Vietnam stock market witnessed dull trading activity last year, this has led to the closure or suspension of many securities companies or fund management companies.

Chaiman of the State Securities Commision (SSC) Vu Bang was quoted by Vietnam Business Forum as saying that hardship of securities trading activities caused three securities dissolved, three others stopped operating, two others suspended their businesses. Bang also noted that five securities companies had been seriously controlled while 10 others decided to terminate their businesses.

By the end of January 2014, 24 securities companies and 6 fund management companies were restructured, withdrawing from Vietnam securities market by dissolution, operation suspension, being controlled, seriously supervised or gradually gotten out of securities trading activities, reported the Vietnam Business Forum- a weekly magazine of the Vietnam Chamber of Commerce and Industry (VCCI).

After one year of securities market restructuring, economic turmoil reduced the number of securities market companies about 20 percent, from 103 securities companies to 89 securities companies operating in securities trading field. The number of fund management companies also reduced from 47 to 41.

By the end of January 2014, ten open-end funds joined in the securities market, which were certified of establishment and giving offers. By now, the number of public investment funds accounted for 50 percent of the total existing funds.

In order to establish a sustainable securities market, Chairman Vu Bang said that Vietnam needs to accelerate equitisation process for supplying qualified products for securities market, as well as setting up innovative operation in State enterprises operations.

“ We always have cooperation programmes in implementing State’s policy of equitisation, especially stock exchanges realise their auction in securities market. The State Securities Commission together with Corporate Finance Department (Ministry of Finance) are ready to plan up the State equitisation programme to implement enterprises’ auction in securities market”, Vu Bang said.

The State Securities Commission will also coordinate closely with relevant authorities to handle with procedures related to equitisation, depository, listing after equitisation and operations in the securities market.
Vu Bang assessed that the securities market will improve the demand in the following time by expanding room, as well as providing policies to tackle with difficulties and support the market development, aiming to create motivation for stocks bid of state owned companies.

The Chairman of State Securities Commission added that the issue of equitising state owned companies is partly related to the securities market because it is a public offering. The public offering currently faces with some obstacles according to Law on Securities like offering under book value, unprofitable companies not offering securities publicly.

The State Securities Commission will also coordinate with authorities to issue policy and regulation suitable with equitisation so that public offering will not be limited related to offering under book value or unprofitable companies not offering securities publicly. Only then there is a solution to tackle difficulties, promote equitisation process, better implement direction of the Government.

The State Securities Commission identifies that 2014 will be a major year to equitise state owned companies, especially equitisation with listing or trading in the UpCom. It will also propose a mechanism to cooperate with the State Bank in restructuring credit institutions, equitising commercial banks.

Besides, the State Securities Commission will complete regulations, trading mechanism in UpCom system, supporting the restructuring of credit institutions and state owned companies; making UpCom a system to announce prices, provide information on trading and issuance in compliance with requirement of a full access to information instead of depending on issuance mechanism operating at Stock Exchanges currently.-VNA