Stock market capitalisation to make up 30 per cent of GDP (11-01-2007) HA NOI — 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 … [Read more...] about Stock market capitalisation to make up 30 per cent of GDP
Foreign stock markets
Hanoi Times - "Dau tu chung khoan" newspaper has selected the five most important developments and characteristics of Vietnam's stock market in 2007. 1. There are 249 share and fund certificate items listed on the HCM City Stock Exchange and Hanoi Securities Trading Centre (138 on HOSE and 111 on HASTC). The number of listed companies just account for 2% of total joint stock companies now operational in Vietnam. This is a very low ratio. Two things need to be done to improve this number. First, Vietnam needs to speed up equitisation of State-owned and foreign invested limited enterprises. Second, it is necessary to create ideal conditions for joint stock banks to list on the official bourse. There are 74 operational securities companies now, while there were 55 in 2006 and 14 in 2005. There are 24 investment fund management companies now, while there were 18 in 2006 and 6 in 2005. 2. There are 5.5bil shares listed on the official bourse, double that of 2006 … [Read more...] about Stock Market features – 2007
Although the Vn-Index in 2007 increased only 25 percent as compared with 146 percent last year, foreign and domestic experts said that a robust growth in the market capitalisation this year will create a "snowball effect" on attracting foreign business circles next year. This year's market capitalisation is estimated to reach nearly 496,000 billion VND (around 30 billion USD), making up 40 percent of the GDP as compared with 22.6 percent last year and 5 percent in 2005. "The larger the market capitalisation is, the higher market transparency is, so this will contribute to drawing more investment from foreign investors and because of that, the market will have a higher liquidity and continue to be more transparent," General Director of Mekong Securities Company Nguyen Viet Ha said. Ha guessed that the year 2008 will see a gain in foreign investment into the securities market as big companies, including the Bank for Foreign Trade of Viet Nam and the Viet Nam Insurance Corporation, … [Read more...] about 2007 stocks market gives impetus to attract foreign investors
The domestic stock market has witnessed sessions with low trading volumes in the early days of the New Year. However, Mr Vu Bang, Chairman of the State Securities Commission of Vietnam said he believed that the adjustment of the stock market in 2007 is necessary for higher steps of development in 2008. What are your remarks of the stock market in 2007 and its prospects for 2008? In 2007, the stock market failed to make many investors happy, however, the market scale doubled compared to 2006. This proved that domestic and foreign investors are very interested in the Vietnamese stock market, a good signal for the development of the stock market in Vietnam in 2008. I wish investors and market members a new year of prosperity together with the Vietnamese stock market. According to experts, the stock market will reach a target of total market capitalisation equivalent to 50% of GDP. What is your comment? The target is achievable. In 2008, equitisation process will continue to be boosted, … [Read more...] about Will the stock market thrive in 2008?
The Hanoi Times - 2008 is considered to have been a year full of uncertainties regarding the VND/US$ exchange rate, and many experts believe that this lamentable phenomenon will continue next year. A year of ups and downs The VND/US$ exchange rate dropped dramatically in Q1 2008 with the rate at one time falling to VND15,960/US$1 on the interbank market and to VND15,700/US$1 on the black market. But it then surged dramatically in Q2, hitting the highest peak of VND19,500/US$1 on June 18, 2008. The State Bank of Vietnam had to intervene to force the exchange rate down to VND16,400/US$1, which remained the dominate rate until the end of Q3. However, since September, the exchange rate has, once again, been increasing, with the rate as high as VND16,998/US$1. Despite efforts by the central bank to intervene, the exchange rate has been staying firmly high at VND16,985/US$1. Meanwhile, on the black market, the threshold of VND17,000/US$1 has been … [Read more...] about Foreign currency market: 2008 full of fluctuations