Vietnam Currency Discussion Board

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Vietnam - economy to be reckoned with
08:42' 22/03/2007 (GMT+7)
VietNamNet Bridge - The vitality of the Vietnamese economy and its superb growth rates are making Vietnam an economic force to be reckoned with.

HSBC Holdings Plc Chief Executive Mike Geoghegan made the remark at the Vietnam Investment Forum held in Ha Noi on March 19-20, adding that that is why so many people have come to attend the forum.

More than 1,000 investors and representatives from organisations, groups, financial funds and companies from all over the world gathered in Hanoi for the forum, which focused on issues related to Vietnam's accession to the World Trade Organisation (WTO), its impacts on the country's economy, particularly the banking sector and capital market, including the stock market.

Almost all speakers acknowledged the strong development of the Vietnamese capital market with its total value reaching 14 billion USD, representing 22.4 percent of the country's GDP.

They agreed that the growing stock market has helped drive the expansion of the capital market. Economists at the forum said that although hot at the moment, the stock market is yet to face the risk of developing into a bubble that could burst at any time.

According to Kenvin Snowball, Director of the PXP Vietnam Asset Management Co. Ltd, there would be an adjustment of 10-15 percent in the long run, and such a bubble, if any. would only occur in 6-12 months.

The stock market's growth also has its impacts on the monetary market.

Opinions at the forum suggested that the Vietnamese government increase supply in order to quench the thirst of investors, step up the equitisation process of State-owned enterprises, and remove barriers for foreign investors.

A transparent legal framework and institution for the banking-financial sector, well-performing systems of transport, electricity and telecommunications are also necessary for the economic development, they suggested.

http://english.vietnamnet.vn/biz/2007/03/676080/