Vietnam Hopes to Lure Foreign Market Investors With New Products
- Ho Chi Minh City plans covered warrants trading June 28
- Liquidity of Vietnam’s stock market is still “very small”
Employees inspect an electronic stock board inside the new Ho Chi Minh Stock Exchange (HOSE) in Ho Chi Minh City, Vietnam.
Photographer: Brent Lewin/Bloomberg
In a drive to continue attracting overseas investors, Vietnam is expanding its product offerings by introducing covered warrants on the Ho Chi Minh City Stock Exchange in about two weeks.
It is the latest step taken by Vietnamese authorities, who want to increase the market’s liquidity by appealing more to foreign funds. They previously lowered foreign-ownership limits for some industries, are working to speed up the process of reducing government stakes in companies and opened a derivatives market in 2017. They also announced the start of government bond future contracts trading next month and the government is overhauling its Securities Law.