The Thoi Bao Kinh Te Viet Nam (Vietnam Economic Times) newspaper recently selected the ten most prominent events in Vietnam’s stock market in 2005. They are as follows:
1. Holding IPOs at the securities trading centers.
The State Securities Commission (SSC) started holding initial public offerings (IPOs) to sell shares of unlisted companies at the securities trading centers in Hanoi and Ho Chi Minh City. This action enabled investors to access information of companies to go public.
2. Boosting commodities for the stock exchange.
The Government issued the Decision 528 QD-TTg dated June 14 to approve the list of companies to go public and list on the securities trading centers. The decision made the stock market busier with an increasing number of companies selling shares. The Ho Chi Minh City Securities Trading Center carried out share auctions for 31 companies with total trading value of VND1.1 trillion.
3. Hanoi Securities Trading Center was put into operation
Hanoi Securities Trading Center started operations in March 8, and has fostered the privatization process, widening the scale of the stock exchange, whilst helping protect investors’ interest.
4. International cooperation
Vietnam signed many agreements with other countries to develop its stock market, including one agreement with Singapore to list outstanding stocks on their market, and one to cooperate with China in stock market management.
5. Establishing a custodian center
The Government issued the Decision 189/2005/QD-TTg dated July 27 to approve the plan to set up a securities custodian center. It functions as an agency to register, provide custodian, payment, clearance and supportive services to securities trading activities.
6. Opening listed firm club
The listed company club was opened in Ho Chi Minh City with 31 members to protect their lawful rights and provide a forum for information exchange.
7. Increase of foreign ownership rate in listed companies
The Government issued the Decision 189/2005/QD-TTg dated September 29 to approve the plan to raise foreign ownership in listed companies to 49 per cent from 30 per cent.
8. Issuing sample regulations on share auction at securities trading centers
The State Securities Commission launched a decision to enable securities trading centers to apply regulations for each share auction.
9. Development of fund management companies
Vietnam granted licenses for four fund investment management companies, including Manulife Fund Management with registered capital of VND5 billion, Prudential Vietnam Fund Management with VND23 billion, Vietcombank Fund Management with VND8 billion and Bao Viet Fund Management with VND25 billion. These companies are allowed to establish and operate securities investment funds, along with providing financial and securities investment consultation.
10. Issuing sovereign bonds
Vietnam was successful in issue US$750 million worth of sovereign bonds at the New York Stock Exchange, in which foreign investors registered to buy an amount of US$4.5 billion, about six times higher than the offered volume. The capital was allocated to the Vietnam Shipbuilding Corporation to invest in its urgent projects.
Vietnam Economic Times
Vietnamese
