At recent trading sessions, the trend of declining trading volumes has become clearer. The trading session at the Ho Chi Minh City Security Trading Centre on April 9, for instance, reduced to 3.8 million shares, equivalent to over VND402 billion, while domestic investors tend to sell their shares, foreign investors are more likely to buy.

A reporter from Radio the Voice of Vietnam (VOV) interviewed Nguyen Quang Vinh, general director of the Bao Viet Securities Joint-Stock Company.

VOV: What is your assessment on the developments of the securities market?

Mr Vinh: During this period the securities market has increased at an alarming rate and authorized agencies and press agencies have warned investors of pouring money into the securities market. People used to think that they can earn a bulk of money in an eye blink if they invest in the securities market, which has resulted in this increase in the market.

In addition, the State Securities Commission (SSC) has recently proposed a draft law on the management of fund management companies, causing them to hesitate to invest in the securities market. If the draft law is ratified, fund management companies will face difficulties in registering for two reasons – the funding scale and operational experience and time. Therefore, some company funds, particularly newly-established ones, still hesitate to disburse money as they are waiting for fund management mechanism to be finalised before deciding to invest in the securities market.

The above two reasons have affected investors, leading the trading volumes in the securities market to fall in recent sessions.

VOV: Domestic and foreign experts in finance and securities have warned that the VN-Index may drop to below 1,000 points. However, investors say it is time to invest in the securities market. Do you have any comment?

Mr Vinh: Investors view this in two ways: their decision depends on whether the VN-index is rising or not. They all wish for a decline in the VN-Index to seek appropriate business opportunities. Experienced investors often intensify their investment when the securities market needs significant adjustments.      

VOV: The Vietnamese securities market is showing signs of slow recovery while the OTC market is becoming hot, despite Minister of Finance Vu Van Ninh’s announcement of a new decision to strictly control the OTC. What do you think about the decision?

Mr Vinh:  The OTC market is currently out of control but in fact the stock exchange and OTC market should have already been put under strict management. In the market economy, joint stock companies’ share trading is always in line with common market laws, therefore, our failure to control the OTC market, resulting in the closure of this market is incompatible with the law. The crux of the matter is how to keep the OTC market under strict management according to the new Securities Law. The SSC will then accelerate the operation of public companies which are required to register securities custody at the SCC’s securities custody centre. As a result, companies’ transfer of shares will no longer depend on joint stock markets while securities companies will play an intermediary role in helping the State keep the OTC market more stable, safer and healthier.

VOV: Thank you very much.