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PM’s decree paves way for stock exchange
The Lao government has enacted a Prime Ministerial decree providing legal back up for the establishment and operation of the Lao Securities Exchange (LSX), according to a top market regulator.
LSX Commission Chairman, Mr Somsavat Lengsavad, announced on Wednesday that Prime Minister Bouasone Bouphavanh signed the decree on securities and a securities market on May 24, creating a key legal reference for investors and companies to follow in the establishment and operation of the stock market.
Mr Somsavat, who is also Standing Deputy Prime Minister, made the announcement at the opening of the 3rd meeting of the LSX Commission held at the Bank of the Lao PDR in Vientiane.
Senior commission members from ministries and the sectors concerned attended the half day meeting, which aimed to review and plan the commission’s work.
Mr Somsavat said he was satisfied with the preparations for the LSX so far, adding that construction of facilities and development of IT systems are progressing well.
The commission members discussed issues including regulations relating to the establishment and operation of the stock market, regulations on initial public offerings, the date on which the LSX will open, and which companies will be initially listed on the exchange.
Participants also discussed tax policies to encourage companies to list on the market.
President of the LSX Establishment Committee, Mr Dethphouvang Moularath, said Mr Somsavat had charged the relevant sectors to continue discussions on the issues in order to find the best mechanisms for effective establishment and operation of the stock market.
The government plans to open the LSX in October this year in a move to enable private and state-owned enterprises to raise public funds to expand their businesses, creating jobs and income for Lao people.
The exchange is another step towards a market oriented economy in line with the opening-up policy of the Lao People’s Revolutionary Party after the failure of the centrally planned economy.
It is hoped the exchange will increase investment in the country and help further boost economic growth as the government works to remove Laos from the UN’s list of least developed countries by 2020.
The government is cooperating with the Korean Stock Exchange to establish and operate the LSX, hoping to complete all facilities before the planned opening ceremony in October.
The Lao government has a 51 percent share in the exchange, with the remainder belonging to the Korean partner.
Construction of the stock market building is now underway.
Although an opening ceremony will take place at the end of this year, there is no confirmed date for when local companies will be allowed to list on the market and when trading would begin, according to Mr Dethphouvang.
Vientiane Times
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