The State Securities Commission (SSC) in putting in
anti-crisis proposals to the Government for the local stock exchange,
joining international efforts to minimise impacts from the US financial
recession.


SSC’s chairman Vu Bang joined a discussion on Oct. 3
with commercial banks, securities firms and small and medium-sized
enterprises on how to deal with the inflationary period.


The conference focused on the potential impact of the
US financial crisis on local markets, discussing solutions for
enterprises to overcome the inflationary period.


“The US recession has just influenced domestic export,
the cost of some consumer goods and the disbursement of foreign direct
investment in the country,” said Bang.


For the local stock exchange, the recession was
primarily reflected in the fluctuation of investors’ attitudes on
securities investment, mainly due to the depreciation of shares in
global markets – the mechanism used to compare share value in the local
exchange, he added.


“In addition, foreign institutions, due to common
challenges, will restructure their investment capital in the local
exchange, which could restrain foreign indirect investment in the
future,” said Bang.


“However, we believe that we can solve the possible
abnormalities in the local stock exchange which relate to foreign
indirect investment, based on what we have in foreign reserves and the
foreign investment portfolio, he added.


He noted the commission continued with strict
management of securities institutions in the market. Investment
activities from securities firms would also be closely controlled.


“Tighter management will help promote market liquidity, thus trading action will be more active,” Bang said.


The commission recently proposed to the Government a
series of revised securities regulations, such as allowing more than
one trading account for traders and tightening the criteria to
establish securities firms.


The revision aimed to promote market liquidity, as well as encourage investors to trade.