There are nearly 20 large stock markets in the world with capitalization value of over VND1 trillion, considered the most important financial centers. Of these, NYSE (the New York Stock Exchange) and Nasdaq are the largest with total capitalization value of US$30 trillion.
The Vietnamese stock market had capitalization value of US$100 billion by the end of the first quarter of 2017.
In order to list shares on Global Select Market of Nasdaq, businesses need to satisfy financial and liquidity requirements.
Regarding the financial requirements, businesses will have to choose one of four requirements on income, capitalization - cash flow, capitalization - revenue, and assets – equity.
As for income, businesses have to obtain pre-tax profit of three fiscal years of over US$11 million.
If businesses cannot meet the requirement, they can choose the requirement on capitalization and cash flow.
Their total cash flow in the last three years must be higher than $27.5 million and the capitalization value must be higher than US$550 million in the last 12 months, and revenue must be over US$110 million.
As for the requirement on assets, the total asset value must be higher than US$80 million and stockholder equity higher than US$55 million (VND1.26 trillion)
An analyst said many Vietnamese businesses can satisfy requirements.
Vinamilk, the nation’s leading dairy producer, for example, reported revenue of VND47 trillion in 2016 and the post-tax profit of over VND9.3 trillion, which is hundreds of times higher than required levels.
Meanwhile, Vinamilk share liquidity in the latest 52 trading sessions was 1.2 million shares, and its capitalization value VND200 trillion.
To list shares on Hong Kong bourse (HKEx), regarding financial requirements, businesses have to satisfy four major requirements on profits for shareholders, capitalization, revenue and cash flow.
However, the requirements set by HKEx are lower than Nasdaq. The total profit for shareholders in the latest three years must be over 50 million Hong Kong dollars, or VND145 billion. These can be met by many Vietnamese companies.
However, in order to have their financial indexes recognized internationally, Vietnamese enterprises will have to follow the International Financial Reporting Standards (IFRS), or the specific standards set by markets (HKEx, for example, sets China Accounting Standards for Business Enterprises) instead of Vietnam Accounting Standards (VAS).