With the intention to expand business operations in order to better meet the demand of customers and keep up with development trend of Vietnam’s stock market, the Board of Directors of Viet Dragon Securities Corporation (“Viet Dragon”) decided to invest in the field of asset management through the acquisition of 51% shares of Viet Dragon Fund Management (VDFM).

With the approval from State Securities Commission (SSC) based on Decision No. 944/QĐ-UBCK dated 30/12/2020, Viet Dragon completed acquiring 51% capital (equivalent to 2,040,000 shares) of VDFM, making VDFM a subsidiary of Viet Dragon officially from 06/01/2021. By owning 51% of VDFM, Viet Dragon is one of a few Vietnamese securities companies capable of providing a full range of securities and asset management services in Vietnam stock market.

Viet Dragon Fund Management (VDFM) was established on 20/12/2006 according to Business Registration Certificate No. 4103005757 issued by HCMC Department of Planning and Investment, and Operation License of Fund Management No. 10/UBCK-GPHĐQLQ issued by SSC on 22/12/2006. The company’s current charter capital is VND 40 billion (~USD 1.7 million). In 2020, VDFM achieved a profit after tax of nearly VND 13 billion (~USD 0.56 million), equivalent to ROE of 29.5%. As of 31/12/2020, VDFM owners’ equity reached VND 44.2 billion (~USD 1.9 million), resulting in book value per share of VND 11,050 (~USD 0.48). 

As for Viet Dragon, closing 2020, business operations achieved significantly growing results. Total revenue was estimated at VND 456 billion VND (~USD 19.7 million), 45% and 32.5% higher compared to yearly target and 2019 result, respectively. Profit before tax was estimated at VND 180 billion (~ USD 7.8 million), accordingly, the profit after tax was VND 144 billion (~USD 6.2 million), which is 400% of 2020 plan, and 424% y-o-y. This is the highest profit that Viet Dragon has achieved since establishment. Besides these welcoming business results, 2020 continued to be the year when Viet Dragon was honored to be rewarded for its effort and contribution to Vietnam stock market, including:

• “Outstanding M&A consulting organization of Vietnam” 2019-2020 by the 12^th Vietnam Merger and Acquisition (M&A) Forum. This is the 4^th year consecutively Viet Dragon was honored for this reward. More than a pride and a motivation for continuous efforts of the entire organization during the past time, this is also an acknowledgement of quality and effectiveness of financial and capital financing solutions that Viet Dragon has been providing customers.
• Top 10 Securities companies with the largest market shares in bond brokerage on Ho Chi Minh City Stock Exchange (HoSE) on Q3/2020.
• Top 10 Securities companies with the largest market shares in stock brokerage on UPCoM - Hanoi Stock Exchange (HNX) on Q4/2020.

The acquisition of VDFM’s majority shares is a milestone in the course of 14 years of formation and development of Viet Dragon. This is the initial step to diversify Viet Dragon’s portfolio of products and services, enhance client’s experience and satisfaction, boost profitability and raise the company position in accordance with the development strategy based on foundation of digital transformation in 2021-2025 period.