VASB proposes tax cut to increase trading liquidity

The Vietnam Association of Securities Businesses (VASB) may propose market regulators reduce trading taxes for investors, according to its general secretary Nguyen Thanh Ky.
VASB proposes tax cut to increase trading liquidity ảnh 1Illustrative image (Photo: VNA)
Hanoi (VNS/VNA) - The VietnamAssociation of Securities Businesses (VASB) may propose market regulatorsreduce trading taxes for investors, according to its general secretary Nguyen ThanhKy.

The move aims to encourageinvestors to increase their activity on the Vietnamese securities market amidthe spread of novel coronavirus (SARS-CoV-2) and its impact on the globaleconomy, Ky told Dau tu Chung khoan (SecuritiesInvestment) newspaper.

The VASB will suggest Hanoi and Ho Chi Minh stock exchanges cut trading fees for brokerage firms, then thecompanies will consider doing the same for investors, he said.

The association will alsopropose the National Assembly consider tax cuts for the securities sector sothe market may flourish in 2020, he said.

“The targets set for the securitiessector in 2020 may not be achieved if no measures are carried out,” Ky said.

According to Bao VietSecurities Co.’s general director Nhu Dinh Hoa, the Government should thinkabout a tax cut and tax free policy for investors.

Such a policy is a support ofthe Government for investors amid the volatility of the global market andeconomy, he said.

The policy will encourageinvestors to stay with the Vietnamese market and become more professional, headded.

Solutions to improve thequality and efficiency of the Vietnamese securities market must be done in2020, especially those that were issued years ago but have remained undone, hesaid.

Investors and companies expectmarket regulators will receive and process their ideas in a better manner, Hoasaid.

The biggest challenge for thesecurities market and investors is margin lending interest, according tobusiness insiders.

Investors will suffer more ifthe market keeps going down as their assets become cheaper than their initialpurchasing prices while they still have to pay to keep their portfolios active,they said.

The current market condition ispretty harsh and it would be difficult for companies to increase the number ofnew active investors, they said, adding many active investors have closed theiraccounts while some others are waiting for more signals to close theirs.

Besides taxes, improvingadministrative procedures is one of the key issues that has weighed on thelocal market, according to Nguyen Hoang Hai, general secretary of the VietnamAssociation of Financial Investors (VAFI).

A slow-moving administrationwill hamper the chance of success for companies, even kill many of them,especially those in the real estate sector, he said.

Amid the existing difficulties,the Government needs to put administrative reform on top, really cares andsupports the business community with its utmost enthusiasm and passion so thatlocal companies and local market can develop, Hai said.

Foreign investors should alsobe allowed to increase their ownership in local public companies, he suggested.

If local firms are able toraise more foreign capital, they can reduce their dependence on thebanking sector and the capital cost in the economy will get lower, he said.

In 2020, the market isexpecting the Government’s large-scale divestment from State-owned enterprises.If the cases are done successfully, more foreign investors will appear in Vietnamand provide the Government a new flow of cash to invest in infrastructureprojects, he said.

Some SOEs being enlisted fordivestment in 2020 include the Vietnam National Petroleum Group (Petrolimex),the Airports Corporation of Vietnam (ACV) and national carrier VietnamAirlines./.
VNA

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