Nguyễn Hoàng Hải, Vice Chairman of the Việt Nam Association of Financial Investors (VAFI). speaks to Hải Quan (Customs) online about the Government’s resolve to have all equitised State-owned enterprises listed on the stock exchange

How do you respond to the Government’s determination to push State-owned enterprises to list stocks on the UpCom within 20 days of their share sale?

The delay by many SOEs in listing their stocks on the UpCom has discouraged or even caused losses to tens of thousands of investors.

There are two reasons for this. First, the old regulation did not specify an accurate timetable for listing after equitisation. Thus, many enterprises relied on this loophole to put off listing. When asked, they say they are preparing to list.

Second is the lack of punitive sanctions against enterprises that drag their feet.

In addition, quite a lot of those named to manage the equitised capital lack experiences in enterprise management.

The delay in the stock listing has also weakened the liquidity and value of the shares. As a result, the State has lost billions of US dollars.

Acknowledging these weaknesses, the Government has issued many documents ordering ministries, sectors, localities and State corporations to push the SOEs to list their shares on the stock market. In addition, the Government has levied heavy fines on equitised SOEs’ that delay listing their shares.

I believe, following the Government’s firm actions, the situation will improve.

In my opinion, if the SOEs have their shares listed before their divestments, the State will then gain tens of billion of dollars more than first divesting and only then listing the shares.

Listing in the stock market would benefit the State. Why do many enterprises try nonetheless to delay having their shares listed?

It is regulated that after having their shares listed in the stock market, enterprises have to practice transparency and accountability. That means, reducing corruption and making the appointment of personnel more transparent. What’s more important is that the liquidity of the enterprise shares will cultivate investor confidence. So now, the Government’s policy that the SOEs have to list stocks on the UPCoM within 20 days after the payment due date of their share sale, will boost investor share buying and the State will earn more money.

Though our stock exchange market at present is still modest compared to others in the region, it has achieved quite a lot. This is a key reason pushing the Government to urge the SEOs to sell 26 per cent of their controlling stakes so that their strategic investors can either be foreign or Vietnamese nationals.

To do this, it is imperative that we erase the old thinking according to which SOEs must be subjected to the management of a ministry, sector or a local government, and therefore cannot be sold to outsiders!

Don’t you think our present legal system is strong enough to sanction SOEs which delay listing?

At present our policies and mechanism on SOE equitisation are rather comprehensive. Official documents make clear that people representing the State’s interests must implement the task to which they are assigned or else they will be disciplined, even dismissed.

The Government has asked all SOEs to reform their enterprises and stated clearly that if the heads of SOEs fail to perform their duties, they will be dismissed. But if they perform their duties well, they will be given awards, including promotion._VNS