Risks to Vietnam''''s banking sector and policy recommendations

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS, HO CHI MINH CITY    VŨ THỊ MAI TRÂM RISKS TO VIETNAM’S BANKING SECTOR AND POLICY RECOMMENDATIONS MASTER IN PUBLIC POLICY THESIS HO CHI MINH CITY – 2012 ii MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS, HO CHI MINH CITY FULBRIGHT ECONOMICS TEACHING PROGRAM VŨ THỊ MAI TRÂM RISKS TO VIETNAM’S BANKING SECTOR AND POLICY RECOMMENDATIONS MAJOR: PUBLIC POLICY CODE: 603114 MASTER IN PUBLIC POLICY THESIS SUPERVISOR Dr JONATHAN R PINCUS HO CHI MINH CITY - 2012 iii CERTIFICATION I certify that the substance of the thesis has not already been submitted for any degree and is not being currently submitted for any other degree I certify that to the best of my knowledge any help received in preparing the thesis and all sources used have been acknowledged in the thesis The study does not necessarily reflect the views of the Ho Chi Minh City Economics University or Fulbright Economics Teaching Program Author VŨ THỊ MAI TRÂM iv ACKNOWLEDGEMENTS I would like to express my deep gratitude to my parents who always encourage me in my life and my studying I would like to express my sincere appreciation to my supervisor, Dr Jonathan R Pincus, who has helped me in performing the thesis With rich knowledge, experience and enthusiasm, he has effectively contributed to my thesis I am graceful to Ms Dinh Vu Trang Ngan for thoughtful and valuable comments on the early version of my work I would like to thank all teachers in Fulbright Economics Teaching Program, who have retransmitted a lot of their knowledge and experience to me Last but not least, I express my thanks to all of my friends who help and motivate me in performing the study VŨ THỊ MAI TRÂM Ho Chi Minh City - June, 2012 v ABSTRACT Vietnamese banking system has faced some extraordinary events, which have had a negative impact on the prestige of the banking system and perceptions of the management capacity of SBV and reduced the public‟s confidence In general, Vietnamese banking system faces the following risks: risk from non-performing loans, liquidity risk, currency risk and risk from connected lending To reduce the negative impacts of these risks, Vietnam should combine many resolutions to manage effectively such risks The appropriate incentive and legal framework, the improvement of underlying institutions (fiscal, financial and monetary institutions) and the strong corporate governance are deemed prerequisite to maintain the stability and the development of financial system vi ABBREVIATIONS ABB An Binh Commercial Joint Stock Bank ACB Asia Commercial Joint Stock Bank AGB Vietnam Bank for Agriculture and Rural Development AMC Asset management company BAB BACA Commercial Joint Stock Bank BIDV Bank for Investment and Development of Vietnam BOM Board of management BVB Bao Viet Joint Stock Commercial Bank CAR Capital adequacy ratio CTG Vietnam Bank for Industry and Trade DAB Great Asia Commercial Joint Stock Bank EAB Dong A Commercial Joint Stock Bank EIB Vietnam Export Import Commercial Joint Stock Bank ER