At the conference on the implementation of the securities market development tasks in 2024, Prime Minister Pham Minh Chinh listened to the opinions and suggestions of representatives from Commercial Banks, large-scale enterprises on the development of the Vietnamese securities market.
Mr. Luu Trung Thai, Chairman of the Board of Directors of Military Bank (MB), stated that from MB’s perspective, the unit recommends several main issues: First, increase access to capital for good enterprises in the market by independently classifying and rating listed enterprises according to industry criteria, operational efficiency, to enhance brand strength, market share in the industry, information transparency, and promote large enterprises, potential enterprises to participate in the securities market.
Apply international standards and international customs such as the best corporate governance principles of the OECD for listed enterprises to help them access capital through the market better. Last year, the number of new increased values of listed value is about 56 trillion VND. This number is still relatively modest compared to the potential and demand of enterprises.
Second, it is suggested to move towards upgrading the market. Some key issues are as follows: Our internal strength is important, so the quality of goods in the market is important. When the quality of the market is good and the value is high, foreign investors come here to seek profits, to seek investment opportunities in Vietnam. Therefore, the quality of the market and more importantly the completion of the Central Counterparty Clearing House (CCP) – the key point where both FTSE and MSCI consider it as a bottleneck in upgrading the market. Improving policies related to foreign ownership.
Third, strengthen the application of technology and digital transformation in management and supervision. Research and deploy automated monitoring systems, connect with data systems and agencies such as tax, banking supervision agencies, and national financial supervision to enhance monitoring ability and quality of operations of enterprises in the market.
Finally, provide technology systems and data to increase digitization capabilities, access for investors and the public to process time-saving issuances, and investment.
Ms. Nguyen Thi Mai Thanh, Chairman of the Board of Directors of Refrigeration Electrical Engineering Corporation (REE), emphasized that listed companies are “goods” in the securities market, goods must be good and have no fake goods. Investors always desire listed companies to have good growth rates and they are willing to invest more capital for this goal.
The key issue of enterprises in general and listed enterprises in particular, besides financial, technological, or management capacity issues, is: The legal framework and policies need to be stable in the long term. REE recommends that the Government continue to create a more open, transparent legal environment, moving towards a one-stop service, reducing the mechanism of asking for permission, gradually transitioning to the registration mechanism, and businesses taking responsibility within the legal framework, not banning but can be done automatically.
The Prime Minister’s business trips focus on calling for promoting economic development. The Prime Minister mentioned most areas of the economy. REE believes that the Government is promoting overseas Vietnamese to continue to be the main driving force for the development of Vietnam’s economy. The current obstacles are slow administrative procedures and low efficiency.
Regarding the VN30 index, the stock market in the VN30 and VN100 baskets includes shares of 30 companies with the largest capitalization and liquidity in the market. If only considering this criterion, the majority of stocks from various industries have not fully represented the economy. Therefore, there should be other criteria for companies from different sectors to be included in this basket to represent the economy.
Concerning bank interest rates,… how to make interest rates for enterprises more reasonable. We believe that the State Bank needs to pay more attention, how to bring interest rates to a reasonable level so that enterprises can use part of the bank’s capital in addition to bond and stock capital to continue to develop and contribute to the economy…
