VietNamNet Bridge - One of the recommendations of HCM City to the central government is to base the merged stock exchange or the Vietnam Stock Exchange in HCM City.

The HCM City Stock Exchange.

Last week Deputy Prime Minister Vuong Dinh Hue had a meeting with the city authorities about the economic situation in the past 4 months and the implementation of the resolutions on improving the business environment, creating favorable conditions for businesses.

At the meeting, one of the recommendations of HCM City to the central government was to base the merged stock exchange in the city, citing many reasons.

Firstly, according to the HCM City People's Committee, the Ho Chi Minh City Stock Exchange (HoSE) was established in 2000 and it was where the country’s first stock market opened, which accounts for over 88% of the capitalized market of Vietnam.

Secondly, the Ministry of Finance and HCM City have invested highly in HoSE’s infrastructure to meet conditions of a national stock exchange.

Thirdly, according to international practice, stock exchanges are often based in the financial hub of the country.

As the biggest city of Vietnam, HCM City asked the Government to consider setting the headquarters of the Stock Exchange of Vietnam in the city, in order to enhance the role and contribution of the City to the country’s development and create motivation for the city’s development.

HCM City's Vice Chairman Le Thanh Liem said this was not the first time HCM City made the petition.

HCM City Party Secretary Dinh La Thang yesterday repeated his wish to locate the Vietnam Stock Exchange in HCM City at a meeting held with Deputy Prime Minister Vuong Dinh Hue in the city.

Early this month, Thang sent an official letter to the Prime Minister, saying that the Vietnam Stock Exchange should be located in HCM City, which is opposed by the Ministry of Finance.

The ministry suggested the merger of the HCM City and Hanoi stock exchanges into the Viet Nam Stock Exchange, with headquarters in Ha Noi.

In the letter, Thang said that HCM City was now the national economic hub, with total GDP during the 2011-2015 period reaching annual growth of 9.6 per cent, 1.6 times higher than the national average.

Financial activities, including HCM City Stock Exchange, have greatly contributed to the city's development.

At the HCM City Stock Exchange, total capital value of listed companies was 88 per cent of total market capital, accounting for 28.5 per cent of GDP by the end of 2015.

It has helped enterprises mobilise a huge amount of capital serving production and trading.

"A national stock exchange is often located in a country's financial centre," Thang said.

Tran Dac Sinh, chairman of the HCM City Stock Exchange's management board, said that the Vietnam Stock Exchange should be located in HCM City to take advantage of international development. 

Na Son