Listing on the Stock Market helps Hoa Phat to grow faster

On 19th October, Hoa Phat Group (HPG) has just been honoured at the Awarding Ceremony – the Gold Cup “Vietnam Leading JSC and Reputable Stock brand name”. On this occasion, we interviewed Mr. Tran Tuan Duong – The General Director of Hoa Phat Group on Group’s achievements after nearly 1 – year listing on the stock market.

Reporter: Would you tell me what difficulties the Company faces in the first year listing on the stock market?

Mr. Tran Tuan Duong: Hoa Phat Group JSC has listed its shares (Ticker: HPG) on Ho Chi Minh Stock Exchange since November, 2007. Actually, we did not face many difficulties when listing but the working volume needed to be prepared before listing is numerous, such as restructuring following the Group model, complying with accounting and auditing standards of the Public Company and applying the modern administration model.

There have been a lot of the policies, regulations, articles related to listed Companies, but they are very clear and logical for the companies to comply with. When listing, the Company’s Executive Board will have to face more pressure, together with work better to bring the maximum benefits to shareholders and contributes yearly budgets to the country. Therefore, the social responsibility of the listed enterprises is much more.

Reporter: When listing, what benefits does it bring to the enterprises over the past time?

Mr. Tran Tuan Duong: The stock market is the channel that mobilizes the huge capitals of the economy. The enterprises which have all the requirements of the stock law can use it up as an important mobilization channel.  In the case of Hoa Phat, After 22 months operation following the Group model, Owner’s equity has increased 4 times from 1,100 billion to 4,550 billion, including capital surplus and retain earnings. The plentiful capital makes the Group easier in the phase of tightening monetary and high credit interest rate in the first months of 2008.

Listing on the stock market not only helps Hoa Phat Group – HPG to grow its production and business activities much more but also gain the transparence and build the international standard’s administration system, increase the competence in the intergration period of the market economy.

Reporter: As being a listed enterprise, do you have any proposal to the market management agency?

Mr. Tran Tuan Duong: We petition the offices for more closely managing the stock law with thousands of unlisted public companies to increase the transparence of capital market and save the investors better, as well as encourage the joint stock Companies which have all the requirements of the stock law to list on the two stock exchanges of Vietnam.

Reporter: Thank you very much!

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