The State Securities Commission, Vietnam’s stock market watchdog, has ruled that all shareholding companies must make financial disclosures as a way of improving transparency, an official said Friday.
SSC spokesman Vu Van Quang said: "The companies must release financial reports and other key information to the public regularly or irregularly."
Less than 1 percent of 33,000 public corporations in Vietnam published key financial data, he noted.
The 195 listed companies were, however, releasing the required information.
Under new regulations issued this week, companies with a registered capital of at least VND10 billion ($625,000) and at least 100 investors have to register their stock at securities companies before July 1.
"From the third quarter, people should buy shares of unlisted companies via securities companies instead of through gray markets," Quang said.
He added that improved transparency would attract more foreign investors to buy local companies’ shares.
Traders estimate that the 33,000 unlisted public corporations have a total market capitalization of $40 billion, almost double the value of the 195 companies listed on Vietnam's two bourses.
Source: Thanh Nien
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