Vietnam to merge its two stock exchanges

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hanoi-stock-exchangeThe Vietnam government is planning to merge the Hanoi Stock Exchange and Ho Chi Minh City Stock Exchange into the Vietnam Stock Exchange to improve transparency and attract more foreign investors, Tran Duc Sinh, chairman of the Ho Chi Minh Stock Exchange, told media at a press conference on October 21.

The merger will be carried out starting from this year and expected to be completed by 2018, he said. It should also make the Vietnam stock market more competitive versus other regional countries that just have a single bourse.

The two individual exchanges are small in size, which many say has made Vietnam’s capital market less attractive in the eyes of global investors compared to neighbouring markets.

While news of the merger have generally been well received by Vietnam’s business and financial community, there are mixed opinions about the location of the new exchange.

Reportedly, the government decided that the merged bourse will be located in the capital Hanoi, while many brokers and financial institutions would prefer it to be set up in Ho Chi Minh City which has traditionally been a far more dynamic market.

However, in the first phase, information and data systems in both exchanges will be standardised to create a better investment environment. It is understood that the Ho Chi Minh Stock Exchange would continue to handle shares of listed companies while bonds and derivatives would be traded at the Hanoi Stock Exchange, but through one streamlined system.

A new index, the VNX Allshare, will also be introduced and will include 451 listed companies from both exchanges.

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The Vietnam government is planning to merge the Hanoi Stock Exchange and Ho Chi Minh City Stock Exchange into the Vietnam Stock Exchange to improve transparency and attract more foreign investors, Tran Duc Sinh, chairman of the Ho Chi Minh Stock Exchange, told media at a press conference on October 21. The merger will be carried out starting from this year and expected to be completed by 2018, he said. It should also make the Vietnam stock market more competitive versus other regional countries that just have a single bourse. The two individual exchanges are small in size, which many...

Reading Time: 1 minute

hanoi-stock-exchangeThe Vietnam government is planning to merge the Hanoi Stock Exchange and Ho Chi Minh City Stock Exchange into the Vietnam Stock Exchange to improve transparency and attract more foreign investors, Tran Duc Sinh, chairman of the Ho Chi Minh Stock Exchange, told media at a press conference on October 21.

The merger will be carried out starting from this year and expected to be completed by 2018, he said. It should also make the Vietnam stock market more competitive versus other regional countries that just have a single bourse.

The two individual exchanges are small in size, which many say has made Vietnam’s capital market less attractive in the eyes of global investors compared to neighbouring markets.

While news of the merger have generally been well received by Vietnam’s business and financial community, there are mixed opinions about the location of the new exchange.

Reportedly, the government decided that the merged bourse will be located in the capital Hanoi, while many brokers and financial institutions would prefer it to be set up in Ho Chi Minh City which has traditionally been a far more dynamic market.

However, in the first phase, information and data systems in both exchanges will be standardised to create a better investment environment. It is understood that the Ho Chi Minh Stock Exchange would continue to handle shares of listed companies while bonds and derivatives would be traded at the Hanoi Stock Exchange, but through one streamlined system.

A new index, the VNX Allshare, will also be introduced and will include 451 listed companies from both exchanges.

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