Accelerate development of Stock market in 2024

Prime Minister Pham Minh Chinh delivered a speech at the Conference on developing the stock market in 2024 held on February 28, 2024

Stock market must be accelerated in 2024 and made a breakthrough in 2025

According to the Prime Minister, over the past two years, the entities have overcome difficulties. If 2022 is the year of fluctuation of stock market, the market has been improved in 2023.

The Prime Minister said that the Stock market must be accelerated in 2024 and made a breakthrough in 2025. To achieve the task, it is necessary to promote the responsibilities of the Government, ministries, investors, issuers and related entities.

Talking about achievements of Vietnam's stock market since its operation until now, the Prime Minister said that Vietnam's stock market is upgraded from a primitive market to the frontier market level, and aims to become an emerging market, attracting about US$ 25 billion of foreign indirect investment each year, equivalent to direct investment.

Regarding the direction of stock market development, the Prime Minister emphasized 6 key contents as follows:

Vietnam will maintain independence, sovereignty, unity, territorial integrity, political stability, social order and safety; policies policy must be effective and consistent with the reality; the state management must be open, transparent and consistent with market rules; the Government and competent agencies protect the legitimate rights and interests of relevant entities, and share difficulties and develop policies and build a developing and facilitating Government; the Government determines to upgrade the stock market, and focus on developing the market in line with the trend of digital economy, green economy, circular economy, sharing economy, knowledge economy, rapid and sustainable development; closely contacts between the State, investors and society to perform capital supply functions; strongly develops infrastructure and stock market ecosystem.

Urgently review and revise inappropriate regulations

The Prime Minister requested the Ministry of Finance and the State Securities Committee to coordinate with the State Bank, the Ministry of Planning and Investment and relevant ministries and sectors to build and implement specific action programs on implementing the Stock Market Development Strategy until 2030.

The Ministry of Finance is required to urgently review and revise current inadequate regulations, especially regulations on transparency of corporate information, rights and responsibilities of entities such as state management agencies, businesses, securities companies, and investors, including the amendment of Decree 155/2020/ND-CP.

The Ministry of Finance and the State Securities Commission need to promote upgrading and building infrastructure systems to serve the operations of the stock market towards modernizing and strongly applying digital technology; improve the quality of market management and supervision; create maximum favorable conditions for businesses, market institutions, and investors to participate in Vietnam's stock market towards harmonizing the interests of the State - service providers - investors.

The Prime Minister requested management agencies to improve the effectiveness of stock market supervision and inspection to effectively prevent violations and strictly handle offences, ensuring the stock market develops sustainably and operates fairly, openly and transparently.

The management agencies are also requested to promote administrative reform; urgently review, abolish and amend cumbersome procedures related to production and business activities and in the field of securities and stock market.

Urgently take measures to upgrade Vietnam's stock market from frontier market to emerging market, especially focusing on resolving difficulties and obstacles to meet the criteria by strictly honoring commitments.

The Prime Minister requested securities companies to promote restructuring of securities companies and fund management companies under the Project “Restructuring the stock market and insurance market to 2020 and orientation to 2025”; to improve corporate governance capacity, risk management, to increase the competitiveness of companies in the market; and to professionally develop licensed services.

Strengthen the role of market creation, improve financial potential, human resource quality and develop in-depth technology systems.

Regarding the issuers, the Prime Minister said that it is necessary to encourage all enterprises regimes to conduct initial public offerings (IPO) associated with listing and registering for trading on the stock market; attract large-scale enterprises with good financial status and corporate governance to list on the stock market; actively support the completion of equitization and state capital divestment plans in accordance with the Law on equitization.

The issuers need to issue a variety of terms of Government bonds, Government-guaranteed bonds and local government bonds; issue green government bonds, green local government bonds and green corporate bonds; develop derivative securities and new products.

At the same time, focus on promoting the public offering of corporate bonds associated with listing; diversify bond types to meet capital mobilization needs; develop corporate bond products for the goal of implementing projects and investment projects in the form of public-private partnerships (PPP).

The Prime Minister asked investors and issuers to actively participate in ensuring social security, implementing the policy that determines people as the center, the subject, the goal, and the resource and the driving force for development.

“The Government and ministries will implement solutions to improve investment capacity, legal knowledge, analytical capacity, and enhance the responsibility of investors, because “the higher the profit, the greater the risk," the Prime Minister said.

The Prime Minister said that in 2024, Vietnam will continue to maintain macroeconomic stability, ensure major balances, and maintain political and social stability so that investors can feel secure. “We determine to upgrade Vietnam's stock market from frontier market to emerging market in 2025,” the Prime Minister said.