The Independence of a Securities Market Regulator: A Case of the State Securities Commission of Vietnam

Bond Law Review, Vol. 21, No. 3, 2009

60 Pages Posted: 24 Oct 2010 Last revised: 10 May 2016

Date Written: December 1, 2009

Abstract

In 2007, the Vietnamese securities market had a total market capitalization of VND 500 trillion (US $31.25 billion), equal to 43.7 per cent of national GDP, double the figure in 2006 and 15 times higher than in 2005. The number of listed companies increased to 249 (138 on the HOSE and 111 on the HASTC), compared to 193 in 2006, 41 in 2005. The stock market continued to be an effective channel for mobilising capital, allowing listed companies to rise more than VND 90 trillion. However, in the first seven months of 2008, the situation of the securities market changed dramatically with the VN-Index falling in consecutives sessions. The VN-Index fell down towards 400 points at the end of July 2008 from a top 1,170 points in March 2007 (losing a total of 60 per cent market capitalization). Again, the independent role of the SSC as market regulator for a stable development of the securities market was debated. This study examines the role of the SSC as Vietnam’s principal market regulator under the Securities Law 2006. It investigates whether the Securities Law 2006 makes adequate provisions to ensure the independence of the SSC and thus the realisation of a fair, efficient and accountable securities market.

Keywords: Vietnamese Securities Market, State Securities Commission of Vietnam, SSC, Securities Law 2006, Independent, Market Regulator, VN-Index, Stock Market, Listed Companies, IOSCO, Fair, Efficient, Accountable Securities Market

JEL Classification: G18, G28, G34, G38

Suggested Citation

Le, Toan Minh and Walker, Gordon, The Independence of a Securities Market Regulator: A Case of the State Securities Commission of Vietnam (December 1, 2009). Bond Law Review, Vol. 21, No. 3, 2009, Available at SSRN: https://ssrn.com/abstract=1433619 or http://dx.doi.org/10.2139/ssrn.1433619

Toan Minh Le (Contact Author)

Le Minh Law Firm ( email )

Hao Nam Str, Dong Da Dist
Hanoi, Ha Noi 100000
Vietnam
84435123545 (Phone)

HOME PAGE: http://www.luatleminh.vn

Gordon Walker

La Trobe Law School ( email )

La Trobe University
Bundoora, VIC 3083 3142
Australia

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