Thanh Nien News reported today that the Vietnamese government is drafting new securities laws to improve companies' disclosure standards, hoping to attract more international investors to the country. Cavico Corporation (PINKSHEETS: CVCP) is the first Vietnamese company to list its shares in the US and is currently undergoing a US GAAP audit of its financials.
In an interview with Bloomberg, Tran Dac Sinh, Director of the Ho Chi Minh City Securities Trading Center, commented that, "Vietnam wants to increase the value of its stock market to between 20 percent and 30 percent of gross domestic product from 6 percent." Asian stock markets currently average about 127 percent, according to estimates by Merrill Lynch & Co.
Timothy Pham, Executive Vice President of Cavico commented, "Cavico too has intention to list its subsidiaries on the Vietnamese exchanges when the timing is right. However, Cavico has truly broken new ground with its US listing. Electricity of Vietnam and several steel and cement companies are planning to sell shares on the Vietnamese market by 2010, however Cavico is currently the only Vietnamese company trading on the US markets." He added, "The Vietnamese government is pushing for all companies wishing to list on the Vietnamese exchange to follow similar disclosure and transparency laws as the US. These are important steps in opening up the country's markets and increasing investor confidence in Vietnam."
Vietnam's GDP may reach $80 billion by 2010, and it is currently the third fastest growing Asian economy, now ahead of China. GDP is predicted to grow as much as 8 percent annually in the next decade. Vietnam's policy reforms, coupled with the well publicized WTO opportunity, is creating a boom in construction, with an estimated construction budget of about US$500 million to US$5 billion within 5 years. The investment requirement in the energy and mining sectors is estimated at US$20-30 billion within next 10 years and upwards of US$40-60 billion on infrastructure, while some reports claim US$115 billion.
The Thanh Nien News article can be read in full at: http://www.thanhniennews.com/features/?catid=10&newsid=19507
For more information about Cavico, please refer to the company's website at: http://www.cavicocorp.com.
About Cavico Corporation
Cavico (www.cavicocorp.com), founded in 2000, is a major infrastructure construction, infrastructure investment, and natural resources conglomerate headquartered in Hanoi, Vietnam. The company is highly respected for its core competency in the construction of mission-critical infrastructure including hydroelectric plants, highways, bridges, tunnels, and urban community developments. One of the company's primary competitive advantages is its ability to nurture a project "from concept through completion" with a vertical portfolio of interrelated investment, permitting, design, construction management, and facility maintenance services. Cavico's project partners often include top multi-national corporations as well as government organizations. The company currently employs more than 3,000 people.
Vietnam's transition to a market economy has generated rapid economic growth. The country's impending ascension to the World Trade Organization is likely to provide an additional boost to economic growth and a further acceleration in the country's current infrastructure construction boom. The aggressive development of Vietnam's energy, transportation, and urban infrastructure is absolutely essential to the country's ability to compete internationally, and this aggressive build-out is creating huge growth opportunities for infrastructure construction companies such as Cavico.
This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Cavico Corporation to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and Cavico Corporation assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products and services, inability to deliver products and services when promised, inability of potential customers to pay for ordered products and services, and political and economic risks inherent in international trade.