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Legal Update

SET-HNX MoU Makes Dual-Listing Possible

1 February 2010
Mayer Brown Legal Update

The Hanoi Stock Exchange (HNX) and the Stock Exchange of Thailand (SET) have entered into a Memorandum of Understanding (MoU) on 22 January 2010 to establish a framework for cooperation between the two exchanges and allow dual-listing opportunities.

Full Update

The signing of the MoU aims to develop cooperation between the HNX and the SET in exchanging information, stock exchange regulatory matters, training and knowledge development of capital markets, including promoting business and investments opportunities for participants in both markets through networking mechanisms and business matching activities.

Thai and Vietnamese companies will be able to be listed on both the HNX and SET exchanges or dual-listing once the laws and regulations of both countries are passed to permit such activities. In general, dual-listed shares are more liquid, and allows investor greater choice where they want to trade their shares.

The SET conducted a survey among Thai listed companies and found that 43 percent were interested in expanding their businesses into Vietnam. Some of the Thai listed companies are already in the process of surveying and analysing business and investment opportunities in Vietnam.

Furthermore, 30 Thai companies who have already invested in Vietnam are keen to be listed on the HNX which is now in the process of revising its regulations. It is estimated that Thai companies may be eligible for listing on the HNX around the first quarter of 2011.

The MoU will be valid for the period of five years, expiring in 2015. It is expected that tighter bonds between the financial sectors in Thailand and Vietnam will also contribute to ASEAN's ultimate goal of establishing an ASEAN Economic Community.

For inquiries related to this Client Alert, please contact:

Sathaporn Jumsuk ( )

Athicha Vuttiviroj ( )

Learn more about our Bangkok and Vietnam offices, Corporate & Securities, Capital Markets and Financial Services Regulatory & Enforcement practices.

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