Exchange rate FCB First Joint Stock Commercial Bank GPB Global Petro Commercial Joint Stock Bank GSO The General Statistics Office vii HBB Hanoi Building Commercial Joint Stock Bank HDB Housing Development Commercial Joint Stock Bank JSC Joint Stock Company JVC Joint Venture Company KLB Kien Long Commercial Joint Stock Bank LVB LienViet Post Joint Stock Commercial Bank MBB Military Commercial Joint Stock Bank MDB Mekong Development Joint Stock Commercial Bank MHB Housing Bank of Mekong Delta MPI Ministry of Planning and Investment MSB Maritime Commercial Joint Stock Bank NAB Nam A Commercial Joint Stock Bank NPLs Non-performing loans NVB Nam Viet Commercial Joint Stock Bank OCB Orient Commercial Joint Stock Bank OCEAN Ocean Commercial Joint Stock Bank PGB Petrolimex Group Commercial Joint Stock Bank SBV The State Bank of Vietnam SCB Sai Gon Commercial Joint Stock Bank viii SEB Southeast Asia Commercial Joint Stock Bank SGB Saigon Bank for Industry & Trade SHB Saigon-Hanoi Commercial Joint Stock Bank SNB Southern Commercial Joint Stock Bank SOE State owned enterprise STB Sai Gon Thuong Tin Commercial Joint Stock Bank TCB Viet Nam Technological and Commercial Joint Stock Bank TNB Vietnam Tin Nghia Commercial Joint Stock Bank TPB TienPhong Commercial Joint Stock Bank TRB Great Trust Joint Stock Commercial Bank VAB Viet A Commercial Joint Stock Bank VCAP (GDB) Viet Capital Commercial Joint Stock Bank (Gia Dinh Commercial Joint Stock Bank) VCB Joint Stock Commercial Bank for Foreign Trade of Vietnam VIB Vietnam International Commercial Joint Stock Bank VPB Vietnam Prosperity Joint Stock Commercial Bank VTB Viet Nam Thuong Tin Commercial Joint Stock Bank WEB Western Commercial Joint Stock Bank ix TABLE OF CONTENTS Page CERTIFICATION iii ACKNOWLEDGEMENTS iv ABSTRACT v ABBREVIATIONS vi TABLE OF CONTENTS ix LIST OF FIGURES xi CHAPTER INTRODUCTION 1.1 Introduction 1.2 Research Questions 1.3 Research Objectives .3 1.4 Research Methods, Sources of Information and Research Scope .3 1.5 Thesis Structure CHAPTER LITERATURE REVIEW .5 2.1 General Literature 2.2 Implications for Vietnam .7 CHAPTER RISKS TO BANKING SECTOR OF VIETNAM 3.1 Macroeconomic Vulnerabilities 3.2 Microeconomic Risks 3.2.1 Risk from NPLs .9 3.2.2 Liquidity Risk 19 3.2.3 Currency Risk 25 3.2.4 Risk from Connected Lending 28 CHAPTER POLICY RECOMMENDATIONS 34 4.1 Resolution for NPLs 34 4.2 Resolution for Liquidity Risk 37 4.3 Resolution for Currency Risk 39 4.4 Resolution for Connected Lending 40 CHAPTER CONCLUSION .43 x REFERENCES 44 APPENDIX I COMPARISON BETWEEN VIETNAMESE REGULATIONS AND INTERNATIONAL STANDARDS ON NON-PERFORMING LOANS 57 APPENDIX II LITERATURE ON RESOLUTIONS OF NONPERFORMING LOANS 61 APPENDIX III LITERATURE ON RESOLUTIONS OF LIQUIDITY RISK 65 APPENDIX IV LITERATURE ON RESOLUTIONS OF CURRENCY RISK .70 APPENDIX V LITERATURE ON RESOLUTIONS OF CONNECTED LENDING 76 APPENDIX VI FIGURES 81 APPENDIX VII CONNECTED RELATIONSHIP AND LENDING .93 95 INVESTMENT SECTORS NO BANK BANKING REAL ESTATE SECURITIES INSURANCE NOTES61 SHAREHOLDERS 117 billion] (PVC): 8.09% BIDV Expressway Ngohan JSC (wire production): Development 