Vietnam plans merger of stock exchanges to boost market: report

Thanh Nien News

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A file photo of Ho Chi Minh City Stock Exchange. Photo: Diep Duc Minh A file photo of Ho Chi Minh City Stock Exchange. Photo: Diep Duc Minh


Vietnam's stock regulators are planning to merge its two bourses in Hanoi and Ho Chi Minh City in an effort to increase local market's transparency and attract more foreign investors, local media reported on Monday, citing a senior official.
In preparation for the merger, the bourses in Hanoi and Ho Chi Minh City will work together so they can start sharing one index possibly at the end of this year, Tran Van Dung, general director of the southern bourse, as saying at a press conference.
The VN-Index of the larger exchange in HCMC is likely to be kept, but no specific details have been revealed.
The move will create "the best conditions" for investors who currently have to spend a of time studying the bourses and the companies before making investment, according to Dung.
Bond trading will also be regulated at one exchange, he said in a report on the news website Saigon Times Online.
The HNX-Index in Hanoi declined 1.44 percent in the first three months to 80.6 on Tuesday, while the benchmark VN-Index rose 0.81 percent to 579.07.
Foreign investors accounted for 17-18 percent of transactions in the first quarter, compared to 13-14 percent at the end of last year, the government website reported. 
The two bourses on Tuesday posted a combined market capitalization of more than VND1,275 trillion ($56.4 billion), with HCMC's exchange accounting for nearly 88 percent. The total value is equivalent to 14.4 percent of Thailand's market capitalization.

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