VAFI Urges to Develop Institutional Investors in Stock Market
The Vietnam Association of Financial Investors (VAFI) has proposed the Ministry of Finance and the State Securities Commission (SSC) build up strategies to develop institutional investors for a sustainable development of the market.
VAFI said authorities should set up a group including representatives from the SSC, Vietnam Association of Securities Business, Vietnam Fund Management Club and Capital Market Group to work on such measures.
The daily trading value of foreign and domestic institutions now account for only 15% of the market’s trading value, compared to 85% in developed stock markets, while individual investors make up 85%, VAFI said.
Meanwhile, capital for stock investments of domestic institutions, including banks, finance companies and insurance firms, is still limited, which can not be a solid foundation for the market’s development.
The lack of institutions has made the market more volatile during crises, it noted.
Vietnam is now home to over 110 securities companies and nearly 50 fund management firms. (Investment, Labor)
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