Vietnamese Prime Minister has asked the central bank, the Ministry of Finance and relevant industries to draft mechanisms to better manage the indirect foreign capital flows into the country, the Financial Investment newspaper reported.
This is one of the five action agendas the government will put on discussion table at the meeting of the National Assembly in a bid to stabilize the domestic stock market.
The global economic slowdown has great impact on Vietnam’s economy, including foreign investors; possible withdrawal of indirect capital flow out of the local economy may result in a bad financial collapse or crisis.
“We must carry out effective preventive measures to avoid the crisis,” said Nguyen Minh Phong, chief of Economic Research Department under Hanoi Socio-economic Development Institute.
Vietnam has to collect exact data on the amount, the time of money pump or withdrawal of foreign capital through foreign investors' accounts in banks, reports of representative offices of funds, securities custodians and firms, said Chairman of State Securities Commission Vu Bang.
Up to 60 foreign investment funds are operating in Vietnam, which are managing 10,000 foreign stock accounts with billions of U.S. dollar, Bang noted.
In the coming time, a foreign investor will be required to open an indirect investment account in a credit institution providing forex services in Vietnam and use only this account for securities trading.
Vietnam will also allow the establishment of 100 per cent foreign-owned fund management companies to better manage the foreign inflow.
Last year, Vietnam received US$7.6 billion of indirect foreign investment in the local stock market, three times higher than 2006, the official figure showed.
If foreign investments poured into shares on OTC market included, the total figure hit about US$20 billion, Bang said. (Financial Investment)
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