The number of new listing firms on Vietnam’s two local exchanges has remained modest in the first nine months of this year.

As of the end of last month, 10 companies debuted on the Ho Chi Minh Stock Exchange (HoSE) – most of whom moved from the Unlisted Public Company Market (UPCoM).

Nine companies debuted on the Hanoi Stock Exchange (HNX) in the January-September period.

Some of the companies making their debuts in the first three quarter included Gia Lai Electricity JSC (HoSE: GEG), Dabaco Group (HoSE: DBC) and Kosy JSC (HoSE: KOS).

The number of new companies on the two local exchanges in the past nine-months was lower compared to the previous two years.

Last year, a total of 33 companies started listing shares on the HoSE and 22 firms came on the HNX.

Other companies are also planning to move their shares to the two local exchanges.

Those companies include Investment and Industrial Development JSC (UPCoM: BCM), Hanoi Plastics JSC (UPCoM: NHH) and Kien Giang Construction Investment Consulting Group (OTC: CKG).

Listing on the two exchanges is among the best ways for companies to raise capital, serve their business activities, and help increase the firm’s creditability to investors.

Dabaco JSC chairman Nguyen Nhu So said moving companies from the UPCoM to the HoSE helps strengthen their status in comparison with other businesses in the consumer staples sector.

The firm plans to increase its charter capital by selling private shares and issuing private convertible bond notes, he said.

Some businesses are likely to break the promise made in this year’s annual shareholder meetings of bringing their businesses onto the stock exchanges.

Ricons Construction JSC director-general Le Mien Thuy said his company plans to list shares on the stock exchanges in the last quarter of this year.

The underwriting firm expects construction companies to produce high profit reports in the October-December period, and that would draw interest from investors, he said.

However, the listing will very much depend on the market trading conditions, which have been unfavourable for shareholders, Thuy said.

The market trading conditions have remained difficult for any firms to think about listing shares on the HoSE and the HNX, business executives have said.

As of September 30, the benchmark VN-Index on HoSE struggled to gain a total of 12.6 per cent.

Meanwhile, the HNX-Index on HNX increased by only 1.2 per cent in the same period.

Market trading liquidity remained modest on the two exchanges as investors have been worried about key international events such as the Sino-US trade war and the global economic recession.

They have been seeking alternative investments, which are safer and less risky than local stocks, such as gold and government bonds.

VIET NAM NEWS/ANN