As prescribed currently, companies will be forced to cancel listing if they suffer losses for three consecutive years or their accumulated losses exceed their ownership capital.

Accordingly, in 2011 VTA- Vitaly and FPC- Full Power had to cancel listing on the official stock market to move to the Unlisted Public Company Market (UPCoM) due to incurring losses for three consecutive years from 2008 to 2010.

Business results report season 2011 continued to see more other share codes that have suffered losses for three straight years from 2009-2011.

Tan Hoa plastic firm (VKP) estimated to suffer loss of 17.79 billion dong in 2011, but its loss by the end of 2011 was up to 52.37 billion dong. In 2009 and 2010, its loss was 50.27 billion dong and 35.74 billion dong respectively.

With total accumulated loss of 138.4 billion dong, VKP's ownership capital is only 12.9 billion dong (chartered capital at 80 billion dong). Currently, the price of VKP share was only 700 dong each, marking the lowest on the stock market.

Basa Joint Stock Co (BAS)'s net revenue was less than 20 billion dong, equalling to nearly 50 percent from the previous year and BAS posted additional loss of 22.55 billion dong in 2011.

These two companies will be likely to be forced to cancel listing after submitting audited fiscal statements.

Amongst losers in two consecutive years 2009 and 2010, only Chang Yih ceramic maker reposted gaining profit in 2011.

Some other companies may be forced to cancel listing including Viet Hai Shipping and Real Properties Corp (coded VSP), Hanoi Maritime Joint Stock Co (MHC), Cadovimex Seafood JSC (CAD) and Tribeco (TRI) and Saigon Maritime JSC (SHC).

VSP-the most attractiveness share in the stock market during 2008-2009 period will be likely to be forced to cancel listing due to suffering accumulated losses for two consecutive years 2009 and 2010 and the gross loss of 324 billion dong in the first nine months of 2011.

Its accumulated loss as of the end of the third quarter of 2011 was nearly 610 billion dong. VSP's equity is still up to 686 billion dong thanks to capital surplus of 1.045 trillion dong (chartered capital is 380 billion dong). Presently, VSP share price is only
4,000 dong each.

Tribeco escaped from loss in 2010 but its accumulated loss by the end of Q3 2011 was up to over 262 billion dong, therefore its equity is only 23.33 billion dong (chartered capital is 275 billion dong).

SHC's ownership capital is even lower with only six billion dong as of the end of Q3 2011 (chartered capital is 37 billion dong). The company planned to issue 1.2 million shares priced at par to the strategic partners. The current SHC share price is 3,400 dong each.

Source: Vietbiz24