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Dinh Trong Thinh, an economist, said that listing shares on foreign stock markets is the goal of many enterprises because joining transparent financial markets will help them become global companies.
However, Vietnamese enterprises will have to satisfy strict requirements. To be eligible to list shares on NYSE, for example, a business must have at least 5,000 shares, 2.5 million public shares, and $100 million of gross pre-tax profits made in the last three years.
The high listing fee and the required financial sources to maintain presence on foreign bourses are also a big barrier.
At SGX, for example, the lowest listing fee is 50,000 SGD and the highest is 200,000 SGD. The listing application fee is 20,000 SGD. Enterprises also have to pay a fee of 25,000 SGD to 100,000 SGD every year.
Hoang Anh Gia Lai had to cancel the plan to list its shares at SGX because it was time- consuming and costly, and it was not sure about the efficiency.
“These will still be challenges for Vietjet for the immediate time and future,” Thinh said.
He said that it would be risky for Vietjet and any other Vietnamese businesses to list shares on foreign bourses if they still cannot satisfy requirements according to international standards.
If they are weak at corporate governance, production and business capability, they will not be recognized in the international market, even if they can enter foreign bourses.
“It is more important to consider how long they can stay on the bourse,” he said.
“Vietjet needs to think if it is powerful enough and its shares are prestigious enough to interest international investors. It is not a simple matter,” he said.
Tran Dinh Ba from the Vietnam Economics Science Association believes that with strong determination and potential, Vietjet will succeed.
Vietjet Air is now second to Vietnam Airlines, the nation’s flag air carrer, in domestic market share, but the gap is small, just 1 percent (Vietjet Air 41 percent and Vietnam Airlines 42 percent).
In the stock market, Vietjet Air’s share price is 4.2 times higher than Vietnam Airlines, while its capitalization value has exceeded VND1.448 trillion.
VietJet Air CEO Nguyen Thi Phuong Thao, is one of two Vietnamese representatives in Forbes 2017 billionaires list. The other is Vingroup chairman Pham Nhat Vuong.
