Vietnam Shares Unlikely to Dip Further: SSC Official

Vietnam’s shares are unlikely to plunge further on solid corporate fundamentals, Nguyen Son head of the Market Development Department under the State Securities Commission said at an online conference on Outlook of Vietnam enterprises and stock market in 2010 on December 16.

 

Son said Vietnam’s economic conditions and corporate performances are good in the fourth quarter. Monetary policy changes by the State Bank of Vietnam had certain negative impacts on investors’ sentiment and corporate operation, therefore, some downward movement sessions are foreseeable but market will not fall sharply.

 

To support the market, the SSC is considering changes in the trading mechanism to boost liquidity including multi-account holding, margin trading and intraday trading, Son said.

 

The SSC will closely monitors rumors on the market and will respond quickly and timely. However, making the market more transparent needs a comprehensive cooperation among market participants and investors, Son said.

 

The SSC has proposed delaying imposition of securities trading capital gain tax, but this is unlikely to pass, Son shared.

 

Son expects Vietnam’s economy to grow at 6%-6.5% in 2010 thanks to the second stimulus package with 2% interest rate subsidy.