There are more than 1,200 foreign investors implementing and applying the new mechanism at securities companies, the transaction value has also accounted for over 11% of the total transaction value of foreign investors in general.
There are more than 1,200 foreign investors implementing and applying the new mechanism at securities companies, the transaction value has also accounted for over 11% of the total transaction value of foreign investors in general.
In 2024, statistics show that the number of foreign investors only accounts for about 0.6% of the total number of accounts in the market. The value of the portfolio held by foreign investors is about 7.35% of the total value of securities in the whole market.
Sharing in the recent Financial Street Talk Show, Ms. Ta Thanh Binh, General Director of Vietnam Securities Depository and Clearing Corporation (VSDC) said that if looking at the number of securities held by foreign investors as well as the value of their securities portfolio, there will still be growth of about 4% and 3% respectively compared to 2023.
In particular, the Ministry of Finance issued Circular 68 in 2024, which stipulates a solution allowing foreign investors to place orders to buy securities without having money at the time of placing the order , also known as Non Pre-funding Solution (NPS) . After 3 months of application, VSDC surveyed a number of large securities companies where many foreign investors opened trading accounts, the results showed positive results.
Under this new mechanism, if foreign investors cannot deposit money to pay for transactions on time, the securities company will have to take responsibility for payment. In fact, there have been cases where payment obligations have to be transferred to the securities company, but all have been handled well according to the process.
Ms. Binh said that the Non-Pre-funding solution that allows foreign investors to conduct transactions according to FTSE criteria is just the beginning. If looking at the upgrading criteria of MSCI, implementing the CCP payment mechanism will be a more important and long-term solution.
The amended Securities Law has allowed the establishment of a legal framework for VSDC to establish subsidiaries and implement CCP (central counterparty clearing mechanism) operations in accordance with international practices, and VSDC is urgently implementing this project.
Through the process of working with foreign investors, VSDC is also implementing another solution to support other foreign investors by upgrading the existing electronic communication portal, allowing securities companies and custodian banks to exchange information related to receiving orders and transactions of foreign investors in a unified, secure and faster manner than the current manual method. The upgrade is expected to be completed in March 2025.
Regarding the restructuring of the investor base in the stock market development strategy, Ms. Binh shared that VSDC will promote institutional investors, especially foreign organizations, to participate in the Vietnamese stock market under the mechanism of investment funds. In 2025, VSDC will upgrade services to support investment funds, especially foreign investment funds, to anticipate the trend when the stock market is upgraded.
Source: https://baodautu.vn/1200-nha-dau-tu-ngoai-da-ap-dung-non-pre-funding-d247459.html
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