The Vietnam stock markets just completed another bad week. The VN Index closed the week below 380 for the first time in two and a half years — although still well above the 236 bottom posted earlier in 2009 during the global recession.
Trying to improve the climate for public equity investing, the government plans to permit open-ended funds, exchange traded funds, real estate investment trusts, pension funds and other products over the next year. Regulations on REITs and pension funds are due by mid-2012.
There appears to be a sense of urgency behind the changes. Vietnam stocks have the worst performance in Asia in 2011 (down 20%), and foreign investors have been losing interest in Vietnam over the past two years.
More on Vietnam stock changes