Viet Nam's stock market helps drive the economy

Prime Minister Nguyen Tan Dung (right) rings the gong at the HCM Stock Exchange on Saturday to mark its 15th year of operation. VNA/VNS Photo Thanh Vu

The Prime Minister made his comments during the 15th anniversary celebration of the HCM Stock Exchange (HOSE), held by the Ministry of Finance on Saturday in HCM City.

He also noted that the country's stock market remains modest, compared to other regional markets.

The PM, therefore, asked related institutions to continue improving the legal framework, regulations and policies that assist a market economy, along with international practices to ensure the transparency and effectiveness of the stock market.

He also urged the speeding up of the project to restructure the stock market to diversify services and products and better act as an effective channel of medium and long term capital for the economy.

Further, equitisation of State-own enterprises should be promoted, while private companies are encouraged to participate in the process and the equitisation should be linked to their listing on the stock market, he said.

The PM noted that the stock market must operate according to market rules, by being open, transparent and safe for investors.

He stressed training, both by courses and practice, of the staff members working in the stock market, to ensure the sustainability of the market's growth while playing an important role in the development of the technical infrastructure, as well as the advanced technologies, to ensure the services and products meet international standards.

HCM Stock Exchange, formerly the HCM City securities trading center, the country's first exchange, was inaugurated on July 20, 2000 and its first trading session took place eight days later, with SACOM and REE as the first listed companies.

"By the end of June, there were 303 companies on the exchange's board, with a total market capitalisation of more than VND1,100 trillion (US$500.5 billion)," said Tran Dac Sinh, HOSE's chairman. He added that his exchange has 87 member securities companies, and 1.5 million investors have opened trading accounts.

Last year, daily transactions performed through HOSE were valued at more than VND2.1 trillion ($96.3 million), representing 77 per cent, or the combined figure of exchanges in HCM City and Ha Noi.

Apart from those 303 companies, there were exchange-traded funds (ETF) and 38 bond types issued by businesses, as well as municipal and provincial governments.

Sinh noted that listed companies double their chartered capital, on average, and in cases such as Vincom, the rate stands at 1,718 per cent and REE, 1,693 per cent. Trading was held for shares of 367 companies, which total VND70 trillion ($3.2 billion).

Apart from the Exchange Tower, HOSE is developing its data center in the city's Quang Trung Software Park, which is expected to be completed in the third quarter of 2015.

During the ceremony, HOSE was honored with a Labour Medal, First Grade by Prime Minister Nguyen Tan Dung.

Also, Minister of Finance Dinh Tien Dung awarded Certificates of Merit from the Prime Minister to seven members of the HCM Stock Exchange for their contributions to its growth.