L. Joseph
Phone: (202) 473-7700
Fax: (202) 974-4384
E-mail: ljoseph@ifc.org


WASHINGTON, D.C., May 8—The International Finance Corporation (IFC) and the State Securities Commission of Vietnam are organizing a two week Introductory Securities Markets Regulatory Training Program from May 12-23, 1997 in Ho Chi Minh City, Vietnam. The program is being primarily sponsored through a grant from the Japan/IFC Comprehensive Trust Fund, a technical assistance resource established in 1995 by Japan's Ministry of Finance.

"To integrate more fully into the global economy, Vietnam must develop a securities market to provide enterprises with financing flexibility, long-term funding and equity capital," said Mr. Jemal-ud-din Kassum, IFC Vice President. "We believe that the creation of a strong securities market and its proper regulation are important tasks and I therefore wish the State Securities Commission every success in developing Vietnam's capital market infrastructure and building an effective regulatory framework. I also express my thanks to the Government of Japan for its sponsorship of this training, which breaks new ground in terms of technical assistance to a country at the formative stage of financial market development."

Dr. Le Van Chau, Chairman of the State Securities Commission said, "Since Vietnam's capital market infrastructure is in the process of being established, the training program is essential in laying the foundation for an efficient and well-regulated securities market that will facilitate capital mobilization and economic development. It will provide trainees with a framework for understanding the elements that must be in place to develop, operate and regulate an emerging securities market."

The training will present concepts and principles that have been successfully applied in other countries by securities market regulatory authorities. It is being conducted by highly qualified international and regional securities market experts from developed countries such as the U.S., U.K., Singapore and Hong Kong and from emerging Asian securities markets such as China, Malaysia and Thailand. This will help to provide a comparative model for the development of regulations that fit the specific needs of Vietnam. Most of the individuals participating in the training are expected to become future managers and staff of the State Securities Commission.

An initial training program by IFC was conducted in Hanoi from February 24 to March 7. It was attended by 100 officials from the State Securities Commission, the State Bank of Vietnam, the Ministry of Finance and other government departments involved in the development and regulation of financial markets. Participants also included business executives from non-state and state-owned enterprises. While the Ho Chi Minh City program will be similar in content to the Hanoi program, it will give more emphasis to market operations and day- to-day supervision of the stock market.

The introductory training program will be followed by a series of more specialized training workshops offered to key regulators as well as follow-up intensive training overseas in the form of internships with securities regulatory bodies, stock exchanges, securities firms and investment banks. A training manual in Vietnamese has been produced.

IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for non-state sector projects in developing countries. Since 1992, IFC has been assisting Vietnam in the drafting of legal documents related to the establishment and regulation of a securities market.

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