The Philippine Stock Exchange (PSE) and Vietnam's Ho Chi Minh Stock Exchange (HOSE) have signed a memorandum of understanding to enhance their cooperation in financial services.

"This MOU responds to the need for stronger global ties at a time of fragile global economies and vulnerable financial markets. It also provides a new opportunity for PSE and HOSE to promote international cooperation to enhance both our securities markets," PSE president and chief executive Francis Lim said in a statement.

PSE chairman Hans Sicat, for his part, added that the MOU would help both exchanges "capture emerging opportunities in Asia."

Both Lim and Sicat consider HOSE as one of the fastest-growing markets in Asia today.

According to Lim, HOSE has about 200 listed companies, with total average value turnover of $100 million and market capitalization of $37 billion. More than 95% of its brokers do online trading.

"HOSE is definitely overtaking our more than 80-year old exchange. HOSE has only been operational in less than 10 years,butits growth is exponentialand enviable. There is politicalwill on the part of both government and HOSEto change old ways and look at the bigger picture in the governance of the market.We can definitely learn much from them," said Lim.

The PSE earlier inked an MOU to create a trading linkage among ASEAN (Association of Southeast Asian Nations) countries that will allow investors to buy or sell ASEAN-listed securities through their local brokers.

Among ASEAN bourses that teamed up with the PSE to set-up the electronic linkage are Bursa Malaysia (BM), Indonesia Stock Exchange (IDX), Singapore Exchange (SGX), and the Stock Exchange of Thailand (SET). HOSE was the latest addition to the regional pact which aims to explore cross-border trading among ASEAN capital markets.

"With the recent accession of HOSE, the benefits that each exchange is hoping to reap from the ASEAN trading linkage have been truly enhanced," Lim remarked.

The ASEAN electronic link is expected to be launched this year.