Ministry of Finance outlines "key" tasks for 2024 in the stock market

On the afternoon of February 1, at the regular Government press conference for January 2024, Deputy Minister of Finance Nguyen Duc Chi answered the press about the stock market development strategy.

Thứ trưởng Bộ Tài chính nêu nhiệm vụ 'rất quan trọng và cốt yếu' năm 2024 trên thị trường chứng khoán

At the present stage, the Vietnamese stock market needs a new development step. (Photo: Trong Hieu)

Deputy Minister of Finance Nguyen Duc Chi said that the development process of the Vietnamese stock market has accumulated many aspects. At the present stage, the Vietnamese stock market needs a new development step. Specifically, it is upgraded from a frontier market to an emerging market according to the criteria of international stock market rating organizations.

"This goal has been directed by the Government's Resolution, and Decision No. 1726/QD-TTg of the Prime Minister on approving the Stock Market Development Strategy to 2030 has also been included, and we have determined that this is an overarching goal, striving with relevant ministries and branches to achieve this goal...", said the Deputy Minister of Finance.

To achieve this goal as early as 2025, according to the Deputy Minister of Finance, in 2024, the Ministry of Finance must closely coordinate with other ministries and branches to implement it.

First, handle the pre-transaction margin requirements of investors, especially foreign investors. Currently, regulations require foreign investors to make a 100% margin before trading.

This is the barrier according to international stock market rating organizations that we need to solve if we want to upgrade the market.

"The Ministry of Finance has coordinated with international stock market rating organizations as well as market members to review and evaluate.

We will submit to the competent authority a good and feasible solution to handle this issue in 2024 to resolve the issue of pre-transaction margin as recommended by international stock market rating organizations. That is a very important and essential issue in 2024," Deputy Minister Nguyen Duc Chi emphasized.

Second, the requirements of international stock market rating organizations on the ownership ratio of foreign investors in listed enterprises trading shares on the stock market. We have closely coordinated with the Ministry of Planning and Investment to implement and publish information in the clearest and most complete way in both Vietnamese and English on the Ministry's and the market's media.

The Ministry of Finance will also have regulations requiring listed enterprises to update and disclose this information in the clearest way on the market, almost in real time in accordance with Vietnamese regulations, and at the same time be transparent with foreign investors about the ownership ratio of foreign investors in listed enterprises on the market.

Third, the issue of information transparency of listed enterprises on the stock market in both Vietnamese and English. The Ministry of Finance will implement this in the first half of 2024 to require listed enterprises as well as arrange the most appropriate steps so that by the end of 2024, listed enterprises must basically disclose their information according to market regulations in two languages: Vietnamese and English.

Fourth, we proactively put the new securities trading system into operation on the market as soon as possible and ensure the requirements of the securities market's depository payment transactions.

Deputy Minister of Finance Nguyen Duc Chi said: "To be considered for evaluation and upgrading depends a lot on our legal regulations. The work I just mentioned is expressed in legal documents but also expressed in reality in the market.

On that basis, foreign investors and foreign rating organizations will review and evaluate to upgrade our stock market according to the progress and goals of our stock market development strategy."

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