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VietNamNews

‘Shareholders need better protection'

Update: May, 16/2015 - 10:21
The Government had recently issued a decree on derivatives and the derivative market — to take effect on July 1 — which was expected to boost the market. — Photo framedia.vn
HCM CITY  (VNS) — The rights of investors in Viet Nam's stock market need better protection, and this will also help boost the market, analysts told a seminar in HCM City on Thursday.

Speaking at the seminar — on the role of the stock market in the economy — Nguyen Duy Hung, chairman of Saigon Securities Inc., said companies listed on the country's two exchanges in HCM City and Ha Noi as well as brokerages had to ensure the transparency of the information they disclose and its accuracy to protect investors.

He described as unfair the tax on securities investments while bank deposits were not taxed, adding it encouraged people to put their money in banks rather than buy stocks.

Nguyen Thanh Long, vice chairman of the State Securities Committee, said the watchdog had been focusing on investors as a key factor in the market, and derivatives were a positive tool for protecting and diversifying investments.

The Government had recently issued a decree on derivatives and the derivative market — to take effect on July 1 — which was expected to boost the market.

Listed firms needed to abide by international accounting and auditing criteria to provide accurate information to investors, he said.

Viet Nam needed more institutional investors since they did not speculate and invested in value and were capable of guiding the market, he said.

Vu Viet Ngoan, chairman of the National Financial Supervisory Committee, said investor protection was one of the key factors in the healthy growth of the market as were policies related to corporate bankruptcy, access to capital, and implementation of the law.

Tran Du Lich, deputy head of the HCM City National Assembly delegation, called for a tax cut for public companies to stimulate firms to go public, which would improve their transparency and the market's.

The seminar, organised by HOSE and Saigon Securities Inc., is among programmes to celebrate the 15th anniversary of Viet Nam's stock market, which began with the opening of the HCM City Stock Exchange, formerly the HCM Securities Trading Center, in July 2000.

According to HOSE chairman Tran Dac Sinh, more than 300 companies are listed on his exchange with a market capitalisation that adds up to 25 per cent of the country's GDP.

On average, firms had doubled their chartered capital after listing in HCM City, he said.

More than 350 companies had their IPOs at HOSE, including some big names like Vietcombank, Vinamilk, and Bao Viet.

The exchange had average daily trading of VND2.1 trillion last year. — VNS

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