Vietnam Stock Market
The stock market culture of Vietnam may be in its infancy, but most analysts agree on its shining future potential. The Stock Trading Center in Ho Chi Minh City is only as old as the current century, but has already grown into an appreciable force in terms of providing funds for the government. The bond market of Vietnam has not only grown at a rapid pace, but has attracted international attention as well. Membership of the World Trade Organization will help Vietnam spread well beyond agriculture, though its fertile soils will always yield productive bounties. The economy of Vietnam is amongst the most attractive in the region, and the local stock market is certain to expand its presently small list of member companies.
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.