Minister of Finance Vu Van Ninh spoke to Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) about the drive by local firms to list shares on foreign bourses.

What do you think about the fact Vietnamese businesses will be listed on Singapore’s securities market soon?

The economic development strategy for Viet Nam between 2010 and 2020 involves a very high growth that will require a large amount of capital to fund. The economic connection between the two countries has created a chance for domestic investors, especially big groups, to seek more capital resources via Singapore’s securities market.

Furthermore, the capital market of Viet Nam has developed quite fast and requires good management to ensure safe and sustainable development for all economic sectors.

What are the measures the Government has taken to support those companies that want to list shares in foreign securities markets?

Our businesses are preparing to enter the international market. However, it requires a great deal of effort and organisation on their part. They will have to improve their own capacities, managing effectiveness and transparency in financial activities.

The Government will try its best to help businesses to plan their equitising strategies and act as a guarantor so they can break into international markets.

What is the best time for the first company to enter a foreign securities market?

At present, we are creating favourable conditions for foreign consulting groups to approach our businesses. Companies have also actively completed the required procedures to integrate into the world market more smoothly.

If the process is successful, I hope businesses will list shares in international markets and mobilise capital without State support, as is the goal of a market-oriented economy.

What is your advice for companies planning to sell shares in foreign markets?

Viet Nam has made changes by diversifying its economic strategies and improving the trading environment. The stock market has contributed to making those changes possible. Since Viet Nam became a member of the World Trade Organisation, more and more businesses plan to mobilise capital in international markets and invest in equipment and technology to improve their competitive edge. However, our businesses will have to face many challenges when they start to mobilise capital abroad.

First off, the accounting and auditing system of Viet Nam does not meet all the international standards, as of yet.

Secondly, the legal framework for securities markets is not complete, and right now, listing requirements in the domestic market are much less strict than those for international stock exchanges.

In addition, many other related policies will become challenges for our businesses as foreign currency management and the share rate of foreign investors are taken into account.

Source: Vietnam News