Balancing the listing scale of FDI enterprises

VTV.vn - Despite accounting for a large proportion of the economy, FDI enterprises listed on the Vietnamese stock market are still very few, resulting in a disproportionately large scale of presence.

As an economy with a large degree of openness, the role of FDI enterprises in our country's economy is not small with more than 1,600 enterprises operating in Vietnam. However, according to the State Securities Commission, to date, there are only 10 FDI enterprises listed and traded on the Vietnamese stock market. The market capitalization of these 10 enterprises only reaches about 0.17% of the total capitalization of the Vietnamese stock market.

With the situation of disproportionate listing scale between FDI enterprises and domestic enterprises, on December 9, the State Securities Commission held a "Conference to disseminate some contents on listing and registration of transactions of economic organizations with foreign investment capital", aiming to promote the presence of FDI enterprises in the Vietnamese stock market.

Previously, Decree 245 was issued, shortening the time for IPO and listing to only 30 days, allowing enterprises to complete documents in parallel between the Commission and the Stock Exchange. Since then, 4 enterprises have completed IPOs and this December, there will be 3 new listed enterprises on HOSE. However, the presence of FDI enterprises is still limited.

Ms. Mai Thi Phuong Anh - Legal Director, Vien Dong Vietnam Medical Company Limited said: "The issue of the remaining term of the project, especially for early-generation FDI enterprises, normally, the project term is 50 years. It is not known whether this is a barrier for the State Securities Commission to consider the IPO or listing dossier or not. In particular, there are a few FDI enterprises that have provisions for non-refundable transfer to the state, which means the project term has expired".

Mr. Melvyn Boey - Chief Financial Officer, Hoiana Resort & Golf commented: "We see Vietnam as a potential destination to continue our long-term commitment. Because the facilitation through regulations on listing and registration of transactions by the management agency not only has a positive impact on capital mobilization but also on business development. Thereby creating a positive impact on the economy, on the people both socially and in their personal development".

To increase the number of FDI enterprises listed on the stock exchange in the future, for FDI enterprises that are already publicly listed, the State Securities Commission proposes that they be considered as ordinary trading enterprises, regardless of their origin. At the same time, the revocation of public company status will also be implemented according to regulations.

Mr. Hoang Van Thu - Vice Chairman of the State Securities Commission said: "Commitments on investor capacity, commitments to enjoy investor incentives, especially binding agreements recorded in the investment certificate. I think that enterprises need to fulfill this obligation before participating in the Vietnamese stock market. Once participating in the Vietnamese stock market, we believe that enterprises are an integral part as well as domestic enterprises without discrimination".

Regarding non-public FDI enterprises, the State Securities Commission believes that the current Securities Law does not differentiate between business forms. Therefore, if these enterprises meet the regulations on business model transformation, they will be allowed to transfer shares or capital contributions.

Source: https://vtv.vn/can-bang-quy-mo-niem-yet-cua-doanh-nghiep-fdi-10025121010325008.htm