Vietnam's financial market needs 5 billion USD to 10 billion USD toabsorb shares of State enterprises to be equitised in the future.
Theamount needed will also depend on the size of State capital offered forsale, said Dominic Scriven, Head of the Vietnam Business Forum'sCapital Market Working Group.
According to Scriven, theVietnamese stock market has not really attracted big and long-terminvestment capital from foreign investors as shown in marketcapitalisation that is quite small compared with other ASEAN countries.
Vietnamese market capitalisation is just one-fifth of the Philippines and one-tenth of Malaysia, he noted.
Scrivensuggested that the Government speed up the equitisation process ofState-owned enterprises (SOEs) and increase the proportion of Statecapital put up for sale, at least 30 to 40 percent of enterprise equity,to boost market liquidity in the market.
The working grouppointed out that investors, particularly foreigners, lacked informationon State enterprises' initial public offerings, which could leave themunprepared for such share sales.
They proposed that theauthorities make up the list of groups, corporation and companies thatwould carry out IPOs, including timetables on a quarterly basis, forinvestors to have enough time to study and prepare plans for purchases.
Lastmonth, the Ministry of Planning and Investment reported 100 SOEsequitised in the first 10 months of this year at a pace that PrimeMinister Nguyen Tan Dung said was slower than expected.
PM Dungestimated the amount of State capital to be sold at 56.4 billion USD andurged concerned agencies to accelerate this process to raise funds fordevelopment projects and improve SOEs' corporate governance.
Onthe issue of increasing foreign ownership in domestic companies, Scrivenexpressed disappointment over the delay in the State SecuritiesCommission (SSC) plan to extend the time for lifting foreign ownershiplimits from 49 to 60 percent to October 2015.
Since the beginningof this year, the Vietnamese stock markets have attracted only 150million USD in foreign capital, which is far below the 10-billion USDforeign direct investment target.
Scriven said the current49-percent limit on foreign stakes in a domestic company relegatedforeign investors to the purchase of shares worth a mere 3.1 billion USDor only five percent of market capitalisation.
SSC Chairman VuBang explained that the commission has proposed the plan of raising thelimit on foreign stakes to 60 percent in businesses where foreigninvestment was allowed by law, but the new regulation needed some legalchanges that required more time and preparations.
Speculation onthe easing of foreign stakes restrictions helped boost the stock marketby 22 percent last year and 13 percent this year.-VNA
Theamount needed will also depend on the size of State capital offered forsale, said Dominic Scriven, Head of the Vietnam Business Forum'sCapital Market Working Group.
According to Scriven, theVietnamese stock market has not really attracted big and long-terminvestment capital from foreign investors as shown in marketcapitalisation that is quite small compared with other ASEAN countries.
Vietnamese market capitalisation is just one-fifth of the Philippines and one-tenth of Malaysia, he noted.
Scrivensuggested that the Government speed up the equitisation process ofState-owned enterprises (SOEs) and increase the proportion of Statecapital put up for sale, at least 30 to 40 percent of enterprise equity,to boost market liquidity in the market.
The working grouppointed out that investors, particularly foreigners, lacked informationon State enterprises' initial public offerings, which could leave themunprepared for such share sales.
They proposed that theauthorities make up the list of groups, corporation and companies thatwould carry out IPOs, including timetables on a quarterly basis, forinvestors to have enough time to study and prepare plans for purchases.
Lastmonth, the Ministry of Planning and Investment reported 100 SOEsequitised in the first 10 months of this year at a pace that PrimeMinister Nguyen Tan Dung said was slower than expected.
PM Dungestimated the amount of State capital to be sold at 56.4 billion USD andurged concerned agencies to accelerate this process to raise funds fordevelopment projects and improve SOEs' corporate governance.
Onthe issue of increasing foreign ownership in domestic companies, Scrivenexpressed disappointment over the delay in the State SecuritiesCommission (SSC) plan to extend the time for lifting foreign ownershiplimits from 49 to 60 percent to October 2015.
Since the beginningof this year, the Vietnamese stock markets have attracted only 150million USD in foreign capital, which is far below the 10-billion USDforeign direct investment target.
Scriven said the current49-percent limit on foreign stakes in a domestic company relegatedforeign investors to the purchase of shares worth a mere 3.1 billion USDor only five percent of market capitalisation.
SSC Chairman VuBang explained that the commission has proposed the plan of raising thelimit on foreign stakes to 60 percent in businesses where foreigninvestment was allowed by law, but the new regulation needed some legalchanges that required more time and preparations.
Speculation onthe easing of foreign stakes restrictions helped boost the stock marketby 22 percent last year and 13 percent this year.-VNA
