At the conference “Legal framework and capital mobilization solutions for enterprises” held on the morning of August 14 in Ho Chi Minh City, Dr. Ta Thanh Binh, General Director of Vietnam Securities Depository and Clearing Corporation (VSDC), Arbitrator of Vietnam International Arbitration Center (VIAC), said that liquidity in the stock market is clearly growing.

In July alone, the average total trading liquidity was over VND32,000 billion/session. Recent trading sessions have been over VND50,000 billion/session. This shows the interest, especially from foreign investors, in the channel of capital mobilization through securities.

According to Ms. Binh, the main driving force for the strong breakthrough of the Vietnamese stock market comes from investors' expectations of market upgrading. Specifically, when the stock market is upgraded, the image of the capital market is raised to a higher level and most importantly, it always affects the capital flow that will be allocated from large international investment funds.

However, these investment funds have clear criteria, only disbursing capital in developed and emerging markets. For frontier markets like Vietnam, the proportion of allocated capital will be less. Therefore, if Vietnam wants to attract large capital sources, it must upgrade its rating. Then, the national credit will be better and help international borrowing costs become cheaper.

Over the past two years, the authorities have implemented many solutions and carefully reviewed the points that need to be overcome to serve the upgrading goal. Up to now, the “hard” criteria such as capitalization scale, liquidity and the number of large-scale enterprises have met the requirements. The “soft” criteria such as creating favorable conditions for foreign investors have also been basically met.

Dr. Ta Thanh Binh - General Director of Vietnam Securities Depository and Clearing Corporation (VSDC), Arbitrator of Vietnam International Arbitration Center (VIAC)..JPG
Ms. Ta Thanh Binh said that the authorities have implemented many solutions so that the stock market can be upgraded. Photo: ITPC

“Currently, foreign investors are not required to have sufficient funds at the time of placing an order. Instead, they only need to have sufficient funds at the time of payment, which is T+2. In addition, the account opening process is completely automated and does not require hard copy documents, which can be added later if necessary. The total account opening time for foreign investors is only 1 working day,” Ms. Binh cited.

In the future, the management agency will also allow foreign investors to increase their ownership ratio in enterprises higher than the current level.

Regarding market transparency and corporate governance quality of listed companies. Currently, the VN30 group has required simultaneous information disclosure in both Vietnamese and English. Along with that, updated information from the Stock Exchange, VSDC, and large enterprises are posted in both Vietnamese and English for foreign investors to access.

According to the roadmap, the entire stock market, with about 2,000 listed and registered businesses, will have to complete the process of disclosing information in English by the end of 2026.

In addition, the State Securities Commission also coordinates with international organizations and the business community to organize training courses, exams, and conferences to improve the quality of corporate governance. Many listed companies have achieved governance levels according to international standards.

“I look forward to FTSE Russell making a clear decision in September regarding the possibility of upgrading, which will bring a real boost to the Vietnamese stock market and economy ,” she said.

“The total capital mobilized through the stock market in the first 6 months of the year reached over 250,000 billion VND. In particular, capital mobilization through the bond channel has increased significantly compared to 2024. The strong increase in foreign capital flows reflects high expectations for the market,” the VSDC General Director added.

Tan Tao Company's shares will be forced to be delisted . Since the shares were suspended from trading, Tan Tao Company's violations of information disclosure have not been resolved and are likely to continue, affecting shareholders' rights.

Source: https://vietnamnet.vn/2-000-doanh-nghiep-niem-yet-se-phai-cong-bo-thong-tin-bang-tieng-anh-2431944.html