Prime Minister Pham Minh Chinh delivers closing remarks at the Conference – Photo: VGP/Nhat Bac
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In his speech, the Prime Minister affirmed that the Government and he personally place great importance on the financial market, including the stock market. “Perhaps there is no week when I don’t talk and work with the relevant leaders regarding the stock market, always monitoring the stock market. At 12:40 noon every day, I always follow the news to see how the stock market is performing in order to have timely policy responses. If I can’t monitor it, I feel restless.
When there are fluctuations, we always put ourselves in the shoes of investors, issuers, with the spirit of win-win, sharing risks, all parties winning, which means contributing to the rapid, sustainable, and healthy development of Vietnam’s economy in accordance with the Party’s guidelines and the State of Vietnam. We also always think that the Government must protect the legal and legitimate rights and interests of investors and related entities in the stock market,” the Prime Minister stated.
Accordingly, the stock market is an important component of the financial market (currency market, capital market) in particular and the market-oriented socialist-oriented economy in our country in general. When it develops to a high level, the stock market plays the role of the “barometer” of the economy.
“In summary, economic development cannot be without the stock market. Developing the stock market is an objective requirement,” the Prime Minister emphasized.
“From an early-stage market, the Vietnam stock market is at the frontier market level and by 2025, the goal is to become an emerging market, contributing to the target of attracting about USD 25 billion in indirect foreign investment annually, equivalent to direct investment,” the Prime Minister expressed the desire for the market to gradually increase steadily, remain stable, and sustainable, rather than experiencing abrupt fluctuations.
The Prime Minister emphasized: Economic development cannot be without the stock market. Developing the stock market is an objective requirement – Photo: VGP/Nhat Bac
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6 important orientations in the development of the stock market
Regarding the direction of stock market development, in the 10-year socio-economic development strategy 2021 – 2030 and the stock market development strategy until 2030, there are many contents, but the Prime Minister highlighted 6 points:
First, Vietnam will continue to maintain independence, sovereignty, unity, and territorial integrity, political stability, social order, and safety.
Second, policies must be consistent, policy responses must be timely, policies must be appropriate and keep up with the reality.
Third, state management must be transparent, open, and in accordance with market rules.
Fourth, the Government and functional agencies always protect the legal and legitimate rights and interests of relevant entities; always share difficulties and put themselves in the position of investors, issuers to design policies, build a truly enabling government for development.
Fifth, the Government is determined to upgrade the stock market, focusing on developing towards a digital economy, a green economy, a circular economy, a sharing economy, a knowledge-based economy, fast and sustainable development.
Sixth, close connection between the state, investors, and society to perform the functions of capital supply; strong development of stock market infrastructure and ecosystem.
Main tasks and solutions for the securities sector
In his concluding speech, the Prime Minister clearly stated the tasks and key solutions in the coming time to develop the stock market.
(1) For the management agencies:
– The Ministry of Finance, the State Securities Commission, in collaboration with the State Bank of Vietnam, the Ministry of Planning and Investment, and relevant ministries and sectors, focus on building and promptly implementing specific action programs to implement the Stock Market Development Strategy until 2030.
– The Ministry of Finance needs to urgently review and amend existing regulations, especially those related to the transparency of corporate information, the rights and responsibilities of management subjects, and market participants such as state management agencies, businesses, securities companies, and investors, including the amendment of Decree 155.
– The Ministry of Finance, the State Securities Commission, need to intensify the upgrade and construction of modern infrastructure systems to serve stock market activities, apply strong digital technology; improve the quality of market management and supervision; create the most favorable conditions for businesses, market entities, and investors to participate in the Vietnamese stock market in a way that balances the interests of the State – service providers – investors.
– Continue to focus on improving the effectiveness of stock market supervision and inspection work to effectively prevent and combat violations in the stock market, strictly handle according to legal regulations those cases and violations, ensuring the sustainable development and fair, public, transparent operation of the stock market.
– Expand promotional activities, propaganda, and provision of accurate information about the Vietnamese stock market in particular and the Vietnamese economy in general. Emphasize more on communication work to improve the understanding, analysis capabilities of investors.
– Promote administrative reform, especially administrative procedures; promptly review, cut, and amend complicated, overlapping procedures related to business production and in the securities sector, in particular.
– The State Securities Commission continues to coordinate with professional associations to strengthen management and supervision of securities practitioners; apply professional ethics principles and standards to managers of securities companies, investment funds management companies, and practitioners; gradually transfer the examination activities, issue professional practice certificates to professional associations.
– Urgently implement necessary measures to upgrade the Vietnamese stock market from a frontier market to an emerging market, especially focus on resolving difficulties and obstacles to meet the upgrading criteria with the spirit of “Action speaks louder than words. Fulfilling commitments requires implementation, with measurable results.” In which:
+ Assign the Ministry of Finance, the State Securities Commission, the State Bank of Vietnam, the Ministry of Planning and Investment to urgently coordinate, quickly resolve and have results for obstacles under their responsibility to meet the criteria for upgrading the Vietnamese stock market from a frontier market to an emerging market (report the results before June 30, 2024).
+ The Ministry of Finance shall assign the State Securities Commission to urgently review and propose the necessary amendments to legal documents to resolve technical issues, improve transparency in the stock market, and immediately remove barriers to create favorable conditions for foreign investors to access the market.
+ The Ministry of Planning and Investment shall urgently review and fully disclose the maximum foreign ownership rates for business sectors that have conditions or restricted access for foreign investors; regularly update on the electronic information page of the Ministry in bilingual Vietnamese and English languages.
+ The State Bank of Vietnam shall urgently consider and review to simplify the documentation procedures, shorten the process of opening indirect investment capital accounts for foreign investors; study suitable offset payment tools according to market rules; continue to implement solutions, direct commercial banks to reduce costs to lower lending interest rates.
(2) For securities companies:
– Promote the restructuring of securities companies, investment fund management companies in accordance with the Scheme “Restructuring the Stock Market and Insurance Market to 2020 and orientation to 2025”; improve the management capacity of companies, risk management, enhance the competitiveness of companies in the market; develop permitted professional services.
– Continue to develop the activities of the bloc of securities companies according to two models: multipurpose (implementing multiple securities business operations) and specialized (implementing a single securities business operation); strengthen the role of market makers, enhance financial capacity, quality of human resources, and develop a deep technology system.
– Research, develop guidance mechanisms, management and supervision of the application of financial technology in securities trading.
(3) For issuers:
– Encourage types of businesses to conduct initial public offerings (IPOs) attached to listing, trading registration on the stock market; attract large-scale enterprises with good financial situation, good company management to list on the stock market; actively support the completion of state capital divestment and equitization plans according to the regulations of the stock market.
– Diversify the issuance of Government bonds, Government-guaranteed bonds, and local government bonds.
– Focus on promoting the issuance of corporate bonds to the public attached to listing; diversify types of bonds suitable for capital mobilization needs; develop corporate bond products for the purpose of implementing projects, investment projects in the form of public-private partnerships (PPP).
– Encourage the issuance of green government bonds, green local government bonds, and green corporate bonds.
– Continue to develop derivative securities products and new products (good products).
The Prime Minister emphasized that in 2024, Vietnam will continue to maintain macroeconomic stability, ensure major balances, maintain political – social stability for investors to be reassured. “We are determined to upgrade the Vietnamese stock market from a frontier market to an emerging market in 2025,” the Prime Minister emphasized.
