US stock exchange delists Vietnam firm

Jul 6, 2011, 4:47 GMT

Hanoi - The first Vietnamese company to list on US bourse NASDAQ was delisted Wednesday after the firm failed to provide its annual financial report.

Cavico Corporation, a leading privately owned engineering and construction company, was struck from the trading floor for not providing its 2010 financial report on time.

NASDAQ requires all listed companies to file financial reports with the US Securities and Exchange Commission every few months.

The firm received a warning last month from the bourse as shares under its trading name CAVO were changing hands for less than 1 dollar for 30 consecutive working days.

The firm was first listed in September 2009 at 7 dollars per share.

'This is a precious lesson for Vietnam's companies that want to list in foreign markets,' said Dao Viet Anh, an analyst at the FPT Securities Co in Hanoi. 'Companies need to research and comply with regulations of foreign stock exchanges before listing.'

Vietnamese traders appeared to support the move, with one commenter on a traders' online forum saying the firm 'got what it deserved.'

Firms listed in Vietnam often fail to file their financial reports on time, and often ask for extensions. No companies have yet been struck from the bourses in Hanoi and Ho Chi Minh City for failing to provide financial reports.

Cavico will not be available immediately for over-the-counter trading but common stock can be traded on the unofficial market.

The company focuses on large infrastructure projects, hydropower and mining in Vietnam.