Vietnam’s stock market meets 7 of 9 criteria for upgrading the stock market

VCN – “Vietnam’s stock market meets 7 of 9 criteria in upgrading the stock market, and may be upgraded by 2025, thanks to great efforts of state management agencies and market members” said by experts at the talk show held on March 5.
Positive prospects for Vietnam’s stock market this year Positive prospects for Vietnam’s stock market this year
Determine to soon upgrade Vietnam’s stock market Determine to soon upgrade Vietnam’s stock market
Vietnam’s stock market meets 7 of 9 criteria for upgrading the stock market

Vietnam's stock market nearly meets the level of emerging markets. Photo: Internet

The Government sets the goal of upgrading the Stock market from a frontier market to an emerging market by 2025.

According to Ms. Pham Thi Thuy Linh - Deputy Director of the Market Development Department of the State Securities Commission, the Government issued Decision 1726/QD-CP on the Stock Market Development Strategy until 2030, with the goal of upgrading the stock market by 2025. This is also the key task of the Ministry of Finance over the past time.

The representative of the State Securities Commission said that international rating organizations classify the stock market into four key groups: the developed market group with large capital and high openness; the emerging stock market group has the ability for foreign investors to access, high liquidity scale, and strict legal regulations; the marginal stock market group (Vietnam is in this ranking); the stock market group has not been ranked yet.

According to Ms. Pham Thi Thuy Linh, Vietnam currently meets 7/9 criteria. Currently, two criteria need to be improved including: foreign investors' pre-transaction deposit and ownership ratio of foreign investors.

“For the margin solution, we have discussed with international rating organizations to find a solution. The State Securities Commission has submitted to the Ministry of Finance a proposal to amend and supplement a number of documents, currently, institutional foreign investors are not required to deposit 100% cash” Linh said.

Regarding the foreign ownership rate, she said that the State Securities Commission has coordinated with the Ministry of Finance and the Ministry of Planning and Investment to review industries and announce information in English for investors to easily understand the ownership rate of businesses. At the same time, the Commission has proposed the Ministry of Planning and Investment to collaborate with other ministries and sectors to review industries and possibly expand the ownership rate of foreign investors in some non-essential industries.

In addition, the State Securities Commission will report to the Ministry of Finance to revise the regulations on information disclosure in English applicable to public companies and large-scale listed companies, and expect to apply to announcements in English for periodic information disclosure and large-scale listed organizations from January 1, 2025; for unusual information from January 1, 2026; for all public companies from January 1, 2028.

“The implementation has received high support from market members. We expect to achieve the goal of upgrading the market in 2025. This matter depends heavily on the customer rating review period and experience, we hope that securities companies will disseminate to encourage investors when they have a good experience” Ms. Linh said.

Regarding the use of non-voting depository receipt (NVDR) to remove barriers to upgrading the stock market, Mr. Tran Hoang Son, Director of Market Strategy of VPBankS Securities Joint Stock Company, said that this is the most effective solution at the present time.

The application of NVDR has been applied very successfully in Thailand. The application of non-voting depository certificates helps foreign investors who want to trade stocks in Vietnam do not need to have voting rights.

​According to Mr. Son, Thailand has resolved the immediate transaction needs of foreign investors. This certificate has helped increase 20% of the total transactions in the entire Thai market, which is an important factor helping Thailand upgrade to the emerging market. Similar to Vietnam, where the time is very short to deploy the upgrade the market, this certificate will be the most effective solution.

Mr. Hoang Son said that we are in a pivotal year for the upgrading of the market, the revision of legal framework will meet requirements of international organizations.

Besides, the change in trading infrastructure ensures openness. In the coming time, the new trading infrastructure will help investors trade faster, and many organizations may transact automatically.

On the new infrastructure, there will be many new products, shortening transaction time from T2.5 to T2. The new infrastructure will help investors benefit a lot in terms of trading products and increase market liquidity.

Mr. Son said that motivated by the developed information technology system, investors' transactions will be more transparent, and the sales and market share of the securities company will see growth.

Regarding the KRX system, the representative of the State Securities Commission said that the information disclosure system is deployed for securities companies and depository centers and departments to have a pilot session. The State Securities Commission is determined to put the system into successful pilot.

By Hoai Anh/Ngoc Loan

Related News

Effective inspection and supervision - a key factor for a transparent stock market

Effective inspection and supervision - a key factor for a transparent stock market

VCN - Since 2019, Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.
Many positive signals from stock market upgrade

Many positive signals from stock market upgrade

VCN - Many crucial knots in the process of upgrading the stock market are being untangled by the Government and relevant agencies. Thanks to proactive moves from the management agencies, experts assessed that the stock market was likely to be upgraded according to the set objectives.
Vietnamese stocks on FTSE Russell waiting list for upgrading

Vietnamese stocks on FTSE Russell waiting list for upgrading

VCN - Vietnam remains on the watch list for a possible reclassification from frontier to secondary emerging market and will be updated to Waiting List status for upgrading in September 2024, according to the FTSE ‘s Country Classification review in March.
Efficiency from inspection and supervision - a key factor for a transparent stock market

Efficiency from inspection and supervision - a key factor for a transparent stock market

VCN - Since the 2019 Securities Law officially took effect, the average annual number of penalty decisions has more than doubled compared to the period 2015-2020. This shows that the strictness of the law is being enforced effectively.

