Vietnam Stock Market
The Vietnamese are an industrious people with frugal habits. Domestic savings are significant, and the country has a wide cropping base. Industrialization and the Service sector are still to become sizeable forces, but the scope is large and clear. Textiles have been a focus area for many entrepreneurs during the past few years, and there are many other sectors which will open up in the near future. The stock market has a key role to play in this transition, as the kind of fund requirements of private enterprise are optimal opportunities for investors. Clearly, early entrants in the stock market field will have advantages and prospects of superior returns. Many top financial bodies have eyed Vietnam with interest ever since its emergence from colonialism and strife, and the time is now ripe for the flood-gates of investment to open.
Regulators in Vietnam have been notoriously bureaucratic, and stock market reform continues to be frustratingly slow even now. Fortunately, curbs on foreign capital participation have been eased gradually, and international players can look forward to better ownership and repatriation rights in due course. The stock market structure needs to be freed of government sponsorship, and the country has a long way to go in terms of electronic trading as well. However, the antiquated system of depositories for securities does work, and the potential of the country justifies the special efforts needed by global players to operate on the local stock market.