On February 19, at the Ho Chi Minh City Stock Exchange (HoSE), the leaders of the Ministry of Finance, the Ho Chi Minh City People’s Committee, and the State Securities Commission performed the opening gong ceremony for the opening of the stock trading session of the Year of the Water Dragon in 2024.
In his speech at the New Year opening gong ceremony, Deputy Minister of Finance Nguyen Duc Chi acknowledged the achievements of the stock market as well as HoSE in 2023. Despite complex and unpredictable global and regional economic and financial fluctuations, the Vietnamese stock market has achieved growth in terms of indices, liquidity, and market capitalization.
In anticipation of the unpredictable economic situation in 2024, with a mix of favorable and challenging factors, Deputy Minister Nguyen Duc Chi requested the State Securities Commission, Ho Chi Minh City Stock Exchange, Vietnam Securities Depository, Vietnam Securities Central Depository and Settlement Corporation, along with other related companies and organizations, to proactively focus on developing the stock market in a sustainable manner.
Furthermore, Deputy Minister Nguyen Duc Chi stated that in the first quarter of 2024, the Ministry of Finance will coordinate with relevant entities to organize a conference to discuss comprehensive solutions and provide guidance for the development of the stock market in Vietnam in 2024 and the following years. He emphasized the need for specific tasks and solutions to be implemented in 2024 and beyond.
First, continuous review of legal regulations related to the stock market, especially the Securities Law, Decree 155, Decree 156, and other regulations under the Securities Law. Proactive review of other relevant laws that directly impact the stock market, such as the Enterprise Law, Investment Law, and regulations with strong and profound impacts on the market. If necessary, propose amendments to create appropriate and effective legal frameworks.
Second, it is crucial to maintain a stable and secure trading system and payment system, which serve as the foundations of the market. Stock exchanges and securities depositories should continue to deploy all necessary measures to ensure a stable and secure operation of the systems.
Third, ensure effective market supervision and inspection, promptly detect and strictly handle violations. Inspection and supervision agencies should not have any prohibited areas. Timely discovery and strict handling of all violations are necessary to ensure the protection of legitimate rights and interests and prevent any form of abuse.
Fourth, aims to raise the status and quality of the Vietnamese stock market to a new level as soon as possible. Efforts are required from state management agencies, the Ho Chi Minh City Stock Exchange, securities depositories, and relevant agencies and listed companies to propel the market to a higher rank.
Finally, it is essential to provide the best, transparent, and timely information to the investing public and all stakeholders interested in the stock market. This will enable them to have a deeper understanding of the stock market and comply with applicable laws and regulations when participating in the market.
Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, stated that in the past and in the upcoming period, the State Securities Commission will closely follow the guidance of the Government and the Ministry of Finance, as well as implement specific tasks to ensure the stable operation of the market. The commission will also enhance effective market supervision and management, review legal documents, restructure securities companies and fund management companies, and work with relevant ministries and agencies to overcome obstacles and elevate the market to a higher level.
“The KRX system will be put into operation in 2024, but the timing depends on the investors, including HoSE and market members ensuring smooth operation,” Phuong added.
Regarding the activities of the Ho Chi Minh City Stock Exchange in 2024, Nguyen Thi Viet Ha, Chairwoman of HoSE, mentioned that the IT project with a South Korean contractor (the KRX system) has completed the final user testing phase and is considering deploying the system this year.
In 2024, HoSE will focus on improving the quality of listed securities and corporate governance, leveraging information technology in management and supervision, creating conditions and incentives for listed companies to enhance corporate governance and sustainable development,” emphasized Nguyen Thi Viet Ha.
The Vietnamese stock market ended 2023 with the VN-Index reaching 1,129.93 points, an increase of 12.2% compared to the end of 2022. The market capitalization of stocks listed on HoSE as of December 29, 2023, reached approximately 4.56 quadrillion VND, an increase of 13.4%. In 2023, HoSE successfully organized 249 trading sessions with a total trading volume of over 193 billion securities, equivalent to a trading value of nearly 3.8 quadrillion VND, an increase of 12% in volume but a decrease of 11% in trading value compared to 2022.
