At the Vietnam Business Forum 2017 (Source: vccinews.vn)At the VBF meeting on December 12, Dominic Scriven, head of the working group,said it was necessary to create a safe bond market and an “open” stock marketto promote rapid and sustainable development of the capital market.
The new securities law should allow firms to actively raise capital fromforeign investors, except those operating in sectors of which foreign ownershipis restricted as regulated, he said.
The working group also proposed that securities companies, fund managementcompanies, public companies and investment funds founded in Vietnam be regardedas domestic investors, regardless of the foreign ownership at these companies.
The working group called for the amended draft Law on Securities to be madepublic early for comments because this is a specialised law and revision wouldtake time.
At a dialogue between the working group and the State Securities Committee(SSC) early this month, Nguyen Quang Viet, Director of SSC’s Legal Department,said the new law aimed to create favourable conditions for businesses andinvestors and there was a high possibility that it would eliminate limits onforeign ownership at public companies and fund management companies.
Viet also said the draft law would be announced in March 2018 at the earliest.
Compiling a new securities law to replace the Law on Securities 2006, whichproved to be outdated amidst the rapid development of the capital market inViet Nam, was identified as a major task for the Ministry of Finance in 2017.
Decree 58/2012/ND-CP and Decree No 60/2015/ND-CP were issued to amend severalpoints of the Law on Securities 2006. Accordingly, foreign ownership at publiccompanies was capped at 49 percent.
According to Scriven, Decree 90/2011/ND-CP should also be revised to allowenterprises to issue bonds efficiently.
At December 13’s conference where amendments to the decree were discussed, DangVan Thanh, Chairman of the Vietnam Association of Financial Investors, said thecorporate bond market had not received adequate attention.
Thanh said that in Vietnam, few individual investors participated in this marketand companies generally did not regard bond issuance as a major channel forraising capital in comparison with banking credit.
“The corporate bond market still has significant room for growth,” Thanh said.
The capital market, including bonds and stocks, developed rapidly in recentyears and became an important capital raising channel for the economy.
The total capitalisation of the stock and bond market is now equivalent to morethan 100 percent of the country’s gross domestic product, compared to outstandingloans, which are now worth about 130 percent of GDP.
The scale of the securities market tripled in the past decade from 22 percentof GDP in 2006 to 63 percent of GDP currently.-VNA
At December 13’s conference where amendments to the decree were discussed, DangVan Thanh, Chairman of the Vietnam Association of Financial Investors, said thecorporate bond market had not received adequate attention.
Thanh said that in Vietnam, few individual investors participated in this marketand companies generally did not regard bond issuance as a major channel forraising capital in comparison with banking credit.
“The corporate bond market still has significant room for growth,” Thanh said.
The capital market, including bonds and stocks, developed rapidly in recentyears and became an important capital raising channel for the economy.
The total capitalisation of the stock and bond market is now equivalent to morethan 100 percent of the country’s gross domestic product, compared to outstandingloans, which are now worth about 130 percent of GDP.
The scale of the securities market tripled in the past decade from 22 percentof GDP in 2006 to 63 percent of GDP currently.-VNA
VNA
