|
Share market key to raising development funds: LSX official
The Lao government requires about US$15 billion to implement its socio-economic development plan for 2011 to 2015, with the Lao Securities Exchange (LSX) considered vital for generating those funds.
LSX Commission Office Acting Secretary General Ms Vatthana Dalaloy spoke at a workshop on the LSX at the Ministry of Information and Culture yesterday.
“The government's budget combined with other sources of funding make up about half of the total amount needed to implement the development plan, so we still need more funds and the securities market is considered an important tool to generate the capital we need,” she said.
At present two previously wholly state-owned enterprises, EDL Generation (EDL.Gen) and BCEL bank (BCEL) are listed on the LSX, with shares sold through only two brokers, Lane Xang Securities and BCEL-KT Securities.
Ms Vatthana highlighted the success of the first two companies to list on the exchange, saying they managed to earn a substantial amount in a short time.
The BCEL initial public offering generated about 121 billion kip, while the EDL share subscription raised about 932 billion kip.
“So we can see the securities market will be an important source of funding in the future,” she added.
Ms Vatthana urged ministry officials attending the workshop to learn about investing in the share market.
“Government officials can contribute by buying and selling shares, but it's important to first be informed about securities markets and share trading.”
“When China first opened its stock market the government encouraged government officials to participate and now many Chinese people are well informed about share trading and have done well with their investments,” she said.
Workshop participants also learnt about how the LSX works and the procedures for investing in listed companies from LSX Chairman and Chief Executive Officer, Mr Dethphouvang Moularat.
The workshop was attended by Ministry of Information and Culture officials from various department, offices and sections under the ministry.
The meeting was organised by the LSX Commission, LSX Office and Ministry of Information and Culture.
Talks to establish the LSX began in 2007 through cooperation between the Lao government, which holds a 51 percent shareholding, and a Korean company, which own 49 percent of the venture. The LSX opened on October 10 last year and trading commenced on January 11 this year.
vientiane times
|