10.93% [BIDV holds bonds equal to Company (BEDC): VND 111 billion] 25% Northern Electricity Development and Investment JSC No (Nedi2) (member of Vinaconex): 11.24% [BIDV holds bonds equal to VND 17 billion ] Vietnam Aircraft Leasing Company (VALC): 27.6% [BIDV lends VND 1985 billion] BVB Bao Viet Group: 52% Holding Hoa Phat Group‟s bonds Vinamilk: 8% (building materials, steel, real estate): CMC Group: 9.9% VND 100 billion HIPT Group: 4.8% Holding Vinaconex‟s bonds (real Ky Dong Steel: 4% estate, construction, services): VND 100 billion Holding Long Hau JSC‟s bonds (real estate, industrial zone): VND 20 billion Lending Bao Viet Fund Management (member of Bao Viet Group): VND 232 billion 96 INVESTMENT SECTORS NO BANK CTG BANKING REAL ESTATE SECURITIES Indovina JV South Quang Ngai Vietinbank Vietinbank The State Bank of Vietnam (SBV): Holding Vinashin‟s bond: VND 500 Bank: 50% Urban Development Securities: Insurance: 80.31% billion SGB: 9.14% Investment JSC: 50% 76.86% 100% International Finance Corporation Vietinbank Capitalization Fund: 6.72% Aviva: 50% International Finance Corporation (IFC): Vietinbank Capital: 100% 3.28% CTG Labor union: 2.16% DAB DaiALand: 11% Dai Viet ACB: 11% Thu Duc House: Securities: 18% Tin Nghia Corp: 11.12% 2.94% Tin Nghia Petroleum (member of Tin Nghia Corp): 3.5% Dong Nai Lottery and General Services Company Limited: 10% BIDV: 4.5% Thong Nhat JSC: 4% Nguyen Duc Kien EAB NOTES61 SHAREHOLDERS INSURANCE Saigon M&C Real DongA Global Phu Nhuan Construction and Housing Estate JSC: 6% Securities: Insurance Trading Company Ltd (One Member) Kinhdo Land JSC: 4% 100% Company: 11% (Real Estate): 2.38% DongA Real Estate DongA Capital: Phu Nhuan Jewelry (PNJ) (Cao Thi JSC: 11.01% 100% Ngoc Dung, Chairman (holding 10% of Saigon Construction PNJ), is wife of Tran Phuong Binh, and Real Estate General Director of EAB): 7.7% Corporation (SCREC) The Administrative office of Hochiminh (member of RESCO): City (Văn Phòng Thành Ủy in 97 INVESTMENT SECTORS NO BANK BANKING REAL ESTATE SECURITIES NOTES61 SHAREHOLDERS INSURANCE 10.11% Vietnamese): 6.87% DIC Group (member AnBinh Capital: 6.02% of RESCO): 9.83% Son Tra Dien Ngoc JSC (real estate): Sai Gon Cho Lon 3.62% Investment and Real Ky Hoa Tourism & Trading Co., Ltd Estate JSC (member (tourism, real estate): 3.55% of RESCO): 1.25% Ninh Thinh Ltd.: 3.4% Real Estate 10 JSC (RES10) (member of RESCO): 1% Real Estate JSC (RES9) (member of RESCO): 2.5% 10 EIB STB: 10.6% EximLand: 10.99% Rong Viet AAA Insurance: Sumitomo Mitsui Banking Corporation: Holding Vinashin‟s bond: VND 250 VCAP [EIB lends VND 675 Securities: 8.78% 15% billion (GDB): billion] 10.86% [EIB Nha Rong VOF Investment Limited: 5.02% Holding Tan Van Hung‟s bonds (real 0.87% SDI: 10% lends VND 134 Insurance: Saigon Jewelry Company (SJC): 2.07% estate): VND 900 billion HBB: 0.15% Saigon Exim: 11% billion] 9.45% Nguyen Duc Kien Holding VID Hung Yen‟s bonds (real SGB: 0.03% Vietnam Forestry ACB estate, industrial zone, member of VID Property and Land Business and Investment JSC: 8% Group): VND 2000 billion 98 INVESTMENT SECTORS NO 11 BANK BANKING