Vietnam will only have one stock exchange instead of two as at present under the Finance Ministry's plans to restructure the securities market in 2012.
Under a new plan approved by the ministry last week, market reforms will focus on reorganizing the country's stock exchanges and brokerages and on improving products and services.
The restructuring will address weaknesses of the stock market so that it can meet the economy's demand for long-term capital, the Dau Tu Chung Khoan (Securities Investment) newspaper reported Friday, citing Finance Minister Vuong Dinh Hue.
According to the report, there will be only one stock exchange that will operate in accordance with international conventions and standards. The State Securities Commission of Vietnam is expected to submit its plan for the new national exchange to the government in the second quarter of 2012.
Vietnam now has two stock exchanges. The main bourse in Ho Chi Minh City was established in 2010 while the smaller one in Hanoi opened in 2005.
Both the exchanges are small compared to bourses in other countries in the region. According to Bloomberg, the Ho Chi Minh City exchange is actually one of the smallest bourses in the Asia-Pacific region in terms of capitalization.
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