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