REAL ESTATE SECURITIES Shing Da Corp Ltd: 9.19% FCB NOTES61 SHAREHOLDERS INSURANCE 2012: Merged with TNB and SCB Fu I Industrial Co Ltd: 9.19% Hanh Phuc Exploitation JSC: 8.78% He Duong Cement JSC: 8.92% 12 GPB Kinhdo Strategic Shareholder: PetroVietnam Investing in: Securities: 4.8% (PVN) Global Petro Invest Corporation (GP - Global FPT: 5.84% Invest): 9.88% Petroleum Fund Ta Ba Long (Chairman) and related Vinashin Mineral and Petro JSC: 10% Management parties: 13.763% PetroVietnam Financial JSC: 11% Doan Van An (Vice Chairman) and Investment Corporation: 5% related parties: 9.46% Global Petro and Energy JSC: 11% Ho Van Khuyen: 3.9% Pham Xuan Manh (member of Supervisory Committee): 3.35% 13 HBB Dong Xuan JSC: 10% HBB Securities: Vien Dong Deutsche Bank: 10% Holding Vinashin‟s bond: VND 600 Bao Viet Hotel and 100% Assurance Nguyen Van Bang (Chairman) and billion Tourism JSC: 10% Vietcombank Corporation: related parties (including Vuong Thi Investing in: Cavico Vietnam Towe Partners Fund 3.86% Van, wife): 10.48% Binh An Seafood JSC: 10% r JSC: 9% (VPF1): 5% Energy Growth Fund: Construction JSC: 10% 8.43% Vietcapital 99 INVESTMENT SECTORS NO BANK BANKING REAL ESTATE Lilama Land: 10% SECURITIES NOTES61 SHAREHOLDERS INSURANCE Healthcare Fund: 10% 14 HDB VCB: 0.84% HCM City Hochiminh City Nguyen Thi Phuong Thao (Vice Nguyen Thi Phuong Thao (Vice CTG: 0.15% Infrastructure Securities Chairman) and Nguyen Thanh Hung Chairman): Sovico Holdings (real VIETCAP Investment jsc: 2.68% Corporation: (husband): 6% estate: Phu Long; tourism: Furama (GDB): ThuDuc Housing 8.49% resort; energy; finance: HDBank and 0.42% Development JSC: VietFund PVFC Capital), Vietjet Air Many 5.28% Management: senior managers of HDBank come City Housing 3.41% from Sovico Holdings Development Real Phu Gia Estate Business JSC Securities: 11% (HDReal) : 11% Viet Nam Bac Trung Nam Alliance Fund Housing Development Management: JSC: 8.8% 9.9% Cadif Investment JSC: 2.5% 15 16 Nguyen Duc Kien KLB LVB LienViet Duong Cong Minh (Chairman) Duong Cong Minh: Chairman of Him Securities: 11% Saigon Trading Group (Satra) Lam Corporation (real estate) Sourthern Airport Services Company (Sasco) 17 MBB MBLand: 65.88% Thang Long Military VCB: 9.02% Investing in: 100 INVESTMENT SECTORS NO BANK BANKING REAL ESTATE SECURITIES 19 MDB Securities: Insurance MSB: 7.27% Military Bank Asset Management 78.09% 61.85% Company Viettel Group: 19% Company: 100% VietAsset JSC: 45% MB Capital: (MIC): 20% Saigon New Port (Tân Cảng): 4.69% Long Thuan Loc JSC: 61.78% Vietnam Helicopter Corporation (VNH): 5.94% EIB: 0.07% MHB MSB: 10.49% Mekong Housing MHB Building and Real Securities: 60% Estate (MHBR): 11% Golden Lotus An Giang Real Estate Securities: 5% (ARES): 10% Ngoc Phong JSC: 5% Golden Lotus Urban Development JSC: 11% 20 MSB MDB: NOTES61 Viet Remax JSC: 29.65% 18 SHAREHOLDERS INSURANCE VNPT LAND Matitime Bank Nha Rong VNPT: 12.53% 10.16% Securities: 2% Insurance: Argribank Securities: 14.99% MBB: APEC 0.73% Bao Viet Group: 0.85% 7.27% Securities: Vietnam Investment Development Group 7.62% (VID Group) (real estate) Argribank Gemadept