Vietnam determined to upgrade stock market

Upgrade from frontier market to emerging market

During the working program in Hong Kong (China) from April 7-10, the Ministry of Finance coordinated with the World Bank and the Asian Securities and Financial Markets Association (ASIFMA) to organize a Dialogue conference with international institutional investors in Hong Kong (China).

Deputy Minister of Finance Nguyen Duc Chi delivered the opening speech at the conference. Photo: Ministry of Finance

This is an activity to maintain dialogue, share and provide information regularly and continuously between securities management agencies and market members, domestic and international investors, financial institutions and index providers.

Speaking at the opening of the conference, Deputy Minister of Finance Nguyen Duc Chi said that this conference is one of the regular activities of the Ministry of Finance and the State Securities Commission (SSC) in maintaining dialogue, sharing, and providing information regularly and continuously between securities management agencies and market members, domestic and international investors, financial institutions and index providers.

“ To develop a stable and sustainable stock market, the Government has set out orientations and strategies, and management agencies, directly the Ministry of Finance and the State Securities Commission, have developed solutions and implemented goals to develop a safe and stable stock market with a long-term development roadmap. In particular, upgrading the Vietnamese stock market from a frontier market to an emerging market is one of the important tasks on the long-term development journey of the Vietnamese stock market ,” Deputy Minister Nguyen Duc Chi emphasized.

Along with updating market information, at the conference, representatives of the State Securities Commission also shared more details about practical activities and the latest solutions that the Ministry of Finance and the State Securities Commission have recently implemented.

In particular, after a process of research and actively receiving multi-dimensional opinions, the Ministry of Finance has officially issued Circular 68/2024/TT-BTC allowing foreign institutional investors to trade without requiring 100% of the money, and at the same time providing a specific roadmap for disclosing information in English... Regarding meeting the criteria for upgrading the stock market from frontier to emerging, currently, the Vietnamese stock market has basically met the criteria of FTSE Russell.

Overview of the conference. Photo: Ministry of Finance

“ The criteria for payment cycles and handling failed transactions have basically been met after Vietnam issued Circular 68/2024/TT-BTC and applied effectively in practice. Accordingly, foreign investors have been able to trade and buy securities without requiring sufficient funds before placing orders, and the handling of failed transactions (if any) has been standardized and processed to ensure convenience for market members as well as safety for the securities market, ” said a representative of the State Securities Commission.

The right direction

At the conference, many delegates from international organizations highly appreciated the Government's determination, efforts to develop and implement solutions, as well as the results achieved by management agencies, directly the Ministry of Finance and the State Securities Commission in recent times.

Mr. Julian Casal, financial sector coordinator of the World Bank, said that since August 2023, the State Securities Commission has announced short-term solutions that will be implemented to facilitate foreign investors to better access the Vietnamese stock market, notably the solution to remove the requirement to have enough money before placing an order to buy securities of foreign institutional investors. Many measures have been implemented drastically and effectively.

After only one year, the Ministry of Finance issued Circular 68/2024/TT-BTC and foreign institutional investors have been able to directly experience the service since November 2, 2024. After 4 months of implementation, according to data from custodian banks, more than 50% of transactions by foreign institutional investors have used the mechanism that does not require sufficient funds before placing an order.

“ Such results reflect Vietnam's determination and the right direction in achieving the goal of upgrading its stock market from a frontier market to an emerging one, ” said Mr. Julian Casal.

Talking to delegates at the conference, Deputy Minister Nguyen Duc Chi also emphasized the Government's viewpoints and policies, and the Ministry of Finance's policies, which all set out goals and desires to develop the Vietnamese stock market to grow stably, with quality, transparency, healthiness and sustainability.

Thanh Binh

Source: https://congthuong.vn/viet-nam-quyet-nang-hang-thi-truong-chung-khoan-382350.html