The stock market has been witnessing lackluster days, but applications for listing on the bourse are still being received by the State Securities Commission (SSC) every day. Businesses have to have a long-term vision when deciding to list on the bourse.

The 12th shareholders’ meeting of VIB Bank recently discussed the bank’s plan to raise its chartered capital to VND3tril, sell stakes to foreign partners and list at the HCM City Stock Exchange.

The Da Nang-based VNECO SSM has got approval to list on the bourse this year and the application to list has been submitted to the Hanoi Securities Trading Centre (HASTC).

16 companies have reportedly submitted applications for listing at HOSE so far this year, 11 of which have been approved. Nine have put their shares into transactions. Meanwhile, HASTC has welcomed 26 new listed companies so far this year, while 16 applications for listing are awaiting approval.

Especially, in May, which has been witnessing the most dramatic falls of the stock market, HASTC still has received five applications for listing from enterprises. This proves to be a modest figure if compared to the bustling late 2006 and early 2007 periods, but it’s still a big surprise.

The prices of shares and fund certificates have decreased by 50% so far this year. Some of the share items have seen market prices fall down to nearly face value. The bad news has disheartened a lot of companies, who have decided to delay their listing plants indefinitely.

However, other enterprises think the other way. Director of VNECO SSM Ho Thai Hoa said that if the company does not list on the bourse, its operations will still be on the right track. However, Hoa said, the company still wants to list on the bourse because it wants its actual value recognised by the public. The listing will help meet the requirements of shareholders in improving the liquidity of shares and ensure transparency in operations.

Meanwhile, according to Nguyen Doan Hung, Deputy Chairman of the State Securities Commission, companies want to list on the bourse as they see the bourse as a good way to mobilise medium- and short-term capital. This is especially helpful now, as it is very difficult to access bank loans.

In the long term, the transparency in business of enterprises, which they will get by listing on the bourse, will be very important for their long-term development strategies.