Illustrative image (Photo: VNA)Hanoi (VNA) – All relevant agencies have been ordered to publicise 578equitised State-owned enterprises (SOEs) not listed on the stock market as ofDecember 31, 2016.
The order was made recently by Deputy Prime Minister Vuong Dinh Hue.
Of the 578 equitised SOEs, 301 have not registered to list on the stockexchange, 205 have not met the listing requirements and 72 have not registeredto list even after meeting the requirements, according to the Ministry ofFinance.
Among the companies that have not registered for listing, subsidiaries of theElectricity of Vietnam (EVN) and the coal and mining group Vinacomin (TKV) arenot qualified for the number of shareholders.
The list of the 578 equitised companies created by the Ministry of Finance wasbased on reports sent to it by 14 ministries, 41 localities, and 29 State-ownedcorporations and groups.
The Deputy PM said all ministries, localities and State-owned corporationsshould ask representatives of the concerned SOEs to list their shares on themarket as soon as they meet all the requirements to do so.
He asked the Government Office and the Ministry of Finance to publish the listof the 578 SOEs on the websites of the Government and the ministry.
The Ministry of Finance must make a separate list of the SOEs that have notlisted despite meeting all the requirements to do so and submit it to the PrimeMinister.
According to experts, the delay in listing equitised SOEs will have negativeimpacts within the companies and also make further equitisation less attractiveto investors, especially foreign investors, resulting in a loss of income tothe State.
Delayed listing of SOEs will also reduce the chance of holding successful IPOs,because the number of investors participating in the auctions will be low,leading to low bidding prices.
The delayed listing will also result in SOEs being unable to transparently showtheir financial status, and investors will not be keen on investing in firmwhose operations they cannot monitor.-VNA
VNA
