HA NOI — Several companies whose listings have been cancelled have apparently "disappeared" from the face of the earth, providing no information or explanation to shareholders over their capital losses.
The HCM City Stock Exchange in May cancelled the listings of Cavico Viet Nam Mining and Construction Company (MCV) and VIKY (Tan Hoa) Plastic Company (VKP) but both firms have failed to make full disclosures of events and causes to investors.
MCV was delisted for continually violating information disclosure regulations and VKP was delisted after posting losses for three consecutive years to 2011.
Shareholders of MCV can't even access its website.
One investor holding more than 10,000 MCV shares was quoted by the Sai Gon Dau tu tai chinh (Saigon Financial Investment) newspaper as saying: "The HCM City's exchange attributed its decision to delist those sharesto protecting investors' interests but we are the victims and don't know who to call for help.
"A VND40 million (US$1,900) investment in MCV is now waste paper," he said.
Other delisted companies such as Vien Dong Pharmaceutical Co (DVD) and Sai Gon Beverages Co (TRI) have also "disappeared" without any explanation to shareholders.
Some companies have moved to the Unlisted Public Company Market (UPCoM), including Viet Hai Shipping and Real Properties Company (VSP) and Cadovimex Seafood Import-Export and Processing (CAD) Company.
However, low share prices and lack of liquidity have made it nearly impossible for shareholders to recover their investments. VSP is trading at VND2,500 ($0.12).
Investors in other companies have now become jittery and to more likely to bail out of any company on the slightest rumour of difficulties.
For example, shares of An Giang Coffee Co (AGC) fell from more than VND2,000 ($0.10) to VND900 ($0.04) a share following information the company would be delisted from July 17. — VNS