VIENTIANE, March 19 (Xinhua) -- Lao Securities Commission, in charge of making the rules governing the Lao Securities Exchange, announced in its 2016-2025 Strategic Plan that it would help more companies to list on the Lao stock market.
According to this long term plan, which is revealed on the official website of the Lao Securities Commission recently, the commission expects that 20 to 35 companies will be ready to sell their shares on the stock market by 2020. The number is forecast to increase to 60 to 80 in 2025.
At present, seven public companies are trading shares on the stock market, with Lao Cement Enterprise being the latest company listed.
The Lao Securities Commission created the stock market in 2011, to provide Lao companies with an additional source of capital to grow business. This also enabled individuals and enterprises to invest in the stock market.
The commission states in its strategic plan that the increasing number of companies listed on the stock market would be associated with an increasing proportion of the market value to GDP from 19 percent in 2015 to 54 to 80 percent in 2020. This figure is projected to reach 93 to 117 percent in 2025.
Companies that plan to sell shares on the stock market must overhaul their administrative structure to become more efficient and competitive.
One of the most important requirements for listed companies is that they use a transparent accounting system and make a full public disclosure of their business operations, which is essential in creating confidence among potential investors.
The Lao government believes that transparency will not only help companies to develop their business in a sustainable manner but will also strengthen their revenue base, said the report.