Stock market capitalization to m
Stock market capitalization to
make up 30 per cent of GDP
Viet Nam�s stock market
capitalisation is expected to make up 30 per cent of the country�s gross
domestic product (GDP), according to the Chairman of the State Securities
Commission (SSC) Vu Bang.
Bang said yesterday in a
conference in Ha Noi that the market would continue to grow strongly in the next
four years with the transaction value of listed shares to account for between
US$30 billion and $40 billion by 2010, 2-3 folds higher than the current level.
Net capital of securities
companies would increase dramatically, averaging VND500 billion ($31 million)
per company, and the number of investors would rise three to four times the
current figure of between 250,000 and 300,000.
Bang also pointed out certain
shortcomings in the country�s stock market such as shortage of legal sanctions,
poor technological infrastructure and an undermanaged informal stock market.
To overcome these shortcomings
and meet the targets, the ministry and related agencies need to work out more
measures, experts said at the conference.
Tran Bac Ha, General Director of
the Bank for Investment and Development of Viet Nam, asked the Ministry of
Finance to issue directives to guide the implementation and enforcement of the
With the number of securities
companies increasing at a fast pace, professional training courses of
international standards should be held to improve professional and managerial
skills of leaders and staff in these companies, said Nguyen Duy Hung, Chief
Executive Officer of the Sai Gon Securities Inc.
Relevant bodies should also
create favourable conditions for domestic financial institutions and create a
"spine" for the country�s finance sector, Hung added.
Do Van Trac, General Director of
the Sai Gon Cable Telecommunication and Material Company, expressed his hope of
establishing an association for listed companies to help them develop further,
and make the mobilisation of capital easier for economic development.
Most of the experts asked the
government to implement management tools to remove oversight in operations of
securities companies and improve transparency to protect the legal interests of
It was necessary to build a legal
framework for listed firms to mobilise capital from foreign stock markets, they
By the end of 2006, there were
193 listed shares in HCM City and Ha Noi bourses (the figure was 41 at the end
of 2005) with a total market capitalisation of VND221 trillion (US$14 billion).
In addition, nearly 400
government, urban and corporate bonds with a total face value of VND70 trillion
($3.58 billion), and two fund certificates of VF1 and PRUBF1 with a combined
face value of VND1 trillion ($62.5 million) have also been listed on the bourse.
New role for commission
The State Securities Commission (SSC)
has officially announced handing over its authority to approve securities
listing applications to the HCM City and Ha Noi securities trading centers.
The transfer of power was
conducted in accordance with the Securities Law with effect from January 1.
The two securities trading
centers will receive and approve applications for listing on the bourse directly
from institutions and enterprises as stipulated by the new law. This will help
to ease the volume of the daily work done by the SSC. From now on, SSC will only
have one function: ensuring state management of the stock market.