Latest News

Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

VCN - Vietnam e-commerce will reach US$30.5 billion in 2035 hence according to Minister of Finance Ho Duc Phoc, it will pose challenges to the management of tax, quality of goods, and anti-fraud.
Banks are ready to deploy biometric authentication

Banks are ready to deploy biometric authentication

VCN - According to Decision No. 2345/QD-NHNN dated December 18, 2023 of the State Bank, which will take effect from July 1, money transfer transactions over 10 million VND/time or over 20 million VND/day will require facial authentication. Accordingly, banks are urgently preparing to be ready to implement new regulations within the set deadline.
Review the tax payment of sales livestream individuals

Review the tax payment of sales livestream individuals

VCN - The General Department of Taxation has just issued an official letter directing local tax departments to drastically manage e-commerce taxes and electronic invoices generated from cash registers.
13 cases subject to direct tax registration with Tax authority

13 cases subject to direct tax registration with Tax authority

VCN – The Ministry of Finance collects comments on a draft Circular guiding tax registration to replace Circular 105/2020/TT-BTC. According to the draft, if the National Population Database

More News

Ministry of Finance: Focusing on improving independent audits

Ministry of Finance: Focusing on improving independent audits

VCN - According to Minister of Finance Ho Duc Phoc, in recent times, the Ministry of Finance has focused on improving the quality of independent audits through training, inspection, and examination.
Digitizing the process, banks actively lend online

Digitizing the process, banks actively lend online

VCN - Many banks promote online lending to save time and costs for both parties and creating conditions to promote credit growth.
The finance sector

The finance sector's firm stance on combating tax evasion in e-commerce

VCN - Addressing and clarifying some opinions raised by National Assembly deputies during the questioning session on issues related to the commerce and industry sectors on the afternoon of June 4, Minister of Finance Ho Duc Phoc stated that in the coming period, the finance sector would rigorously enforce tax collection on e-commerce to ensure fairness in the fulfillment of taxpayers' obligations.
Total State revenue managed by Tax sector is estimated at VND767,415 billion

Total State revenue managed by Tax sector is estimated at VND767,415 billion

VCN – The total state revenue in the first five months of 2024 managed by the Tax authority is estimated at VND 767,415 billion, meeting 51.6% of the target and 114.9% year-on-year.
Tax sector cooperate with Police agency to prevent fraud of tax invoice

Tax sector cooperate with Police agency to prevent fraud of tax invoice

VCN - Over the years, the acts of law violation on electronic tax invoices took place complicatedly with many different tricks. To prevent fraud, the tax sector has applied several drastic measures, including strengthening cooperation with the Police agency.
Over 4.49 billion USD raised through G-bond auctions in five months

Over 4.49 billion USD raised through G-bond auctions in five months

The State Treasury mobilised more than 127 trillion VND (4.49 billion USD) from G-bond auctions on the Hanoi Stock Exchange (HNX), or 31.76% of the annual plan.
Five-month budget revenue reached half of the whole year 2024 revenue estimate

Five-month budget revenue reached half of the whole year 2024 revenue estimate

VCN - According to the Ministry of Finance, in May 2024, total state budget revenue is estimated to reach VND150.9 trillion. In the first five months of 2024, total budget revenue is estimated to reach VND898.4 trillion, equal to 52.8 percent of the estimate.
Bank savings of individual customers recover while institutional savings decline

Bank savings of individual customers recover while institutional savings decline

Deposits of individual customers at banks have increased again since February this year, after declining in January, the latest statistics from the State Bank of Vietnam (SBV) showed.
Foreign investors

Foreign investors' net selling exceeds 2.3 billion USD since 2023

Foreign investors have net sold Vietnamese stocks on HoSE with a value of 58 trillion VND (over 2.3 billion USD) since the beginning of 2023, indicating a prevailing trend of net selling in the Vietnamese stock market.
Read More

Your care

Latest Most read
Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

Ministry of Finance proposes seven solutions for combating tax evation for e-commerce

Vietnam e-commerce will reach US$30.5 billion in 2035 hence according to Minister of Finance Ho Duc Phoc, it will pose challenges to the management of tax, quality of goods, and anti-fraud.
Banks are ready to deploy biometric authentication

Banks are ready to deploy biometric authentication

VCN - VPBank recommends that, to avoid transaction interruptions, customers proactively update their account information according to their chip-embedded citizen identification card before July 1.
Review the tax payment of sales livestream individuals

Review the tax payment of sales livestream individuals

The General Department of Taxation has just issued an official letter directing local tax departments to drastically manage e-commerce taxes and electronic invoices generated from cash registers.
13 cases subject to direct tax registration with Tax authority

13 cases subject to direct tax registration with Tax authority

VCN - Notably, Article 4 of the draft Circular stipulates that taxpayers subject to direct tax registration with tax authorities include: taxpayers subject to tax registration through the interconnected single-window mechanism; Taxpayers subject to direct
Ministry of Finance: Focusing on improving independent audits

Ministry of Finance: Focusing on improving independent audits

According to Minister of Finance Ho Duc Phoc, in recent times, the Ministry of Finance has focused on improving the quality of independent audits through training, inspection, and examination.
Mobile Version