a lot of scope for growth. Management is quite good, check out thier mgmt and also investments if anyone is really interested.
NAV update should be interesting but those who got in early in Vietnam are laughing

well it looks like the wheels came off today.
Just shows how one can get ones fingeres burnt.

I have just come back from a holiday in Vietnam and the tourist industry is just strarting to motor. Long way to go on though!!!

Hope you had a good holiday. Its a cheap entry level to expose yourself to Vietnam and managment has been around and their investments appear well thought out, they don't overpay for assets, so you never know, if you take a 3-6month view, may double, I hope!

I was in Vietnam 2 years ago and it is like a bubble waiting to burst. I have been watching Vinaland VNL steadily go up and am delighted to have found your thread. Let's see where it settles and then I am going to buy some.

Investor sentiment seemed to have turned against them and the placing by VNL at a discount probably hasn't helped either.
Early knocks are good to weed out the bad seeds and let us see what the management does.
I have worked with companies and a lot of Asia Pacific companies are investing there, sell if you are uncomfortable, hold if you are.

Hi Fonty, just read about HSBC investing in Vietnam and asking for banks to ease foreign ownership in banks, does this augur well for Vietnam companies in general. Need to look at what valuations HSBC useed in buying up a stake in a bank there. I have shares which is obvious but the reason I bought was after I looked at their portfolio companies on their website. I am not a guru like some of you gentleman and ladies on this site but some of their investee companies seem sound

groov,

Looks like you were right man its on its way back big time.

Maybe the vIETNAM GOV is finally going to sell some cheap assets off?

Transco

Its a patience game at times transco. The government is taking positive steps to encourage investors and the recent placing seems to suggest that they have identified further investments worth acquiring and I will support the placing. There are a lot of Asian investors pouring their money and expertise into this 80million strong population and its a growth story. For my part, I was looking at VOF's investments and it shows managment is astute but please dyor. Sadly like most of my investments, never a a 6 bagger but a gradual slow steady riser!

Groov am I correct in thinking the rights issue appears to have no impact on the SP?
I thinks its XRights now in the 1 for 4 offer but the price has not really dropped as you would expect. is this a bullish sign do your think?

Possibly transco.
It already priced in a discount and at the time of announcement, price was hovering above 4. I took up my rights and hopefully, it will come good in due course, we hope.
There was also an interesting article in moneyweek and one of the researchers actually recommended VOF!
Here is the link http://www.moneyweek.com/file/37011/vietnam-is-truly-exciting--but-dont-jump-in-yet.html

Vietnam lurched closer to a currency crisis as the Government cut the official exchange rate to a record low. UBS analysts said that the countrys economic profile was more extreme than that of Thailand on the eve of the 1997 Asian financial crisis.