Experts suggest building specialised stock market for start-ups

Hanoi (VNA) – Building a specialised stock market for start-ups will help connect them with investors to ensure regular capital for operation and development, experts have suggested.

According to the Ministry of Science and Technology, Vietnam is home to thousands of start-ups, nearly 70 joint working spaces, and 50 incubation facilities and organisations.

The quality and quantity of start-up investment deals surged in 2018 with the total capital of 889 million USD, up three-fold compared to that of 2017.
 
The building of a specialised stock market will make it easier for start-ups to access to diverse capital sources, experts said.

Accordingly, Deputy Prime Minister Vuong Dinh Hue recently assigned the State Securities Commission and the Ministry of Finance to build frameworks to submit to the Government and the National Assembly for permission to pilot a scheme on the development of a specialised stock market for start-ups and innovations.

Nguyen Viet Duc, deputy manager of product development at the securities services division of MB Securities Co., suggested revising the law on tax and other legal documents to match the development of start-up firms as most of them are active in the fields of economy and finance.

Le Duc Khanh, strategic director of PetroVietnam Securities Incorp., said the idea of building a specialised stock market is to promote innovative and emerging firms.

This is in line with the Government’s policy of promoting innovation and developing the private economy, he added.

Associate Professor, PhD Dinh Trong Thinh from the Academy of Finance, said that in order to realise this idea, management agencies need specific mechanisms and to disclose risks that investors may encounter when trading on the market.–VNA