Vietnam vows stock market upgrade from frontier to secondary emerging: PM
Vietnam vows stock market upgrade from frontier to secondary emerging: PM
The Vietnamese government is committed to upgrading the local stock market and aligning it with digital transformation and various economic trends, Prime Minister Pham Minh Chinh stated at a conference on stock market development on Wednesday.
Vietnamese Prime Minister Pham Minh Chinh speaks at a conference on stock market development held in Hanoi, February 28, 2024. Photo: Nhat Bac / Tuoi Tre |
At the conference held in Hanoi, PM Chinh outlined the ambitious goal of transforming the market from Frontier to Secondary Emerging in the FTSE Russell global classification by 2025, attracting about US$25 billion of foreign indirect investment annually.
Chinh emphasized his and the government’s keen attention to the financial market, particularly the stock market, stating, “There’s hardly a week that passes without me engaging with leaders involved in the stock market.”
“I consistently monitor market trends, checking the news at 12:40 pm daily for timely policy response.”
The government leader highlighted the importance of adopting a win-win approach amidst market fluctuations, prioritizing the protection of investors’ rights and interests.
To achieve the stock market upgrade goal, he tasked relevant ministries and agencies with implementing a strategic action plan, focusing on amending regulations, enhancing market transparency, and modernizing operations through digital technology adoption.
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| Vietnamese Prime Minister Pham Minh Chinh (R, 2nd) talks with U.S. Ambassador to Vietnam Marc E. Knapper (L, 2nd) at a conference on stock market development held in Hanoi, February 28, 2024. Photo: Nhat Bac / Tuoi Tre |
He also called attention to strengthening market supervision and enforcement, promoting corporate governance, and facilitating market access for foreign investors.
Furthermore, the premier underlined the simplification of documentation procedures and the process for opening indirect investment capital accounts for foreign investors.
Besides, research on clearing and settlement tools aligned with market regulations was mandated.
Moreover, he directed the promotion of restructuring securities and fund management firms, as well as enhancing corporate governance, risk management, and competitiveness.
The development of securities companies was required to utilize both multi-functional and specialized models with flexibility.
He underscored measures to support initial public offerings (IPOs), encourage corporate bond issuance, and develop green bonds.
Chinh encouraged the issuance of green central government bonds, green local government bonds, and green corporate bonds, as well as continuing to develop derivative securities products and new products.
The government also aims to enhance investor capabilities, emphasizing prudent investment practices and accountability.
