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Submitted by ctv_en_5 on Thu, 05/10/2007 - 09:00
In order to control the securities market, Vietnam should perfect the legal framework and institutions of the financial and securities markets.

Measures to control the “too hot” development of the securities market was discussed at a seminar held in Hanoi on May 9 by the State Bank of Vietnam (SBV) and the Bank for Commerce and Industry.

Participants focused on issues related to the securities market and its impacts on the Vietnamese financial market in the wake of Vietnam’s entry to the World Trade Organisation (WTO).


In the first quarter of this year, the Vietnamese securities market saw a robust growth, exceeding the set target for capitalisation of the securities market by 2010 as expected by macro economic experts.

Last year’s total market capitalisation reached nearly US$14 billion, accounting for 22.7 percent of GDP. Apart from positive factors, the “too hot” development of the domestic securities market contains risky elements and the threat of “bubble” bursting is possible to occur.


Participants said that in order to control the securities market, Vietnam should perfect the legal framework and institutions of the financial and securities markets. It is imperative to control the securities market in line with International standards and Vietnam’s commitments to the WTO to keep the market operating in a transparent and open manner, they stressed.


Additionally, it is essential to take effective measures to strictly control the inflows of international capital into Vietnam so as to avoid instability and macro economic recession.


On the other hand, it is necessary to accelerate the State-owned enterprise (SOE) equitisation process to increase capital sources for the market. To compete with foreign rivals, domestic securities companies should draw up a specific competitive roadmap with a focus on increasing capital, improving the quality of services and diversifying products.


In the future, a Government bond market needs to be built with the participation of market builders with a view to encouraging major economic groups to issue enterprise bonds. However, the crux of the matter is how to intensify propaganda activities in order to help investors raise their securities market-related knowledge.

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