Management agency sets goal of building a safe, transparent and efficient market
In 2022, Vietnam’s stock market suffered from challenges when it experienced many strong fluctuations due to unpredictable “aftershocks”, beyond the forecast from the international and domestic markets.
According to the Minister of Finance, 2022 was a successful year of overcoming difficulties for Vietnam’s stock market while maintaining stable, safe and smooth operations.
At the beginning of 2023, the stock market has shown relatively positive signals. Ending January, VN-Index sees a growth of 10.34% compared with December 2022 to 1,111 points. During the month, the sector indexes recorded an increase. Notably, the index of the raw materials industry rises by 19.29%; financial sector up 13.13%; industry up 12.18%. Foreign investors made a net purchase of more than VND2,702 billion.
According to the SSC’s orientation, the SSC will continue to restructure the stock market, and strengthen the management of public companies and securities trading organizations. Promote inspection, supervision and handling of violations in the context of increasingly sophisticated violations in the securities sector.
In the year, the SSC will continue to conduct an overall review of the provisions of the Law on Securities and guiding documents for consideration and submission to the competent authorities for supplementation and amendments in line with the new operation of the market.
In addition to directing units to expedite ongoing projects, especially for new information technology systems, management agencies also actively implement solutions to attract foreign investment in the new context, in which the highlight is the upgrading of the stock market.
In the context that the market still faces many difficulties, the SSC will closely monitor developments in the economic and political situation, and policy moves of countries around the world, and assess the impact and influence on Vietnam’s stock market to promptly take appropriate solutions, ensuring the market’s stable and transparent development.
Regarding the inspection and handling of violations in the market, Ms. Ta Thanh Binh, Director of the SSC’s Market Development Department, said that in the long term, the handling of violations by authorities will increase the confidence of domestic and foreign investors as well as the long-term sustainable growth of the market. Especially, for foreign investors, the stock market can bring large profits and also occurs violations. Therefore, creating a safe, transparent and efficient market is the biggest goal of the regulator.
Quickly complete KRX information technology system
In 2023, the issuance of a decree amending, supplementing and suspending the effect of a number of provisions in the decrees on the offering and trading of privately-placed bonds attracts the market.
According to experts, if the decree is issued in January, the amendments in this decree will be a bright spot for the stock market and the economy. It will help reduce cash flow pressure when payment is due, and margin call pressure if the issuer uses shares as collateral for loans, and improve the asset quality of the bondholders listed on the stock market such as banks, securities companies and other companies by minimizing default risk of bond issuers if there are alternative methods to resolve or convert the issued bonds.
At the same time, avoid the domino effect and impact on sentiment if the issuer defaults amid the unstable interest rates and economic growth in the domestic and external markets.
Minister Ho Duc Phoc said that in 2023, the Ministry of Finance has directed the SSC and relevant agencies to implement key tasks and solutions. Accordingly, the SSC needs to improve the legal institutions, quickly review legal documents to perfect the legal system, ensure the stable, smooth and safe operation of the market.
Develop specific plans and solutions to effectively implement the Stock Market Development Strategy until 2030 when approved by the Prime Minister. Restructure the stock market based on four pillars including market organization; commodity base; investor base; and securities trading organizations.
The SSC and units of the ministry jointly research and provide solutions to enhance the quality of financial information and audit reports in the market, improve service quality and responsibility of intermediary service providers such as securities companies, fund management companies, auditing companies, credit rating agencies, etc. in the market.
“The units need to further strengthen the application of modern information technology to more effectively support the management and supervision of the market, as well as better serve the needs of businesses and investors. Quickly complete the KRX information technology system for transparent and efficient transactions,” said the Minister.
In addition, the securities sector should promote information, disseminate and training of investors, especially individual investors, to develop institutional investors; expedite international cooperation in combination with accelerating the process of upgrading the stock market from marginal to emerging to ensure the set objectives; remove difficulties and obstacles for enterprises in terms of legal procedures, markets, capital sources for enterprises to develop, promote disbursement of public investment and construction projects, traffic and electricity.