Vietnam targets emerging securities market status

By Minh Nga    August 21, 2018 | 04:18 am PT
Vietnam targets emerging securities market status
An investor is seen behind a stock market screen at a securities company in Hanoi. Photo by Reuters/Kham
Vietnam should upgrade its stock market from frontier to emerging level soon, says Deputy PM Vuong Dinh Hue.

“Vietnam needs to persist in building a healthy and sustainable stock market, and the government will direct and issue strategies for the development and reform of the stock sector,” Hue said at the Vietnam Economic Forum on Capital – Finance Market in Hanoi on Tuesday.

The nation’s top stock market official said that this task is likely to take at least two years.

With drastic measures, especially policies to create an equal investment environment for both local and foreign companies, Vietnam will make it to the list of emerging securities market soon, Tran Van Dung, Chairman of the State Securities Commission of Vietnam (SSC), told the forum held by VnExpress and the Private Sector Development Committee.

“It is impossible to achieve the target next year but it’s safe to say Vietnam can do that in the next two years,” he said.

SSC is now building plans to develop the corporate bond market. Dung said the SSC was collecting relevant information to build a corporate bond market center and a centralized trading floor that would allow investors to know the value of companies.

Andy Ho, managing director and chief investment officer of investment fund VinaCapital, said: “When buying corporate bonds, we hope that the listed corporates have received credit ratings by prestigious global firms so that buyers will not have to face risks.”

In addition to the credit rating agencies, it is necessary to have a securities trading center to create liquidity for corporate bonds, he said.

Deputy PM Hue also stressed the need to develop a corporate bond market, adding that Vietnam should have solutions to quickly deal with any problems that might arise.

“We have to develop the stock market in line with international practices, especially in solutions for funding, divestment, privatization and market restructuring,” he said.

The Vietnam Economic Forum aims to initiate national discussions on key issues and strategy regarding Vietnam’s macro-economy.

It also aims to maintain constructive dialogues on public and private policies between the private sector, the government and other stakeholders.

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