Securities: 4.37% 101 INVESTMENT SECTORS NO 21 BANK BANKING REAL ESTATE SECURITIES INSURANCE NAB NOTES61 SHAREHOLDERS Tran Thi Huong and family members Tran Thi Huong (Consultant): Hoan (Nguyen Quoc My, son and Nguyen Thi Cau Co Ltd (Real Estate) Xuan Loan, daughter): 31% 22 NVB Saigon Construction Navibank Sai Gon Binh Dinh Energy JSC (related Receivables from related parties Corporation (SCC) Securities: to Dang Thanh Tam): 9.95% transaction (mainly of Dang Thanh Sai Gon Da Nang 10.56% Gemadept: 7% Tam and related parties) are more than Investment Vietcapital The Vietnam National Textile and VND 3589 billion (USD 176 million) Corporation Healthcare Garment Group (Vinatex): 11% equivalent to 16 percent of total assets Northwest Saigon Fund: 3% Nguyen Thi Kim Thanh (wife of Dang in 2011 City Development Thanh Tam): 5.75% Holding Saigon Construction Corporation Dang Thanh Tam: 4.98% Corporation (SCC)‟s bonds (real Saigon Investment Dang Quang Hanh (brother of Dang estate): VND 400 billion (SGI): 11% Thanh Tam): 0.38% Holding Sai Gon Da Nang Investment Nam Viet Land: 11% Nguyen Vinh Tho (brother-in-law of Corporation‟s bonds (real estate): Can Gio Tourist City: Dang Thanh Tam): 0.86% VND 1000 billion 10% (buy shares of Holding Northwest Saigon City Nguyen Thi Kim Development Corporation‟s bonds Thanh, wife of Dang (real estate): VND 300 billion Thanh Tam) Investing in: Saigon – Quy Nhon Tourism JSC (member of Saigontourist): 6.67% Thac Mo Hydroelectric Plant: 1.64% Saigon – Binh Thuan Power Plant Development and Investment: 9% 102 INVESTMENT SECTORS NO 23 BANK OCB BANKING REAL ESTATE INSURANCE VAB: BenThanhLand: 11% Orient Vien Dong 0.25% Savico Securities: 11% Assurance EIB: 0.03% Romana&Spa-Phan Thanh Viet Corporation: EAB: 0.03% Thiet Fund 3.17% ACB: 0.02% Grand Capital Management: NAB: Ben Thanh JSC 10% 0.03% 24 SECURITIES NOTES61 SHAREHOLDERS VIS Securities OCEA Petrowaco Property Ocean PetroVietnam (PVN) Investing in: N JSC (Petrowaco): 10% Securities: 11% Ocean Group PetroVietnam Gas (VND 108.5 Hung Phu Residential billion) JSC: 11% Vietnam Investment and Asset Infrastructure Develop Trading JSC (PVFC Invest) (VND 63 ment Investment JSC billion) (member of Ocean Oil-Rig of PetroVietnam Drilling & Group) Well Services Corporation: 5% PetroVietnam Construction Investment Consultant JSC: 10% Sai Gon Petroleum construction and investment JSC: 2.86% PetroVietnam Power Project Consultant JSC (PV POWER PCC): 10% Hanoi Petroleum Construction JSC: 3.33% Haiphong Petroleum Construction 103 INVESTMENT SECTORS NO BANK BANKING REAL ESTATE SECURITIES NOTES61 SHAREHOLDERS INSURANCE JSC: 10% PetroVietnam premier recreation: 5% 25 PGB Vietnam National Petroleum Group: Investing in: (Petrolimex): 40% SSI Vision Fund (SSIVF): 1.76% Saigon Securities (SSI): 9.98% Petrolimex Aviation Fuel JSC: 2.5% Petrolimex Installation No JSC 26 SCB ACB Officetel Royal Tan Viet Viet Vinh Phu Financial Garden: 11% Securities: 11% Investment Corporation (real estate): Danang VAM: 2.21% 25.719% Housing Investment Vietnam Trade Development JSC: and Industry 10% Securities: 2012: Merged with TNB