Seafood executives have showed interest in listing on the stock market, but still flinch at the prospect of opening their companies to outside involvement.
Nguyen Huu Dung, deputy chairman of the Vietnam Association of Seafood Exporters and Producers (Vasep), said going public has helped a number of producers become more efficient, increase production and export volume with new capital resources.
“But listing shares on the securities market is not mandatory. Each company has its own development plan, so auctioning shares may not be its primary goal,” Dung said.
To date, only seven out of Vasep’s 250 members have been listed on the stock market, including Agifish, Incomfish, and Navico who are also biggest seafood producers in Vietnam.
Kim Xuan, board chairwoman of HCM City-based Incomfish, said listing shares has helped the company become more transparent and accountable in terms of its annual performance.
“Transparency has motivated Incomfish, which officially listed last December, to improve the trust among shareholders and be more effective in its operation,” Xuan added.
However, going public is said not a windfall, many executives said.
Phan Thi Luom, vice general director of Agifish said that holding an IPO does not guarantee better performance, adding that Agifish has recorded quarterly profits and losses since listing in 2002.
For smaller companies, it is also a matter of building a financial and managerial support to handle the added responsibilities of listing on the market.
Ngo Van Ich, director of Nha Trang Seafood, said the company plans to list over the coming months, but wants to make sure production and business operations are in order since these factors will reflect on share prices.
Meanwhile, Nguyen Thi Anh, director of Song Tien Trading Company (Sotico) said staying privately owned, her company is not responsible of answering shareholders to its financial problems.
She said she is aware of the amount of money Sotico can raise through an IPO, which will help to increase production and sign a few more contracts, but the company is performing fine on its won. It employs 600 works in two factories for frozen and canned seafood, and is considered one of Tien Giang’s best businesses. (VNS)
Vietnamese
