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Vietnam: Brokerage firms benefit from positive economic growth
HANOI — The recovery of the Vietnamese economy has made good impact on the local securities market and the business performance of brokerages firms, an official has said.
The State Securities Commission Chairman Tran Van Dung said at the meeting on October 6 that the number of profitable securities firms increased to 60 of the 85 active firms, from 52 in 2016, making a total profit of VND3.06 trillion in the past nine months.
The number of brokerage firms that made accumulated profit in the past nine months was also up, compared with last year, by 41 to 37, he said, adding that the financial status of those brokerage firms also improved with most of them achieving the capital adequacy ratio of more than 180 per cent.
In addition tot his, activating brokerage firms in Vietnam had improved their quality of corporate governance, risk management and done well in restructuring their business operation, Dung said.
Dung attributed the achievements to supportive factors of the Vietnamese economy in the past nine months such as controlled inflation, stable financial and monetary market and a 6.41 per cent yearly rise in the gross domestic product (GDP).
However, Dung warned brokerage firms that they should improve their business performances further to avoid accumulated losses, as well as the quality of corporate governance, risk management and information disclosure to meet international standards.
In the future, the State Securities Commission will continue to implement its policy reform to support those companies to restructure their businesses, improve their access to capital and develop other products and services for the market.
The benchmark VN Index had reached the nine-year high of 810 points, while the HNX Index had hit 107.66 points — the highest level since February 2011. — VNS
Source: http://vietnamnews.vn/economy/405329/brokerage-firms-benefit-from-positive-economic-growth.html#8AuDatcp0M9LXQuI.99