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Firms aim to improve investor relationships

Update: October, 26/2013 - 09:36
Vietnamese companies have been urged to enhance their investor relations (IR) to improve share value and liquidity while consolidating their image and position in the market.— File Photo

HA NOI (VNS)  — Vietnamese companies have been urged to enhance their investor relations (IR) to improve share value and liquidity while consolidating their image and position in the market.

Ngo Van Minh, responsible for IR at MB Securities, has said that relations are a bridge connecting enterprises, investors and stock market participants, providing each with relevant business information.

Currently, information from listed companies in Viet Nam still lacks transparency, which is discouraging investors. This means IR is even more indispensable, especially with the gloomy stock market backdrop, he said.

However, Minh acknowledged that so far most companies had failed to take the initiative in providing information to stakeholders. In Viet Nam, stocks of many enterprises have traded below their book value in major part due to bad IR performance, Minh said, stressing that IR would help improve the companies' brand names.

Minh said that IR was a long-term process that would not produce immediate results, pointing out that the efficiency of IR will depend on stock value news, frequent investor visits, timely press releases and a larger capital mobilisation capacity.

According to Vice Chairwoman of PetroVietnam Fertilisers and Chemicals Company (DPM) Nguyen Thi Hien, foreign investors were showing increasing interests in DPM shares recently thanks to the company's enhancement of its investor relations.

Hien said that information management and exchange in IR were important factors ensuring efficiency and transparency and in turn boosting investors' confidence. — VNS

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