Chairman of the State Securities Commission: 2024 will be the year to create the foundations for development
According to Ms. Vu Thi Chan Phuong, 2024 will be the year to create the foundations for the development of the stock market in the medium and long term. One of the top tasks is to continue to strengthen supervision and law enforcement.
The year of creating the foundations for development
On the morning of February 28, in Hanoi, Prime Minister Pham Minh Chinh chaired a conference to deploy the task of developing the stock market in 2024. Presenting a summary report on the situation of the Vietnamese stock market in 2023 and prospects for 2024, Chairwoman of the State Securities Commission Vu Thi Chan Phuong said that the stock market in 2023 continued to affirm its role as an effective capital channel for the economy. Despite being affected by many challenges and difficulties from the world and domestic economic context, capital mobilization activities through the stock market in 2023 showed signs of improvement, with the total value of capital mobilization through the stock market reaching VND 418,271 billion, an increase of 33.5% compared to 2022.
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| The conference on implementing the task of developing the stock market was chaired by Prime Minister Pham Minh Chinh with the participation of ministries, departments, branches, market members from securities companies, fund management companies, and public companies - Source: Chinhphu |
The stock market's developments reflect the market's positive expectations about the economic outlook and business operations. Along with the economic recovery, the Vietnam Stock Market Index increased by 12.2% compared to the previous year, creating favorable conditions for businesses to raise capital through the stock market. The production and business results of listed companies and large-scale public companies are still difficult but have shown signs of recovery in the last months of the year. Securities trading organizations have improved in the quality of their operations, maintaining a financial safety ratio of over 180% for 81/82 operating securities companies, 43 operating fund management companies with a total value of assets under management as of December 31, 2023 of about VND 639 trillion, an increase of nearly 16% compared to the end of 2022 and 107 securities investment funds, an increase of 10 funds compared to 2022.
Third, the securities industry has resolutely proposed and implemented solutions to develop the stock market. The State Securities Commission has submitted to the Ministry of Finance to submit to the Prime Minister for promulgation Decision No. 1726/QD-TTg dated December 29, 2023 approving the Strategy for developing the Vietnam Stock Market to 2030, creating orientations for the medium and long-term development of the stock market. The State Securities Commission actively participates in international economic cooperation and integration activities, supporting investment attraction and the development of the stock market, such as signing a Letter of Intent for cooperation with the Nasdaq Stock Exchange within the framework of the Prime Minister's working trip to the US in September 2023; organizing an Indirect Investment Promotion Conference in Luxembourg, Los Angeles in November 2023, a Dialogue Conference with the international investor community and market rating organizations in Hong Kong-China; Work with agencies, organizations, and market members to remove obstacles in implementing the goal of upgrading Vietnam's stock market.
Fourth, the securities industry has stepped up supervision and law enforcement to ensure the smooth and safe operation of the stock market. In the context of many market fluctuations, the awareness of law compliance of a number of organizations and individuals needs to be further improved, and violations have arisen in the market. The State Securities Commission has closely coordinated with the Stock Exchanges to strengthen supervision of the market, enhance the role and responsibility of the supervisory lines; organize inspections and sanctions for securities violations, and closely coordinate with competent authorities to strictly handle violations of the law in the market. In general, in 2023, in the context of the international and domestic economic environment, the internal situation of the stock market still faces many difficulties and challenges; The stock market is also under great pressure from the complicated developments of the international financial and securities markets, but with the support of a stable domestic macroeconomic foundation and the proactive, flexible and drastic direction and management of the Government, the Prime Minister, the Ministry of Finance, together with the close coordination of ministries, branches and related units, the drastic management and supervision of the State Securities Commission, the Vietnamese stock market in 2023, despite certain difficulties and limitations, has witnessed a good recovery, achieved many positive results, and played a good role as a capital channel for the country's socio-economic development.
In 2024, the domestic and foreign economic environment will continue to face difficulties and complex developments as global economic growth is forecast to remain weak in the short term. However, Ms. Vu Thi Chan Phuong also emphasized that the bright spot is that the economic growth forecast for the East Asia and Pacific region will continue to be higher than other regions.
Domestically, right from the beginning of the year, the Government issued Resolution No. 01/NQ-CP dated January 5, 2024 on the main tasks and solutions to implement the Socio-Economic Development Plan and State Budget Estimates for 2024, identifying 2024 as a year of acceleration and breakthrough, of special importance in successfully implementing the 5-year Socio-Economic Development Plan 2021-2025 with 06 viewpoints, key directions and 12 groups of tasks and solutions.
For the stock market , 2024 will be the year to create the foundations for the market 's development in the medium and long term, contributing to the implementation of tasks and solutions for economic development in 2024.
Deploying a single point of information disclosure , researching and building a centralized data center to support monitoring
At the Conference, the Chairman of the State Securities Commission proposed 5 Key tasks and solutions that the securities industry plans to implement in 2024. In particular, the top priority is to resolutely and immediately implement solutions and tasks in the Stock Market Development Strategy to 2030 and Official Dispatch No. 1360/CD-TTg dated December 13, 2023 of the Prime Minister to promote the safe, transparent, effective and sustainable development of the stock market. Develop and organize the implementation of Action Plans of the Ministry of Finance and the State Securities Commission to implement the Stock Market Development Strategy to 2030.
Second, manage and operate the stock market to ensure safety and smoothness, facilitating capital mobilization for economic development; implement solutions to remove obstacles to attract foreign indirect investment, aiming to upgrade the stock market; support business operations through implementing a single-point information disclosure and reforming administrative procedures.
Third, strengthen supervision and law enforcement to ensure order, discipline and healthy operation of the market; promote the application of information technology, clean up investor data and research the construction of a centralized data center to support management and supervision work.
Fourth, continue to diversify products on the market, encourage public offerings and issuances and link initial public offerings with listing and registration for trading on the Stock Exchange; improve the capacity and financial safety of the securities business organization system through continuing to restructure securities companies and fund management companies while strengthening management, supervision and rectification of the activities of securities business organizations to ensure compliance with legal regulations.
Fifth, promote information dissemination to the investing public to improve understanding of the law and activities of the stock market, contributing to helping the investing public gain knowledge and information to prevent fraudulent activities on the stock market and in cyberspace.
At the Conference, the Chairman of the State Securities Commission expressed his desire to hear and accept the Prime Minister's direction on the orientation and tasks of the Securities industry in 2024, the direction of the Minister of Finance Ho Duc Phoc ; at the same time, he acknowledged the opinions of the leaders of the Ministries, Departments, and branches, the opinions and contributions of representatives of market members from securities companies, fund management companies, public companies, and the investor community . The goal is to perfect the key solutions and tasks of the industry in 2024, thereby helping the Securities industry achieve its set goals, contributing to the overall development of the industry and the stock market.
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