ĐỀ tài THUYẾT TRÌNH môn ANH văn TALK ABOUT THE STATE OF TRADING SHARES ON VIET NAM STOCK EXCHANGE NOWADAYS HOW DOES IT INFLUENCE ON THE ECONOMICS OF VIET NAM

ĐẠI HỌC QUỐC GIA TP.HCM TRƯỜNG ĐẠI HỌC KINH TẾ - LUẬT & ĐỀ TÀI THUYẾT TRÌNH MÔN ANH VĂN  TALK ABOUT THE STATE OF TRADING SHARES ON VIET NAM STOCK EXCHANGE NOWADAYS. HOW DOES IT INFLUENCE ON THE ECONOMICS OF VIET NAM? LỚP KINH TẾ TÀI CHÍNH NGÂN HÀNG K9 NHÓM 6 THÁNG 11 NĂM 2010 STT HỌ LÓT TÊN DI ĐỘNG 1 Trần Viết Quang Khánh 0977.666.000 2 Huỳnh Như Ngọc 0906.031085 3 Trần Thị Phương 0973.415.609 4 Phạm Thanh Phong 0906.39.38.39 5 Nguyễn Thanh Phương 0988.825.260 6 Trần Ngọc Dung 0938.180.085 7 Lê Nhị Khánh Vân 0938181055 8 Lê Thị Như Ngọc 0919.544.833 9 Cù Xuân Tiến 0986.039.739 10 Trần Xuân Tùng 0909227528 11 Trương Thị Kim Yến 0906.640.604 2 I. TALK ABOUT THE STATE OF TRADING SHARES ON VIET NAM STOCK EXCHANGE NOWADAYS. 1.DEFINITION. a.Stock or shares: A share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. b.Stock market or stock exchange. The Stock Market is a market for the trading of company stocks, and the likes of the same. In Stock Market both of these are securities listed on a stock exchange as well as those that are only traded privately. There are two stock exchanges in Viet Nam +Ho Chi Minh City securities Trading Center (HOSE) +Hanoi Securities Trading Centre (HASTC) 2.THE SCALE OF VIETNAM’S STOCK MARKET - The first trading session of Vietnam's stock market opened on 28/07/2000, with a simple model: include only 02 shares of two companies (REE and SAM ), 02 securities companies, a securities trading center and a bank for payment. - After 10 years Vietnam's stock market has strong grown, up to 22/11/2010 there are 623 stock code of companies and funds are listed on the stock market in Vietnam, the total capitalization is more than 700 thousand billion VND, that’s equivalent to 40% of GDP, include 353 securities are listed on the Hanoi Stock Exchange (HASTC) and 270 securities are listed on the Ho Chi Minh Stock Exchange (HOSE). 3.THE SITUATION OF VIETNAM'S STOCK MARKET TODAY - Recently, Vietnam's stock market are declining. Explaining this problem, economic analysts said that investors for fears of inflation is rising. Also, as reported by General Statistics Office Vietnam, Consumer Price Index (CPI) in October increased by 3 1.05% from the previous month and increased 9.66% over the same period last year. The economists forecast CPI will continue to increase in the last months. It is more accelerating inflation. - In addition, the rising interest rates is one of to decline in the stock market. The commercial banks also have increased loan interest rates to around 16% per year. This is the highest level in years, and higher the interest rate by State Bank offers. The economic analyst said that the rising interest rates will make difficult for investors to borrow money from the bank to continue for production and business activities. Economic experts advise short-term investors should be cautious because the future market is unstable. 4. LIMITATION OF VIET NAM’S STOCK MARKET. -Knowledge of investment are not high enough, mainly based on the crowd: Currently people consider stock investment channel is the most profitable and fastest one, anyone can invest in securities - from office workers, teachers to house-wives who don’t know the stock market well. Thus people will assess the potential of different companies or not necessary to evaluate the capacity of the Company which is psychological and follow no proof saying friends this stock will yield faster than the others, or listen to brokers those giants focus on these stocks and will buy at any cost without analysis. Thus making the stock market does not reflect the nature of it is stock no increased potential for continuity and good stock goes horizontal or downward direction. -Monetary policy is not perfect: Currently Vietnam's stock market are young and depend on many macro factors that monetary policy contributes important roles such as exchange rate policy, interest rates and credit activities of banks. -Information is not transparent: Currently the Securities Law may not be fined heavily on unpublished or unclear published information affecting investors. In fact, almost all members in the company have a relationship or in the listed company shall sell, purchase securities. But they do not disclose information for personal gain and then a penalty but the penalty is lower than the profit they earned. Besides, to raise capital easily company will create beautiful financial statements or more keep adverse information in secret that investors have the right to know. 4 -Liquidity is not high: in the present value of the transaction are very low. There are Blue-chip stocks have high transaction, while the peny-chip stocks are quite low liquidity and sometimes no shares are matching. -Securities law is not perfect: +After 3 years of implementation, the Securities Law has exposed some limitations, the current law has no real basis to protect investors, especially minority investor; a number of obligations, rights and legitimate interests of investors are not specific in the law. Besides, with the rapid development of the stock market has many problems arising inadequacies, need to fix the law to limit the risk for investors, reduce violations, increase strictness of the law, meet the requirements