Sharing about the goal of upgrading the emerging market at the Stock Market Discussion with the theme: “Building Foundation – Accumulating – Accelerating” organized by Investment Newspaper on the morning of March 5, Ms. Pham Thi Thuy Linh, Deputy Head of Market Development Department, State Securities Commission, expects to achieve the market upgrading goal by 2025.
Vietnam’s criteria currently meet 7 out of 9 criteria, with 2 criteria that need to be improved: pre-trading deposit for foreign investors and foreign investor ownership ratio.
Regarding the pre-trading deposit solution, the Securities Commission has discussed with international rating agencies to find solutions. At the same time, the Ministry of Finance will propose to amend and supplement some documents, initially not requiring a 100% deposit in cash for foreign investors, ensuring foreign operations and payment activities.
“The implementation tasks have high support from market members. We expect to achieve the market upgrading goal by 2025. The current timeline is set for 2025, this issue depends on the rating assessment period and customer experience, and we hope that securities companies will promote communication to investors when they have a good experience”.
Regarding foreign ownership ratio, the Securities Commission, along with the Ministry of Finance and the Ministry of Planning and Investment, are reviewing industries and publishing transparent information in English for investors to easily grasp the ownership ratio of companies.
The Ministry of Planning and Investment is recommended to coordinate with other ministries and sectors to review industries and may open up foreign rooms for some non-essential industries.
In addition, the State Securities Commission will report to the Ministry of Finance on amending regulations on English information disclosure applied to public companies and large-scale listed companies. It is expected to apply to regular information disclosure and large-scale listed organizations from January 1, 2025, and to abnormal information from January 1, 2026, applying to all public companies in information disclosure activities from January 1, 2028.
“The implementation tasks have high support from market members. We expect to achieve the market upgrading goal by 2025. The current timeline is set for 2025, this issue depends on the rating assessment period and customer experience, and we hope that securities companies will promote communication to investors when they have a good experience”, Ms. Linh said.
Regarding the KRX system, according to the representative of the Securities Commission, with the current information disclosure system being implemented, securities companies, along with depositories, have a testing session. From the state management agencies’ side, they are determined to launch this system after successful testing.
Also, according to Ms. Linh, to support capital mobilization, the Securities Commission is reviewing Decree No. 155/2020/ND-CP guiding the Law on Securities, focusing on regulations on fundraising, listing, and registration for trading activities.
“During the past time, we have noticed that IPO activities related to listing/trading registration have encountered obstacles that prolonged the time. After companies carry out IPO, the Stock Exchange will conduct content checks before listing/trading registration. At present, the Securities Commission is working with the Stock Exchange to jointly build regulations to coordinate and shorten the time after IPO, listing/trading registration, and converge into a reviewing unit for a specific issue”, said the Deputy Head of Market Development Department.
In the process of reviewing IPO application files, the representative of the Securities Commission said that sometimes the issuing organization and the advisory unit have different understandings. In March, the Securities Commission will organize a conference in two regions to invite enterprises with capital mobilization needs and advisory organizations to share regulations and exchange difficulties from the enterprise side.
Ms. Linh also emphasized that when implementing IPO with standard files, companies should submit them to the Stock Exchange for the fastest consideration.
“We expect this conference to provide the fastest support for organizations with capital mobilization needs in 2024-2025. It is expected that the conference will have a scale of 500-600 delegates from units”. With 2024 – 2025 being evaluated as a milestone year, the capital mobilization needs exist, and the conference will be a place to share difficulties in order to shorten this process.
