Last updated: 26/03/2006, 11:08 SA - View: 3445
The scheme aims to sum up the theories of efficient capital markets, and to draw relevant lessons from the successes and failures in the development of financial markets in developing countries, particularly in East Asian and transition countries such as China. It also reviews the actual situation of the capital and monetary markets in Vietnam. Based on the theories, international experiences and actual conditions in Vietnam, the scheme has recommended appropriate policies to improve and further develop capital and monetary markets in Vietnam
The scheme consists of four parts. Part 1 gives an overview of the modern theories of financial markets, including monetary markets (interbank markets and open markets) and capital markets (credit markets, bond and stock markets) at both macro and micro levels. This part also analyzes the functions and structure of financial markets and the instruments of these markets. The relation between monetary markets and monetary policies is also discussed to highlight the role and the functions of the central bank in the markets. Finally, problems and risks of financial markets are examined to lay foundations to sketch out different models for regulating and controlling financial markets.
Part 2 gives a survey of the experiences in the development of financial markets worldwide. At first, this part concentrates on the analysis of financial market models in both developed and developing countries (bank-based or capital market-based). Next, the scheme examines the post-crisis development of financial markets in Asian countries and transition countries, particularly in China. Finally, the part makes some general remarks on the development of international financial markets
Part 3 analyzes and assesses the development of Vietnam's financial markets, specifically the development of bond and stock markets, monetary markets and long- and medium-term credit markets (both official and unofficial). After giving a general review of market participants (suppliers and demanders), the state management of financial markets, the scheme focuses on a detailed analysis of transactions and market instruments in each market. In addition the effectiveness of the monetary policies of the State Bank of Vietnam is analyzed and assessed properly. Particularly the shortcomings and weaknesses of each market are analyzed and dissected to determined whether they are caused by government policies toward financial markets, market participants, legal environments or by the lack of coordinations between government bodies.
The last part gives some recommendations to develop and improve financial markets in Vietnam. After summing up the actual conditions of and challenges to the development of financial markets, the scheme recommends several guidelines on the development of financial markets, and at the same time, proposes plans and policies to promote and improve Vietnam's financial markets in forthcomming years