Ministry of Finance outlines tasks for upgrading stock market by 2025

According to Deputy Minister of Finance Nguyễn Đức Chi, the Government has set a goal to upgrade the stock market by 2025 from a frontier market to an emerging market. Photo baochinhphu.vn

HÀ NỘI To achieve the goal of upgrading the stock market as early as 2025, the Ministry of Finance in 2024 must undertake various tasks in coordination with other ministries and sectors for implementation.

This is the opinion of Nguyễn Đức Chi, Deputy Minister of Finance, when discussing information about the development strategy of the stock market at the Government’s regular meeting on Thursday.

According to the deputy finance minister, the Government has set a goal to upgrade the stock market by 2025 from a frontier market to an emerging market. The development process of the Vietnamese stock market has made marked progress, and at the current stage, the market is in great need of new development steps. Specifically, it aims to be upgraded from a frontier market to an emerging market according to the criteria of international stock market rating organisations.

"This goal has been directed by the resolution of the Government, Decision 1726/QD-TTg of the Prime Minister, approving the Development Strategy of the Stock Market until 2030, which we consider an overarching goal, and are striving, together with relevant ministries and sectors, to achieve," said Chi.

The leadership of the Ministry of Finance shared four tasks that the Ministry of Finance, along with other ministries and sectors, must perform well in 2024.

First is the issue of the requirement for investors, especially foreign investors, to deposit a reserve before trading. Currently, the regulations require foreign investors to deposit 100 per cent of the reserve before trading, which is a barrier that needs to be resolved in order to upgrade the market.

"The Ministry of Finance has coordinated with international stock market rating organisations as well as market members to consider and evaluate, and we will submit an authorised proposal for a good and feasible solution to address this issue in 2024, in accordance with the recommendations of international stock market rating organisations. This is an issue that we consider very important and crucial for 2024," said Chi.

"Secondly, the requirement of international stock market rating organisations is that we must be transparent and clear about the ownership ratio of foreign investors in listed companies trading shares on the stock market."

"We have closely coordinated with the Ministry of Planning and Investment to announce this information on the ministry's e-portal and the market's media. The Ministry of Finance will have regulations requiring listed companies to update and disclose information clearly, while being transparent with foreign investors about the foreign ownership ratio in listed companies."

Third is the issue of information transparency of listed companies on the stock market in bilingual Vietnamese and English format. The Ministry of Finance will implement this in the first half of 2024, requiring listed companies to arrange the most suitable steps so that by the end of 2024, basic listed companies must disclose their information according to the regulations of the market in two languages.

The fourth task is that the Ministry of Finance will proactively introduce a new securities trading system to operate in the market and ensure the requirements of the market's settlement and depository transactions.

"Foreign investors and international rating organisations will consider and evaluate to upgrade the Vietnamese market according to the progress and objectives of the market development strategy. No matter how important the upgrading goal is, the Ministry of Finance must ensure risk management, especially systemic risks, and ensure the stable, safe and sustainable operation of the market," Chi said.