Banks are sluggish to list stocks

December 15, 2018 | 09:13
(0) user say
As 2018 is almost over, many local banks still have not shown any signs of listing on the Unlisted Public Company Market (UPCoM) as per their plan announced earlier on at the annual general shareholders’ meeting.

All commercial banks have been urged to complete procedures to register their stock on the Unlisted Public Company Market (UPCoM), as part of an attempt to enhance the transparency of banking operations in line with the prime minister’s Decision No.1058/QD-TTg, approving the scheme to restructure the credit institution system and deal with the issue of bad debts in 2016-2020, and Circular No.180/2015/TTBTC issued by the Ministry of Finance that guides registration for securities trading on UPCoM.

However, up until this point in time, merely half of the 35 local banks have actually been listed on the Ho Chi Minh City Stock Exchange (HSX), the Hanoi Stock Exchange (HNX), and UPCoM, despite the orders of the State Bank of Vietnam (SBV) and the State Securities Commission (SSC).

banks are sluggish to list stocks
Only half of the commercial banks have completed listing on the stock exchanges

In his explanation of why banks are rather sluggish in their listing, Cao Sy Kiem, former governor of the SBV, said that the listing often requires complicated procedures with high transparency and accurate information to ensure the banks’ reputation. Should one of these criteria not be met, banks would not find it easy to list on the stock exchanges.

When it comes to transparency, the actual performance of a number of banks may not be consistent with their published financial reports. Listing on the stock exchanges in a weaker condition than otherwise thought is not something banks would like to do as it would severely affect their reputation.

“Listing on the stock exchange may well be a pressure for the bank itself and its shareholders,” noted Kiem.

Bank leaders said that listing shares should be carried out at the right time to raise stock liquidity and the reason for the delay in listing comes down to the stock market volatility that does not work to the advantage of bank stocks.

Tien Phong Commercial JSB (TPBank), Ho Chi Minh City Development Commercial JSB (HDBank), and Vietnam Technological and Commercial JSB (Techcombank) were those who got listed in the first two quarters of 2018, seizing the opportunity when the stock market prospered and large-cap stock prices rose.

In the case of Nam A Commercial JSB (Nam A Bank), Nguyen Quoc Toan, chairman of Nam A Bank, said that although the bank has planned to list on HSX, it had to put a pause to the progress due to the unfavourable developments on the stock market.

In the annual general shareholders’ meeting held on April 28, 2018, Nam A Bank’s board of directors asked shareholders for permission to select the appropriate time for listing. Nam A Bank, is still completing the procedures to get listed on UPCoM and subsequently HSX.

According to chairman of Orient Commercial JSB (OCB) Trinh Van Tuan, OCB is carrying out procedures to list shares on HSX and is expecting to complete them within the last quarter of the year. However, if there are no positive signs from the stock market, OCB will postpone the plan until next year. Besides, OCB wants to fix the foreign ownership limit (FOL) before its listing. The bank’s market capitalisation is expected to reach $1 billion upon its listing.

Other banks who are still in the progress of preparing the necessary procedures for share listing on HSX are Vietnam Asia Commercial JSB (VietABank), Vietnam Thuong Tin Commercial JSB (VietBank), Vietnam International Commercial JSB (VIB), and LienVietPostBank.

Name of banks listed


(Code: BAB) Bac A Commercial JSB - Bac A Bank

(Code: KLB) Kien Long Commercial JSB - Kien Long Bank

(Code: LPB) Lien Viet Post Commercial JSB -LienVietPostBank

(Code: VIB) Vietnam International Commercial JSB - VIB Bank


(Code: ACB) Asia Commercial Bank - ACB Bank

(Code: NVB) National Citizen Commercial JSB - NCB

(Code: SHB) Saigon Hanoi Commercial JSB - SHB


(Code: BID) JSC Bank For Investment And Development Of Vietnam - BIDV

(Code: CTG) Vietnam JSC Bank for Industry and Trade - Vietinbank

(Code: EIB) Vietnam Commercial Joint Stock Export Import Bank - Eximbank

(Code: HDB) Ho Chi Minh Development Commercial JSB - HDBank

(Code: MBB) Military Commercial JSB - MBBank

(Code: STB) Saigon Thuong Tin Commercial JSB - Sacombank

(Code: TCB) Vietnam Technological and Commercial JSB - Techcombank

(Code: TPB) Tien Phong Commercial JSB - TPBank

(Code: VCB) JSB Bank for Foreign Trade of Vietnam - Vietcombank

(Code: VPB) Vietnam Prosperity Commercial JSB - VPBank


Name of banks unlisted or currently traded on the OTC (over-the-counter)


Vietnam Bank for Agriculture and Rural Development - Agribank


Construction Bank - CBBank


Ocean Bank - Oceanbank


Global Petro Bank - GPBank


Dong A Commercial JSB - DongABank


Southeast Asia Commercial JSB - SeABank


An Binh Commercial JSB - ABBank


Viet Capital Bank Commercial JSB - VietCapitalBank


Vietnam Maritime Commercial JSB - Maritime Bank


Nam A Commercial JSB - NamABank


Orient Commercial JSB - OCB


Vietnam Public Commercial JSB - PVcomBank


Sai Gon Commercial JSB - SCB


Vietnam Asia Commercial JSB - VietABank


Bao Viet Commercial JSB - BaoVietBank


Vietnam Thuong Tin Commercial JSB - VietBank


Petrolimex Group Commercial JSB - PGBank


Saigon Bank For Industry And Trade - Saigonbank

banks are sluggish to list stocks Major banks accelerate listing preparations

On August 17, VPBank will be officially listed on the Ho Chi Minh City Stock Exchange (HoSE). Including this, there are at least four major ...

banks are sluggish to list stocks Banks’ listing enthusiasm simmers down

Banks are hesitant to go public over the persistent challenging business environment.

banks are sluggish to list stocks Local banks queue up for bourse listing

Banks are rushing to get listed on the stock exchange this year, as ordered by the State Bank of Vietnam.

By Thu Huyen

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional