Deputy Minister of Finance Nguyen Duc Chi: in a press conference. Photo: VGP
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On the afternoon of February 1, the regular government press conference was held. When asked about solutions to upgrade the Vietnamese stock market, Mr. Nguyen Duc Chi – Deputy Minister of Finance said that the stock market needs a new development.
That is to upgrade the market from “frontier market” to “emerging market” according to the criteria of international rating agencies. This goal has also been stated in the resolutions and decisions of the Prime Minister on the development strategy of the stock market.
According to Deputy Minister Nguyen Duc Chi, to achieve the goal of upgrading the stock market as early as 2025, the Ministry of Finance and related ministries must actively implement preparatory work in 2024, including 4 key tasks.
First, deal with the requirement for margin deposit. Mr. Chi said that according to current regulations, foreign investors must deposit 100% of the transaction amount. Therefore, the Ministry of Finance and relevant agencies have considered and submitted feasible solutions to handle this issue this year. In particular, focus on resolving margin deposit requirements before transactions as recommended by international stock market rating agencies.
Second, transparency and clarity issues regarding the ownership ratio of foreign investors in listed companies on the stock market. The Ministry of Finance has coordinated with the Ministry of Planning and Investment to disclose information in the most transparent and clear manner in bilingual, both Vietnamese and English. “We will also require listed companies to update and disclose information clearly, meeting real-time requirements”, Mr. Chi said.
Third, transparency of information of listed companies in bilingual, both Vietnamese and English. According to Deputy Minister Nguyen Duc Chi, the Ministry of Finance will implement this in the first half of 2024, so that by the end of 2024, basic companies will meet this requirement.
Fourth, operate the new stock trading system as soon as possible, ensuring the requirements of trading and custodian settlement.
“The upgrading of the Vietnamese stock market depends a lot on legal regulations, as well as the actual situation in the market. Although the goal is very important, the Ministry of Finance must also manage risks, especially systemic risks, ensuring that the market operates stably, safely, and sustainably”, Mr. Chi affirmed.
