Since the first trading session on July 28, 2000, Vietnam’s stock exchange has developed for over 10 years and experienced positive changes. However, it is still an infant market that has been gradually getting accustomed to international rules, sense of compliance and operational practices. | ECONOMIC DEVELOPMENT No. 205, September 2011 STATE CONTROL OVER DEVELOPMENT OF STOCK EXCHANGE: LESSONS FOR VIETNAM by BUØI THANH* Since the first trading session on July 28, 2000, Vietnam’s stock exchange has developed for over 10 years and experienced positive changes. However, it is still an infant market that has been gradually getting accustomed to international rules, sense of compliance and operational practices. Learning foreign management models and drawing lessons from market operations and foreign managerial practices is crucial to develop the Vietnam’s stock exchange in a sustainable and efficient manner. Keywords: stock exchange, state control, securities, foreign investment 1. State control over stock exchanges in some countries a. Building and perfecting the legal framework: - Securities law: All governments pay full attention to building and perfecting the securities exchange law because it is an important and indispensable condition for development of stock exchange. Foreign experience shows that stock exchanges in such countries as China, Thailand, South Korea and the . have not been perfected and well developed until legal framework and securities and stock exchange laws were introduced. Securities laws are made after stock exchanges have come into being and operation for a certain period. Therefore, these * Ho Chi Minh National Academy of Politics and Public Administration laws are practical and appropriate to stockexchange operations and enjoy high stability. In 1948, the Securities Law based on US Securities Act of 1933 and Securities Exchange Act of 1934 was promulgated in Japan. It was followed by relevant laws, such as Foreign Securities Firms Law of 1971, Securities Investment Trust Law of 1954, Law relating to Book-Entry and Share Certificates and Law concerning Investment Advisory Business Relating to Securities of 1986. The system of Japanese laws on securities and related legislation is pretty perfect, creating a .
