|
Foreign firms allowed to list
A new supplement to a decree would require foreign enterprises have projects licensed for operation in Vietnam as an initial requirement for listing shares on Vietnamese stock exchanges.
The supplement is contained in a revised draft of Government Decree 14/2007/ND-CP.
For a foreign enterprise to list on a Vietnamese stock exchange, the home market on which the firm primarily listed must have a co-operation agreement with the Vietnamese stock exchanges or State Securities Commission.
Listings on Vietnamese exchanges must also be implemented under guidelines from a local brokerage.
For example, printer manufacturer Canon Singapore Pte Ltd wants to list on a Vietnamese exchange, it must first have a factory or other operational projects in the country.
Secondly, the firm must already have shares listed on the Singapore Stock Exchange, which must in turn have reached an agreement with the Vietnamese exchanges.
Finally, a local brokerage, such as Saigon Securities Inc, will become the consultant for Canon Singapore to list its shares locally.
Furthermore, firms must have approval from the major stakeholders to list offshore on the Vietnamese exchange.
Financial reports of these foreign enterprises must be audited under international standards, as well as include a section reconciling the results of both the international and Vietnamese standards of auditing.
Nguyen Tien Dung, an independent analyst, said the new policy would provide more opportunities for foreigners to join the Vietnamese exchange.
“This draft revision provides a pipeline for a great deal of foreign capital into our market, which will certainly have a positive impact on the market’s development,” Dung noted.
A lawyer at Trinh and Partners framed the revision of the Securities Law as a part of Vietnam ’s WTO commitments.
“It would be better to implement this regulation nearer to 2010, when the country’s macroeconomic situation has stabilized further. More time should also be given for market regulators to develop a mechanism overseeing this types of activity,” the lawyer said.
VNA
|
