State management over development of stock market: lessons for Vietnam

Abstract

1. The article summarizes the experiences related to the formulation of legal framework, the organizations, and supervision of the stock markets in China, Thailand, Japan, Republic of Korea, USA and so on.

2. The status of State managements of the stock market in Vietnam

There have been many positive signs of Vietnam’s stock market over the last 10 years since its first transaction in July 2000, however, the market has just been in the period for familiarizing the legal system, the awareness of abiding by the laws and raising the profession.

In terms of the legal framework and policy: the writer remarks that along with the achievements in those years Vietnam’s stock market still leaves much to be desired, including either inconsistence or slow implementation of the laws.

In terms of organization, management and supervision: quality of financia; reports of a number of auditing companies still remains poor. There is still a dishonest information, or slow announcement of information. Poor system of supervision, or no strict penalties of violations, causes concerns of investors.

3. Lessons for Vietnam

Applying of organizational models of the state agencies to manage the stock market; adjusting the legal framework and strictly supervising the operation of the market./.