Sharing about the goal of upgrading the emerging market at the Stock Market Forum with the theme: “Building Foundations – Accumulating – Accelerating” organized by Báo Đầu tư on the morning of March 5, Ms. Pham Thi Thuy Linh, Deputy Head of the Market Development Department, State Securities Commission, expects to achieve the goal of upgrading the market by 2025.
Vietnam’s criteria currently meet 7 out of 9 criteria, and there are 2 criteria that need to be improved: pre-trading foreign investor deposit and foreign investor ownership ratio.
For the deposit requirement, the Securities Commission has discussed with international rating agencies to find solutions. At the same time, the Ministry of Finance proposes to amend and supplement some documents, no longer requiring a 100% deposit in foreign currency for foreign investors, ensuring foreign operations and payment activities.
“The implementation work has high support from market members. We expect to achieve the goal of upgrading the market by 2025. The current progress sets the target for the year 2025, and this issue depends a lot on the rating assessment period and the customer experience. We hope securities companies will promote communication to investors when they have a good experience.”
Regarding foreign ownership ratio, the Securities Commission, together with the Ministry of Finance, the Ministry of Planning and Investment, reviews the industry and publishes transparent information in English for investors to easily grasp the ownership ratio of enterprises.
The Ministry of Planning and Investment is recommended to coordinate with other ministries and sectors to review industries and may open up to foreign investors in 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 listed companies of a large scale. It is expected to apply to English information disclosure for regular information disclosure and listed organizations of a large scale from January 1, 2025, for abnormal information from January 1, 2026, and apply to all public companies in information disclosure activities from January 1, 2028.
“The implementation work has high support from market members. We expect to achieve the goal of upgrading the market by 2025. The current progress sets the target for the year 2025, and this issue depends a lot on the rating assessment period and the customer experience. We hope securities companies will promote communication to investors when they have a good experience,” said Ms. Linh.
Regarding the KRX system, according to a representative of the Securities Commission, for the current information disclosure system being deployed, securities companies and depositories have a test session. The state management agency is determined to implement this system after successful testing.
According to Ms. Linh, to support capital mobilization, the Securities Commission is reviewing Decree 155/2020/ND-CP guiding the Securities Law, which focuses on regulations on public offering, listing, and trading registration activities.
“During the past time, we have realized that the IPO activities associated with listing/trading registration have encountered obstacles that have led to prolonging the time. After a company completes the IPO process, the Stock Exchange performs content checks before listing/trading registration. Currently, the Securities Commission and the Stock Exchange are jointly developing regulations to coordinate and shorten the time after IPO, listing/trading registration, focusing on a unit to consider each issue,” said the Deputy Head of the Market Development Department.
In the process of reviewing IPO prospectuses, representatives of the Securities Commission said that sometimes issuers and advisory units have different understandings. In March, the Securities Commission will organize conferences in two regions to invite companies with capital mobilization needs and advisory organizations to share regulations and exchange difficulties from the business side.
Ms. Linh also emphasized that companies should submit standardized IPO applications so that the Stock Exchange can review them as quickly as possible.
“We expect this conference to be the fastest support for organizations with capital mobilization needs in 2024 – 2025. It is planned that the conference will have about 500-600 delegates from various units.” With 2024-2025 being evaluated as the pivotal year, the need for capital mobilization exists, and the conference will be a place to share difficulties and find ways to shorten the process.
