Securities facing tough 2013
Could you tell us about the securities market last year?
2012 was the most difficult in the 12 years the securities market has been operating.
However, the VN Index increased by 17.7 per cent, a positive result compared to many countries such as the US, China, Russia and Brazil.
Market liquidity improved dramatically with average transaction values hitting VND2.158 trillion (US$102.76 million) per day, representing a 55 per cent increase over 2011.
The flow of indirect foreign investment was also a highlight of last year, growing 10 per cent over 2011.
The Prime Minister signed Decision 1286 approving a project to restructure the securities market and insurance companies on December 6, creating a legal framework for market operations and the restructuring process.
Why did last year see a strong increase in foreign indirect investment?
The increase has been attributed to low share prices that attracted foreign investors.
Secondly, foreign investors saw macroeconomic improvements. Inflation was brought under control, foreign exchange rates were stabilized, payment balances improved and foreign currency reserves increased.
They also took advantage of opportunities when the market hit rock bottom.
What is the focus of the securities market restructure this year?
The focus will be placed on restructuring securities trading institutions because their practices remain risky. Violations of regulations will also be punished.
After these matters have been dealt with, we will introduce tougher industry standards.
What about plans to restructure the two stock markets?
This depends on many factors including technology, organization and human resources, and must be implemented without any disruption.
The project was scheduled for completion in 2012, but due to the difficulties we experienced the deadline has been pushed back by a year.
What measures will the State Securities Commission take to support the market this year?
The first solution is creating easy access to capital for enterprises. Other obstacles will be tackled to facilitate IPOs and to implement mergers and acquisitions.
Secondly, market liquidity will be improved through conducting research on amplitude, margin trading rates and fee-related issues.
Attracting foreign capital will also be important, and we will look at ways to encourage foreign investors using preferential policies.
