Vietnam plans to ease rules on equity trading and accelerate initial public offerings (IPOs) of state-owned companies this year to attract investors to a market that’s valued almost 15 times less than Singapore’s.
The State Securities Commission is preparing to cut the minimum holding period for stocks, Nguyen Doan Hung, vice chairman of the commission, said in an e-mailed response to questions from Bloomberg on Aug 2. The regulator is also considering widening stock trading bands and starting an online auction system to boost volumes and speed up sales, he said, without specifying when the measures may be started. . The value of stocks changing hands on the Ho Chi Minh City Stock Exchange dropped 40% from June. Vietnamese companies only raised about US$10 million from IPOs in the first half of this year. Peanuts.
Vietnamese stocks are valued at about US$37 billion, compared with around US$552 billion in Singapore, South-east Asia’s largest market, even after the benchmark VN Index jumped 19% this year