~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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Vietnam to open second stock market in Hanoi

Vietnam plans to launch a second stock market next year which it hopes will attract small and medium-sized firms, a government official said Wednesday. Tran Van Dung, director of Hanoi Securities Trading Center, said the opening of the second stock market _ slated for Jan. 20 _ is aimed at raising Hanoi's profile as the country's financial center. "It's a boost to the efficiency and transparency of the economy," Dung told Dow Jones Newswires.

The State Securities Commission is planning to list small and medium-sized firms with a registered capital of between 5 billion dong (US$320,000; ?234,724) and 30 billion dong (US$1.9 million; ?1.39 million) on the new bourse, while larger firms will be listed on Ho Chi Minh City's Securities Trading Center. Vietnam launched its first postwar stock exchange in Ho Chi Minh City in July 2000, but trade there has developed slowly, with only 26 companies listed with a combined market capitalization of US$240 million; ?176.04 million) , according to government figures.

Hanoi-based observers say the new exchange may have difficulty attracting listings, as most small companies in Vietnam are either privately run or state-owned. The former traditionally seeks new financing from private sources while the latter usually relies on state-owned banks.

The Associated Press - December 30, 2004.