Vietnamese tycoons follow Bill Gates’ investment model
Vietnamese tycoons follow Bill Gates’ investment model
A lot of Vietnamese businessmen have set up their own investment companies through which they invest in other businesses.
Bill Gates, who tops the list of the rich, has the total assets worth VND76 billion, according to Forbes. However, the amount of shares he holds in Microsoft, the technology group he set up, just accounts for 1/5 of his total assets. The billionaire holds 338 million Microsoft’s shares on Nasdaq, worth $13 billion.The other parts of his assets lie in the investments made by Cascade Investment LLC, a company owned by Bill Gates and his family.
The company now holds stakes in a lot of big enterprises, including Buffett’s Berkshire Hathaway, the Canadian National Railway Company, Coca Cola FEMSA, John Deere – an agriculture machine manufacturer.
Cascade Investment also manages the $20 billion portfolio of the Bill & Melinda Gates Foundation.
Analysts have noted that a lot of Vietnamese tycoons have been following the same way to make money from their investment activities. Instead of holding shares in their own names, they set up private companies to make investments and manage the shares they own.
The way of investment not only allows them to better manage their investment portfolios, but also to get tax preferences when receiving dividends in cash.
Individuals would be taxed 5 percent on the dividends, while legal entities do not have to pay any kinds of tax for the dividends they receive, including the corporate income tax.
The investment companies, besides the shares of the bosses, can have other investment items in their portfolios. However, the information about the operation of the companies, in general, has not been made public, except the ones subject to the compulsory information disclosure.
President of the Saigon Securities Incorporated (SSI) Nguyen Duy Hung is believed to be the pioneer in transferring his shares into his private company.
In late 2009, Hung put all of his SSI shares under the management of Nguyen Duy Hung Company Ltd, which has changed its name into NDH Vietnam Company Ltd.
NDH now holds the amount of SSI shares worth VND840 billion and the shares of many other listed companies including Pan Pacific, Mien Nam Seed Corporation and Gilimex, worth no less than VND400 billion.
The other well-known private investment companies include PPK, a company of the “Sweets King” Tran Kim Thanh, Chair of Kinh Do Group, Ha Bao Private Enterprise of Ha Van Tham, Chair of Ocean Group, or Tran Oanh Company of Tran Ba Duong, Chair of Thaco.
Most recently, President of Hoa Sen Group Le Phuoc Vu has announced his plan of transferring his shares worth VND1.4 trillion into Tam Hy Company.
Ha Bao Company is one of the rare big companies operating under the mode of private enterprise. While limited or joint stock companies must take responsibilities for the debts and duties with their contributed capital, private enterprises owned by one individual must take responsibilities for the enterprises’ operations with all of their assets.
Ha Bao Private Enterprise now holds 44.4 percent of stakes of Ocean Group which have the market value of VND1.8 trillion.
vietnamnet