and FCB 4.39% 27 28 SEB SGB SEA Securities Vietcombank – Mobifone: 6% Investing in: the PetroVietnam Bio- Bao Minh Cardif Life PVGAS ethanol Company (PVB) Securities Insurance: 12% Nguyen Thi Nga (Chairman) Saigonbank Ky Hoa Co Ltd.: 22.63% Berjaya Saigon Petro Co.,Ltd.: 15.12% Securities VCB: 6.63% (SBB) CTG: 5.68% Saigontourist Holding Company: 5.38% Phu Nhuan Construction and Housing Trading Company Ltd (One Member) (Real Estate): 17% 104 INVESTMENT SECTORS NO 29 BANK SHB BANKING REAL ESTATE SECURITIES SHAREHOLDERS INSURANCE VCB: 0.09% SHB Land Saigon Hanoi SHB- Do Quang Hien (Chairman of SHB and STB: LILAMA-SHB Securities Vinacomin T&T Group): 4.36% 0.002% Invesment (SHS): 8.22% Insurance: 10% T&T Group: 6.88% Construction JSC: Saigon – Hanoi Vienam National Coal – Mineral 11% Fund Industries Holding Corporation Limited An Thinh Real Estate Management (Vinacomin): 9.34% JSC (Ancom Group): Company Vietnam Rubber Group (VRG): 9.34% 10% (SHF): 10.4% BIM Group (real estate, services, owner Gentraco Real Estate of Air Mekong): 4.98% Investment JSC: 5% Saigon Hanoi Securities (SHS): 3.67% NOTES61 Saigon – Hanoi Fund Management Company: 0.046% 30 SNB Ngan Thuan Mien Nam Tram Be (SNB‟S Vice Chairman) and Construction Ltd.: Securities: 5% related parties: 17.5% 6.6% Becamex: 4.4601% Truong Ty (SNB‟S BOM member and Director of Van Thanh Cushion):1.4797% Diep Tan Dung (BOM member of SNB and FCB): 0.819% 31 STB Dalat Real Estate Sacombank International Finance Corporation (IFC): Holding outstanding loans, debt Company: 5.97% Securities: 4.38% securities and other receivables of 10.95% Vietnam Dragon Fund Ltd: 1.95% related parties: VND 3700 billion Dang Van Thanh (Chairman): 4.38%; (USD 177 billion) equivalent to 2.61 Dang Hong Anh: 3.81% , Thanh Thanh percent of total assets 105 INVESTMENT SECTORS NO BANK BANKING REAL ESTATE SECURITIES NOTES61 SHAREHOLDERS INSURANCE Cong Group: 2.27%, Bourbon Tay Ninh: Investing in: 0.77%, Ninh Hoa Sugar (NHS): 0.23%, Bien Hoa Sugar (related to Thanh Sacomreal: 1.78%: 13.24% Thanh Cong Group): 10.01% Huynh Que Ha (Vice Chairman) (1.5%) Gia Lai Cane Sugar Thermoelectricity and Chang Hen Jui (husband) (3.62%): JSC (SEC): 10.34% 5.12% EIB: 10.6% Saigon Exim (real estate) (related to EIB): 5.17% Nguyen Duc Kien 32 TCB VPB: 9.21% Techcom HSBC: 19.79% Securities: MSN (MASAN): 19.88% 100% Ho Hung Anh and related parties: 3.09% Techcom Nguyen Dang Quang: 1.72% Capital: 100% Nguyen Thieu Quang (Vice Chairman) and related parties: 2.01% Nguyen Canh Son and related parties: 3.23% Vietnam Airlines Corporation: 2.76% 33 TNB Pham Van Hung (BOM member) and 2012: Merged with SCB and FCB related parties: 14.72% Pham Van Hung: related to Dragon Hill Trading and Investment JSC (real estate and tourism) 106 INVESTMENT SECTORS NO 34 BANK BANKING TPB REAL ESTATE SECURITIES NOTES61 SHAREHOLDERS INSURANCE Vinare Invest (real DOJI (jewelry, gold and real estate): estate business): 10% 20% FPT: 16.89% MobiFone: 4.76% SBI Ven Holdings Pte Ltd : 4.9% VINARE: 10% 35 36 TRB VAB N/A N/A N/A N/A N/A Nam Long Apartment Vietcapital Hung Vuong The Administrative office of