Efforts to remove obstacles to upgrade the stock market

Vietnam has made many improvements and achieved many important criteria in upgrading the stock market. Photo: Internet

Vietnam's stock market has achieved many important criteria

One of the major efforts of the management agency recently and also the information that investors are looking forward to in the near future is the upgrade of the stock market from marginal to emerging market.

Sharing about this issue, Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, said that upgrading the stock market is a general policy and has been given attention and guidance by the Government and the Prime Minister recently. This content was also stated in Resolution No. 86/NQ-CP dated July 11, 2022 of the Government and included in the Stock Market Development Strategy until 2030 approved by the Prime Minister.

Most recently, in Directive No. 06/CT-TTg dated February 15, 2024, the Prime Minister also requested the Ministry of Finance to preside and coordinate with the State Bank and the Ministry of Planning and Investment to urgently handle problems in the field of responsibility to meet the criteria for upgrading the stock market from marginal to emerging market.

According to Ms. Vu Thi Chan Phuong, in recent times, the management agency has made great efforts to implement many solutions to perfect important criteria set by international rating organizations.

Accordingly, the State Securities Commission held many meetings with ministries and branches; At the same time, organize meetings and work at home and abroad with international rating organizations, major international financial institutions and market members to jointly research and propose solutions to solve problems in the upgrading process of Vietnam's stock market.

“According to the assessments of rating organizations and major international financial institutions, Vietnam has made many improvements and achieved many important criteria. However, there are currently two important groups of issues that need to be focused on improving and taking measures to solve to create conditions for foreign investors to participate in the stock market in the coming time, which are: The margin requirements of prefunding and foreign ownership limit  s. These problems all require practical coordination from relevant ministries and branches to solve," Ms. Phuong said.

In parallel with perfecting the main criteria of international rating organizations, the SSC continues to improve domestic regulations on the basis of researching international regulations and practices.

Besides, the upgrade also depends on the practical experience of foreign investors when participating in Vietnam's stock market, so the joint efforts of market members in providing services and listed companies are needed, especially large listed organizations in terms of transparent information disclosure in English, corporate governance according to good practices, etc.

Promote to attract stronger foreign capital flows

Reality shows that connecting foreign indirect investment capital flows is one of the important activities that the Ministry of Finance and the State Securities Commission have paid great attention to and have successfully organized and deployed for many years.

Ms. Vu Thi Chan Phuong said that indirect investment promotion programs abroad are one of the annual activities of the Ministry of Finance (SSC), which began to be implemented in 2014. Promotion programs Investment has made an important contribution to promoting the potential of Vietnam's stock market to the international investment community, helping to stimulate demand and open up indirect investment capital into Vietnam's stock market.

After 3 years of interruption due to the Covid-19 pandemic, in 2023, the State Securities Commission has continued to implement investment promotion programs in many diverse forms, especially contact and dialogue programs with investors which are integrated within the framework of foreign work programs of the leaders of the Ministry of Finance and the State Securities Commission.

Foreign indirect investment promotion programs in Europe, Hong Kong (China) and the US in 2023 all show the interest and active participation of the investor community in the host country, including large financial institutions, investment funds and businesses wishing to expand their business market to Vietnam.

“In 2024, based on the experience and positive results achieved in previous years, under the direction of the Ministry of Finance, the State Securities Commission will continue to develop indirect investment promotion programs abroad to promote and attract strongerly foreign capital flows to participate in Vietnam's stock market; Simultaneously, strengthen connections, build and strengthen cooperative relationships with stock market management agencies, major financial and investment institutions and organizations in the world," Ms. Phuong said.

In the immediate future, it is expected that in next March, under the direction of the Ministry of Finance, the State Securities Commission is coordinating with functional units under the Ministry to develop an Investment Promotion Program in Korea and Japan led by the Minister of Finance as the Head of the working group.