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Finance minister sees success for stock market
At the ongoing National Assembly sessions, the country’s legislators are putting renewed focus on how to help the stock market rebound and control inflation. Minister of Finance Vu Van Ninh spoke to Vietnam News Agency about the issue.
Which measures will the Government take to help the stock market rebound?
We have submitted many solution proposals to the Government, but official approval is still pending.
Are you optimistic about the future development of the stock market?
The growth of the stock market reflects the national economic development. Personally, I think the current stock market difficulties are only temporary. In the long run, the stock market will have many opportunities for further development. Many international financial corporations feel similarly.
A matter of great concern stems from the fact that investors on the local market are unprofessional, and their fickleness affects the market. We should calm down and analyse businesses’ results. As far as I know, recently announced business operations have seemed good.
The Viet Nam Association for Financial Investors (VAFI) has proposed different trading bands for ceiling and floor prices. What do you think about this proposal?
Adjusting trading bands is just one measure. Given the circumstances, we must apply various strategies, some geared for the long-term, some for the short-term. We shoud implement measures with flexibility.
Several months ago, you stated, "If I had money, I would invest in the stock market." Has your opinion changed for now?
Vietnamese investors often expect quick profits in a very short time frame instead of focusing on long-term gain. This has contributed to the slump. I still believe that long-term investment is profitable.
The Government has stated that the prices of goods will not be permitted to rise simultaneously. Can you discuss the plan for the price increases?
The Government and relevant authorities are thoroughly considering this issue.
Global oil prices have remained high since the beginning of the year. How much money from the National Budget has gone to oil and gas import subsidies?
So far we have issued around VND4.5 trillion (US$281 million) in compensation for the first four months of the year. We are still working on calculations for May.
Can you tell us of any plans to increase gasoline prices after June?
Our primary goal is to fight inflation. After June, we will review the situation and draft specific plans for any necessary increases in pricing. I cannot be more specific at this time.
High oil and gas prices on the global market have also led to profits for local crude oil exporters. How do we calculate compensation?
Viet Nam has exported 15 million tonnes of crude oil, and that revenue will contribute to compensation for losses in oil and gasoline trade. However, retaining the current oil and gas prices on local market is not ideal. This can lead to smuggling, further subsidies and problems with balance sheets.
Our goal is to build up a strong market, so we must manage prices in accord with market rules in order to avoid distortion.
But many people suppose that once oil and gas prices rise, prices of other goods will also increase if the Government does not exercise control?
Any increase in oil and gas prices will obviously affect other prices. What matters is how we manage these prices, keeping them reasonable and under control. This requires comprehensive co-operation between the Government, provinces and industries.
VNS
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