Regulator orders review of eligibility

On February 24, the State Securities Commission of Vietnam (SSC) issued a document requiring a review of public company status for state-owned enterprises (SOEs) that are listed or registered for trading on the Stock Exchange.

Under the amended Securities Law (2019, revised in 2024), a public company must have charter capital of at least VND30 billion (approximately US$1.2 million) and at least 10% of its voting shares held by a minimum of 100 shareholders who are not major shareholders.

Companies that fail to meet either condition may have their public company status revoked, potentially leading to delisting.

If a company no longer satisfies the requirements, it must, within 15 days of the triggering event, submit a written report along with its shareholder list and the most recent audited annual financial statements for regulatory review.

The directive also applies to subsidiaries of SOEs that are listed or registered for trading. These subsidiaries must independently meet all public company criteria, regardless of whether their parent company is state-controlled.

In the event of revocation, within seven days of receiving official notice, the enterprise must disclose information and coordinate with the Stock Exchange to carry out delisting or cancellation of trading registration procedures in accordance with regulations.

Major names under scrutiny

In November and December 2025, several major listed enterprises announced they no longer met public company conditions under the amended Securities Law. These include PetroVietnam Gas (GAS), Binh Son Refining and Petrochemical (BSR), TKV Vimico (KSV), and PetroVietnam Low Pressure Gas Distribution (PGD).

Other large corporations have yet to reach the minimum 10% free-float threshold among minority shareholders, including Bank for Investment and Development of Vietnam (BID), Becamex IDC (BCM), and Airports Corporation of Vietnam (ACV).

During the February 27 trading session, the stock market fluctuated sharply, rising early before turning negative. Several large-cap stocks declined. By 1:10 pm, BID shares had fallen VND450 to VND48,000 per share.

However, BSR gained VND900 to VND30,900 per share, while GAS rose VND1,200 to VND107,200 per share. Oil and gas stocks have shown positive momentum in recent sessions amid rising global oil prices.

Banking, retail and construction material stocks saw notable declines. Shares linked to Vingroup experienced strong volatility. Vingroup (VIC) surged in the morning but reversed into losses by early afternoon. Vinhomes (VHM) dropped VND2,500 to VND105,100 per share.

The SSC’s move has drawn close attention from investors, as any large-scale loss of public company status among major SOEs could significantly impact market liquidity, index composition and investor confidence.

Manh Ha