ASEAN KEY DESTINATIONS
Stock Exchanges in Asean should join forces
HA NOI, Vietnam, Dec 3
Each of the ASEAN stock exchanges was small, but if joined together, they could be influential to the world's investment communities, said the chief executive officer of Thailand's Stock Exchange, Charamporn Jotikasthira, as he ended the 15th CEO meeting of the ASEAN Exchanges.
"We all need to attract foreign money; local investors alone are not enough. So by joining the ASEAN exchanges, we have more visibility," he said.
According to Charamporn, Viet Nam should join the ASEAN exchanges as completely as possible because it would be more beneficial than starting with just three or four exchanges. He welcomed Viet Nam's stock exchanges to grow together and capture the opportunities after the Eurozone and US storms passed.
Viet Nam had the advantages of learning from other members' experience in managing regulations as well as technology, he added. "By joining the ASEAN exchanges, we will automatically be able to join a similar platform in any other region."
Meanwhile, Ha Noi Stock Exchange general director Tran Van Dung said: "We will more easily learn from them as ASEAN nations have set up long-standing economic ties."
The seven-member ASEAN exchange group concluded its meeting yesterday with a detailed schedule to launch the ASEAN Trading Link in June next year. However, the group denied to unveil the specific solutions. The CEOs of the exchanges only said the main theme of next year's marketing strategy was to reinforce the position of the ASEAN exchange in the world's investment community.
The trading link would kick off with the Singapore Exchange and Bursa Malaysia, while Viet Nam and some other members will follow later. Viet Nam's two exchanges – the Ha Noi Stock Exchange and HCMC Stock Exchange – would announce their roadmap after getting approval from security watchdogs, Dung said.
"The collaboration will create two-way benefits for Vietnamese and ASEAN investors to buy good shares from each country, forming a more excellent capital exchange between the nations," he said, adding that it would also encourage investment outside the region.
The co-operation in the capital market was crucial to commercial relationships and mutual understanding of boosting direct investment, he noted.
However, there are also challenges for Viet Nam in terms of integration: understanding foreign investors and the serious preparation for regulating cross-border trading. "Vietnamese authorities should be aware of legal sanctions to control unusual cross-border trading," Dung said
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