Ten year look back

Ten -year look back

11:18:05 | 27/07/2010

Around May 6-1999 , while serving as Chief Development Plan , the Bank for Investment and Development of Vietnam ( BIDV ) today , my sister Phung Thi Van Anh , Chairman of the Board and he Trinh Ngoc Ho , General Director of BIDV , called to discuss possible participation from the beginning , the role of BIDV on Vietnam's stock market , and I plan to maneuver on the Preparatory Committee set up securities companies .
Although knowledge of securities and securities market that I collected over the stage prior research that is not less , but indeed , the leadership tasks that I assigned to BIDV and the extremely heavy preparatory masonry and difficulties : (1) design plans for operation , operating procedures for the bank for payment , (2) Construction project activities , business processes for all services of the Company BSC Securities , (3) Consultant registration , valuation and listing of bonds on the stock exchange BIDV Vietnam .

Early Difficulties

The first difficulty is that the majority of securities documents in English , with full of new terminology , strange (long , short , position ... ) and metaphorical terms ( bull , bear , pig , chicken , whipsaw , haircut ...). Through ten years of friction with the market , Vietnamese in the field of securities had a significant step forward , but until now , there are many terms that describe all Vietnamese are not stripped !

Monday is the only process that can build and generalize from situations arising in professional practices . So the construction process in unknown conditions trading system and payment of the market will work out how , based on which model ... indeed not simple at all !

More difficult is the lack of practical experience , even a chance to practice at a securities company . The demand seemed so simple back then ten years ago is not possible because there is no realistic environment .

Fortunately, in early 2000 , is a Director at Securities Company BSC I received one of three research capacity in a month's time in Phoenix Securities ( Hong Kong ) together with Mr. Dang Giao former Director of the Thang Long Securities Company ( the loss ) and Pham Ngoc Long , former Director of the Securities Industry and Commerce Bank of Vietnam .

Because actual penetration in Phoenix , to me , the array of theoretical knowledge of securities and stock market seemingly discrete ago and defragment now been linked together in a tight, lively . Since Hong Kong returned , my colleagues in the Preparatory Committee began work on perfecting the process involved entrusting leadership BIDV .

I still remember the first session held on 28-7-2000 , the stock market as the focus has attracted the attention of the public investment .

Although only a small number of shares of joint stock company Cable and Telecom Materials ( SAM ) and shares of Refrigeration Electrical Engineering Corporation ( REE ) , but at the trading floor of company documents securities , stock purchase orders REE and SAM is still ongoing into the trading system .

With a total volume of orders for these two classes of shares is 355,000 while the number of shares offered is limited to stock number 4200 , the first session was going well but ended with a total value Translation too modest : 70.4 million.

Another story still reminds me as a first year anniversary of the stock market . It was in 2002 , BSC to obtain contracts and financial advisory consulting for companies listing shares Economic Cooperation and Export SAVIMEX (SAV ) .

In the process of consultation, the Board has the Y SAV ceded to BSC 10 billion shares SAV with 22,000 dong per share in SAV at prices in the OTC market was 23,500 to 24,000 dong per share . With the chemical mechanism in stock at that time , the transfer is completely lawful . Three months later , SAV price increases rapidly , with time up to 27,500 dong per share .

However , due to many reasons , abruptly ac market , the stock is only at 17,500 dong per share . The work is nothing if not a remarkable story of a leader BIDV has asked the board liability , clarify " the engine of investment , " including compensation for staff has decided Projects in the SAV . Fortunately , after waiting more than a year to buy and hold strategy ( buy and hold ) , the market has recovered .

This time , to avoid " post- art " , when stock prices have exceeded constellation which , I have actively consulted the leaders that , in the next few sessions , whether to sell or continue to hold in the context landscape markets are strong growth momentum . After a while of thinking , leaders direct sales , SAV should not hold anymore . Learn from experience , we sold out not hesitate a bit . The result , no deal was not the losses but also about the BSC profit nearly 4 billion.

