The securities market must be restructured to become more modern andprofessional if it is to continue to develop, says Minister ofFinance Vu Van Ninh.
The security of the market needed tobe increased over the next decade along with the competitiveness ofintermediary institutions and the capacity of official watchdogs and lawenforcement, Ninh said. Information technology applied to transactionand market management must also be modernised, he said.
With higher quality and more diverse products leading to greaterliquidity, the stock market would become a major channel for generatingcapital for economic growth, Ninh said.
Stock marketcapitalisation has jumped from 986 billion VND (51.9 million USD) at theend of the market’s first year of operation in 2000 – equal to 0.28percent of GDP to 695.2 trillion VND (36.6 billion USD) now – equivalentto 42 percent of GDP, according to the State Securities Commission.
The market has developed in quantity, said commission chairmanVu Bang, growing from 3,000 investors accounts in 2000 to 926,000currently, while investor knowledge of securities has also beenimproved.
The domestic stock markets have attracted 7billion USD in foreign indirect investment, helping stabilise foreignexchange rates, he added.
“After 10 years of development,most investors and financial institutions have developed stably andfirmly. The staff and managers of the stock market are skilled andprofessional guys,” said Securities Trading Association generalsecretary Nguyen Thanh Ky, “But the market would develop further iftransparency was improved and financial reporting more timely.”
Investors need a basis for lucid and professional decision -making in their trading, he said./.
The security of the market needed tobe increased over the next decade along with the competitiveness ofintermediary institutions and the capacity of official watchdogs and lawenforcement, Ninh said. Information technology applied to transactionand market management must also be modernised, he said.
With higher quality and more diverse products leading to greaterliquidity, the stock market would become a major channel for generatingcapital for economic growth, Ninh said.
Stock marketcapitalisation has jumped from 986 billion VND (51.9 million USD) at theend of the market’s first year of operation in 2000 – equal to 0.28percent of GDP to 695.2 trillion VND (36.6 billion USD) now – equivalentto 42 percent of GDP, according to the State Securities Commission.
The market has developed in quantity, said commission chairmanVu Bang, growing from 3,000 investors accounts in 2000 to 926,000currently, while investor knowledge of securities has also beenimproved.
The domestic stock markets have attracted 7billion USD in foreign indirect investment, helping stabilise foreignexchange rates, he added.
“After 10 years of development,most investors and financial institutions have developed stably andfirmly. The staff and managers of the stock market are skilled andprofessional guys,” said Securities Trading Association generalsecretary Nguyen Thanh Ky, “But the market would develop further iftransparency was improved and financial reporting more timely.”
Investors need a basis for lucid and professional decision -making in their trading, he said./.
