ID :
9336
Wed, 06/04/2008 - 11:59
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https://oananews.org//node/9336
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Foreign capital expert optimistic about Vietnam market
Hanoi (VNA)- An international expert predicted a capital market acceleration in late 2008 or early 2009 during the Mid-term Vietnam Business Forum in Hanoi on June 2.
Dominic Scriven from the Capital Markets Working Group told Vietnam News Agency that his optimistic forecast is based on the fact that the Vietnamese capital market experienced a year of correction in 2007 and he said the adjustment will continue this year.
"Problems that need correction have been corrected and they are only momentary," Scriven said.
He said measures taken by the government to stabilise the market have made initial progress. This includes monetary policy, trade deficit reduction and stronger administration.
"The group would congratulate the government on its moves to better regulate the OTC market, particularly through the creation of a formalised OTC trading market in Hanoi ," the capital market expert said.
He also praised the government's policy to permit securities companies to trade "from afar" as well as its move to establish the Agency for Financial Stabilisation.
The OTC market is scheduled to open in either the late second quarter or the early third quarter of this year with an initial participation of 11 companies.
"Following the last 12 months of adjustments, the Group feels that current equity market valuations are beginning to offer good long-term investment value," Dominic told the forum.
He said debt market valuations continue to adjust to the rising interest rate environment, though these should also offer good investment value in the coming months and lay the ground for further strong debt market development.
He also said capital markets rarely remain stable, and their nature is to move up or down, in response to supply and demand factors.
"No one, especially the government, can guarantee that participants will always profit," Dominic said.
"This is particularly true in the case of a market like Vietnam , which is both new and rapidly evolving."The group representative suggested that in volatile times, the best interests are served through regular dialogue with the market and its participants.
"Two broad areas of dialogue could be established, one for marketstability and the other for market development," the capital market expert concluded.-Enditem.
Dominic Scriven from the Capital Markets Working Group told Vietnam News Agency that his optimistic forecast is based on the fact that the Vietnamese capital market experienced a year of correction in 2007 and he said the adjustment will continue this year.
"Problems that need correction have been corrected and they are only momentary," Scriven said.
He said measures taken by the government to stabilise the market have made initial progress. This includes monetary policy, trade deficit reduction and stronger administration.
"The group would congratulate the government on its moves to better regulate the OTC market, particularly through the creation of a formalised OTC trading market in Hanoi ," the capital market expert said.
He also praised the government's policy to permit securities companies to trade "from afar" as well as its move to establish the Agency for Financial Stabilisation.
The OTC market is scheduled to open in either the late second quarter or the early third quarter of this year with an initial participation of 11 companies.
"Following the last 12 months of adjustments, the Group feels that current equity market valuations are beginning to offer good long-term investment value," Dominic told the forum.
He said debt market valuations continue to adjust to the rising interest rate environment, though these should also offer good investment value in the coming months and lay the ground for further strong debt market development.
He also said capital markets rarely remain stable, and their nature is to move up or down, in response to supply and demand factors.
"No one, especially the government, can guarantee that participants will always profit," Dominic said.
"This is particularly true in the case of a market like Vietnam , which is both new and rapidly evolving."The group representative suggested that in volatile times, the best interests are served through regular dialogue with the market and its participants.
"Two broad areas of dialogue could be established, one for marketstability and the other for market development," the capital market expert concluded.-Enditem.
