Lao Securities market presented to Lao government

Lao Securities market presented to Lao government

An official ceremony to present the Lao Securities Market's building to the Lao government was held on 29 December in the presence of Standing Deputy Prime Minister Somsavat Lengsavad, Central Bank Governor Phouphet Khamphounvong and a number of guests.

Speaking at the ceremony, Mr. Or Vilaphanh, Head of the Central Bank's Office, said that the construction project for the Lao Securities market started in November, 2009 by a local construction company and finished on 10 October, 2010.

On this occasion, Mr. Somsavat Lengsavad expressed thanks to the contractors for their great efforts and responsibilities to make the project completed in time. He also presented a Labour medal third class to a Lao consultant company.

The Lao Securities Exchange opened in Vientiane on 10 October to provide an important new tool to mobilise more funds for national development.

The nation's first stock market, a joint venture between Laos and Korea, will not begin full trading until early next year. However, as companies are yet to list themselves on the exchange, two state-owned enterprises are preparing to issue shares.

Explaining the lengthy process recently, Lao Securities Exchange Chairman and Chief Executive Officer, Mr Dethphouvang Moularat, said the Lao government originally initiated a policy for the opening of a securities market in 1997.

The finalised policy was approved by the Lao National Assembly in 2006 as one aspect of the government's five-year development plan for 2006 to 2010.

The government assigned the Bank of the Lao PDR as the lead body to execute the policy.

Under Mr Somsavat's close supervision, the central bank led a number of Lao delegations to study the establishment of stock markets in countries such as Vietnam, Thailand, Singapore, China, Korea and in Europe.

Mr Dethphouvang said the Bank of the Lao PDR signed an MOU with the Korean Stock Exchange to develop a securities exchange for Laos in 2007. The two parties signed a joint venture agreement to establish the market in June 2009.

Under the agreement, the Lao government holds a 51 percent share in the venture and the remainder is held by the Korean partner.

Lao News Agency