Challenges for State divestment-driven stocks on listed exchanges

Many firms fail to meet public company criteria

Shares of GAS, PLX and GVR all hit their ceiling prices, with tens of millions of shares queued for purchase. Capital flowed aggressively into stocks of enterprises in which the State holds controlling stakes. Specifically, GAS rose to its ceiling price of VND 82,800 per share, with nearly 3 million shares queued at the ceiling; GVR recorded 2.8 million shares in buy orders at the ceiling; while PLX traded close to the ceiling with total matched volume of 13 million shares. These stocks all belong to the VN30 basket and are companies in which the State retains controlling ownership.

Notably, GAS — a company with a market capitalization exceeding USD 7 billion — recently announced that it no longer qualifies as a public company. Based on the shareholder list finalized on August 29, 2025, GAS had a total of 17,495 shareholders. However, its major shareholder, Vietnam National Oil and Gas Group (PVN), holds 95.76% of voting shares, while the remaining 17,494 investors collectively own just 4.24% of charter capital.

Previously, Vietnam National Coal – Mineral Industries Holding Corporation Limited (HNX: KSV) also announced that it failed to meet public company requirements, as its parent group, TKV, holds 98.1% of its charter capital.

Beyond GAS and KSV, market data show that many large State-owned enterprises (SOEs) listed on Vietnam’s stock market have free-float ownership well below the minimum 10% threshold. Several of these companies have market capitalizations exceeding USD 1 billion and are largely former SOEs that have undergone equitization while the State continues to maintain controlling stakes.

On the listed exchanges (HOSE and HNX), this list includes the Joint Stock Commercial Bank for Investment and Development of Vietnam (HOSE: BID), with 79.7% owned by the State Bank of Vietnam and 14.8% held by KEB Hana Bank; Vietnam Rubber Group (HOSE: GVR), with 96.8% owned by the Ministry of Finance; Binh Son Refining and Petrochemical JSC (HOSE: BSR), with 92.1% owned by PVN; Becamex IDC (HOSE: BCM), with 95.4% owned by the Ho Chi Minh City People’s Committee; and Petrolimex (HOSE: PLX), in which the Ministry of Finance holds a 75.8% stake.

According to experts, these companies fall under violations stipulated in Point a, Clause 1, Article 32 of the Securities Law No. 54/2019/QH14, as amended by Point a, Clause 11, Article 1 of Law No. 56/2024/QH15, effective from January 1, 2025. Under these provisions, to maintain public company status, an enterprise must have contributed charter capital of at least VND 30 billion and ensure that at least 10% of voting shares are held by a minimum of 100 investors who are not major shareholders. These regulations are intended to ensure shareholder dispersion, limit excessive concentration of control, and enhance transparency in the listed market.

To date, many of these enterprises have failed to meet public company requirements and are therefore required to submit documentation to the State Securities Commission for review and revocation of their public company status. Once such status is revoked, their shares would no longer qualify for listing on HOSE or HNX, nor for trading on the UPCoM market.

“Unlocking” constraints through State divestment

In practice, numerous enterprises have been unable to comply with the amended Securities Law, forcing some to exit the listed market.

The question, therefore, is how to resolve these challenges. The mandatory solution is State divestment, enabling companies to meet public company ownership thresholds under the current Securities Law.

In this regard, under Prime Minister Decision No. 360/2022/QĐ-TTg, 2025 is designated as the year to largely complete the restructuring and ownership transformation of the SOE sector. In the final months of 2025, State divestment activity recorded several transactions that attracted strong investor interest, with winning bid prices exceeding starting prices, even in large block sales.

Entering 2026, divestment in this sector has become increasingly urgent. According to MB Securities (MBS), listed SOEs are expected to become a focal point in 2026 as a dedicated resolution on the State economy is anticipated, with expectations of creating more flexible mechanisms for corporate restructuring, expanded investment cooperation, and improved operational efficiency and governance.

MBS estimates that SOEs currently contribute approximately 29% of GDP and hold leading positions in total assets, revenue, and market share, with monopolistic advantages in sectors such as aviation and oil and gas. However, overall operational efficiency remains modest, with capital management and utilization capacity not fully realized. If these resources are unlocked, SOEs are expected to accelerate significantly in the coming period.

MBS further expects that in 2026, listed companies with State capital — particularly industry leaders with strong financial foundations, ample cash reserves, solid operational efficiency (ROE above 10%), and attractive valuations — will regain market attention. The anticipated resolution is also expected to provide a robust legal framework for restructuring SOE investments, thereby accelerating divestment, listing, and equitization processes that have stalled in recent years.

Recently, the Ministry of Finance proposed several measures to address bottlenecks in divestment activities at the State Capital Investment Corporation (SCIC), including allowing reductions of up to 10% in starting prices per attempt if auctions or negotiated sales fail, capped at three attempts. The ministry also proposed allowing bundled sales, combining both efficient and less efficient enterprises.

These measures are viewed as temporary solutions to facilitate State divestment. Only once State capital is reduced can these enterprises meet public company criteria and retain their listings on Vietnam’s stock exchanges.