Hochiminh Development Healthcare Securities: 11% City (Văn Phòng Thành Ủy in Company: 7% Fund: 10% Vietnamese): 12% Tam Thong Real Viet Nam SJC: 6.75% Estate JSC: 5% Alliance Fund EIB: 2.4% Real Estate Service Management: Hochiminh City Investment Fund For and Constructions 10% Urban Development: 1.3% Corporation: 11% Truong Son Cu Chi Commercial and Industrial Mien Dong JSC Securities: 5% Developing Investment JSC: 2.72% Dat Xanh Group: 11% N/A 107 INVESTMENT SECTORS NO 37 BANK BANKING REAL ESTATE SECURITIES INSURANCE NOTES61 SHAREHOLDERS VCAP NAB: 3.51% Holding Vietcapital Securities‟ bond: (GDB) Tin Phat Investment, Service and Trade VND 300 billion (without collateral) Ltd.: 12.2% Holding Vietcapital Real Estate‟s SAIGONNIC (real estate): 13.62% bond: VND 50 billion (without Hoa Lam Investment Development Corp collateral) (services, motor, automobile and real Holding Beta Securities‟s bond: VND estate): 8.16% 250 billion (without collateral) Vietcapital Holding Dai Phat Investment, Service Beta Securities and Trade Ltd.‟s bond: VND 400 billion (without collateral) 38 VCB EIB: 8.19% Vietcombank Tower VCB Securities: Vietcombank – The State Bank Of Vietnam: 57.98% Investing in: SGB: 5.26% 198 Ltd: 70% 100% Cardif Life Mizuho Bank: 15% Vietcombank Financial Leasing OCB: 5.06% VCB-Bonday Ben Vietcombank Fu Insurance: 45% Company: 100% MBB: 11% Thanh: 52% nd Nha Rong Vietnam – Hong Kong Finance VCB-Bonday: 16% Management: Insurance: Company: 100% Vietcomreal: 11% 51% 3.73% Vietcombank Money: 75.13% Vietnam VCB Partners 1: Petrolimex PetroVietnam Drilling & Well Infrastructure Dev 11% Insurance: Services Corporation: 2.56% and Finance Inv JSC: Cement 10.04% Gentraco: 3.76% 1.5% Finance: HCM City 10.91% Infrastructure Inv JSC: 1.78% Dia Oc Viet: 11% 108 INVESTMENT SECTORS NO 39 BANK BANKING VIB REAL ESTATE SECURITIES NOTES61 SHAREHOLDERS INSURANCE VIBank – Ngo Gia Tu Post and Dang Khac Vy Investing in: Ltd Telecommunicat Dang Van Son Vietnam Electricity Construction JSC: ion Joint Stock 4.5% Insurance PV2 Investment JSC: 3.25% Corporation PetroVietnam Gas Shipping: 3.33% (PTI): 5.14% 40 VPB Foreign Trade VPBANK Military Oversea Chinese Banking Corporation Development and Securities: Insurance Limited (OCBC): 14.88% Investment Corp of 100% (MIC): 7% TCB: 9.21% HCM City (FIDECO): Ngo Chi Dung (Chairman): 4.48% 10.74% Bui Hai Quan (Vice Chairman): 1.55% Dong Xuan JSC: 10% 41 42 VTB N/A N/A WEB STB: 0.06% Nguyen Duc Kien N/A Kinhbac City Nguyen Thi Kim Thanh (same name Receivables from related parties Development Holding with Dang Thanh Tam‟s wife): 9.97% transaction are more than VND 1710 Corporation (KBC): Sai Gon Binh Dinh Energy JSC (invested billion (USD 90.3 million) equivalent 1.52% by Saigon Quynhon Mining Corp): to 18 percent of total assets in 2010 Saigon Quynhon 9.85% Holding KBC‟s bonds: VND 1500 Mining Corp: 4.37% Saigontel (member of Saigon Invest billion (hold at maturity) Western Land JSC: Group): 9.41% Holding Saigontel‟s bonds: VND 300 5% N/A N/A billion (hold at maturity) Investing in Hung Vuong University of HCM city: 4.4% (related to Dang Thanh Tam) 109