The Ministry of Finance is committed to maintaining the continuous and safe operation of the stock market.

Accordingly, on the afternoon of January 5, at the regular Government press conference in December 2023, the Ministry of Finance informed the press about the results of handling and resolving problems in the bond market as well as the stock market. Along with that is the upgrading of the stock market.

Deputy Minister of Finance Nguyen Duc Chi informed at the press conference.

By December 31, the total transaction value in the organized bond market was VND 218,000 billion.

According to Deputy Minister of Finance Nguyen Duc Chi, regarding the bond market, 2023 will have some bright spots in the market. The first is the legal framework. In 2023, the Government issued Decree 08, which includes provisions on suspending the validity of some provisions of Decree 65 as well as allowing businesses to negotiate with investors to handle maturing bonds, ensuring the principles of harmonious benefits and shared risks. "Decree 08 is a bright spot in the law and will have a great impact on the bond market in 2023," Mr. Chi emphasized.

Second, regarding market organization, Deputy Minister Nguyen Duc Chi said that in July 2023, the Ministry of Finance officially put the centralized private corporate bond trading market into operation and by December 31, the total transaction value on the organized bond market was VND 218,000 billion, with an average transaction value of VND 1,880 billion/session. Currently, there are over 887 bond codes of 249 bond-registering organizations registered and traded on this centralized market. With this centralized market, the Ministry of Finance assessed that it has contributed to improving transparency as well as increasing liquidity for corporate bonds.

The third point is the work of supervision, inspection as well as propaganda and communication. Mr. Nguyen Duc Chi said that the Ministry of Finance has directed all the functional agencies of the Ministry to strengthen the work of inspection, market review and inspection of both issuing enterprises and consulting enterprises. In the process of implementing the work of the bond market, communication work should be strengthened. From there, society, investors, the issuing organizations themselves as well as organizations providing consulting services will have a deeper understanding of the provisions of law related to the bond market.

The fourth point is the specific results through the numbers of the bond market. The Deputy Minister of Finance said that by the end of 2023, 81 enterprises had issued bonds with a volume of VND 269.5 trillion. Enterprises also arranged resources to pay maturing bonds and negotiated with investors when restructuring and extending bonds to reduce the pressure of paying principal and interest on bonds. Accordingly, the volume of corporate bond repurchases before maturity in 2023 was also VND 238 trillion and term bonds were also nearly 40%.

"As for the investor structure, this number is also worth seeing the changes in the market: Investors and organizations participating in the primary market to buy bonds in 2023 account for 92.4% and individual investors only account for about 7.6% of the primary bond market. That means there is a huge change in the way of approaching the market, including both issuers and investors," Mr. Chi emphasized.

Regarding expectations for 2024, Deputy Minister Nguyen Duc Chi stated: "For this corporate bond market, we see that confidence is returning and the expectation is that with specific solutions and the recovery of the economy , the corporate bond market in 2024 will continue to maintain and have sustainable and substantial growth. The quality of the market will be raised a step forward for both issuing organizations, issuing enterprises as well as investors and service providers."

Deputy Minister Nguyen Duc Chi affirmed: The Ministry of Finance is committed to maintaining the continuous and safe operation of the stock market.

In 2023, 6 securities companies were handled for violations.

Regarding the stock market, Mr. Nguyen Duc Chi said that in terms of legal aspects, the Ministry of Finance is also consulting with ministries and branches to amend Decree 155 and Decree 156, as well as Decree 128 guiding the Securities Law as well as sanctioning administrative violations to have tools and a legal framework for implementation. The Ministry of Finance also issued Circular 69 to re-regulate the roadmap for arranging stock markets, bonds, derivatives markets and other markets.

Second, the inspection, supervision and handling of violations are also focused on resources for implementation. Specifically, according to Mr. Nguyen Duc Chi, in 2023, the Ministry of Finance conducted 67 inspection teams, issued 412 penalty decisions with a total fine of 37.2 billion VND. The Ministry of Finance has directed units to promptly coordinate with the Securities Commission to conduct inspections of many auditing companies approved to organize audit reviews and financial reports, and strictly handle violations by enterprises and auditors to ensure market correction.

Third, market restructuring. The Deputy Minister of Finance said that he has carried out a purge of weak and ineffective securities companies and fund management companies. In 2023, he handled violations of 6 securities companies, put 1 securities company under control and 2 securities companies under warning.

Fourth is the application of information technology and digital transformation. The Ministry of Finance has deployed a synchronous database of transactions, transfers and investors, connecting investor data with the citizen database to manage and monitor the stock market.

Regarding the results, the VN-Index as of December 29 was 1,129 points, up 12% compared to the end of 2022, liquidity in the stock market reached 17,500 billion VND per session and the market capitalization scale is estimated at 6,000,000 billion and increased by 9.5% compared to 2022, equivalent to about 62% of GDP in 2022.

Along with that, the derivatives market maintained a stable average trading volume of 263,000 contracts/session. The number of new investors registering to open new accounts in 2023 was 355,000, bringing the total accounts of current securities investors to over 7,000,000 accounts.

According to Deputy Minister Nguyen Duc Chi, the Government's major solutions to ensure macroeconomic balance, sustainability and continued growth and quality in 2024 are the foundation for the stock market to develop stably and sustainably in 2024. "The Ministry of Finance is committed to maintaining the market's continuous and safe operation. We will continue to focus on keeping the market transparent and ensuring the legitimate rights of all participants in the stock market," Mr. Chi emphasized.

Regarding upgrading the stock market, Mr. Chi said that in 2024, the Ministry of Finance, together with relevant ministries and branches, will proactively and drastically implement many different solutions to soon achieve the standards for upgrading the stock market as soon as possible; propose credit rating and stock market rating organizations to decide to upgrade the stock market.

Source: https://www.congluan.vn/bo-tai-chinh-cam-ket-duy-tri-thi-truong-chung-khoan-van-hanh-mot-cach-lien-tuc-va-an-toan-post279871.html