Also ironically , after we sold , stock prices SAV also a long time . So , in a conference to review the system of BIDV , also leader of criticism that he is selling too early so the BSC was not high profit ! So in business investment in SAV , we overpaid ax : buy also been reviewed , you will also be criticized !

Tell this story, I just want to raise a concern disturbed during 22 years working in the banking system : whether it so childish , sclerosis in executive management has led to the situation despite many advantages in capital, networks , relationships with other ministries, corporations ... but the company 's stock commercial banks are state less competitive , if not as far below the company's stock ? This is worthy of policy makers ponder !

These threats and proposed solutions

Even through periods of ups and downs , ten years Vietnam's stock market has achieved strong development in scale and quality . From sites use technology trade with semi-automatic form of representation in floor trading , both departments are currently implementing e-transactions in the form completely connected and online transactions .

Regarding size , from several companies listed in the first days , up to date, Vietnam's stock market has 576 listed companies , four fund certificates , bonds 612 , 105 securities companies , 46 public fund management companies , eight depository bank , nearly 900,000 investment accounts , in which more than 14,000 foreign investors .

However , besides these achievements have been in ten years, when the market has seen new development , many problems have arisen and there are threats of serious transparency and market stability school .

That is the advantage of companies listed in the context of quality control of the financial statements of the audit firm is not guaranteed ; supply stock to rise too fast compared to the number of investors ; status as prices , manipulated prices to technology " pump and suction , release , discharge , push " ; status in discretionary disclosure , disclosure slow , inaccurate , not current ... are seriously undermined investor confidence .

Who have worked closely with the market continuously during the past ten years, I have little desire for Vietnam's stock market :

One , the market needs an independent regulatory agency under the government , have adequate authority , the conditions and the ability to issue legal documents to handle fast , sensitive and complex issues that arise model instead of a committee ( state level ) are attached to the ( Ministry of Finance ) , must go through too many layers , the current hiccups . Naturally , increasing powers of the Securities Commission must be associated with the management responsibility in industry , market management .

Two , it was time to reorganize the securities transaction model of self-management organizations ( self - regulation ) with members of securities companies , according to the practices of many countries . In this model , self-governing institutions are not only defines the rules and regulations regulating acts trading on the stock market , determine the status , standard members of the transaction that also identified a series of technical measures to monitor the market, the financial institutions are required to comply with the principles set out in order to ensure a fair and market order .

Ba , Vietnam securities market needs a trading system with modern technology , capable of monitoring , detecting and handling acts of manipulation , manipulating the market style " with one hand covering the whole sky " , caused outrage and urgent public opinion in recent times .

Four , the market also needs a new set of securities laws , new remedies fuller , more strict punishment , deterrence impact than other violations of disclosure obligations , insider trading , manipulation , manipulating the market .

Years , to modernize the facilities to disclose information and diversify methods of information disclosure on the securities transaction . In parallel with the improvement of the system provides online information , urgently need to build communication networks ( broadcasting network ) , network messaging service RSS to provide information directly to the organizations listed securities companies and members of the network telephone answering information requests by investors .

Six , to control risk , to raise the standard for listing on both the securities transaction , under which , for the Department of City Stock Exchange ( HOSE ) , a company listed on this want to have process of five years , the amount of capital actually contributed to reach 200 billion, only an average ROE of the latest three years at least 15 % , at least 1,000 shareholders . Similarly , criteria for listing at the Hanoi Securities Trading ( HNX ) respectively for three years , 100 billion , 10 % , 500 . The shares listed in HOSE but not the new listing standards will move in HNX listing , the shares do not meet standards in HNX will move in UPCoM market listing .

Seven , the information to identify potential supply and demand conditions of the market must be complete and available. All participants have the opportunity to offer access to the same market ; that is at the same time , not allowing any personal privilege to execute orders to buy or sell the home faster Other investments held by faster . Therefore, do not provide information on transactions of foreign investors ( in session ) in HOSE or the charging information for the full package for members of securities companies ( already pay membership fees , transaction fees ) are unreasonable must end !

Source: VNA