No Vietnamese Securities Firm Put Under Special Surveillance

Not a single securities company in Vietnam has been put under a special control although a large number of local brokers which made loss in 2008 are struggling for survival, said Nguyen Thi Thuc Anh, deputy head of Business Management Division under the State Securities Commission (SSC).

 

The commission is completing a criteria draft on warning securities firms in case of emergency to protect investors, Anh said.

 

She said that two stock brokers have recently incurred financial difficulties but they have solved problems.

 

Only 15 out of 51 securities companies which reported business results made profit in 2008, the SSC said, noting that an estimate 80 per cent of over 90 brokerages operating in the country suffered loss last year.

 

Two or three stock brokers which have not enough capital to provide any securities service are expected to be dissolved, Thuc Anh said. Currently, each firm must have VND300 billion to provide four services.

 

Vu Bang, chairman of the State Securities Commission, earlier said market authorities will also issue decree on the bankruptcy of securities companies as soon as possible amidst this difficult time. (Securities Investment)