Vietnam Plans to Run Single National Stock Exchange from Q2/2012

Running a single stock exchange is one of 4 key points ( restructuring securities companies, stock exchange, investors and goods- listed companies) in the stock market restructuring plan, Finance Minister Vuong Dinh Hue told local online newspaper Dau Tu Chung Khoan (Securities Investment), stressing that the aim of the restructuring plan is to tackle current weaknesses and more importantly to meet the economy’s long term fund demand.

Hue said that the stock market restructuring proposal has been approved by standing government and will be amended, supplemented and completed to submit to Politburo for approval and serve as the basis for instruction of drastic restructuring activities this year.

Restructuring stock exchange will create an advance in professionalism, effectiveness of stock, bond and futures markets in the principle of a single consolidated exchange, Hue explained.

A single exchange will also mean a common standard of listing requirements, trading, information disclosure, governance and risk management. The new stock exchange will be run under international conventions and standard with diversified goods, safe clearing and settlement operation, transparent and professional management, Hue added.

The Ministry of Finance has instructed the State Securities Commission to prepare draft decision on establishing a single stock exchange to be submitted to the government for approval in Q2/2012.

Vietnam currently has two stock exchange the Hochiminh Stock Exchange and smaller cap bourse the Hanoi Stock Exchange with 699 listed companies.