Ha Noi (VNA) - Vietnamese firms have been moving to list their shares on overseas exchanges, with the Singapore Exchange to date attracting the most interest.
The Viet Nam Joint-stock Milk Company (Vinamilk) that has already submitted a plan to list on the Singaporean floor to the Ho Chi Minh City Securities Transaction Centre (HoSTC), as has the Financing and Promoting Technology (FPT) Company, another bluechipper currently housed on the HCMC bourse. The national IT leader said it is considering a plan to appear on other foreign bourses but has singled out Singapore as being its first choice.
State-owned Viet Nam Investment and Development Bank is among 50 other companies that are also looking to the tiny city State’s exchange.
Nguyen The Tho, Head of the Stock Issuance Management Board under the State Securities Commission (SSC) said “Listing shares overseas, especially on the Singaporean floor, would open an entrance for a greater number of shareholders and provide an international forum for promoting the brands of local enterprises.”
He added that local enterprises are reasonable to pin their expections on the Singapore stock market where more and more international giants such as Ford Motors, Toyota and JP Morgan are taking part.
VinaCapital CEO Don Lam said bankers would be better suited than commodities makers or service providers on the Singaporean bourse because the banking industry is a major investment target for foreign purchases.
Backing up the interest, the Ha Noi Securities Transaction Centre (HASTC) recently signed a deal with the Singapore Exchange Ltd. (SGX) to support Vietnamese enterprises keen joining the Lion city's exchange.
Lawrence Wong, executive vice-president and head of listings at SGX, said the two partners have planned to hold training courses about listing in Singapore for interested businesses.
However some experts have warned against domestic firms' over-expectations on overseas listings, and advised that enterprises should clearly define their long-term objectives before selecting an overseas strategic market.
The Viet Nam Construction and Investment Joint-stock Company has became the first Vietnamese company to find a spot on the Prink Sheets floor, in the US, through a merger with one of the bourse’s members, the Agent 155 Media Group.-Enditem
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