Vietnam News Network

Thang Long Securities Company under Military Bank kicked off the equitisation trend when it started equitising in late 2007. The securities company under the Vietnam Industrial and Commercial Bank (Viettinbank) received an equitisation decision in early 2008, while recently, Agriseco, the company under Agribank, has announced it is putting its shares into auction.

Phan Huu Huynh, General Director of ViettinBank Securities Company, said the company is completing procedures for equitisation and plans to organise a share auction by the end of 2008.

Huynh said that the mode of a joint-stock company will help diversify the owners of the company, and help improve the transparency of the company’s operations. Moreover, the company will be able to take initiative in capital mobilisation and human resources.

He said Vietinbank Securities Company is seeking suitable strategic partners.

Ha Huy Toan, Director of Agriseco, also expects his company will equitise soon. He said that it would be unreasonable if the majority of securities companies were joint-stock companies but some banks’ securities companies remained state-owned limited.

Toan believes that if securities companies depend on mother banks they are not able to promote their ability and maximise profit.

However, experts have warned that difficulties may be abundant for securities companies if they rush to equitise at this moment. It is really very difficult to equitise companies in the current period, especially to find strategic partners. Moreover, it is really difficult to sell stakes now, while stock prices are continuing to drop.

A lot of directors of securities companies belonging to banks feel inconvenienced working under banks. They dream of the greater autonomy they would have if their companies became joint-stock banks.