“My Vietnam – Your Investment Destination”: Attracting Hundreds of Businesses, Investment Funds, Banks, and Securities Firms to Singapore

On the morning of August 6, 2024, the Ministry of Finance and the State Securities Commission (SSC) of Vietnam hosted an investment promotion conference, “My Vietnam – Your Investment Destination,” in Singapore’s capital city. The event was chaired by the Minister of Finance, Mr. Ho Duc Phoc.

Attending the conference from the Vietnamese side were Mr. Mai Phuoc Dung, Vietnamese Ambassador to Singapore; Ms. Vu Thi Chan Phuong, Chairwoman of the SSC; and leaders of several units under the Ministry of Finance and the SSC, as well as representatives from the Vietnam Stock Exchange and the Vietnam Securities Depository.

The Singapore side was represented by Mr. Kee Rui Xiong, Director of Corporate Disclosure and Capital Markets, Monetary Authority of Singapore (MAS); and Mr. Chew Chin Yee, Executive Director of the Singapore Exchange.

The conference attracted more than 250 delegates from leading Singaporean and Vietnamese companies, including financial institutions, banks, investment funds, securities companies, and businesses from both countries.

In his opening remarks, Minister Ho Duc Phoc highlighted the strong bilateral relationship between Vietnam and Singapore, which has witnessed remarkable progress in various fields, including economic, trade, and investment cooperation, over the past 50 years of diplomatic relations and more than 10 years of strategic partnership.

He emphasized the potential for further growth, particularly in the financial, capital, and securities markets. The conference aimed to provide additional investment opportunities and facilitate meaningful dialogue to help businesses and investors better understand Vietnam’s policies, orientations, and economic potential, especially in the financial markets.

The Minister shared that, under the Government’s guidance, Vietnam’s stock market has become increasingly efficient, sustainable, and attractive to investors. As of July 2024, the market had over 1,600 listed stocks and fund certificates, with a market capitalization of approximately $278 billion, equivalent to 65% of Vietnam’s GDP in 2023. The number of investors has grown significantly, with 8 million securities accounts, equivalent to over 10% of the adult population. In ASEAN, Vietnam’s stock market is one of the most dynamic, with a daily liquidity of around $1 billion, ranking first or second in the region. Interestingly, the liquidity of the Vietnamese and Singaporean stock markets is comparable.

While acknowledging the initial successes, the Minister affirmed Vietnam’s determination to continue developing a transparent, safe, efficient, comprehensive, integrated, and sustainable stock market that protects the legitimate rights and interests of all participants. He also emphasized the ongoing efforts to meet the criteria for market upgrade and the expectation to be recognized as an emerging market in the near future.

Regarding the development of the green capital market, Minister Ho Duc Phoc shared that it is one of the goals in the Strategy for Securities Market Development until 2030, approved by the Prime Minister. Promoting green and sustainable development has been a key focus, and policies have been put in place to facilitate businesses in raising capital and embracing green practices.

He assured that the Vietnamese Government considers the foreign-invested economic sector as an important component of the economy and is committed to creating favorable conditions for long-term development, cooperation, and healthy competition on an equal footing. The Ministry of Finance, he affirmed, pledges to accompany and create favorable opportunities for partners, businesses, and investors to seek efficient investment and cooperation opportunities. He welcomed Singaporean and regional businesses and investors to increase their investment in Vietnam, further enhancing cooperation for mutual success and prosperity.

During the conference, the SSC provided an overview of Vietnam’s stock market, its prospects, and the goals and policies for market development in the coming years. Representatives from securities companies, fund management companies, and large listed companies shared insights into the growth potential of Vietnam’s stock market, the preparedness of securities companies and custodial banks, and the cooperation opportunities arising from the market upgrade.

Minister Ho Duc Phoc then chaired a policy dialogue session, joined by Chairwoman Vu Thi Chan Phuong and representatives from various units under the Ministry of Finance. They discussed Vietnam’s investment potential and opportunities, attracting keen interest from Singaporean investors, particularly in the areas of macro prospects, capital market and green finance, and the efforts to upgrade Vietnam’s stock market from a frontier market to an emerging market.

Sharing insights on the market upgrade process, Chairwoman Vu Thi Chan Phuong emphasized that the upgrade of Vietnam’s stock market from a frontier market to an emerging market is a significant goal for the Vietnamese Government. The Ministry of Finance and the SSC have actively engaged with relevant parties and implemented solutions to meet the criteria for the market upgrade. They have drafted four circulars related to trading, registration, custody, and payment settlement, securities company operations, and information disclosure. To ensure the effective implementation of these circulars, the Ministry has sought feedback from market participants and experts and will soon issue them officially. According to domestic and international experts, the solutions and new regulations in the draft circulars are feasible and highly applicable. The circulars will be issued by the Ministry of Finance shortly.

The conference concluded successfully, marked by the active participation and engaging discussions between delegates from both countries. The event served as a connecting forum, fostering greater and more effective cooperation and development opportunities for businesses, investment funds, investors, and the securities markets of both nations, contributing to the shared prosperity of Vietnam and Singapore.