Several listed foreign firms report lower profits and losses in 2020
The majority of foreign-invested enterprises listed on Vietnam's stock market either posted lower after-tax profits or losses in 2020 due to the impact of the COVID-19.
While most listed foreign-invested enterprises (FIEs) were in the red, only Siam Brothers Vietnam JSC and Tung Kuang Industry JSC reported increases in after-tax profit by 18 and 56 per cent respectively, according to the State Securities Commission (SSC).
In the 2016-2020 period, most businesses made profits after listing and registering for trading on the stock market with only a few incurred losses.
Specifically, seven out of 10 businesses have been profitable over 2016-2019. Among them, International Food JSC has maintained sustainable growth in after-tax profit, with its 2019 results five times higher than those in 2016.
Three FIEs regularly posting losses are Chang Yih Ceramic JSC, Hoang Gia International JSC, and Taicera Ceramic Industry JSC. Thus, Chang Yih Ceramic JSC was delisted from the Ho Chi Minh City Stock Exchange (HSX) in 2017.
Meanwhile, about 11 FIEs have converted from limited liability to joint stock companies for listing on the stock exchanges.
In addition, no founding shareholders and foreign investors have reportedly divested from their listed FIEs. Foreign ownership was raised at eight out of 10 listed FIEs after listing.
Currently, the capitalistation of listed FIEs accounts for only 0.3 per cent of the total market capitalisation.