Another step forward in the roadmap to upgrade the stock market

Upgrading the market requires a joint effort.

According to the Chairwoman of the State Securities Commission, Vu Thi Chan Phuong, Vietnam's stock market has reached a certain size, like someone wearing a tight shirt, needing to move forward. Under the decisive direction of the Prime Minister and the Ministry of Finance , along with the active participation of market participants, it has now improved to meet the criteria set by MSCI.

In July, the Committee will release the final draft for public comment on the amendments to four circulars concerning the securities market and settlement flowcharts. At the end of July, the Ministry of Finance will hold a conference in Singapore to gather final investor feedback before signing and issuing the regulations. This is a continuation of the ongoing efforts throughout the year by the Ministry of Finance and the State Securities Commission, which have continuously organized numerous conferences and worked with various rating agencies.

Ms. Phuong stated that the Ministry of Planning and Investment is reviewing and publicly disclosing the foreign ownership ratios for sectors with restricted access. Simultaneously, the Committee will restructure the product base, business organizations, and investors to further expand the capacity for capital mobilization and IPOs linked to listing.

"The upgrade depends on the objective assessment of international organizations. Therefore, a joint effort is needed from the regulatory body, coordination among ministries and agencies, listed companies, market participants, custodian banks, investors, and the press... to ensure the market is upgraded as soon as possible according to the 2025 target," shared the Chairman of the Securities Commission.

Improving the quality of listed companies

Mr. Nguyen Duc Hung Linh - founder and consulting director of Think Future Consultancy - noted two issues when upgrading the market status. Firstly, commodities. In 2017, only about 3 Vietnamese stocks were in the MCSI index, attracting very little investment. Secondly, maintaining the status, similar to Pakistan. Vietnam is striving to be included in the emerging market list, but the crucial factor is the assessment of the Vietnamese market by foreign investors.

From the perspective of securities companies, Mr. Trinh Hoai Giang - General Director of Ho Chi Minh City Securities Company (HSC) - believes that increasing capital is necessary to meet the new mechanism and non-margin trading in conditions where settlement is not yet optimized.

Mr. Nguyen Khac Hai, Director of the Legal and Compliance Control Division at SSI Securities Company, emphasized that foreign investors and the domestic market have a two-way relationship. We need capital, and they also need a market to disburse their funds.

Regarding payment support solutions for foreign institutional investors, securities companies will assess their creditworthiness and provide services. The credit limit ratio is not 100% for all foreign investors due to capital requirements. Achieving 100% requires the establishment of a central counterparty clearing (CCP) model. This model would require commercial banks to be recognized as clearing members in the underlying market and regulations governing hedge funds.

Source: https://laodong.vn/kinh-doanh/them-buoc-tien-trong-lo-trinh-nang-hang-thi-truong-chung-khoan-1368935.ldo