October 24, 2014 20:30 UTC

Audio / Economics Report

Vietnam Opens its Securities Companies to Foreign Investors

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Vietnam's economy has slowed in recent months.Vietnam's economy has slowed in recent months.
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Vietnam's economy has slowed in recent months.
Vietnam's economy has slowed in recent months.

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  • Vietnam Opens its Securities Companies to Foreign Investors

This is the VOA Special English Economics Report.
 
Vietnam is planning to open its markets to more foreign-owned securities companies. The plan is part of a larger effort to reduce government control of businesses and increase foreign investment. But a number of corruption cases are a concern for many Vietnamese. And rising prices could be a threat to economic growth.
 
The Vietnamese economy has slowed after about ten years of fast growth. And debt is a problem for the country’s banks. Small businesses are struggling to get loans, and some people have lost jobs.
 
In July, the government announced plans to restructure some of the biggest state-owned groups. They include the country’s biggest oil producer, PetroVietnam.
 
But the recent arrest of banker Nguyen Duc Kien for financial crimes shocked investors. Stock prices dropped sharply immediately after his arrest.
 
In September, officials announced a change in rules for foreign ownership of Vietnamese securities companies. Under the new rules, foreign banks, investment and insurance companies can buy up to one hundred percent of the shares in an existing securities company. Economists say the move provides support for privatization.
 
Vuong Quan Hoang is an economist with the University of Brussels. He says the move is an important step for Vietnam.
 
VUONG QUAN HOANG: “For foreign securities companies, I think this is going to be a good thing.”
 
But Vuong Quan Hoang says the changes will likely not be felt for another twelve months, when the economy is stronger. He says there is a lot of work to be done now. And, he adds, there could be trouble in the Vietnamese real estate market.
 
VUONG QUAN HOANG: “Right now there are issues with the real estate market, which is something big, and the interconnection between the real estate market, the securities market and the banking system.”
 
There are already growing signs of public dissatisfaction with the economy. Recently, a group of students protested near the offices of PetroVietnam and the gas company Petrolimex. One student says rising fuel prices hit poor people hardest.
 
And there is growing anger over corruption.
 
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This student says people are expected to pay bribes, providing money or gifts to officials to get the most basic services, like hospital care. Observers have welcomed the actions Vietnam has taken. But politics and the economy are linked in the country. And how well reforms will work remains unclear.
 
And that’s the VOA Special English Economics Report. I’m Barbara Klein.
 
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Adapted from a report by Marianne Brown
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by: Duy Khanh from: VietNam
09/26/2012 4:38 PM
:)) sound like VietNamese gov is going to empower foreign investors giving them the power to control the market. That is a necessary step in this situation. One thing which outlander should warned is the corruption throught out the VietNamese stated backed authorities . That have been mentioned in the last paragraph of this article.


by: Hale from: saigon
09/25/2012 9:58 PM
The article is right about my country! However everyone can see that as a developing contry Vietnam cannot avoid those things, just take time to develop the country! education is very important to change the society. I living in EU now, the countries always have very strict law, everything arrange very well and exactly because people are very high knowledgeble . Therefore, Vietnam needs to develop the educational system first, so we can expect a better country in some decades....


by: Tienlentien from: vietnam
09/25/2012 11:26 AM
in my country ,high rising prices in all of goods , low applied machines in industrial fields, high taxed imported most of produces except some traditional foods (but mostly exported cheap good such as : tea ,fish,rice ), the money laundering in many bank systems from oversea ,the government continue lending a lot of money from Japan ,National bank..a lot of industrial area stop working ,only some of them exist by the government extents their loan ,a number of laboratories have lost job increasingly day before day , a lot of people don't like working because their salary are not enough to exist ,so their life meeting a lot of difficulties ..

In Response

by: Yoshi from: Sapporo
09/25/2012 9:38 PM
Hi Tienlentien. Vietnam is one of the most popular contries for Japanese turists. I hear Its dishes are tasty and people are very kind and gentle. I would love to visit your country. I also have heard Vietnam has accomplished remarkable economic growth about a decade ago. It's sad now the economic growth is stranded and some unfairnesses are spread across the country, if it's true. Is the disturbance political system as expected? Monopoly?


by: Yoshi from: Sapporo
09/24/2012 9:59 AM
I think it's not a small step for Vietnam to open an mercket to foreign investers even though restricted in security business taking account of Vietnamese communism social system. It seems not seldom in communist society that corruption spreads over government officials as seen in China. And it's a usual rule that punishment to civilians for crime is too severe. How come these unfairness? I'm sure it comes from the strict control of intelligence by governments. I hope Vietnamese people could have democracy as quickly as possible.


by: thanh from: vietnam
09/23/2012 4:30 PM
this is issue of vietnamese and vietnam government...but for me, this matter i do not care, nothing can change...


by: Ronie from: Florida
09/23/2012 3:40 PM
I love VOA learning English program.
I am a person who learning English. I would like to join Skype fro practice my English, but I don't know how to get in.

In Response

by: Thomas from: vietnam
09/26/2012 3:33 AM
I also practice to imporve english skill on skype. I hope that we can talk to each ther on skype
Please contact to me via skype : khatvongvietvn

In Response

by: Vuong from: Ho Chi Minh
09/25/2012 4:30 PM
Hi Ronie. My name is Vuong.I come from Viet nam.I want to practise english with you on Skype

My Skype name is quocvuongspk07
I hope i can meet and practise english with you on Skype


by: Quoc from: vietnam
09/23/2012 9:53 AM
i think and as you and all of us can see. the price of goods , oils, gas, and especially the real estate are so high. let's look at average income of vietnamese. we can see in news and oil, eclectial , gas company always say that they are deep in debt and with out interest. they need to raise prices in order to balance finance. all the things fall in our head. vietnam's citizens
we need change and must change but lets see what goverment do and are doing not much.


by: Việt Nam from: Aus
09/23/2012 9:39 AM
Oh! Corruption! It's always a long story in my country. It happens everywhere around the world, especially the poor and developing country like Vietnam. I hope Vietnam's economy and the life of its residents will be improved.


by: salar from: halifax
09/22/2012 4:43 PM
that was so interesting.


by: Ichiroll from: Hyogo prefecture in Japan
09/22/2012 2:46 PM
I am extremely interested in this article. But I am sorry to say that I couldn't understand what 'Observer' and 'the action' in last paragragh mean. So long!

In Response

by: Yoshi from: Sapporo
09/24/2012 9:07 AM
Hi Ichiroll, nice to hear you. I'm also an English learner, so I might be wrong. But I think "observer" means those who are interested in the issue but have nothing to do with direct operation on the issue. For example in this case of Vietnamese economic reform, observers probably means some economists or critics of Vietnamese business. "The action" means its following phrases,"Vietnam has taken", a relative pronown" which" is omitted.

In Response

by: Ichiroll from: Hyogo prefecture in Japan
09/24/2012 4:23 PM
Thank you for your reply.

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