|Participants at the 2nd Viet Nam Investment Forum dicuss how renovate the local banking system. (Photo:A.K)|
Viet Nam’s economy will continue to attract investors to Viet Nam, Finance Minister Vu Van Ninh said at the 2nd Viet Nam Investment Forum in Ha Noi in March, 2007The two-day forum, "Financing Growth – Asia’s Next Tiger", was jointly held by the UK-based Euromoney Conferences and the State Capital Investment Corporation (SCIC) and was aimed at helping international financiers obtain the latest information on Viet Nam’s economic development.
Government officials and international financiers present debated the macro-economic outlook for Viet Nam and the opportunities and challenges posed by its membership in the World Trade Organization, as well as measures to develop the capital market in Viet Nam.
Efforts to lure more investors
Finance Minister Vu Van Ninh emphasized at the forum that the Vietnamese Government pledges to continue integrating into the world market, improve its legal system, reform administration processes and become more transparent in order to attract domestic and foreign investors.
Minister Ninh told more than 1,100 delegates from 36 countries and territories that Viet Nam will keep the mobilization ratio of its gross domestic product (GDP) to the state budget at 21 or 22%, while the budget deficit ratio and the national debt ratio will be kept at only 3% and under 50% of the GDP respectively.
Regarding the capital market in Viet Nam, Ninh said that it has developed strongly in recent years. By 2006, over 200 joint stock companies with a capital market value of US$14 billion, or 22.4% of the country’s GDP, had been listed at the country’s two securities trading centers.
|About 55 securities brokerage companies and 18 fund management businesses are operating on the domestic stock exchanges.(Photo:TK)|
Adding to the capital market’s development was the sale of bonds; worth US$8 billion they accounted for more than half the market’s success. Remarkably, some 400 kinds of bonds were available 90% of which were offered by the Government, said Mr. Ninh.
Current figures show that 49% of the participants in the Vietnamese stock market are foreign investors. There are 55 securities brokerage companies and 18 fund management businesses operating on the stock exchanges.
The minister stressed that Viet Nam has a great chance to develop its capital market, with the government target for the total capital over the 2006-2010 period being US$140 billion.
Ready to overcome difficulties
The Finance Minister said that in the coming years Viet Nam will spare no effort in building a comprehensive and transparent legal system, increasing the management of state agencies over the capital market in order to ensure that the market can develop steadily and maintain macro-economic stability, as well as to prevent future crises.
According to Mr. Ninh, Viet Nam’s economy still faces many challenges, such as poor infrastructure and a need for social and legal stability. However, these issues could be overcome now that the country is a member of the World Trade Organization (WTO), he said.
"WTO membership will bring many opportunities for the country in general, particularly in the finance sector", said Mr. Ninh, "To integrate into the world’s financial markets, policies need to be in place to implement WTO commitments in fields like securities, finance and banking insurance."