|Viet Nam's stock market is forecast to witness a boom in share supply this year as several companies opt for initial public offerings (IPOs).— File Photo
HA NOI (VNS) — Viet Nam's stock market is forecast to witness a boom in share supply this year as several companies opt for initial public offerings (IPOs).
The Viet Nam National Textile and Garment Group (Vinatex) is finally expected to launch an IPO in the first quarter of this year, after failing to do so several times in the past, according to the Dau Tu Chung Khoan (Securities Investment) newspaper.
Viet Nam's garment and apparel industry is becoming more appealing to investors because the industry will be among those that benefit from the Trans-Pacific Partnership (TPP) when it concludes and comes into effect.
Viet Nam Motors Industry Corporation (Vinamotor) has also been urged to privatise in 2014, and, therefore, it is also likely to launch an IPO.
National carrier Vietnam Airlines and the Bank for Investment and Development of Viet Nam (BIDV) are also preparing their respective IPOs.
A representative from the Corporate Finance Department said the restructuring of State-owned enterprises, including the privatisation efforts, would lead to an increase in the supply of high-quality shares in the market.
According to economic expert Vu Dinh Anh, the supply of shares in the market will be plentiful this year, in part due to Decree 108/2013/ND-CP which came into effect on November 11, 2013.
The decree stipulates that joint stock companies must be listed on the stock exchange within one year after they start selling shares to the public.
Vice director of HCM City Stock Exchange (HOSE) Tran Thi Anh Dao told Dau Tu Chung Khoan that the exchange estimates the total volume of listed shares to rise significantly in 2014 from the previous year.
According to the Ha Noi Exchange, the equity market is expected to thrive this year, which should attract more companies to list on the stock exchange. The exchange said up to 15 companies could list their shares this year if the equity market showed positive developments. — VNS