Vietnamese Deputy Prime Minister Nguyen Sinh Hung told mass media on February 26 that the government of Vietnam will take measures to prevent the local stock market from current doldrums and boost the market, an important capital channel for the entire economy.
“We must take measures to balance the supply and demand to boost the stock market, which is a very important capital channel for the entire economy in the long-term,” Mr. Hung said and admitted that the government had ineffective macroeconomic policies over the past months.
The Vietnamese deputy prime minister affirmed that the government will tame inflation and stick to the set economic growth rate.
Doldrums of the market over a couple of past months are mainly attributed to too weak and panic sentiment, Le Dang Doanh, a leading economist said, calling for timely responses from the state agencies as listed firms have reported good earnings.
Meanwhile, foreign investors expressed their concerns whether the regulations and policies local authorities will adopt will be effective and supportive of the market.
VN-Index has lost 12 per cent since Feb. 12, closing at 686.49 to become the biggest loser in Asia, followed by India and China.
Last year the market saw a pump crop, a real channel, through which listed firms raised VND80 trillion-VND90 trillion, much higher than VND1.3 trillion of par value in 2006. The market capitalization accounted for 39.4 per cent of the GDP.
By the end of November last year, foreign investors bought Vietnam’s shares valued at US$7.5 billion-US$7.6 billion, tripling US$2.3 billion from a year earlier, excluding roughly US$20 billion disbursed into shares on the over-the-counter market, SSC figures showed. (Pioneer, vietstock.com.vn)
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