Law changes proposed to allow foreign firms to list on VN’s stock market

Vietnam is striving to improve its stock market status and implementing measures to attract portfolio investment and allowing FDI firms to list would help the country achieve this goal
law changes proposed to allow foreign firms to list on vns stock market

Some FDI firms want to list on the Vietnamese stock market.

Experts have urged competent authorities to rapidly make a clear legal mechanism to convert foreign-owned firms into public companies, enabling them to list on the Vietnamese stock exchange.

Some FDI firms have said that they want to list on the local stock market, but there has been so far no specific guidance for the activity. The regulatory delay hurts the firms’ chances of raising capital in the country, while also negatively affecting the budding image of Vietnam’s market as an open and welcoming destination for foreign investors.

It was believed if the government changes the legal framework to allow FDI firms to list their shares, many foreign investors will join the local stock market.

Experts believed that it is good news for Vietnam as foreign investors have been choosing Vietnam not only to set up production bases, but also to list their shares. It will help Vietnam promote itself as both the listing and investing destinations for foreign companies.

According to Layer Tran Minh Hai, director of law firm Basico, it will be a good signal if the government allows FDI enterprises to be converted into public companies and listing shares on the stock market.

The move will show that FDI firms operating in Vietnam are treated equally as domestic ones and the country eases them to bring capital into and out of the local market, Hai said.

Vietnam is striving to improve its stock market’s status and implementing measures to attract portfolio investment, and allowing FDI firms to list would help the country achieve this goal.

The country’s stock exchange too will become more attractive to investors if foreign companies can list on them, growing in size and offering more products.

It would create a virtuous cycle by attracting more direct and portfolio investment flows from abroad, experts said.

Better supervision

According to Hai, paving the way for FDI firms to list their shares on the local stock market also helps strengthen supervision over the firms. State management agencies will then find it easier to monitor activities related to acquisitions by foreign companies, generally improving transparency overall.

Besides, Hai said, at that time, listed foreign firms will be overseen more closely. In addition to authorities, investors and shareholders will also keep a close watch on them.

However, as some FDI firms only list their stocks to pest from Vietnam more easily if they need to, experts suggested the State Securities Commission (SSC) issue some more detailed rules on whether the founders of FDI firms can pest from their companies, as this is related to the matter of capital outflow from Vietnam.

It is also necessary to have clear legal regulations and ensure foreign firms are properly audited before they are allowed to list to reduce the risk for both the investing public and the market.

Tran Huu Huynh, Chairman of the Vietnam International Arbitration Center (VIAC), said that in order to pave the way for FDI enterprises to go to the Vietnamese stock exchanges, competent authorities need to carefully review international commitments that Vietnam must enforce to ensure the foreign ownership limits.

It is important to have close and feasible monitoring regulations for listed FDI firms, especially those related to transparency of financial statements and annual reports, Huynh suggested.

According to SSC, it is working with relevant ministries and agencies to finalize specific legal regulations on guiding FDI firms in listing on the Vietnamese stock market before submitting it to the Ministry of Finance and the government for approval.

Source: Hanoi Times

Related News

Why more than 100 Vietnamese means of transport detained in China?

Why more than 100 Vietnamese means of transport detained in China?

VCN - From the beginning of 2023, in Lao Cai area, there have been more than 100 Vietnamese means of transport detained in China.
Effective inspection and supervision - a key factor for a transparent stock market

Effective inspection and supervision - a key factor for a transparent stock market

VCN - Since 2019, Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.
Many positive signals from stock market upgrade

Many positive signals from stock market upgrade

VCN - Many crucial knots in the process of upgrading the stock market are being untangled by the Government and relevant agencies. Thanks to proactive moves from the management agencies, experts assessed that the stock market was likely to be upgraded according to the set objectives.
Vietnamese stocks on FTSE Russell waiting list for upgrading

Vietnamese stocks on FTSE Russell waiting list for upgrading

VCN - Vietnam remains on the watch list for a possible reclassification from frontier to secondary emerging market and will be updated to Waiting List status for upgrading in September 2024, according to the FTSE ‘s Country Classification review in March.

Latest News

Banks promote online lending services

Banks promote online lending services

Banks are strongly stepping up online lending services via digital channels.
Complete tax compliance management for business households and individuals

Complete tax compliance management for business households and individuals

VCN - Facing with the situation where there are still businesses hiding in the shadow of business households or business households with revenue of hundreds of billions of dong using many invoices to increase input costs, the General Department of Taxation said it would strengthen management to reduce fraud and tax evasion for individuals and business households.
Companies unveil M&A plans across multiple sectors at shareholders

Companies unveil M&A plans across multiple sectors at shareholders' meetings

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.
How did many banks

How did many banks' profits surge in Q1 2024?

