The co-operative effort was agreed upon by the HOSE and the HNX under a Memorandum of Understanding signed by the two sides yesterday. — Photo cafef.vn

HA NOI (Biz Hub) — Viet Nam's two stock bourses yesterday agreed to jointly build a common index as a step towards developing the country's securities market.

The co-operative effort was agreed upon by the HCM Stock Exchange (HOSE) and the Ha Noi Stock Exchange (HNX) under a Memorandum of Understanding signed by the two sides yesterday.

HOSE General Director Tran Van Dung said the common index was expected to be officially launched by the end of this year.

"It is an important step to lure more investment from foreign investors as well as improve the transparency and trustworthiness of the Vietnamese securities market," Dung said.

He said Viet Nam was the only ASEAN country in which two stock bourses were allowed to operate simultaneously.

"When seeking investment opportunities in Viet Nam, foreign investors often look at the VN30 or VN-Index, while many well-performing companies are also listed on the Ha Noi Stock Exchange," he said.

HNX Chairman Nguyen Thanh Long affirmed that the common index would serve as a base to develop investment products.

Dung from HOSE added that the index must reflect movements of the country's stock market.

According to Dung, a series of technical discussions will be held by a specialised working team so that an agreement on the common index can be reached by the middle of this year. The second half of the year will allow time to prepare infrastructure and facilities for the index launch.

Long said that under the MoU, HOSE and HNX also agreed to co-operate in standardising information and data system, developing the corporate bond market, strengthening corporate governance and supervising transactions in line with international practices.

A day earlier, during HOSE's regular press briefing, Dung announced that HOSE would also create a sustainable growth index this year.

The exchange would continue to collaborate with the State Securities Commission in order to issue a draft decree that guides the issuance and transactions of covered warrants and makes preparations to start derivative trading.

"Developing the corporate bond market is another area the exchange plans to work on this year," he said. — VNS