As of present, 17 out of 31 join stock banks have their shares listed on the Hanoi Stock Exchange (HNX), the Ho Chi Minh City Stock Exchange (HSX) and the Unlisted Public Company Market (UPCoM).
Vietnam targets all joint stock commercial banks to go public by the end of 2020 in a bid to increase transparency in the banking system and make more securities available in the stock market, according to a recent prime minister-approved scheme on restructuring securities and insurance market until 2020, with vision to 2025.
As of present, 17 out of 31 join stock banks have their respective shares listed on the Hanoi Stock Exchange (HNX), the Ho Chi Minh City Stock Exchange (HSX) and the Unlisted Public Company Market (UPCoM).
Following the scheme, it is vital to facilitate the divestment and privatization process of state-owned enterprises (SOEs) under a list approved by Prime Minister Nguyen Xuan Phuc for the 2017 – 2020 period, aiming to diversify products on the stock market.
Once completing the privatization process, SOEs in subject must float shares on local stock exchanges, while drastic measures would be in place to deal with SOEs delaying the process deliberately.
Additionally, Prime Minister Phuc instructed the State Bank of Vietnam (SBV) to consider allowing credit institutions using their government bond stock as part of their compulsory reserves, at the same time finalizing regulation on the required holding rate of government bonds of credit institutions.
According to SSI Securities Corporation, the largest brokerage house in the country, Vietnam's effort to raise funds from the public-sector reforms is expected to triple in 2018 - 2020 compared to levels seen in the 2011 - 2017 period.
Specifically, the total proceeds from initial public offerings (IPOs) and the share sales of SOEs in the next two years are expected to reach US$26.3 billion, 2.75 times higher than the funds raised for the whole 2011-2017 period.
Of the total, the value of IPOs will reach US$9.7 billion, while the total amount of divestment could hit US$16.6 billion.
"Vietnam could end up being the only country in the world that embarks on a new wave of SOE reform in 2018 - 2020, placing large and profitable SOEs on public offer," stated SSI.
Illustrative photo.
|
Following the scheme, it is vital to facilitate the divestment and privatization process of state-owned enterprises (SOEs) under a list approved by Prime Minister Nguyen Xuan Phuc for the 2017 – 2020 period, aiming to diversify products on the stock market.
Once completing the privatization process, SOEs in subject must float shares on local stock exchanges, while drastic measures would be in place to deal with SOEs delaying the process deliberately.
Additionally, Prime Minister Phuc instructed the State Bank of Vietnam (SBV) to consider allowing credit institutions using their government bond stock as part of their compulsory reserves, at the same time finalizing regulation on the required holding rate of government bonds of credit institutions.
According to SSI Securities Corporation, the largest brokerage house in the country, Vietnam's effort to raise funds from the public-sector reforms is expected to triple in 2018 - 2020 compared to levels seen in the 2011 - 2017 period.
Specifically, the total proceeds from initial public offerings (IPOs) and the share sales of SOEs in the next two years are expected to reach US$26.3 billion, 2.75 times higher than the funds raised for the whole 2011-2017 period.
Of the total, the value of IPOs will reach US$9.7 billion, while the total amount of divestment could hit US$16.6 billion.
"Vietnam could end up being the only country in the world that embarks on a new wave of SOE reform in 2018 - 2020, placing large and profitable SOEs on public offer," stated SSI.
Other News
- HoSE to launch KRX-developed transaction system in early May
- Central bank moves gold auction to tomorrow
- Vietnam’s c.bank sells USD to stabilize exchange rate
- Central bank to auction gold to calm domestic market
- Vietnam's Central Bank ready to steady foreign exchange market
- Finance ministry clears bottlenecks to pave way for stock market upgrade
- Over 60% of Vietnamese use QR codes to pay
- Casinos contribute US$370 million to state budget over 5 years
- Standard Chartered and IATA partner to launch IATA Pay in Vietnam
- Vietnam’s capital market shows positive signs: Finance Ministry
Trending
-
Vietnamese PM outlines five 'intensifications' at ASEAN Future Forum
-
Vietnam news in brief - April 23
-
Hanoi tourism sector struggles with rising airfares
-
ASEAN Future Forum 2024: Promoting regional centrality
-
Central bank moves gold auction to tomorrow
-
[Video]Hanoi beauty spots featured in saxophone legend Kenny G's music video
-
Colorful stage shows in Hoan Kiem Lake pedestrian area
-
It happened as it had to happen
-
Hanoi street where dead appliances come back to life