Vietnam's Stock Market Value to Surpass 50 per cent of GDP By 2010-Ministry

Total market capitalization of Vietnam’s shares is expected to surpass 50 per cent of the country’s GDP by 2010 and with new listings of big names, it will reach over 40 per cent by 2007-end, state-run Vnexpress cited the Ministry of Finance as saying October 28.

 

Le Hai Tra, vice director of Ho Chi Minh Stock Exchange was quoted as saying that the IPOs of new big names including Vietnam Foreign Trade Bank (Vietcombank), PetroVietnam Fertilizer and Chemicals Company (PVFCCo), and other 50 companies will help raise the market from now till the end of this year.

 

“The listing of PVFC, which has a total registered capital of VND3.8 trillion, will make the market value jump 10 per cent,” Mr. Tra noted.

 

“If share prices continue rocketing at current rate in the near term, the market value will be higher pushed up,” said Trinh Viet Cuong, a senior advisor of Okasan Securities Broker of Japan. On the official over-the-counter of Hanoi, shares soared 40 per cent on average while shares on HOSE surged 13 per cent in September.

 

New comer PET set growth record of 90 per cent since it was listed September 3, followed by VIC jumping roughly 50 per cent.

 

Currently, the two bourses – HOSE and HASTC – have a combined market capitalization of VND423 trillion ($26.43 billion), accounting 40 per cent of the country’s GDP, up from 22.6 per cent in 2006.

 

Vietnamese Prime Minister Nguyen Tan Dung recently agreed with the continued privatization of 100 per cent state-owned enterprises and banks. (Vnexpress, Government’s Website)