Four Measures Proposed to Vitalize Vietnam Stock Market
The equity market working group chaired by Dragon Capital Chief Executive Officer Dominic Scriven, in the framework of Vietnam Business Forum, has been working to work on necessary measures to improve current gloomy situation of Vietnam’s equity market.
The group has notably given four recommendations as following:
First, the scale of the securities market should be increased by encouraging long-term investment and creating a balance between professional investors and individuals at a proportion of 60 per cent and 40 per cent.
The government will need to delay the 20 per cent capital gain tax until 2010 to keep investors. The trading time in the market should also be extended until afternoon to increase the market’s liquidity.
Second, the government is suggested to clearly publicize economic indicators, macro-economic management measures and consistent implementation plan in order to better inform enterprises and investors about the country’s policies.
Third, privatization and IPO methods should be improved, and those companies in the process of share sales must be properly appraised compared to other emerging markets.
Fourth, the working group recommended Vietnam to further expand the bond market by integrating current various types of bonds and reducing issuances of new types of bonds, and widens investors’ access to treasury bills.
The local stock market has fallen to 3-year record low to the benchmark of 314.71 points on global financial turmoil, domestic gloomy economic pictures and the government’s insistence to impose personal income tax on stock investors. Traders said the situation would be worse if no practical actions are taken. (Securities Investment)
Vietnamese
