Vietnamese stock market's publicity and transparency improved
The capacity of the State Securities Commission (SSC) and three stock exchanges in market management and supervision has been enhanced as a result of a collaboration project with the Japan International Cooperation Agency (JICA), an SSC leader said on Tuesday.
From April 2019 to March 2023, the technical cooperation project “Capacity Building on Improving Fairness and Transparency of Vietnamese Equity Market” aims at ensuring publicity and transparency, strengthening market surveillance and inspection, supervision of market intermediaries, listing and public offerings in line with international standards, and raising awareness on investor protection among listed companies.
With the intention to cooperate with counterparts to develop the best practices for the stock market, the project conducted a detailed initial survey on the Vietnamese market, grasped issues and directions for their solutions, and then implemented training programs, consultations, and seminars.
Thanks to that, SSC has basically achieved the set targets, Pham Hong Son, Vice Chairman of SSC, said at a discussion platform on the Strategy for Development of Viet Nam’s Securities Market 2021-2030 held on Tuesday morning in Ha Noi.
"SSC and stock exchanges’ capacity in market management and supervision has been enhanced, improving the fairness and transparency of the Vietnamese stock market and protecting investors from market volatility," Son said.
The number of new securities accounts doubled, while foreign investors net bought strongly in the last months of the year. This showed the growing appeal of the country’s stock market at home and in the international markets, he added.
The results helped realise the strategy for development of Viet Nam’s stock market during 2011 - 2020 and the socio-economic development plans set out by the Government.
Speaking at the event, Shimizu Akira, chief representative of JICA Vietnam Office, said that the country’s stock market has grown strongly since Viet Nam opened. The market capitalisation value at the end of 2020 exceeded US$180 billion, while the interest of foreign investors, including Japanese investors, is increasing.
As the stock market is a crucial channel for capital mobilisation, the Government has recognised the importance of improving the fairness and transparency of the market.
Thanks to that, the Government has made efforts and accelerated solution implementation, such as by issuing the amendment to the Securities Law and establishing the Viet Nam Stock Exchange.
The project is believed to help shore up investor confidence in the Vietanmese stock market after recent scandals.
"I believe that promoting the application of measures to supervise the market, supervise securities companies, improve the management of public offerings and listing of securities, and enhance public awareness on investor protection, which is proposed by this project, will help rebuild the confidence of domestic investors. In fact, the Strategy for Development of Viet Nam’s Securities Market 2021-2030 has integrated many solutions recommended by this project," Kojima Kazunobu, JICA consultant, told Viet Nam News
Following the successes, Viet Nam begins a new phrase for the stock market’s growth, targeting new goals of the Strategy for Development of Viet Nam’s Securities Market 2021-2030, said the leader of SSC.
Accordingly, SSC aims to expand the size of the stock market capitalisation, increase the bond market debt, and achieve an average of 20-30 per cent growth a year for the derivatives market.
The strategy also plans to increase the number of investor accounts and develop institutional investors, professional securities investors, and foreign investors.
The quality of listed companies management and ESG (environment - society - governance) standards application at the stock exchanges and the Vietnam Securities Depository and Clearing Corporation (VDSC) towards sustainable development are new targets for the domestic market’s growth, said Vu Chi Dung, director general of the International Cooperation Department under SSC.