Investors at a stock trading floor in Hanoi. (Photo: vnreview.vn) Hanoi (VNS/VNA) - There are many securities products that are widelyused in other countries but have not yet appeared on the Vietnamese stock market,said Phan Duc Hieu, deputy director of the Central Institute for EconomicManagement (CIEM).
“This makes the Vietnamese stock market less attractive, affecting capitalmobilisation of listed companies,” Hieu said at a seminar held in Hanoi on May8, themed “Enhancing Vietnam's capital market accessibility”, co-organised byCIEM and the State Securities Commission (SSC).
Participants at the seminar discussed solutions to offer new securitiesproducts to diversify the stock market and attract investors, helpingbusinesses mobilise capital for production and development.
According to SSC vice chairman Pham Hong Son, the securities sector has madegreat efforts to develop policies to attract foreign investment, raising theforeign ownership ratio in the Vietnamese stock market.
“This has a positive impact on the flow of foreign indirect investment (FII)into Vietnam,” Son said.
“Management agencies have reduced the administrative procedures in marketaccess for foreign investors, information is also disclosed in English,” Sonsaid.
They had also made efforts to increase the size and liquidity of the stockmarket as well as introduced new products. A number of new securities productswere about to be introduced such as the derivatives market with VN-30 Indexfutures contracts, Government Bond Futures Contracts and covered warrants, Sonsaid.
In the future, the State Securities Commission and the two stock exchanges, theHo Chi Minh Stock Exchange (HoSE) and the Hanoi Stock Exchange (HNX), wouldcontinue to launch more new securities products to increase the attractivenessof the stock market. They would also do more research to improve policies,especially those related to the trading activities of foreign investors, Sonsaid.
According to him, the capital market in Vietnam has made a significantcontribution to the mobilisation and allocation of resources for developmentinvestment. The inception and operation of the stock market mark an importantstep in the development of the capital market, positively affecting the overalldevelopment of the financial and banking industry.
The stock market has gradually become an important capital mobilisationchannel, especially for local governments and enterprises. Vietnamesebusinesses have been more aware and participated in capital mobilisation on thestock market to diversify production and business activities, Son said.
Le Anh Tuan, Deputy General Director of HCM City-based fund management company,Dragon Capital, said that by the end of 2018, Vietnam's outstanding creditbalance stood at 310 billion USD while the securities market value reached 170billion USD.
As of mid of April this year, total capitalisation value on the HoSE and theHNX reached 145 billion USD. Total capitalisation value of foreign investors onthese two exchanges reached 35 billion USD.-VNS/VNA
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