VietNamNet Bridge – With the weak resistance and the lack of
transparency, the Vietnamese finance market would be shaky on any bad piece of
news.
On February 21, 2013, the finance
market rocked back and forth on the information that President of the Bank for
Investment and Development of Vietnam (BIDV) Tran Bac Ha was arrested.
However, this was not the first
time the finance market suffered from the false rumors. The electronic boards
at securities trading floors many times turned red, showing the sharp falls of
the stock prices after false rumors were spread out. The liquidity of some
banks was threatened just because of wrong information about the arrest of the
banks’ managers.
The rumors were mostly aimed at
the VIPs, who are the managers of big banks or big companies which list their
shares on the stock market. Since they are the influential names in the
business circle, any news relating to them would catch the special attention
from the public and cause big changes in the market.
Some months ago, rumors were
spread out that some senior executives of Masan (consumer goods manufacturer),
Sacombank, ACB or Eximbank were arrested for the “wrongdoings in economic
management.” These then led to the plunge of the prices of the companies’
shares, which were the blue-chips in the market, which was a storm in the
business circle.
Most recently, a similar scenario
took place with BIDV, one of the biggest commercial banks in Vietnam with the
information about the arrest of BIDV’s President Tran Bac Ha.
Ha then had to turn up before the
public to prove that he is safe and innocent. However, there was enough time
for the wrong information to cause big damages to the finance market.
The manager of a HCM City based
bank said he was also the victim of a false rumor in August 2012. He said it
was clear about the purpose and motive of those who deliberately spread out the
rumors.
They started rumors to make
investors puzzled and prompt them to bargain away some kinds of shares or run
away from the market.
“They tried to collect some kinds
of shares at low prices. Therefore, they spared the wrong news that the shares
became less valuable due to the arrest of the managers of the companies,” he
explained.
“They could pocket hundreds of
billions of dong, or trillions of dong from every campaign of spreading false
rumors,” he said.
The businessman went on to say
that the Vietnamese market has been led by the rumors, because it still lacks
the transparency.
“In such a young and fragile
market like Vietnam, it is very easy to conduct the behavior to control the
market prices to seek for profit,” he commented.
Alan Phan, former President of
Viasa Hong Kong investment fund, also said that the Vietnamese market has been
easily driven by rumors. In the US, false rumors could exist 10 minutes only,
because they would be clarified by the watchdog agencies immediately.
Meanwhile, in Vietnam, the rumor about President Tran Bac Ha could “rule the
roost “for two days.
In Vietnam, the rumors about the
arrests of VIPs can easily cause a chaos on the market. Meanwhile, in developed
economies, the rumors of this kind have become no more useful. This has been
explained by the fact that the resistance of the national economy remains weak.
In fact, rumors exist in every
market. However, the consequences they cause in the markets with high
transparency would always be smaller than that in the markets with low
transparency.
VNE
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