Business information firm Stoxplus partners up with the Ho Chi Minh Stock Exchange to help Vietnam attract long-term foreign investment.
Stoxplus and Ho Chi Minh Stock Exchange (HOSE) signed a Memorandum of Understanding on July 6 in which the two parties agreed on a widescope collaboration to develop the Vietnamese stock market and lure foreign investors.
Firstly, Stoxplus and HOSE will conduct a survey on lifting the foreign ownership limit at listed Vietnamese companies. According to Stoxplus, only 13 firms have eased the ceiling since the implementation of Decree No.60/2015/ND-CP in September 2015. An in-depth survey and analysis are thus crucial to understand the challenges and difficulties that hinder this progress at listed Vietnamese companies.
Secondly, Stoxplus and HOSE will support listed firms to disclose information in English, which is necessary to serve international investors. An improvement in information disclosure will also boost market transparency and upgrade investor relations standards in Vietnam.
Thirdly, the two parties will evaluate the quality of corporate governance at listed companies, based on the regulations in Circular No.155/2015/TT-BTC.
“Vietnam is striving to reach the “emerging market” status on the Morgan Stanley Capital International index, so we believe that improvements in corporate governance, information disclosure, and lifting the foreign ownership limit are vital. Through this collaboration with HOSE, we would like to help improve the transparency and attractiveness of the Vietnamese market in the eyes of overseas investors,” said Nguyen Quang Thuan, CEO of Stoxplus.
Meanwhile, deputy CEO of HOSE Tran Anh Dao expressed hope that the survey will encourage listed firms to elaborate on any difficulties that prevent them from scrapping their foreign ownership cap. HOSE representatives will use this information to propose suggestions to the Ministry of Finance and other relevant governmental bodies.
Findings of the Stoxplus-HOSE survey will be released in the fourth quarter of 2016.