Socialist Republic of Vietnam

Ha Noi, August 6 (VNA)-- The Finance Ministry is authorised by the Government to adjust the legal mechanism on the issuance of Government bonds to encourage more investment through Viet Nam's stock market.

Under the revised document, which is expected to come out soon, the right to issue bonds to raise funds for investment through the stock market will also be given to development funds as well as project executives and owners.

The Finance Ministry and the State Bank are also working together to come up with regulations on tax policy and foreign currency management in support of the young monetary market.

The move is aimed at increasing goods for and encouraging businesses to take part in the stock market, which was opened in Ho Chi Minh City last July, said the State Securities Commission Chairman Nguyen Duc Quang.

So far, eight companies have been licensed to trade their stocks on the market floor. In 148 sessions, these 8 companies circulated 13.7 million shares and more than 500,000 bonds worth VND 690 billion.

When it started, Viet Nam's stock market's average transaction value was only VND 1 billion. It now stands at VND 15 billion.

However, only six companies have listed their shares on the stock market floor, although almost 100 businesses are eligible for the operation.

Some companies are hesitant to list on the market because they fear the possibility of wanton auditing and the requirement to make public their financial information, Quang explained.

However, constant legal reform has shown encouraging signs as some businesses have registered to list their shares on the stock market floor and they are expected to receive licenses later this year, Quang said.

The revised legal system will also provide the stock transaction companies with the authority to sell previously ineligible stocks, and stipulate new tax rates and hard currency management for foreign investors operating through stock market, Quang said in conclusion.--VNA