Stocks serve as good channels for capital amid liquidity glut

Stocks serve as good channels for capital amid liquidity glut

Viet Nam’s economy could effectively channel capital through the stock market, whose value accounts for 40 per cent of GDP, a State Securities Commission (SSC) official has reported.

At a meeting between the SSC, the Ha Noi Securities Trading Centre (HASTC) and a National Assembly delegation on June 26, SSC Chairman Vu Bang said that last year the stock market expanded markedly.

Some VND127 trillion (US$7.9 billion) was pumped into the stock market in 2007 and combined with the over-the-counter market (OTC), the figure was estimated at nearly VND200 trillion ($12.5 billion).

The stock market now has more than 430,000 accounts, including 2,000 organisation accounts.

According to Bang, shares have bottomed out, yet this has made shares on Vietnamese bourses become attractive compared to those listed on regional markets.

Officials from the Ha Noi Securities Trading Centre also pledged to implement three models of securities markets, which include the trading markets of listed shares (known as securities trading centres), unlisted shares (controlled OTC, operational in July) and Government bonds.

Also on the meeting’s agenda was the stock market’s impacts on the macro economy, equitisation process and economic structure.

National Assembly Vice Chairman Nguyen Duc Kien said that the Government would continue attempts to stabilise and develop the stock market and the macro-economy.

"The revision of the Securities Law is also a part of Government’s actions to perfect the legal framework for securities trading in the future," Kien said.

He also urged securities managers to propose solutions to ensure the market’s smooth operation.

VNN