Reporting? Who needs it?

Here is one that really gets under my skin.

An official from the SSC revealed in the Vietnam News:

only a few dozen listed companies among more than 300 gave their second quarter financial reports, causing some concern among investors.

In other words, the vast majority (over 90%) of all listed companies in Vietnam failed to report their second quarter earnings, AT ALL.

Damn right, this should cause SOME CONCERN among investors.

I'd say they have a right to be fairly PISSED OFF!

Owning shares in a company, we have a right to know what is going on, don't you think?

"After receiving financial reports from listed companies, both Ha Noi Securities Trading Centre and HCM City Stock Exchange were not able to check the information, and the submissions were merely announcements," Long said.

Long stressed that the law needed to be reformed to ensure the information was checked, and to avoid leaking news and insider trading.

Companies on the local stock market have been submitting reports notoriously late, leading some suspicious to be investors.

Saigon Securities Inc (SSI), for example, postponed publicising their financial report while waiting for their auditor’s approval, while Binh Thanh Import-Export Production and Trade JSC (GIL) and Vinacomin – Nui Beo Coal JSC (NBC) reported having difficulties gathering information.

These excuses led the State Securities Commission to consider regulations on announcing information.

You think!?!

SSC has handed out 71 fines so far this year, however, the fines were not enough to sway guilty enterprises. According to some investors’ opinions, SSC should have taken criminal proceedings against fraudulent cases.

"Really, if an enterprise issues tens of billion dong worth of shares, a fine between tens of million dong and even VND500 million (US$30,300) is trivial," Long said. "Not all cases need to be charged criminally, the present Law on Securities also allows issuing licences to be suspended and cancelled, which can be effective measures.

SSC cracks whip on listed company reports

Let's face it, reporting in Vietnam is a cruel JOKE.

Here we have firms unable (or unwilling) to publish pro-forma, unaudited financial results for the first half, which the regulators (by their own admission) are unable to review or verify.

And to make matters worse, in case of proven fraud, the worst a company may expect is a slap on the wrist and a $30,000 fine.

Is it any wonder reporting in Vietnam is totally FOS?

For more on reporting and the reliability of auditors in Vietnam see here: Transparency & Real Reporting