Want to be in the loop?
subscribe to
our notification
Business News
VIETNAM WANTS TO RAISE IPO THRESHOLD TO KEEP OUT SMALL FIRMS
The government wants to triple the minimum capital a company should have for making an initial public offering to reduce risks for investors.
In a bill on securities, the government has proposed increasing the minimum charter capital to VND30 billion ($1.28 million).
Minister of Finance Dinh Tien Dung said the bill seeks to prevent businesses from issuing shares worth many times owners’ equity.
The average capital of Vietnamese businesses has surged 16.35 times in the last 10 years, and a company with a capital of only VND10 billion ($428,700) would in any case have difficulty operating, he said.
"The low charter capital requirement has led to many companies going public, but after a short time asking to have the 'public' status removed."
Most delegates an the National Assembly’s Economic Committee endorsed the bill, saying it would improve the quality and stability of stocks in the market and reduce the risk for investors.
Since a majority of companies have VND30 trillion or more in capital, the bill would only affect 18 percent of listed businesses, a government report said.
But the chairman of the committee, Vu Hong Thanh, said there are objections to the bill that it would prevent small and medium-sized enterprises from mobilizing funds on the stock market.
The government needs to further assess the socio-economic impacts of the bill, he added.
Lawmakers will discuss the bill again next Thursday.
Vietnam last year unseated Singapore as the largest IPO market in Southeast Asia, with five issuances raising $2.6 billion, according to consultancy EY.
Source: Vnexpress
Related News
BUSINESS ENVIRONMENT REFORM NEEDS FURTHER PROMOTION: EXPERT
Ministries, sectors and localities need to drastically improve the business environment, including improving the efficiency in implementing reform. That was the message from Nguyễn Thị Minh Thảo, head of the Business Environment and Competitiveness Research Department at the Central Institute for Economic Management (CIEM).
MINISTRY ASKS CARRIERS TO DEVELOP FLEET OPERATION PLAN TO MEET SUMMER TRAVEL DEMAND
In a document sent to the Civil Aviation Authority of Việt Nam, the ministry said that the restructuring of some airlines’ fleet and flight networks, coupled with the recall of PW1100 engines by Pratt & Whitney for repair, have affected the load on both international and domestic flight routes, causing difficulties to passengers in terms of prices and schedules.
US AND VIETNAM BUILD MOMENTUM WITH UPGRADED TIES
In the six months since the historic upgrade of the US-Vietnam relationship to a Comprehensive Strategic Partnership, the United States and Vietnam have built on the momentum of our elevated relationship to advance bilateral cooperation across a range of areas.
LENDING SLOWDOWN THREATENS TO DELAY REAL ESTATE RECOVERY
Phan Duc Tu, chairman of BIDV’s Board of Directors, said, “Over the first 80 days of 2024, BIDV has disbursed loans totalling $18.95 billion to the economy. However, the figure is lower than its debt repayment of $19.55 billion. As of March 11, the bank’s outstanding balance contracted approximately 1 per cent compared with the end of 2023.”
PERFECT SPRINGTIME SIP AT LEGEND LOUNGE
Ho Chi Minh City, February 28, 2024 - The season of love dedicated to women has returned to the LOTTE HOTEL SAIGON, offering ladies impressive and sophisticated experiences. A highlight not to be missed at The Canvas seafood buffet restaurant is the masterpiece Lobster Ravioli. Visit Ottimo House to enjoy premium Italian cuisine prepared with Australian Wagyu beef. On Mondays and Tuesdays, Yoshino Japanese Cuisine Restaurant offers a 20% discount on sashimi. Discover the classy space and enjoy the new drinks available at Legend Lounge, including "Cherry Blossom Latte" and "Strawberry Afternoon Tea.". To end your self-love journey, Legend Healing Spa will be offering 20% off two special treatments.
VIETNAM RANKS IN TOP 5 FAVOURITE INVESTMENT DESTINATIONS AMONG ASIA’S EMERGING AND DEVELOPING COUNTRIES
The US' Milken Institute released the Global Opportunity Index (GOI) on March 5. The GOI remains a strong predictor of capital movements 10 years after its inception. The index alone explains 64.7 per cent of the variation in per capita foreign direct investment (FDI) inflows and 51.7 per cent of per capita portfolio inflows to countries across the world. The 2024 GOI report provides a global overview of countries' attractiveness and capital inflows.