Vietnamese brokerages raising funds to prepare for bigger market

Hanoi

VIETNAM'S big brokerages, flush with profits from a banner year, are busy amassing a financial war chest for investment in Asia's fastest-growing stock market and in preparation for a wave of borrowing from local margin traders.

The main VN index has risen 33 per cent in the past two years, supported by Vietnam's low inflation, economic growth, promises of finance reforms and plans to "equitise", or privatise, hundreds of state firms. The gains have rewarded the top 12 brokerages, which posted an average 81 per cent jump in net profit last year.