Indochine Counsel: 50 per cent Securities Firms to Struggle with Challenge in 2009
About 50 per cent securities companies in Vietnam will have to struggle for survivals this year, given the nosedive of the local stock market, according to Dang The Duc, managing lawyer of Indochine Counsel Law Co.
He said 40 per cent of the stock brokers will be able to maintain their operation stable, and only 10 per cent will reach to become big names in the country.
Brokerage will help bring stable income and cover costs for securities firms who apply good technology and provide useful products and services for investors, Duc said. However, those who meet the requirement account for only 10 per cent in Vietnam, he noted.
Securities trading will be decisive element for the prosperity or the recession of stock brokers this year, Duc affirmed, while financial advising, which is one of the main income earners of brokers, will also have no chance to develop.
Vietnam’s stock market had lost 68 per cent in its value last year, which pushed up to 80 per cent of the total 102 local stock brokers to suffer losses.
“More weak securities firms will dissolve themselves rather than being merged into others this year,” said Nguyen Duc Thinh, general director of Gia Phat Securities Co. (Vietnam Economic Times, CafeF)
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