Vietnam working on plan to merge two stock exchanges

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Vietnam's State Securities Commission is working on a plan to merge the nation's two stock exchanges, according to Tran Dac Sinh, chief executive officer of the Ho Chi Minh City Stock Exchange, the main bourse.

The Southeast Asian nation should follow regional neighbors and have only one stock exchange, Sinh said in a telephone interview on Tuesday, without providing a timeframe. The Hanoi Stock Exchange is the country's smaller bourse.

The main bourse in Ho Chi Minh City has a market capitalization of $30.8 billion, making it the second-smallest of 16 major Asia Pacific exchanges tracked by Bloomberg.

The VN Index, the benchmark measure of the Ho Chi Minh City exchange, has fallen 16 percent this year on concern high borrowing costs will hurt corporate earnings and economic growth.

The central bank earlier this month increased its refinancing rate to 15 percent from 14 percent as policy makers tackled rising prices.

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