Diversifying the range of securities is essential
At the workshop “Investment Opportunities in the New Context” held on March 19, Nguyen Son, Chairman of the Members’ Council of the Vietnam Securities Depository and Clearing Corporation (VSDC), shared his insights on the dynamic investment landscape in Vietnam. According to Mr. Son, the country is undergoing significant changes, including globalization, digital transformation, geopolitical shifts, and unpredictable policies from superpowers. These factors create both challenges and opportunities for investors.
Regarding the upgrade of the stock market, Vietnam has been preparing for 3 to 5 years to meet the standards set by FTSE and MSCI. So far, the country has largely fulfilled the criteria for FTSE’s Secondary Emerging Market status.
For instance, Vietnam has eliminated the margin requirement for foreign institutional investors, upgraded its technology infrastructure, and plans to implement a bilingual English-Vietnamese data platform from January 1, 2025. However, there are still issues to address, such as the Omnibus Account model and the upgrade of the KRX system.
Foreign investors have expressed their perspective on the limited range of securities available in the market. The large-cap stocks primarily revolve around familiar names like Vingroup, Hoa Phat, Vinamilk, and there is a lack of new large private conglomerates.
To address this issue, policies should focus on promoting the privatization of state-owned enterprises and creating a conducive environment for private enterprises to thrive. Recently, the General Secretary emphasized the crucial role of private enterprises in economic growth, indicating a positive shift in policy orientation.
In terms of new products in the technology sector, Mr. Son believes there is significant potential. This is an area where Vietnam has been excelling, aiming to become a hub for semiconductor and AI technology.
According to Le Duc Khanh, Director of Analysis at VPS Securities Joint Stock Company, there is keen interest in which securities will be listed. The Vietnamese stock market is anticipating multiple IPOs from large and high-quality corporations, especially from 2025 onwards.
Mr. Khanh also expressed his expectation that many enterprises will join the VN100 index and looked forward to the introduction of new indices that cater to the criteria and risk appetite of institutional investors and index traders.
Mr. Le Duc Khanh, Director of Analysis at VPS Securities Joint stock Company
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Expediting listing post-IPO
To encourage more companies to go public, it is essential to streamline administrative procedures. Pham Thi Thuy Linh, Head of the Market Development Department of the State Securities Commission of Vietnam (SSC), emphasized that reducing red tape has been a focus even before the directive to cut 30% of administrative procedures. The SSC has been working on draft regulations to minimize unnecessary steps.
Specifically, the SSC has been reviewing ways to integrate IPO and listing processes, which were previously separate. While IPOs were approved by the SSC, listings were under the purview of the Stock Exchange. Now, the SSC is collaborating closely with the Exchanges to enable enterprises to list immediately after their IPO.
In practice, this also requires cooperation from securities consulting companies and enterprises in preparing comprehensive and compliant documentation. If enterprises can excel in this preparatory stage, the SSC can expedite the processing of their dossiers, facilitating a quicker listing and smoother trading of their stocks.
Speaking about the workload of the Ministry of Finance and the SSC, Ms. Linh shared that they are in a “running while queuing” situation, with a massive workload and many new areas to explore, such as the carbon market and crypto-asset market. These are new fields that demand swift implementation to seize opportunities and avoid falling behind.
Ms. Pham Thi Thuy Linh, Head of Market Development Department, SSC
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– 14:25 20/03/2025
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