"A very small part"
At the "Conference to disseminate some contents on listing and registering transactions of foreign-invested economic institutions" held on December 9, organized by the State Securities Commission (SSC) with a lot of information related to IPO associated with listing, registration and cancellation of public company status, it was answered strictly.
Speaking at the Conference, Ms. Vu Thi Chan Phuong - Chairwoman of the State Securities Commission - commented on the current situation of FDI enterprise registration and trading listing.
"In the period from 2003 to 2017, the stock market had 11 listed enterprises, currently there are only 10 enterprises listed at two Stock Exchanges. In terms of the number and scale of FDI enterprises, it is a very small part of the stock market, while there are about 1,600 FDI enterprises" - Ms. Phuong informed.
According to Ms. Phuong, the scale of FDI enterprises is still quite modest, not showing the stature of the stock market, while many enterprises wish to be listed to register to trade in the market.
In order to increase the number and scale of FDI enterprises in the Vietnamese stock market, Mr. Tran Tien Dung - Head of the Supervisory Board of Public Companies gave many new points in the current handling method.
In accordance with current legal regulations on securities, for publicly traded FDI enterprises, the State Securities Commission proposes to consider them as regular trading enterprises, regardless of origin. At the same time, the termination of public company status is also implemented according to regulations.
For non-public FDI enterprises, Mr. Dung said that the current Securities Law does not discriminate against business forms. Therefore, if enterprises meet the regulations on model conversion, they will be allowed to transfer shares and capital contributions.
However, the Head of the Supervisory Board of Public-itized Companies also noted 5 typical cases of FDI enterprises, which need to ensure compliance with legal regulations on investment before being able to organize a public offering.
First, FDI enterprises are established in the form of public-private partnership (PPP).
Second, FDI enterprises implementing projects but in contracts there is a commitment to transfer and not compensate for project assets to the State of Vietnam or to the State-owned enterprise of the Vietnamese Party.
Third, FDI enterprises are established to implement projects on the basis of bidding to select investors.
Fourth, FDI enterprises are approved to operate in the industry and profession of investment and business according to international treaties to which Vietnam is a member.
Fifth, FDI enterprises implement projects with commitments on investor capacity, investment incentives, agreements, and bonds specifically regulated in investment registration certificates, investment licenses, and investment certificates.
Many new points in the registration order and procedures
Discussing the first public offering of shares, Ms. Vu Phi Van - Representative of the Securities Offering Management Board stated that businesses in the market need to grasp new regulations on registration documents.
Ms. Van believes that the 3 times and order, procedures for registration and listing at the same time as the registration for initial public offering of shares have now undergone major changes.
Regarding application submission, businesses need to submit IPO registration documents at the same time as registration and listing documents.
Within 15 days after the SSC receives a notice of IPO results, the listed registration organization (TSDKNY) is responsible for submitting additional registration documents to the Securities Exchange (SGDCK).
At the official listing stage, within 5 working days from the date the Stock Exchange issues the decision approving the listing of shares, theTCKNY must register the first trading day.
The first trading day must be after at least 06 working days from the date the SGDCK receives the proposal document from TCDKNY, but not exceeding 30 days from the date the SGDCK has a decision approving the listing.
After receiving the first trading day registration certificate and VSDC's document stating that the stock had registered, SGDCK issued a notice of the first trading day.
Standarizing the IPO process associated with listing, transparency of records and clarifying specific cases is expected to pave the way for many FDI enterprises to boldly popularize, increase the scale and attractiveness of the market.
