Nearly 70 State-Owned Enterprises Face Delisting Risk by 2027: SSC Weighs In

Overview

Nearly 70 state-owned enterprises (SOEs) that underwent equitization are at risk of losing their public company status and being delisted from Vietnamese stock exchanges by January 1, 2027, if they fail to meet shareholder structure requirements. The State Securities Commission (SSC) emphasizes this is a necessary screening process to improve market quality and support Vietnam’s recent upgrade to emerging market status by FTSE Russell. Affected tickers include major names such as BID, VCB, GAS, ACV, and BSR, which together account for approximately 30% of HoSE’s market capitalization.

Key Facts

• Nearly 70 SOEs face delisting risk by January 1, 2027, including 21 F1 enterprises and 46 F2 enterprises.
• The requirement: at least 10% of voting shares must be held by at least 100 investors who are not major shareholders.
• Currently, 789 out of 1,575 public companies (50%) have origins in equitized SOEs.
• These SOEs contribute about 30% of total market capitalization on HoSE.
• The SSC notes that 194 companies have already been delisted since the new Securities Law took effect.
• F1 enterprises may maintain listing if they have an approved restructuring plan; F2 enterprises must proactively comply.
• Vietnam was upgraded by FTSE Russell from frontier to secondary emerging market, effective September 21, 2026.

What Happened

At a seminar on “Restructuring State-Owned Enterprises: From Resource Allocation to Driving Growth” organized by Tien Phong Newspaper on July 21, 2026, SSC Vice Chairman Hoang Van Thu stated that many equitized SOEs have not yet met the shareholder structure requirements under the Securities Law. According to the law, from January 1, 2027, public companies must ensure that at least 10% of voting shares are held by at least 100 investors who are not major shareholders. Companies failing to meet this condition will lose their public company status and be forced to delist.

Thu emphasized that this requirement is not new but has been carried over from previous laws. However, the amended Securities Law set a clear transition deadline to align with market upgrade criteria and improve the quality of listed securities. He noted that 194 companies have already been delisted since the law’s implementation. For the 21 F1 enterprises, the Law on Management and Investment of State Capital in Enterprises allows them to maintain listing while executing an approved restructuring plan. The 46 F2 enterprises must proactively meet the shareholder condition.

Market Context

As of July 21, 2026, the affected tickers traded at the following prices: BID at VND 36,800, VCB at VND 56,700, GAS at VND 68,000, and ACV at VND 39,600. These stocks are among the largest by market capitalization on HoSE, and their potential delisting could significantly impact index composition and liquidity. The broader market has been buoyed by Vietnam’s FTSE Russell upgrade, but the delisting risk introduces uncertainty for investors in these names. The SSC’s stance suggests a firm regulatory push, which may accelerate restructuring efforts among SOEs.

Strategic Significance

For long-term investors, the delisting risk underscores the importance of corporate governance and shareholder structure reforms among Vietnam’s state-linked enterprises. The SSC’s insistence on compliance aligns with the goal of attracting foreign capital, as market upgrade criteria require improved transparency and minority shareholder protection. Companies that fail to adapt may lose access to public equity markets, potentially limiting their growth financing options. Conversely, those that successfully restructure could benefit from increased foreign investor interest as Vietnam gains emerging market status. The situation highlights a broader tension between state control and market discipline.

What to Watch

• Official announcements from affected SOEs regarding restructuring plans or share sales to meet the 10% threshold.
• SSC updates on the number of companies that have submitted compliance plans by the end of 2026.
• FTSE Russell’s next review of Vietnam’s market classification, expected in September 2027.
• Q3 2026 earnings reports from BID, VCB, GAS, ACV, and BSR for any commentary on shareholder structure progress.
• Potential government decrees or circulars providing further guidance on the transition period for F1 enterprises.