As the world begins to recover from the pandemic, businesses are offering incentives such as money, food, and massage machines to attract shareholders to their annual general meetings. For example, Ms. Huyen Cham received 600,000 VND at a half-hour meeting with Saigon Commercial Bank for Industry and Trade, which she found to be a comfort for shareholders during these uncertain times.
Companies like Military Bank, SHB, and Construction Development Investment Joint Stock Corporation are also offering gifts such as rice, fish sauce, household appliances, and health care products based on the number of shares owned by their shareholders. While some companies are spending billions on gifts for their shareholders, others are opting for online shareholder meetings to save costs.
Businesses that have been affected by the pandemic such as Vinamilk and Mobile World have adopted this strategy in order to reduce expenses. Meanwhile Hoa Binh Group has seen reduced revenue and profits due to the impact of the pandemic but is hopeful that the market will warm up again in the third quarter leading to increased business activity and improved financial performance.
An economic expert in Ho Chi Minh City believes that giving gifts to shareholders helps generate excitement and improve the perception of businesses among investors. This trend has become a way for companies to engage with their shareholders during annual general meetings and potentially encourage them to stay invested longer in the company. Despite difficult market conditions in the first few months of the year, there is optimism for recovery in later part of year as many companies hope that business activity will increase once again.