Speeding up the process of equtising State-owned enterprises to eventually be listed on the country's bourses will increase the volume, supply and generate sustainable development for the markets, economists said.
Nguyen Doan Hung, Vice Director of the State Securities Commission, said that when the stock market became too "hot" over the first few months of the year, administrative measures were proposed to limit demand.
A cap on demand can calm prices and the markets immediately but may also lead to negative impacts in the long term, he added.
The government has therefore decided to increase supply to stabilise the market through the acceleration of equtisation of State-owned corporations in order to negate these side effects, Hung said.
The Prime Minister, in agreement with the policy has also given the go ahead for 70 large State owned economic groups to be equitised during the 2007-2010 period. About 20 State-owned corporations and commercial banks are to go through the process this year.
According to Nguyen Kim Toan, Head of the Enterprise Renovation Department, the equitisation of State-owned enterprises has been sped up with 3,060 businesses going public by late 2006.
Pundits have also forecast that with the presence of banking, beverage and telecommunication sectors, the total value of listed shares will triple by late 2007 and be five times higher than the current figure by the end of 2008.
In 2006, the total number of listed companies increased to 193 with the total value of shares coming in at over 221 trillion VND (14 billion USD), accounting for 22.7 percent of GDP. The figure has already surpassed the 15 percent target set in the government's strategy to develop the domestic stock market through 2010.
The Vietnamese stock market was evaluated to have the world's fastest growth for 2006 and is expected to make up to 30 percent of the country's GDP this year.
Source: VNA
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment