Preliminary statistics from the State Securities Commission (SSC) from early this year so far shows about $7 billion has been evaporated from the Vietnam stock market from early this year so far.
In comparison with the market capitalisation of $31.5 billion at this moment, this is considered a very big figure by specialists.
In fact, from early 2011, due to difficulties of the Vietnam’s stock market, many domestic and foreign investment fund and institutions have been suffering losses. In addition, cumbersome and complex restriction and reporting procedures are frustrating investment funds with Vietnam’s stock market.
For instance, Dragon Capital Fund Management Co has posted losses of about $120 million (on book value) from early this year so far. With the strong decline of share codes from beginning of this year, the Vietnam’s stock market has lost totally $7 billion, a very big figure against the market capitalisation scale of $31.5 billion at this moment.
In 2007, Vietnam’s stock market had about $9.4 billion of foreign indirect investment (FII) capital. But till the end of 2010, the figure was only $7 billion.
Also in many market summary reports, Ministry of Finance and SSC had set target to attract institutional investors as a way to build a stable, sustainable stock market. However, in fact, as of early June, the entire stock market had 1.1 million accounts, but the number of accounts of institutional investors was less than 1 percent.