Investment forum "From policy to practice towards upgrading Vietnam's capital market to emerging market".

Will perfect policies towards upgrading capital markets

Sharing at the Investment Forum “From policy to practice towards upgrading Vietnam’s capital market to emerging market” organized by the State Securities Commission (SSC) in collaboration with the World Bank and the Asian Securities Industry and Financial Markets Association (ASIFMA) in Singapore, Ms. Vu Thi Chan Phuong, Chairwoman of the SSC, emphasized that upgrading the stock market from frontier to emerging is the determination of the Vietnamese Government.

Regarding policy solutions aimed at upgrading the stock market, the Chairman of the State Securities Commission said that the State Securities Commission has completed the draft Circular amending and supplementing 04 circulars on transactions, registration, depository and clearing, securities company operations and information disclosure. The draft has been publicly posted after completion, receiving wide comments from organizations and individuals in the market. Currently, the Draft continues to complete the final stages to submit to the leaders of the Ministry of Finance for consideration and promulgation as soon as possible.

“The Ministry of Finance and the State Securities Commission always receive market opinions and contributions from international investors to develop policies that are suitable for Vietnam’s conditions and meet the expectations of foreign investors. Each stage and economic context affects the process of building and perfecting the policy system in the capital market, but we always aim to ensure the sustainable and stable development of the stock market in the long term,” the Chairman of the State Securities Commission affirmed.

Ms. Phuong also said that within the framework of the working program of Vietnamese Finance Minister Ho Duc Phoc in Singapore, the Ministry of Finance and the State Securities Commission organized many meetings to exchange information and dialogue with capital market management agencies, the Singapore Stock Exchange and many large enterprises in Singapore. The Financial Investment Promotion Conference on August 6 chaired by Minister Ho Duc Phoc received much attention from the financial investment community, as well as non-financial enterprises in Singapore and the region.

"Financial investors, banks, and global investment funds all have high expectations that the Vietnamese stock market will be upgraded from a frontier market to an emerging market." The Chairman of the State Securities Commission also hopes that the active participation of investment funds, custodian banks, financial institutions, and global brokerage firms will create conditions for the State Securities Commission to better understand the wishes of international investors for the Vietnamese stock market, thereby perfecting policies towards upgrading the Vietnamese capital market from a frontier market to an emerging market.

Many large organizations are ready to accompany

Ms. Katia Daude Goncalves, IFC Country Manager.

Along with representatives from the State Securities Commission; Vietnam Stock Exchange; Vietnam Securities Depository and Clearing Corporation (VSDC)..., the Investment Forum has the participation of many international organizations such as the International Finance Corporation (IFC), the Asian Securities and Financial Markets Association (ASIFMA), representatives of MSCI and representatives of banks, international investment funds, foreign investors Black Rock, Morgan Stanley, JP Morgan chase, ING, UBS, citadel, Bank of America, Merry Lynch, EFG Hermes Frontier, Black Rock, BNY Mellon...

Major organizations have positive assessments of Vietnam's economy. Ms. Katia Daude Goncalves, IFC Country Manager for Singapore, Malaysia and Brunei Darussalam, assessed that Vietnam has achieved strong growth over the past 10 years and is one of the most open and fastest growing economies in the Asia region. Despite facing many challenges, Vietnam's economic outlook remains very positive with drivers such as infrastructure improvements, repositioning in global value chains and trade diversification.

Ms. Katia Daude affirmed that Vietnam is a very important partner, one of the countries that IFC has supported the longest in the region. IFC has also committed a total of 19 billion USD to Vietnam, of which about 1 billion USD is recently committed to climate finance. In the coming time, IFC will continue to focus on 3 main areas in Vietnam, including: promoting financial markets, capital markets to develop sustainably, diversely and comprehensively; supporting higher value products and services and modernizing the region; promoting the energy transition and sustainable infrastructure.

“As a member of the World Bank, we are committed to supporting the development of the Vietnamese market and encourage you here to explore opportunities for sustainable growth and cooperation in Vietnam's very dynamic economy,” Ms. Katia Daude also emphasized.

Sharing the same view, Mr. Lyndon Chao, Executive Director of ASIFMA Securities and Trading Department, assessed that Vietnam is an attractive investment destination with high FDI growth, growing labor force with 56% of the population under the age of 35, and strong growth of VN-Index over the years.

However, being located in a frontier market is a limitation of the Vietnamese stock market. "To attract more global capital to Vietnam, the representative of ASIFMA emphasized the need to ensure the upgrading of the stock market from the national classification of "Frontier Market" to "Emerging Market" due to the policy of many fund management companies not to invest in frontier markets," the representative from ASIFMA pointed out the reason.

Mr. Lyndon Chao also affirmed that ASIFMA will continue to support and is ready to coordinate with the State Securities Commission and VSDC in perfecting related policies and procedures to serve the upgrading of Vietnam's stock market in the coming time.

Mr. Lyndon Chao, Executive Director of ASIFMA Securities and Trading Department.

At the Forum, the story of opportunities and challenges when the Vietnamese stock market is upgraded, as well as the solutions that the management agency is implementing to upgrade the Vietnamese stock market were discussed. In addition, the delegates were also very interested and shared a lot of information related to the long-term policies that the management agency will implement to develop the Vietnamese stock market in the coming time.

Sharing with delegates attending the discussion session, Vice Chairman of the State Securities Commission Bui Hoang Hai said that the Prime Minister has issued the "Strategy for stock market development to 2030" and the Ministry of Finance and the State Securities Commission have also had action plans to implement the Strategy.

“In addition to the goals and solutions for upgrading the stock market, the Strategy and action plans have set out specific goals and targets for each stage with comprehensive groups of solutions for market restructuring, improving the quality of goods on the market; digital transformation in the securities sector... to develop the Vietnamese stock market to develop stably, safely, healthily, effectively and sustainably” - the Vice Chairman of the State Securities Commission further informed investors.

Source: https://baodautu.vn/wb-asifma-san-sang-dong-hanh-cung-chung-khoan-viet-nam-trong-hanh-trinh-nang-hang-d221911.html