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Difficulties delay Vietnamese companies’ plans to list abroad
In 2007, a lot of Vietnamese companies announced plans to list on foreign bourses. However, the plans have been postponed due to the difficulties of Vietnam’s economy.
Vinamilk, Saigon Securities Incorporated (SSI) and the Corporation for Financing and Promoting Technologies (FPT) all planned to ‘conquer’ foreign bourses. The State Securities Commission (SSC) also considered taking Vinamilk to Singapore’s stock exchange as the Vietnamese pioneer. However, 2008 proves to be not a good year for the companies to fulfill their plans.
Ngo Thi Thanh Tam, Public Relations Secretary for SSI, said that procedures for listing on foreign bourses are not the big problem for the company. In the current unfavourable conditions, SSI has decided to postpone its plan to list on Singapore’s bourse until the end of 2008.
Prior to that, SSI planned to offer 35,998,550 stakes on the Singaporean bourse. Tam said that it is now not the right time for SSI to sell its securities, especially as the securities of Singaporean companies themselves are very gloomy.
Bui Quang Ngoc, Deputy General Director of FPT, also said that the company still does not have a detailed plan for listing on foreign bourses. Ngoc said that the company is now focusing on dealing with the current difficulties rather than on a plan to list on foreign bourses.
Vinamilk’s representative said that the current conditions are not really favourable for businesses to list. However, he said that Vinamilk has sent necessary documents for listing on Singapore’s bourse. If the Singaporean agencies accept the documents sent by Vinamilk, the company will follow the next steps to list on the bourse.
He said that the listing could be done in 2008.
Nguyen Vu Quang Trung, Deputy Director of the Hanoi Securities Trading Centre, said that he supports the plans by Vietnamese companies to list on foreign bourses. However, Trung thinks that the current conditions are not really favourable for companies to list on foreign bourses.
Vietnamese companies must respect strict regulations on information exposure set by the bourses, which prove to be impossible for many companies. The information exposure must be carried out in the foreign countries and Vietnam at the same time.
VNN
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