VCN - The business results for Q1 2024 of commercial banks showed positive growth, with some banks experiencing up to 165% growth. Despite low credit growth, the banks' growth stemmed from other types of business and services.

More News

New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

VCN - Circular No. 24/2024/TT-BTC that provides guidelines for public sector accounting will take effect from January 1, 2025 and will be applied from fiscal year 2025, will have regulations to meet requirements of streamlined and effective accounting apparatus.
A series of solutions to improve administrative reform results in the Finance sector

A series of solutions to improve administrative reform results in the Finance sector

VCN - According to recently announced results, the Ministry of Finance is in the group of 3 leading ministries and ministerial-level agencies in the Administrative Reform Index 2023. However, some component criteria of the Ministry of Finance are still ranked at the lower level. To overcome this, the Finance sector proposed many synchronous and key solutions.
After six consecutive increase years, tax revenue from real estate transfer plunges

After six consecutive increase years, tax revenue from real estate transfer plunges

VCN – In 2023, real estate market was in extremely difficult time, purchasing power and liquidation had a sharp decline and there was a lack of cash flow, the amount of personal income tax (PIT) from real estate transfer activities plunged.
Improve processes and enhance experience to rebuild trust in life insurance

Improve processes and enhance experience to rebuild trust in life insurance

VCN - In Vietnam, the space and potential of the life insurance industry is still very large, so it is necessary to focus on implementing new solutions, improving product quality, and helping the market develop sustainably.
PM chairs meeting on fiscal, monetary policy management

PM chairs meeting on fiscal, monetary policy management

Prime Minister Pham Minh Chinh chaired a meeting in Hanoi on May 16 with ministries and agencies to discuss the coordination of fiscal and monetary policies aimed at maintaining macroeconomic stability, controlling inflation and promoting growth.
Many tax management solutions for e-commerce

Many tax management solutions for e-commerce

VCN - In Vietnam, the e-commerce market is increasingly growing and expanding with a diversity of operating models, many participants... posing great challenges for tax management.
Completely resolve problems and accelerate public investment disbursement

Completely resolve problems and accelerate public investment disbursement

VCN - In the first 4 months of 2024, the disbursement of public investment capital reached 17.46% of the plan assigned by the Prime Minister, higher than 15.65% in the same period last year. However, to further speed up this work, the Ministry of Finance believed that it needed to urgently overcome problems that have existed for a long time, especially in key projects.
Tax, land rent payment deadlines to be extended this year

Tax, land rent payment deadlines to be extended this year

Payment deadlines for value added tax (VAT), corporate income tax, personal income tax, and land rent in 2024 are set to be extended, involving a total tax value of nearly 84 trillion VND (3.3 billion USD).
Tax compliance management in the digital economy

Tax compliance management in the digital economy

VCN - The management of tax compliance in the digital economy has faced many challenges compared to the traditional economy. The transactions made via the internet environment and digital platforms have caused monitoring, controlling and management difficulties. Therefore, it is required to have appropriate solutions for management and ensuring revenue sources.
Read More

Your care

Latest Most read
Banks promote online lending services

Banks promote online lending services

Banks are strongly stepping up online lending services via digital channels.
Complete tax compliance management for business households and individuals

Complete tax compliance management for business households and individuals

VCN - Facing with the situation where there are still businesses hiding in the shadow of business households or business households with revenue of hundreds of billions of dong using many invoices to increase input costs, the General Department of Taxation said it would strengthen management to reduce fraud and tax evasion for individuals and business households.
Companies unveil M&A plans across multiple sectors at shareholders

Companies unveil M&A plans across multiple sectors at shareholders' meetings

The current General Meeting of Shareholders (AGM) season has revealed notable M&A plans by companies, encompassing various industries including agriculture, food, automobile design and real estate.
How did many banks

How did many banks' profits surge in Q1 2024?

The business results for Q1 2024 of commercial banks showed positive growth, with some banks experiencing up to 165% growth.
New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

New regulations in Circular 24/2024/TT-BTC aim to build streamlined and effective accounting apparatus

VCN - On May 6, the Accounting and Auditing Supervisory Department (the Ministry of Finance) held a conference to deploy Circular No. 24/2024/TT-BTC on guideline for pubic sector accounting (Circular 24) of the Ministry of Finance.
Mobile Version