Stock market in Vietnam

Problems from stock market in our country followed through the period of development from 2000 to 2012 1. 2000 to 2005 By starting the Saigon Stock Exchange in 2000, starting a new century for a modern business; at this time the stock definition in Vietnam was still quite strange even though there were many plans for this kind of market in 1996, published by government. As the normal rule for any newbie business, the first time is required for an adapting period, when any stakeholder need to spend more time in this topic. But in fact, Vietnamese stock market had a quite potential beginning point; even it was a quite slow for a new progress. According to this summarize, we can list out some problems: Stock is new definition in Vietnam; therefore we are lack of experience in this field During the first 5 years, our market did not attract many investors; domestic and foreign companies. Other point was being weak at supplying the types of goods 2. 2006 to 2008 This was a huge revolution for Vietnamese stock market. By the high increase of VN Index, the market was pushed into a new development. There were many different kind of investment and more transactions which were worth billions of VND. But this process actually reached a peak at the starting of 2008; there were too many participants; experts and even people with no knowledge about stock market. And many problems were followed from it There were too many demands while the supplier was not enough for market Many illegal problems were occurred inside it The value of market exceed the limitation; therefore market was out of controlled 3. 2009 to 2012 As the result of this last decrease from 2008, Vietnamese stock market was deeply inside a hard time. The value of share was loosed more than half of the current price during a few months. This is the reason why many investors and companies get lost in their property, and some companies was bankrupt at this time. The development was not enough for lasting for a long time The policy is not effective enough to control the market in Vietnam Problem is from participants who have too little or even no knowledge about stock market and they follow it as a trend High inflation: inflation is the main problem affect to the stock market. CPI of the year 2011 is 18.58%. Tight money policy from the Central bank required every commercial bank and other kind of monetary organization to reconstruct with lower proportion of loan for land and securities, stock.

The market price of stock is low; many stock companies are under threat. All the stock is at their lowest price of all times. In 2011, 433 stocks have price under 10,000 VND (62%) and 186 stocks have price under 5,000 VND (26,7%) in total of 696 stocks in HOSE and HASTC.