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With the weVietnamese finance market fragile amid rumorsak 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.


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