Approximately 10% of the Vietnamese population shows a particular interest in listed companies and their corresponding securities. Stock investing is a form of investment that enables individuals to buy and sell various financial instruments such as stocks, bonds, fund certificates, and similar products on the stock exchange to generate profits. Accordingly, selecting value-generating stocks must begin with selecting the right listed companies. The process of investing in securities requires investors to continuously update market developments, conduct thorough research, and make effective investment assessments to achieve optimal returns.

This article aims to provide basic information regarding listed companies and present the Top 10 listed companies on the Ho Chi Minh Stock Exchange (HOSE) in 2024. The information is compiled from various sources, including legal regulations on listed companies and investment news articles. This article does not constitute investment advice or a recommendation for any individual or organization to buy or sell securities.

What Is a Listed Company?

The terms “Listed Company”, “Listing”, and “Securities Listing” are defined and referred to in the prevailing Law on Securities and the Law on Enterprises. In simple terms, a listed company is one whose securities are listed or registered for trading on a stock exchange system.

Securities listing refers to the act of admitting eligible securities to trading on a stock exchange system. Securities include financial instruments such as stocks, bonds, fund certificates, covered warrants, pre-emptive rights, depository receipts, and derivatives.

Listed companies are those that have registered their securities for trading on a stock exchange, such as the Unlisted Public Company Market (UPCOM), the Ho Chi Minh Stock Exchange (HOSE), or the Hanoi Stock Exchange (HNX). These companies are subject to stringent oversight by the stock exchange and the State Securities Commission of Vietnam (SSC).

Advantages of Becoming a Listed Company

Once a business successfully lists on the stock market, the most apparent benefit it gains is increased investor confidence and interest. There are multiple factors influencing investor attention, and not all listed companies attract significant interest. However, in order to be listed, a company must meet specific eligibility conditions. Therefore, listing represents a critical step toward attracting potential investors.

Securities of listed companies are more easily traded on the market, which enhances their liquidity. Investors may have more opportunities to liquidate or mobilize capital by selling shares.

Typically, value investors focus more on the intrinsic value of a company than on its stock price. Thus, long-term investments in fundamentally strong companies have the potential to yield attractive returns.

Conditions for Becoming a Listed Company

Pursuant to Article 15 of the Law on Securities 2019, the following conditions must be satisfied for a joint-stock company to conduct an initial public offering (IPO). Below is an excerpt outlining the conditions to become a listed company or to publicly offer shares:

Clause 1, Article 15 of the Law on Securities 2019:
Conditions for an initial public offering of shares by a joint-stock company include:

  • The charter capital contributed at the time of registration for the public offering must be at least VND 30 billion, based on the value recorded in the accounting books;
  • The company must have recorded profits for the two consecutive years preceding the year of registration for the offering, and must have no accumulated losses up to the year of registration;
  • The company must have an issuance plan and a capital utilization plan approved by the General Meeting of Shareholders;
  • At least 15% of the voting shares must be sold to at least 100 shareholders who are not major shareholders; if the issuing company has charter capital of VND 1,000 billion or more, the minimum ratio is 10%;
  • Major shareholders must commit to jointly hold at least 20% of the company’s charter capital for a minimum of one year from the date the offering ends;
  • The issuing organization must not be under criminal investigation or have unexpunged convictions for economic crimes;
  • The offering must be advised by a securities company, except where the issuer is a securities company itself;
  • The issuer must commit to and execute the listing or registration of its shares on a stock trading system after the offering;
  • The issuer must open a blocked account to receive funds from the share sale.

For regulations concerning the public offering of fund certificates, refer to Article 13 of Circular No. 98/2020/TT-BTC, effective from January 1, 2021.

The Stock Listing Market on HOSE

Below is summarized information from Vietstock highlighting the Top 10 potential stocks of listed companies on the stock exchange. Please note, this information is provided for reference purposes only and does not constitute investment advice.

These stocks are generally categorized by industry groups for tracking purposes, as follows:

Conclusion

We hope this article has helped you better understand listed companies and the concept of securities listing. The stock market is dynamic and requires substantial knowledge to navigate. Some individuals dedicate their time to continuously learning and staying up to date with investment knowledge in pursuit of becoming successful investors. Understanding listed companies and their long-term value, as well as owning shares in fundamentally strong companies, can serve as an effective and secure investment strategy.

Please contact KMC if you are in need of consultation:

Ho Chi Minh City: +84 28 3820 5731
Hanoi: +84 81 489 4789