Wed, Dec 07, 2005 - Page 11 News List

First foreign firm to list in Vietnam

AFP , HANOI

An affiliate of Taya Electric Wire and Cable Co (大亞電線電纜) has become the first foreign-invested firm to win a license to list on Vietnam's stock exchanges, the State Securities Commission (SSC) said yesterday.

The license was given last Friday, said the commission's president, Tran Xuan Ha, adding that listing would take place within three months.

"Taya Vietnam was chosen because the company fulfilled the criteria set by the commission on the listing of private firms. Also it is profitable but above all it has already sold 20 percent of its shares," SSC vice president Vu Bang said.

In late May, the company began offering shares equal to 20 percent of its registered capital or some 36 billion dong (US$2.3 million).

Taya Vietnam was launched in 1995 as part of the Taiwan government's "go south" policy of encouraging firms to invest in countries other than China so as not to concentrate too much business in China.

The company's shares will be listed in Vietnam's two stock exchanges, in Hanoi and Ho Chi Minh City.

Vietnam's second exchange opened in Hanoi on March 8, offering shares in 10 state-owned enterprises as well as bonds and other financial instruments.

The Ho Chi Minh City market has operated since July 2000 but has failed to take off in any significant way.

According to officials, Vietnam now has more than 2,400 state-owned enterprises but only 31 of them are listed in Ho Chi Minh City.

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