Listed firms delay dividend payment on tough business environment

Some listed companies had to announce delay of dividend payment and it is expected that more companies will have to do so amid current tough business environment.

At least 100 listed firms will have to pay 2010 dividend or 2011 interim dividend from August to October this year, data from Vietnam Depositary showed. However, investors started to question if all of them could pay as planned amid high interest rate and credit tightening environment.

Recently, 565 Construction Joint Stock Company (NSN) had to delay their dividend payment twice from 24 May to 6 July and the again to 16 August or 3 months on liquidity problem. The firm attributed capital collection from its works and credit crunch to their delay.

Ngo Han Joint Stock Company (NHW) also had to postpone dividend payment to August 18 from previous planned June 30 as it could not balance the capital sources.

Song Da 7.04 Joint Stock Company (S74) had to delay payment time to December 12 this year instead of June 15, or 6 months as it needs to focus capital for production to ensure 2011 targets amid credit crunch and high inflation, it said.

Shareholders who have already suffered losses due to depressing stock prices are still sufferer when dividend payment is delayed as in Vietnam they have no other choice but to accept the companies’ decision. – Stoxplus.com

Tags: vietnam stock, Vietnam stock market, VNindex