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On webtretho.com, a well known forum for office workers and mothers, a member has invited other members to trade shares online. The member said he has been trading foreign shares on Internet for the last five months, via a company called Uninvest.

He affirmed that his initial investment capital has been double, and he has taken back the principal, while continuing making investment with the money he got from the profitable investment deals.

I have taken back the initial investment capital. So if I lose money in the next transactions, it would not be a problem to me, he wrote.

The pyramid model

If someone wants to buy shares of a company in Ukraine or Eastern Europe, he has to log in the website of Uinvest, choose the shares of the companies and remit money to make payment for the purchase deals. Since only the US dollar is accepted in making payment, share buyers have to buy foreign currencies from online foreign currency traders.

Later, when the investor sells shares and gets US dollars, he would also use the services of the traders if wanting to convert into dong.

The shares of Grain Products Complext, introduced as a grain production company in Russia which has been operating for 17 years, putting out 300 tons of powder a day, were sold at 220 dollars in November 2011, with the interest of 45 dollars a month during five years. By early September, the price had soared to 320 dollars.

Vietnamese investors, though having no knowledge about the grain company, still buy and sell the stakes. If someone wants to have the certificate about the share ownership, should ask Univest. The company would provide the certificates, charging the fee of 100 dollars.

When shareholders receive dividends, Univest would get 10 percent of the investors profits. Meanwhile, while selling shares, sellers would have to pay the fee worth one percent, plus one dollar.

Especially, the pyramid model has also been applied in the game. If someone can bring a new player, he would receive commission for that.

The information found on Univests website showed that the company was established in 2010 with the head offices located in Ukraine and the US. It mobilizes capital from individual investors for the companies which need funds.

The company said the monthly net profit of all the projects is 12 percent a month on average.

High promised profit means high risk

Dr Nguyen Tri Hieu, a well known finance expert, has doubts about the huge profits of the projects.

What do the companies do and how can they offer such high interest rate? In Vietnam, the 20 percent per annum interest rate is unbearable for businesses. Meanwhile, the three percent a month interest rate on the black credit market is described as exorbitant, Hieu said.

I think that the investment deals are too dangerous, he added.

He went on to say that one should learn carefully about the profile of a company before they decide to buy the shares of the company. It is too hazardous to make investment just based on the introduction of the brokerage company, he said.

What will happen if the companies stop paying interests, and if the intermediary company collapses? Who should the Vietnamese investors complain to? he questioned.

Some analysts have also pointed out that the transactions via the websites are unusual, and they lack transparency, especially in the securities depository. Besides, the rules on foreign currency conversion do not come in line with the Vietnamese laws.