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First Lao Securities Exchange opens
The Lao Securities Exchange opened in Vientiane yesterday to provide an important new tool to mobilise more funds to develop the country.
The nation's first stock market, a joint venture between Laos and Korea, will not begin full trading until early next year however, as companies are yet to list themselves on the exchange, although two state-owned enterprises are preparing to issue shares.
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| Laotian Deputy Prime Minister Somsavat Lengsavad cuts the red tape with Korea Exchange CEO Kim Bong-soo, fourth from left, at the opening ceremony for the Laos Securities Exchange in Vientiane, Laos, Sunday. |
Standing Deputy Prime Minister Somsavat Lengsavad presided over the historic opening of the Securities Exchange.
“The ceremony that we witness today is the official launch of the Securities Exchange. The actual operation of the exchange will start on January 11,” said Mr Somsavat, who is Chairman of the Securities Exchange Commission.
He said the government decided to set up the securities exchange after learning from many countries of the important role played by stock markets to help countries mobilise funds for socio-economic development.
“At present, Laos is heading towards the realisation of the Seventh Five Year National Socio-Economic Development Plan (2011-2015). The plan's key objective is to eradicate poverty, reach the UN Millennium Development Goals and create solid preconditions for shedding least developed status by 2020, while laying good foundations for industrialisation and modernisation,” Mr Somsavat said.
He added that it was imperative for Laos to secure large-scale funding alongside highly qualified human capital.
“Based on lessons learned from advanced economies and in compliance with the national empowerment policy coupled with enhanced external cooperation, our government has decided to establish the Securities Exchange as another financing alternative for socio-economic development, as well as a complementary tool for financial markets in Laos to become more inclusive and move along the common trend of the contemporary world.”
Lao Securities Exchange Chairman and Chief Executive Officer, Mr Dethphouvang Moularat, explained the lengthy process resulting in yesterday's launch, saying the Lao government originally initiated a policy for the opening of a securities market in 1997.
The finalised policy was approved by the Lao National Assembly in 2006 as one aspect of the government's five-year development plan for 2006 to 2010.
The government assigned the Bank of the Lao PDR as the lead body to implement the policy.
Under Mr Somsavat's close supervision, the central bank led a number of Lao delegations to study the establishment of stock markets in countries such as Vietnam, Thailand, Singapore, China, Korea and in Europe.
Mr Dethphouvang said the Bank of the Lao PDR signed an MOU with the Korean Stock Exchange to develop a securities exchange for Laos in 2007. The two parties signed a joint venture agreement to establish the market in June 2009.
Under the agreement, the Lao government holds a 51 percent share in the venture and the remainder is held by the Korean partner.
Construction of the Lao Securities Exchange building began in September 2009.
Vientiane Times
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