The plan for developing the Vietnamese capital market to 2010 and vision to 2020 will be approved by the Government in the coming time. Mr Nguyen Van Dung, Director of Finance Department under the State Bank of Vietnam talked with the press on this issue.
In the plan for developing the Vietnamese capital market, what measures does the Ministry of Finance apply to increase market transparency and publicity?
Publicity and transparency are the first requirements the Prime Minister gave to State authorities of capital market management. Under the Law on Securities, all securities companies and listed companies must ensure information transparency and publicity and must be seriously audited.
At present, short selling, share selling rights and seniority selling are quite popular on the free market. These activities are against the law. However people, due to habits or a herd mentality, still trade such things on the free market to gain early benefit and the authorities find it hard to control.
When the Prime Minister issues a decision on this issue, do you think short selling will be tackled?
All people related to short selling activities will be tackled. But regrettably, no one has pinpointed violators. Only the people concerned know short selling and buying, but one of them will tell because of their benefits. I stress once again that short selling and buying happens between individuals, it is impossible for enterprises.
It is said that certain shareholders in a company can buy shares at lower price than others. Do you think this is policy cornering for mercenary motives?
For joint stock companies, the decision of the general shareholder meeting is the most important. The decision provides the price of issue, and at the same time par value. If dominating shareholders want to buy shares at price lower than par value, this activity is against the Enterprise Law. If such phenomena happen, shareholders of those companies should raise their voices. They should prevent the selling of shares at different prices.
On the other hand, if shares are bought and sold at different prices on the stock market, this is market behaviour. It is not related to price regulation by the company.
At present, many big international funds have joined the Vietnamese capital market. How can authorities manage the capital inflows and outflows?
Indirect capital flow on the stock market is hard to manage. In the past, the Ministry of Finance and the State Bank of Vietnam coordinated with relevant agencies to tighten supervision over this flow of indirect capital.
Currently, non-cash payment is unpopular in Vietnam; hence, laundering is also hard to manage. We are coordinating with the State Bank of Vietnam and the State Securities Commission to increase the managerial measures limiting laundering on the stock market. To do that, non-cash payments should be used. Then, asset declarations, and asset and information transparency must be intensified. If so, we can manage to put an end to laundering, not only on the stock market.
However, this is a long way to go because we are in the process of transition. Currently, laundering also takes place in developed nations, not only here. This illegal activity still exists, ahead of the application of the latest management methods. State authorities must intensify controlling measures to restrain laundering.
Quynh Chi
Vietnamese
