Number of UPCoM’s doubled in 2015, set for more growth

The number of Vietnamese unlisted public companies (UPCoM) doubled last year, and 2016 regulations should bolster once-sluggish growth even more.
Number of UPCoM’s doubled in 2015, set for more growth ảnh 1Illustrative photo (Source: VNA)

Hanoi (VNA) - The number of Vietnamese unlisted public companies (UPCoM) doubled last year, and 2016 regulations should bolster once-sluggish growth even more.

Nguyen Vu Quang Trung, Vice Director of the Hanoi Stock Exchange (HNX), said that UPCoM - said to be a buffer for public companies before their official listing in the two local bourses - currently holds less than 30 percent of the total 1,071 unlisted public companies.

According to local media, non-UPCoM shares have no trading value on the legal market, or are traded illegally. Trading on the unlisted market is better regulated than illegal trading on the black market.

Since 2015, 72 more firms joined the UPCoM, which trades stocks, convertible bonds of unlisted public companies, and stocks of companies delisted from listed markets. UPCoM aims to have 300 more companies join by the end of the year. The vice director said decision No 51/2015/QĐ-TTg and decree No 60/2015/ND-CP made the recent growth possible. Both directives forced all public companies to list their stocks in UPCoM, before listing in local bourses.

Under Vietnamese securities law, public companies are defined as: those with IPOs; those with shares listed in the two bourses; those whose stakes are owned by more than 100 investors, with charter capital of 10 billion VND (447,000 USD) or more; and State-owned enterprises (SOEs) that were turned into joint stock companies. So the State’s plan to divest 40 trillion VND from SOEs this year via auctions will bring many more stocks to the unlisted market. And as equitisation of State-owned companies continues, more and more of them will be added to the unlisted market.

Current Vietnamese laws stipulate that SOEs that shift to public companies must register in the UPCoM within 90 days.

Under the Government’s plan, 470 SOEs will become equitised between 2016 and 2017, including 130 SOEs that started the equitisation process last year. As a result, there should be about 150 new companies listed in UPCoM within the year. This includes big name companies, such as MobiFone, Satra, Benthanh Group, Vietnam Tea.

The regulations will also bring banks and public companies completing their IPOs to UPCoM, including Seaprodex, Vinatex, Hanoi Construction Corporation, Sabeco, Habeco, and Cholimex Food.

Starting in 2017, HNX will rate the transparency of companies traded on the market and identify good quality stocks publicly, to make investors’ work easier. As of March 14, UPCoM had 268 companies trading, with nearly 5.9 billion shares with a market value of 75 trillion VND.-VNA

VNA

See more

At an automotive exhibition in Shanghai, China. (Photo: AFP/VNA)

Chinese electric vehicles drive back into Vietnamese market

About a decade ago, Chinese car brands like Zotye Z8, Beijing X7, and Brilliance V7 entered the Vietnamese market to limited success. But a new fleet of modern Chinese vehicles began to gain traction in the Vietnam market last year.

Illustrative image (Photo: VNA)

Nearly 16 trillion VND raised through January bond auctions

The January auctions saw a strong preference for 10-year and 15-year bonds, representing 80.2% and 14.8% of the total, respectively. Specifically, 10-year bonds raised 12.81 trillion VND, while 15-year bonds garnered 2.36 trillion VND.

Thang Long ferry at Cau Da port in Ba Ria - Vung Tau province. (Photo: VNA)

Vung Tau - Con Dao high-speed ferry reoperated

The high-speed ferry service connecting Vung Tau city and Con Dao island in the southern province of Ba Ria-Vung Tau and vice versa was resumed on February 7 by Phu Quoc Express JSC after a 5-month suspension.

At the working session between the Vietnam Directorate of Market Surveillance and the US Embassy over counterfeit Sunview-branded raisins in Hanoi on February 7. (Photo: dms.gov.vn)

Vietnam, US tackle counterfeit Sunview-branded raisins

Statistics showed that since 2024, there have been 27 documented cases involving Sunview raisins, resulting in fines of over 536 million VND (21,440 USD), primarily due to the sale of smuggled goods and products of unclear origin.

The VF3 model manufactured by VinFast is the most popular model in Vietnam's market. ( Photo courtesy of the company)

EVs will no longer be exempt from registration fees

Instead of enjoying a zero percent registration fee, battery-powered electric vehicles (EVs) will be required to pay 50% of the fee applicable to internal combustion engine cars with the same seating capacity.