The Vietnamese Ministry of Finance has built a project of merging the two stock exchanges to meet general standard, waiting for comments of other ministries and sectors before submitting it to the Prime Minister. This becomes an important content included at the recent conference of finance in Hanoi.
One of ten markets with the highest recovery
According to the Ministry of Finance, in 2013, Vietnamese stock market had positive progress thanks to signs of stabilised macro-economy as well as positive solutions in shares market. Average transaction per each session reached VND2,578 billion, increasing 31 percent compared to that in 2012. VN Index increased over 22 percent, HN Index increased over 13 percent compared to that in 2012. Vietnamese shares market was evaluated as one of ten shares markets possessing highest recovery of the world, particularly, bonds market reached the highest growth in region.
Capitalisation accounted for VND964 trillion (VND199 trillion higher than that at the end of 2012), approximately to 31 percent of GDP; in which, inflow of foreign capital increased 54 percent with value of about US$3.8 billion higher than that in 2012.
Total value of mobilised capital amounted to VND222 trillion, increased 25 percent; in which value of shares was VND20,500 billion, 22 percent higher than that in 2012; value of Government’s bonds was VND177.5 trillion, 24 percent higher.
However, the shares market still faces many difficulties. Specifically, the processes of equitisation and divestment of State enterprises were slow. In 2013, about 32 enterprises were equitised with total value of VND1,236 billion (much lower than that in previous years). Operations of listed enterprises had more positive signs but still faced difficulties, accordingly, the report expected that about 136 enterprises owned accumulated losses; and in 2013, 28 enterprises cancelled initial public offering (IPO). Many securities companies were still in trouble, including 58 of 94 companies having accumulated losses; 5 securities companies were in controlled state; 9 companies were in special controlled state.
Many solutions for restructuring
For solutions for shares market restructuring, the Ministry of Finance expressed that in the past year, based on Decision 1826/QD-TTg of the Prime Minister ratifying the scheme of restructuring shares market and insurance company, the Ministry of Finance issued some documents relating to this matter, and took a step to realise the scheme of restructuring shares market.
Referring that, the Ministry published some documents regulating the tighter conditions of issuance and IPO, and also regulated terms of publishing information, enterprises’ governance with transparency and disclosure of the market, gradually approaching international standards. The Ministry also published Circular guiding terms of issuance of joint stock companies formed after consolidation and merger with the purpose of facilitating the restructuring of listed companies.
Especially, legal framework on open funds, real estate funds, ETF, securities investment companies has been issued. Currently, 08 open funds have been established, it is planned that another 05 open funds and 01 real estate fund will be open in the following time.
Based on reports on usable capital of securities companies, the Ministry has divided securities companies into 4 groups: Group 1: 79 healthy companies; Group 2: 8 normal companies; Group 3: 5 companies under supervision; Group 4: 9 companies under special supervision.
Accordingly, the Ministry has elaborated solutions of restructuring these groups like improving financial capacity; operation restructuring; upgrading risk management; company management; creating conditions and guidance for companies to conduct M&A; as well as eliminating underwriting service of 04 securities companies, broking service of 6 securities companies; self – business of 2 securities companies; securities investment consulting of 1 securities company; conducting mergers for 2 securities companies, dissolving 3 securities companies; recovering registration certificate for securities depository of 2 securities companies. As a result, 15 securities companies have stopped operating.
As for fund management companies, currently there are only 41 operating out of 47 companies. 6 companies have been forced to withdraw from the market by many measures, including: one dissolved company, two companies stop working to restructure, one company suspended due to failing to fulfil registration requirements; two companies under special supervision because of low financial adequacy ratio.
Besides Project of merging the two stock exchanges, the Finance Ministry has also issued schedule of developing bond market to 2020. In 2013, the bond market has been restructured at several features like: launching new bond trading systems; approving 36 market members, issuing bonds bearing 10-year term, 15-year term, constructing yield curve of government bonds.
Restructuring projects to be completed
To continue implementing securities market restructuring, according to the Finance Ministry, in 2014, the authority will continue completing projects like derivatives market project; Project on decree of derivatives market; project of establishing stock exchange Vietnam and decision on participation ratio of foreign investors in Vietnam securities market.
As for restructuring products for the market, the Ministry will continue to review a number of listed companies in the stock exchanges, focusing on quality of listed companies; improving transparency in the securities market; conducting equitisation and stock auctions of state enterprises to create high quality products for the market.
Moreover, the Ministry will also restructure securities trading organisation based on classifying and improving securities service quality; improving financial capacity, company management, risk management; allowing foreign investors to possess trading organisations in compliance with WTO commitments, encourage prestigious international financial organisations to participate (the Finance Ministry has submitted the Prime Minister a supplement of Decision 55 on participation ratio of foreign investors); enhancing independent operating model of Vietnam Securities Depository in direction of adding centre counterparty (CCP); continuing completing trading structure and products of securities exchanges; constructing new indexes, bond indexes, system of trading orders.
Anh Mai
Đăng ký: VietNam News
