Yangon Stock Exchange has good prospects and is likely to catch up with Vietnam’s stock exchange within three years, according to Dr Maung Maung Thein, deputy finance minister.
Established in 2000, the Ho Chi Minh City Securities Trading Centre is the largest stock exchange in Vietnam. In 2010, it listed about 250 companies with capital investment of around US$28.3 billion.
The deputy minister said: “Vietnam builds a hotel near the Sedona Hotel [in Yangon] with money earned from the stock exchange. Thanks to the success of the stock exchange, Vietnam sells shares to invest in this project. We can do the same if our stock exchange is a success. Our conditions are much better than those in Vietnam, which is why Vietnam has taken 15 years to reach the current stage. An economist said people have their actual ages and the ages in their mind. Someone may be 20 but they might only have five years worth of knowledge. Some people get a PhD when they are 20 so they may have 40 years worth of knowledge.
“Vietnam’s stock market may be bigger than ours in term of figures. But our experience is not so different. According to the economist’s estimation, our stock exchange may catch up with Vietnam’s within three years,” Maung Maung Thein said.
Yangon Stock Exchange is set to open in December 9. The deputy minister said it was expected that at least six or seven companies would join. Myanmar Citizens Bank, Myanmar Thilawa Public Company and First Myanmar Investment were likely to be included at the start.
Currently, the property market is cooling. Maung Maung Thein said the next government could set high interest rates for companies and make loans more easily available, helping to boost the stock exchange.
Property investors face worrying times as speculators were expected to flock towards stocks, according to House.com.mm.
Source: ELEVEN
