State Securities Commission of Vietnam

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State Securities Commission of Vietnam
SSC2.gif
Founded 1996
Headquarters Hanoi, Vietnam
Key People Chairman Vu Bang
Products Securities market regulation
Website http://www.ssc.gov.vn/portal/page/portal/ssc_en

The State Securities Commission of Vietnam (SSCV) oversees and regulates securities trading on the country's two official exchanges, the HoChiMinh Stock Exchange (HSX) and the Hanoi Securities Trading Center (HaSTC). The SSCV was recently granted operational automony although still officially part of the Vietnamese Ministry of Finance (MoF)

Background

The SSCV was established in 1996 by Vietnam's communist government following around a decade of economic reforms known as Doi Moi, with the aim of developing the country's first publicly traded securities market.[1] Although its early efforts to do so were heavily criticized for their inertia in the western media[2], the SSCV opened the Ho Chi Minh City Securities Trading Center (HoSTC) in 2000 followed by the HaSTC in 2005. HoSTC later became the HSX.

In August 2003 the SSCV was granted authority to issue and revoke licences for brokerage firms to conduct business on Vietnam's securities exchanges.[3] Six months later, in February 2004, SSCV was fully merged with the Vietnamese government's Ministry of Finance and granted the finance minister authority to submit SSCV proposals to the Prime Minister.[4] Then in February 2009 the SSCV was granted full autonomy over its finances and staff, including a pledge by the MoF not to reduce its budget year-on-year.[5] The move is expected to give the SSCV greater powers to regulate Vietnam's stock markets.[6]

Key People

SSCV Chairman Vu Bang joined the commission as Deputy Chairman in March 2000. He was previously the director of Vietnam's first public trading exchange, the HoSTC.[7]

Latest news

The SSCV announced in March 2009 that it would greatly restrict the entry of new brokerages into Vietnam's troubled securities markets this year. Although more than 100 new licences were issued in 2008 out of about 200 applications, SSCV Chairman Vu Bang stated in early March that "only a few" new brokerage licences would be granted in 2009 because of the global financial crisis.[8]

References

  1. Vietnam Advantage. HSBC.
  2. Viet Nam remains reluctant to open a stockmarket. The Far Eastern Economic Review.
  3. The State Securities Commission is entitled to grant and revoke business licences for securities. Vietnamese Ministry of Finance.
  4. The State Securities Commission (SSC) will merge with the Finance Ministry. Vietnamese Ministry of Finance.
  5. VIETNAM STATE SECURITIES COMMISSION GIVEN FULL FINANCIAL AUTONOMY. Asia Pulse.
  6. SSC gets approval to become independent office. VNStockNews.
  7. Vu Bang deputy chairman of the State Securities Commission. Intellasia.
  8. Vietnam's SSC restricts new securities cos this year. Asia in Focus.