All Vietnamese commercial banks to be listed before 2020
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A Prime Minister approved plan requires all commercial joint stock banks to be listed before 2020 towards increased transparency and diversity. This is one of a series of solutions set out in the scheme to “Restructure the stock market and insurance market by 2020 with orientation towards 2025” approved by the Prime Minister late last month.
Accordingly, commercial banks are required to list on any of Vietnam’s three official stock exchanges – the Ho Chi Minh Stock exchange (HOSE), Vietnam’s main exchange which accounts for over 90 percent of total market capitalization; the Hanoi Stock Exchange (HNX), which houses remaining listed companies; and the Unlisted Public Company Market (UPCoM), which is set up to encourage unlisted public firms to participate in the securities market so that they can later transfer to one of the two main stock markets.
Currently, only 17 of 31 banks are registered for trading on all three floors.
The Prime Minister has assigned the Ministry of Finance and the State Bank of Vietnam (SBV) to supervise and direct banks on listing, securitizing debts, provision of required services for derivatives trading, as well as monitor domestic and capital sources on the market.
Last year, PM lauded Vietnam’s stock market for outperforming other Southeast Asian nations in capital mobilization, with a market cap of 72 percent of GDP at the end of 2-10.
Questions & Answers
Q.What is the primary goal of requiring all commercial banks to be listed by 2020?
What is the primary goal of requiring all commercial banks to be listed by 2020?
The main objective of the Prime Minister's approved plan is to increase transparency and diversity within the Vietnamese banking sector. This measure is part of a wider scheme to restructure the stock and insurance markets.
Q.Which government bodies are responsible for overseeing the banks' listing process?
Which government bodies are responsible for overseeing the banks' listing process?
The Prime Minister has assigned the Ministry of Finance and the State Bank of Vietnam (SBV) to supervise and direct commercial banks regarding their listing requirements. They also monitor other related activities.
Q.How many banks still need to complete their listing before the 2020 deadline?
How many banks still need to complete their listing before the 2020 deadline?
Currently, only 17 of the 31 commercial banks are registered for trading on the three official exchanges. This means 14 banks still need to be listed.
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