Temasek Holding last week offer to buy 10% of shares of Vietnam’s Export Import Commercial Joint Stock Bank (Eximbank)..

Eximbank is seeking foreign strategic partners to boost up its technological and human resource assistance to help the bank to become one of the leading credit institutions in Vietnam.

According to this source, the offer by Temasek is attractive. However, an official of Eximbank told the Saigon Economics Times that Temasek and Eximbank have not reached any specific agreement.

Temasek’s offer may be good, but it goes with some conditions that Eximbank needs to carefully consider.

For Eximbank:

By mid September 2006, Eximbank had obtained pre-tax profit of VND274 billion ($17.125 million), equivalent to 96% of its yearly target. The bank expects to fulfill its annual profit target by the end of September. This year, the bank’s pre-tax profit may reach VND350 billion ($21.875 million), the highest level in its history.

For Temasek:

Temasek officially entered the Vietnamese market in 2005 and it planned to buy 30% of shares of Pacific Airlines but this affair failed. If it successfully negotiates with Eximbank, this would be the first step of investment of this fund in the banking sector of Vietnam.

Temasek also contributes capital to some funds that specialise in investing in Vietnam that are managed by foreign fund management companies in HCM City.

(Source: VietNamNetBridge,)

If you found this post useful, keep updated with future posts by subscribing to FMAccounting (for free) through RSS or email.

Related Entries

• Vietnam bank in line for first foreign IPO-sources
• Vietnam- Stock Exchange And Stock Market Consider as “ Emerging China’
• Vietnam And China Business Forum
• Deutsche Bank In its Maiden Foray Into Vietnam
• Real Estate Developments News In Vietnam