Solutions for sustainable development in the stock market

VCN - The recent growth and plunge of the stock market has shown uncertainties and challenges for the sustainable development of the market. To eliminate these problems, experts have offered many solutions to improve the transparency and publicity of the market, towards sustainable and effective development.
Always take the initiative to develop plans to ensure the stock market runs continuously, stably and safely: Deputy Minister Nguyen Duc Chi Always take the initiative to develop plans to ensure the stock market runs continuously, stably and safely: Deputy Minister Nguyen Duc Chi
VinaCapital expert explains why stocks dropped when the economy was growing well VinaCapital expert explains why stocks dropped when the economy was growing well
Focusing on solutions to stabilize the stock market Focusing on solutions to stabilize the stock market
nside information causes an unfair and unclear situation for investors. Photo: N.H
Inside information causes an unfair and unclear situation for investors. Photo: N.H

Control inside information

Speaking at the seminar "Solutions for sustainable stock market development" held in Ho Chi Minh City, the financial expert, Dr. Vu Dinh Anh said the biggest problem of the market and the transparency of the market fall in information, especially insider information, causing price gouging. All of that information has strengths but if it is not controlled, it will become a negative point, not only shaking the market but also greatly damaging the economy. Therefore, it is necessary to immediately improve the quality of stock market management, combat inside behavior and manipulation associated with technological development to suit the market growth scale. This is the responsibility of regulators, securities companies and investors. If this problem is handled, the market will develop well, becoming a capital mobilization for Vietnam's economic development.

Ms. Nguyen Hoai Thu, Member of the Board of Directors, CEO of the Public Securities and Bonds Investment Division at VinaCapital Fund Management Company, also said there should be more specific regulations on inside information and information sharing to ensure fairness for all investors.

“Overseas, insider trading will be criminally handled, while in Vietnam, there are no strict regulations, so the information is often shared to people with close and internal relationships before making it public, causing abnormal increase and decrease and when investors knew it, it was too late," said Ms. Nguyen Hoai Thu.

Ms. Thu also proposed that insiders are neither allowed to comment on the stock price of the enterprise they are managing, and nor say that the stock is cheap or expensive. Meanwhile, this is banned in foreign countries. In addition, it is necessary to separate consultation and analysis operations of securities companies from the proprietary trading sector, so that the proprietary trading sector does not affect the analysis agency and vice versa, because this is not fair and transparent for investors. This issue has also been clearly stated in foreign stock markets, while in Vietnam it has not been specified.

Improve the quality of products

Assessing the current situation of Vietnam's stock market, Mr. Nguyen The Minh, Head of Individual Customer Analysis Unit, Yuanta Securities Vietnam, said that the individual investments accounted for 90% of the transaction value in 2021 and in 2022, though there are sometime institutional investors that do not join transactions. Therefore, it is necessary to have solutions to mitigate this situation both in the short and medium term. Specifically, it is necessary to re-evaluate the quality of listed products.

Currently, the capitalization of Vietnam's stock market is about US$220 billion and there are 1,700 stocks on all three exchanges. The products are going for quantity rather than quality, which have greatly affected the upgrade. Therefore, it is necessary to improve the quality of products to upgrade the market and stay in the emerging market.

With the same point of view, Assoc. Prof. Dr. Nguyen Van Trinh, economic expert, Vice President of Vo Truong Toan University, emphasized that only the quality of products can attract investors. Along with that the State Securities Commission needs to control the increase of virtual capital.

Assoc. Dr. Nguyen Van Trinh also said that it is advisable to recalculate the proportion of "big players" in VN30 and VN-Index and reconsider the need for ATO and ATC sessions, because these sessions may cause disturbances in the market. .

Mr. Nguyen Hoang Hai, Vice Chairman of the Vietnam Association of Financial Investors (VAFI) assessed that the market still has some shortcomings and that solving these shortcomings depends on policy makers.

“We hope that policy makers should contact associations, investment funds, securities companies, experts to have solutions for the short and long term, then choosing the most feasible solution,” said Mr. Nguyen Hoang Hai.

Accordingly, VAFI is drafting short-term and long-term solutions for a healthy stock market. Specifically, in the short term, it is necessary to lower the margin trading level to avoid financial pressure on investors from mortgage release when the market goes down, easily causing a domino effect, damaging to investors and the whole market. At the same time, it is necessary to amend the current regulations related to the purchase of treasury shares of listed companies, because the prevailing regulations are quite complicated, contrary to international practices.

State Securities Commission: Prioritize solutions to stabilize the market State Securities Commission: Prioritize solutions to stabilize the market

Mr. Nguyen Hoang Hai is also concerned about the fact that many non-specialist investors have entrusted the brokers of securities companies, while the brokers are not all well-trained and professional. This causes investors to suffer heavy losses and burn their accounts when buying and selling, under the advice of these amateur brokers. Therefore, there must be regulations to closely manage the brokers of securities companies.

By Nguyen Hien/ Huyen Trang

Related News

Quang Binh, KhamMuon Customs cooperates in exchanging information

Quang Binh, KhamMuon Customs cooperates in exchanging information

VCN - The delegation of Quang Binh Customs Department has just attended the meeting and signed a cooperation memorandum with the delegation of Khammuon Customs in Thakhek town, KhamMuon province (Lao PDR).
Expanding National Single Window Portal

Expanding National Single Window Portal

VCN - The Customs Authority is actively implementing the work contents related to the Project to expand the National Single Window Portal and connect the ASEAN Single Window mechanism (phase 3).
Diversify and innovate securities products to attract foreign investors

Diversify and innovate securities products to attract foreign investors

VCN - Mr. Kojima Kazunobu, Chief Advisor of the Japan International Cooperation Agency (JICA), said that Vietnam needs to make more efforts in developing the stock market in both quality and quantity to become a potential market, attractive to foreign investors.
Accelerating green transformation for businesses

Accelerating green transformation for businesses

VCN - The green transformation of enterprises is facing many barriers due to the lack of specific regulations and detailed instructions, leading to delays compared to the international market.

Latest News

M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.

More News

Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Read More

Your care

Latest Most read
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Mobile Version