Vietnam Opens its Securities Companies to Foreign Investors

September 21, 2012

Vietnam's economy has slowed in recent months.

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.