State-owned enterprises (SOEs) in Vietnam may be required to go public right after their initial public offering (IPO) instead of being given a year to open up to investors.
The requirement was included on a raft of measures the Ministry of Finance is considering to address the fact that some state companies have delayed going public after their IPO.
News of the possible amendment was mentioned by Dang Quyet Tien, deputy chief of the ministry’s corporate finance department, in a piece published by the Thoi Bao Kinh Te Saigon Online on Sunday.
“It will be a breakthrough solution,” he said, adding that it will boost the transparency at state firms.
Under Vietnamese law, after an IPO and the acquisition of a new business license, SOEs must list on the Unlisted Public Company Market, or UPCOM, within 90 days, and then on main markets within a year.
However, many businesses have stayed on the UPCOM for more than two years, despite the fact that they satisfied requirements for listing on main markets, the newspaper reported.
The ministry will also review and tackle those companies which failed to meet the requirements even after IPO and UPCOM listing, according to the report.