-
 As
a professional institutional investor, when considering an
equity investment in a company, we don't pay much attention to
the daily market index; rather, we care about the long-term
fundamentals of the company, such as its management and business
strategy. Over the last two years, firms listed on the market
appear to have been profitable, but in reality they have just
benefited from the corporate income tax waiver granted to listed
firms; there hasn't been much change in companies' actual
values. In my opinion, it doesn't matter how much a firm might
have in assets if it is not managed properly, it cannot produce
much value. To an investor like us, a good potential investee
must have a clear business strategy and be a leader in its
sector, which is not the case with most Vietnamese companies at
present. In order to attract large investors, Vietnamese
companies need to be loyal to their business strategies and
clearly apply international accounting and auditing standards.
Mr. Tran The Huy -
General Manager, Fund Management Operations,
Prudential Insurance Company
-
In the mid 1990s
there were eight investment funds in Vietnam. Currently, there
are only two funds actively seeking new investments, and just
one more fund that was recently licensed the Vietnam
Opportunities Fund. There are two major difficulties facing
investment funds in Vietnam. One is a lack of domestic
institutional investors, as there is only one local financial
institution specializing in raising funds from individual
investors to invest in shares of Vietnamese companies. Two is a
shortage of businesses of adequate size for investment funds to
invest in. Most Vietnamese private businesses are either
household enterprises or limited-liability companies - both
these types of businesses are too risky for investors, and
besides, the law does not allow it. We are only allowed to
invest in joint-stock companies, which accounts for 20% of
private businesses a small portion of Vietnam's private sector.
Mr. Dominic Scriven
- Director, Dragon Capital Investment Fund
-
Regarding measures
to facilitate demand for stocks, the SSC has proposed a number
of investment incentive schemes to the Ministry of Finance,
including waiving corporate income tax for mutual investment
funds. These are a kind of investment fund that raise money from
individuals to invest in corporate shares. We plan to hold
workshops in different provinces and cities with high population
to introduce the stock market and thereby raise public
awareness, in order to stimulate demand among individual
investors.
Mr. Tran Van Dung -
Deputy Director, Office of the State Securities Commission (SSC)
>> More...
|
