The Lao Securities Exchange opened in Vientiane yesterday to provide an important new tool to mobilise more funds to develop the country. The nation’s first stock market, a joint venture between Laos and Korea, will not begin full trading until early next year however, as companies are yet to list themselves on the exchange, although two state-owned enterprises are preparing to issue shares.
The newly completed Lao Security Exchange building is located on Khamphengmeuang Road opposite Lao-ITECC. The new Lao security exchange building includes training rooms, a research room and food outlet for use by investors who come to trade there. The Lao economy has expanded rapidly in recent years, fuelling demand for funding for investment and business expansion, which has been limited by Laos’ lack of any form of stock exchange as a source of long-term funding. The security exchange is expected to boost the economy and increase domestic production levels. Work began on the exchange in 2007 through cooperation between the Lao government, which holds a 51 percent share, and a Korean company which holds 49 percent.
Standing Deputy Prime Minister Somsavat Lengsavad presided over the historic opening of the Securities Exchange. At present, Laos is heading towards the realization of the Seventh Five Year National Socio-Economic Development Plan (2011-2015). The plan’s key objective is to eradicate poverty, reach the UN Millennium Development Goals and create solid preconditions for shedding least developed status by 2020, while laying good foundations for industrialization and modernization. Under Mr Somsavat’s close supervision, the central bank led a number of Lao delegations to study the establishment of stock markets in countries such as Vietnam, Thailand, Singapore, China, Korea and In Europe.
Source: Vientiane Times
