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The Vietnam News

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[Year 2002]

Vietnam guarantees that foreigners can convert stock market profits into U.S. dollars

HANOI - In a move to boost the country's falling bourse, Vietnam will guarantee that foreign investors can exchange their stock market profits into U.S. dollars, officials said Monday.

A new regulation, which takes effect Sept. 28, promises both individual and institutional foreign investors that all their stock profits will be convertible into dollars, a central bank official said. The official, who spoke on condition of anonymity, said the new policy was aimed at encouraging more foreigners to enter the country's stock market.

Previously, there was no written policy on repatriation of profits — a situation which the government feels may have caused potential foreign investors to shy away. A State Securities Commission executive said Vietnam's 2-year-old stock market needs to attract more investors to develop further. Foreign investors have opened just 33 stock trading accounts, up from 22 at the beginning of this year, the executive said.

The market index has fallen 12 percent over the last four months because of the departure of many domestic investors, who have limited financial capabilities, the executive said on condition of anonymity. Vietnam launched its postwar stock market in July 2000. It has 19 listings so far, nine of which made their debut this year. The State Securities Commission said it aims to have 25 listings by the end of this year.

The asoociated Press - September 16, 2002