of international economic integration. Thereby helping the stock market develop towards a positive and sustainable way. +About individual securities offers, the Securities Law has not been adjusted to current offering of securities activities separately, while the Enterprise Law did not have specific regulations on this issue . Individual securities offers activities management in this time is very difficult, if not to say almost unanswered. In fact, investors might have higher risk in individual stocks more than buying shares of companies offered to the public. Conclusion, it is necessary to expand the scope of activities of individual securities offering. +For information proclaimation: The expansion of disclosure of information, such as draft laws are necessary for the stock market. Beside the organizations participating in the stock market provisions in existing law, it would be more reasonable for adding the central securities depository, the relevant public companies and large public company should be obliged to disclose information . The disclosure must be completed, accurate and timely, it is extremely important. As one of the important characteristics of the stock market is transparency shown by publicizing reliable information that is the core. - However, the actual operation shows that if only the provisions on disclosure of entities such as bills, it is hard to control and supervise a substance of these activities. The evaluation of the reliability of the information that is hard to be corrected. Therefore, the need to supplement the disclosure of securities transactions, the issue of false information and dishonesty. On that basis, the participating organizations the stock market and 5 improving accountability, open of information in order to protect the interests of investors and is the foundation for developing the securities market healthy and sustainable. II. How does the security market influence on the economisc of Viet Nam? 1. Positive: -To help the economics motivate the capital amassmenta nd collection to suit the request of buiding the substance and technique basis. If a individuality only uses capital fund by itseft or mobilzes capital by traditionnal method, it can’t be satisfied about time and handsomness of capital. The companies and organs can receive the capital through the security market fast and fully. -The security market help everyone can forecast the cycle of economics development. It is very sensitive with the economics activities and is measure of the economics ‘s effect. -To give the government opportunities to mobilize the financal resources without inflation. Besides, the security market is a tool of government to execute the monetary policies. It uses the valid certificates such as stocks, equities, … to accommodate the market: way of investment, value of currency,… -To creat the convenient condition to execute the policies for opening and reforming economics by issuing securities out the international maket. -The security market is an effective channel to mobilize capital with low cost for good companies. 2. Negative influence: -Information is not clear and open. When the investors want to choose the good stocks to buy, they can’t collect information uncompleted. The companies which issue stocks offen only pulish good information about their bussiness such as: increase in profit, achievement of company ‘s bussiness plan,… and keep back the bad information or provide inexact information. So that the investors can’t have correct informational basis for their investment decisions. -The authorities need creat the healthy bussiness environment for investors and good companies which be short of cash. Government manage the stock market by 6 supervising operations of the stock companies and requiring the honest, seasonable and full form the companies issing stocks. Stock laws is not perfectible and management of state is not hard and fast in Viet Nam. The inlawful investors can cash on a gap in laws by playing the market. They can push the stock price up, create the bladder – price phenomenon , then sell stock to earn super profit. Meantime , other investors buy stock with high price and sell at loss, more seriously they can smash. Finally, the real investors are the disadvantaged . -Because many people think that stock trade get super profit easily, they joint in it but have not any information or research, find out about it. Simply, these uninformed investors see others participate in it and readily collect high yield, then they imitate. They can’t know what stock is good to invest by themselves. They have not enough knowledge to analyze that the finance situation of companies is good or not. When they buy stock of bad companies, they will loss money easilier. -When the investors need money to buy stock, they usually borrow banks and banks will keep their stock as guaranteed things. In case, the stock is lost validity or the stock market is fallen, the bank can be out of much capital readily. If this situation becomes public, the banking system can be influenced. 7 . & ĐỀ TÀI THUYẾT TRÌNH MÔN ANH VĂN  TALK ABOUT THE STATE OF TRADING SHARES ON VIET NAM STOCK EXCHANGE NOWADAYS. HOW DOES IT INFLUENCE ON THE ECONOMICS. 0906.640.604 2 I. TALK ABOUT THE STATE OF TRADING SHARES ON VIET NAM STOCK EXCHANGE NOWADAYS. 1.DEFINITION. a .Stock or shares: A share or stock is a document