[FONT="]Table of contents [FONT="]

[FONT="] TITLE PAGE

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[FONT="] Title page

[FONT="] Acknowledgment . i

[FONT="] Abstract . ii

[FONT="] Table of contents iii

[FONT="] List of figures vi

[FONT="] List of tables . vii

[FONT="] List of abbreviations . viii

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[FONT="]CHAPTER I

[FONT="]INTRODUCTION

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[FONT="] 1.1. Background . 1

[FONT="] 1.2. Rationale 1

[FONT="] 1.3. Objectives 2

[FONT="] 1.4. Scope of the study . 2

[FONT="] 1.5. Research methodology . 2

[FONT="] 1.5.1. Information requirement . 2

[FONT="] 1.5.2. Data colection . 3

[FONT="] 1.5.3. Framework of study 4

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[FONT="]CHAPTER II

[FONT="]LITERATURE REVIEW

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[FONT="] 2.1. Definitions 5

[FONT="] 2.1.1. Capital market 5

[FONT="] 2.1.2. Efficient capital market . 6

[FONT="] 2.2. Structure of capital market 6

[FONT="] 2.3. Significance of capital market . 7

[FONT="] 2.3.1. Economic development and capital market . 7

[FONT="] 2.3.2. Mobilization of saving 9

[FONT="] 2.3.3. Determinants of saving 9

[FONT="] 2.3.4. Role of financial intermediaries 10

[FONT="] 2.4. What is securities market . 11

[FONT="] 2.4.1. Concept of securities market . 11

[FONT="] 2.4.2. Functions of securities market . 11

[FONT="] 2.4.3. Advantages of securities market 13

[FONT="] 2.4.4. Disadvantages of securities market . 14

[FONT="] 2.4.5. Supply of securities 14

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[FONT="] 2.4.6. Demand for securities 14

[FONT="] 2.5. Instruments in the securities market . 15

[FONT="] 2.5.1. Stocks . 15

[FONT="] 2.5.2. The bond market 16

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[FONT="]CHAPTER III

[FONT="]EXTERNAL FACTORS INFLUENCE ESTABLISHING CAPITAL MARKET IN VIETNAM

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[FONT="] 3.1. Review of macro-economic performance 17

[FONT="] 3.2. The financial environment . 19

[FONT="] 3.3. The starting point of securities market 23

[FONT="] 3.3.1. The economic factors 24

[FONT="] 3.3.2. The legal situation . 25

[FONT="] 3.3.3. Awareness of the securities market . 25

[FONT="] 3.4. A prerequisite for the emergence of a securities market in Vietnam 25

[FONT="] 3.4.1. Development of bid market 25

[FONT="] 3.4.2. Equitisation of enterprises 26

[FONT="] 3.5. The role of the securities market for the economic development . 29

[FONT="] 3.6. The needs to establish of the securities market . 30

[FONT="] 3.7. Legal issues and regulatory framework 31

[FONT="] 3.7.1. Generally legal issues 31

[FONT="] 3.7.2. The regulatory framework 32

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[FONT="]CHAPTER IV

[FONT="]INTERNAL FACTORS IN CAPITAL MARKET

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[FONT="] 4.1. The organization of the market 36

[FONT="] 4.1.1. The securities State Commission 37

[FONT="] 4.1.2. Stock Exchange . 39

[FONT="] 4.1.3. The Securities Companies . 42

[FONT="] 4.1.4. Investment Funds . 44

[FONT="] 4.1.5. Insurance Funds . 44

[FONT="] 4.1.6. Pension Fund . 45

[FONT="] 4.1.7. Auditing Companies . 45

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[FONT="] 4.1.8. The securities depository and clearance house 45

[FONT="] 4.1.9. Center for securities analysis . 45

[FONT="] 4.10. Computer center . 45

[FONT="] 4.2. Model for organizing securities market . 45

[FONT="] 4.2.1. The objectives 45

[FONT="] 4.2.2. Choice 46

[FONT="] 4.2.3. The choice of model of securities market in Vietnam 46

[FONT="] 4.3. Appropriate steps to set up securities market 47

[FONT="] 4.4. Securities 48

[FONT="] 4.4.1. Government bonds . 49

[FONT="] 4.4.2. Bank bonds . 50

[FONT="] 4.4.3. SOE bonds . 50

[FONT="] 4.4.4. Corporate bonds and stocks 50

[FONT="] 4.5. Advantages 50

[FONT="] 4.6. Obstacles 51

[FONT="] 4.7. The investors’ attitudes toward the market . 52

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[FONT="]CHAPTER V

[FONT="]CONCLUSION AND RECOMMENDATION

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[FONT="] 5.1. Conclusions . 55

[FONT="] 5.2. Recommendations 56

[FONT="] 5.3. Limitations of the study 57

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[FONT="] References . 58

[FONT="] Appendix A: Guide-lines 59

[FONT="] Guide-line for policy makers . 59

[FONT="] Guide-line for member banks . 62

[FONT="] Guide-line for investors . 64

[FONT="] Appendix B 65

[FONT="] Decree No.120 dated 17 September, 1994 of the Government on the

[FONT="] promulgation of the temporary Regulation on the issuance of bonds

[FONT="] and stocks of SOEs . 65

[FONT="] Appendix C 73

[FONT="] Decree 75-CP dated 28, November, 1996 of the Government on

[FONT="] establishing Securities State Commission 73

[FONT="] Appendix D[FONT="] 76

[FONT="] List of Foreign Investment Funds . 76

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