VietnamExpress-Mar 15

Some foreign investment funds say they would not withdraw from Vietnam’s stock market despite chronic overload on the main bourse over the past three months.

Thomas Hugger, CEO and founder of Asia Frontier Investments Ltd., said overload on the Ho Chi Minh Stock Exchange (HoSE) is a major concern. HoSE is a service provider, responsible for ensuring all transactions go through even if demand surges unexpectedly. It however has failed to do so despite adequate time and budget for a system upgrade, he said. Petri Deryng, founder and portfolio manager of Finland-based PYN Fund Management, said the inability to resolve these issues is a step back for the market. He said this has occurred amid investor expectations for the T+0 settlement, meaning completion of a stock transfer of ownership in the same day it was made, compared to the current three-day policy (T+3).

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