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Laos counts down to stock market opening

Members of the Securities and Stock Market Supervision Committee met on Friday as the countdown to the opening of the Lao Securities Exchange (LSX) on October 10, 2010 continues.
Mr Somsavat Lengsavad presides over the meeting.

Standing Deputy Prime Minister, Mr Somsavat Lengsavad presided over the fifth meeting of the committee at the Bank of the Lao PDR in Vientiane.

Mr Somsavat, who is also president of the committee, said that the meeting reviewed implementation of the resolution passed at the previous committee meeting.

The meeting also discussed draft regulations on the operation of the stock market, he said.

The meeting also heard reports from the Banque pour le Commerce Exterieur Lao (BCEL) and Electricite du Laos on their preparations to list on the LSX, allowing the two state-owned companies to raise funds to expand their businesses.

Mr Somsavat expressed confidence that all involved sectors would work to implement the resolutions of the meeting and ensure the stock market opens on time.

A member of the committee told the Vientiane Times that the LSX would open on October 10 as planned, adding that construction of the market facilities would be completed on time.

At present, contractors are speeding up exterior and interior decoration and installation of the IT system in the stock market building.

However, the LSX will only commence trading in early 2011, after BCEL and Electricite du Laos list.

Several other companies have expressed interest in listing on the exchange, including Lao Brewery.

The Lao government would like to open the LSX in October, ahead of the celebrations to mark the 450th anniversary of Vientiane as the capital of Laos, which are scheduled to take place in November.

The government initiated a policy to establish a stock market a few years ago as a measure to assist companies to access long-term investment funds. At present, companies in Laos can only access funds from commercial banks, which can only provide short-term loans.

Companies listing on the exchange must operate transparently, which will also help the government collect company taxes more accurately and improve the business environment in the country.

The Lao government holds a 51 percent investment share in the LSX, with the remainder belong to a Korean partner.

 

 

By Ekaphone Phouthonesy
(Latest Update September 06, 2010)