Bourses to merge into national exchange
Bourses to merge into national exchange
The State Commission of Securities (SSC) is expected to submit a plan to the government to merge the two bourses into a single entity: the Viet Nam Stock Exchange.
Vu Bang, chairman of the SSC, made this announcement at a workshop to review the activities of the Viet Nam stock market in 2013.
The SSC representative pointed out that it was essential to establish a single stock exchange for a small-scale economy like Viet Nam.
Under the plan, in the second quarter of this year, the SSC will submit a plan to the Prime Minister to gain approval for the establishment of the Viet Nam Stock Exchange. The plan will be divided into two phases.
Between 2015 and 2020, the Viet Nam Stock Exchange will be a state-run enterprise operating under the model of a single-member company with 100 per cent ownership by the state. The Ministry of Finance will be assigned as the state owner of the enterprise.
After 2020, the Viet Nam Stock Exchange will operate under the model of a joint stock company, with the state holding a 75-90 per cent stake. All its member securities companies will be permitted to buy a 10-25 per cent stake.
The equitisation will help to attract investment capital and ease the heavy burden on the state budget, while improving administrative management in line with international standards.
Under the plan, all eligible businesses will be required to list on the stock exchange. Those that fail to list on the stock exchange will be asked to register to sell shares.
To restructure securities companies and businesses, Bang said, by the end of 2014, 24 securities companies and six management funds would be re-organised and withdrew from the stock market by dissolving or halting operations.
He noted that apart from 10 current open-ended funds, five more funds will be established.
To spur the development of the Viet Nam stock market, Bang claimed the SSC would focus on establishing a local Exchange-Traded Fund (ETF) this year.
The SSC will diversify its products by developing the infrastructure for derivatives and drafting a regulation to instruct the application of derivatives such as Index futures and bond futures.
Listed companies are also required to provide specifically related information, both in English and Vietnamese.
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