Việt Nam seeks Japanese expertise to modernise stock market

Việt Nam seeks Japanese expertise to modernise stock market

Japanese experts expressed confidence that Việt Nam's stock market would continue to grow rapidly, citing the country's determination to pursue reforms and its clear development strategy.

Deputy Minister of Finance Nguyễn Đức Chi at the meeting with Japan's Financial Services Agency (JFSA) and the Securities and Exchange Surveillance Commission in Tokyo. — Photo courtesy of SSC

The Ministry of Finance (MoF) and Japan's Financial Services Agency (JFSA) have stepped up cooperation on capital market development, with discussions focusing on regulatory frameworks for financial innovation, exchange-traded funds (ETFs), fintech supervision and workforce development.

A delegation from the MoF led by Deputy Minister of Finance Nguyễn Đức Chi met with JFSA representatives and the Securities and Exchange Surveillance Commission in Tokyo on July 14. 

The visit forms part of a broader working trip by the MoF and the State Securities Commission of Vietnam (SSC) to Japan and South Korea to study practical experience in capital market development, new financial products and legal frameworks. 

Their findings will contribute to draft amendments to Việt Nam's Securities Law.

Included in the delegation were deputy chairwoman of the National Assembly's Committee for Economic and Financial Affairs Đoàn Thị Thanh Mai and SSC Chairwoman Vũ Thị Chân Phương, along with representatives from the SSC, the Vietnam Exchange, the Hanoi Stock Exchange and other related agencies.

Vietnamese deputy finance minister said Japan's experience and support had played an important role in helping Việt Nam develop its regulatory framework and expand its securities market. 

He expressed hope that the two sides would continue strengthening cooperation, particularly in policy development, market supervision, digital transformation and the introduction of new financial products.

Vice Commissioner for Strategy Development at JFSA Hiroshi Okada shared Japan's experience in several areas of interest to Việt Nam, including regulatory sandboxes for new financial products and services, market supervision models, ETFs and technology- and algorithm-based financial services.

Okada said the country encourages financial innovation while placing investor protection, consumer interests and financial system stability at the centre of regulatory policy.

He said that projects participating in Japan's sandbox mechanism are still required to comply with the existing legal framework. Regulators work alongside businesses from the earliest stages of product development, providing guidance and support throughout the implementation process.

The Japanese official also highlighted the importance of human capital in sustaining long-term market development.

According to Okada, building a skilled workforce requires long-term collaboration among regulators, financial institutions and the private sector through professional training, standardised qualifications and continuous improvements in industry expertise.

He expressed confidence that Việt Nam's stock market would continue to grow rapidly, citing the country's determination to pursue reforms and its clear development strategy. 

Okada also confirmed that the JFSA stands ready to expand cooperation and continue exchanging regulatory experience with Vietnamese authorities.

During a technical discussion session, JFSA experts introduced Japan's experience in designing and operating regulatory sandbox mechanisms for innovative financial products and services.

They also presented the country's FinTech Innovation Support Centre model, which serves as a platform to facilitate dialogue between regulators and fintech companies while supporting responsible innovation within the financial sector.

During the discussions, Tạ Lê Thanh, a full-time member of the National Assembly's Committee for Economic and Financial Affairs, sought further insights into Japan's experience in organising, operating and regulating the securities market, with particular emphasis on improving the legal framework.

Later the same day, the Vietnamese delegation met with the Japan Exchange Group to discuss market surveillance for trading activities involving emerging technologies, including algorithmic trading and artificial intelligence, as well as the development of electronic trading infrastructure. 

Bizhub