In recent years, Vietnam has made remarkable achievements in economic development. Most economic targets have been fulfilled and surpassed, in which the finance and capital markets have become an effective channel to mobilize long-term capital sources for sustainable economic development.

The remarks were made by Finance Minister Vu Van Ninh at the 2007 Vietnam Finance & Capital Markets Conference, which was co-organized the Ministry of Finance and EuroEvents from January 22-23.

He stressed that it is essential to pay due attention to completing the market economy mechanism, attracting investment, increasing competitiveness, developing human resources, ensuring social welfare, eliminating poverty, raising management capacity and boosting administrative reform.

However, Minister Ninh said that the stock market has implicit risks that need to be assessed and minimized in order to develop a stable, effective and transparent capital market.

Under the theme “Development of capital markets for Vietnam’s successful WTO integration and financial reform“, the conference focused on major subjects such as opportunities for investors, opportunities after 2007 and the post-WTO period. Other subjects included Vietnam’s key initiatives and latest legal issues, financial reform, capital market growth, joint stock market, business management, and investment funds.

The event aimed to provide an overall picture of Vietnam’s financial and capital market and highlight investment opportunities for domestic and foreign enterprises. It created a good chance for enterprises and experts inside and outside the country to discuss the latest issues related to Vietnam’s financial and capital markets and exchange viewpoints about the future development of markets in the country.

Vietnam

has opened up its market to welcome a new flow of foreign investment, particularly after the country officially became the 150^th member of the World Trade Organization (WTO). According to preliminary statistics of the Viet Nam Fund Management (VFM), currently there are some 30 foreign investment funds operating in Vietnam with total investment of approximately US$2 billion. Most foreign investments funds focus on stock markets, bonds, equitised enterprises, and real estate and information technology projects.

Speaking at the conference, Deputy Governor of the State Bank of Vietnam Phung Khac Ke said in the context of economic integration, it is essential to grasp opportunities and overcome challenges to sharpen competitiveness.

He said Vietnam’s financial and capital markets are still in their infancy and it is imperative to maintain sustainable development in the face of new challenges.

According to Deputy Governor Ke, WTO membership will help Vietnam expand export markets, increase investment sources, create a more equal playground for enterprises and improve the competitiveness of the economy. Nevertheless, Vietnamese businesses will have to cope with higher competition pressure, and domestic banking systems are likely to suffer from fluctuations in the global market.

Michael Luk, a representative of Deutsche Bank, said if Vietnam wants to develop a large capital market, the country should pay due attention to economic and financial systems and consider whether it can meet the requirements of investors.

World Bank country director Klaus Rohland stressed that authorities need to work closely to manage money transactions and minimize risks in the capital market.

Regarding the development of professional services for the growth of the banking, financial and insurance sectors, head of Fixed Income Product (Asia-Pacific) of Bloomberg, Nitin Jaiswal, said it is necessary to get accurate information about the stock market and bonds. Investors often compare the Vietnamese market with others in the region and the world before choosing an investment venue. When the Vietnamese market attracts more foreign investors, it can consolidate the trust of investors.