Depository Certificates - New Investment Opportunities and Tools for Vietnamese Securities Investors

Delegates take souvenir photos at the conference.

Attending the workshop were Mr. Vu Chi Dung, Head of the Legal and External Affairs Department, State Securities Commission; Mr. Nguyen Quang Thuong, Deputy General Director of Vietnam Stock Exchange (VNX); Ms. Bernice Tan, Vice President of Singapore Stock Exchange (SGX); and leaders of specialized units of the State Securities Commission, SGX, VNX.

The conference attracted a large number of direct and online participants from experts, representatives of securities companies, securities investment fund management companies, and listed enterprises.

The 2019 Securities Law has created a legal foundation for the offering of securities by Vietnamese issuers abroad; Decree No. 155/2020/ND-CP detailing a number of articles of the Securities Law provides detailed guidance on the conditions and procedures for registering the offering and listing of securities abroad, including depository certificates. Circular No. 119/2020/TT-BTC of the Ministry of Finance also provides regulations on the transfer of ownership of securities for the issuance or cancellation of depository certificates... This is an important legal foundation for Vietnam to gradually deploy and develop the offering and listing abroad (including the offering and listing of depository certificates) in a systematic and professional manner.

The workshop was held for management agencies, stock exchanges and market members to exchange and share experiences to expand opportunities to access international capital markets in the form of depository certificates.

Mr. Vu Chi Dung, Head of Legal and Foreign Affairs Department, spoke at the workshop.

Speaking at the opening of the workshop, Mr. Vu Chi Dung, Head of the Legal and External Affairs Department, State Securities Commission, said: After more than 20 years of development, the Vietnamese stock market has made important strides in terms of scale, quality and depth. In the context of strong globalization, promoting the offering and listing of securities abroad, especially through tools such as Depository Receipts (DR), is an inevitable requirement, not only to expand international capital mobilization channels but also to help Vietnamese enterprises improve their position in the international financial market; at the same time, creating conditions for global investors to have easier access to Vietnamese enterprises.

The representative of the State Securities Commission shared that in the coming time, this agency will continue to perfect the synchronous legal framework, closely coordinate with international financial institutions, major stock exchanges in the world , experts... to promote support for Vietnamese enterprises, ensuring that the process of offering and listing DR takes place smoothly, transparently and effectively.

Mr. Nguyen Quang Thuong, Deputy General Director of VNX presented at the workshop.

At the workshop, Mr. Nguyen Quang Thuong, Deputy General Director of VNX shared the orientation for developing new products in the Vietnamese market. According to Mr. Thuong, Vietnam has a legal basis for issuing and listing depository certificates on Vietnamese stocks abroad and has initially been successfully implemented. Currently, depository certificates on Vietnamese stocks have been issued in the Thai market. In the coming time, VNX will continue to promote bilateral cooperation activities with SGX, including promoting cooperation in sharing experiences in developing new products and technologies and coordinating with SGX to deploy DR issuance on Vietnamese stocks in Singapore.

Participating in the presentation at the workshop, Ms. Bernice Tan, Vice President of Singapore Exchange, provided an overview of the SGX stock market as well as shared experiences in building a legal framework, techniques, implementation, operation and management of depository certificate products; coordination between SGX and Exchanges in the ASEAN region in issuing inter-exchange depository certificates.

Ms. Bernice Tan, Vice President of SGX presented at the workshop.

According to Ms. Bernice Tan, the issuance of inter-exchange depositary receipts will leverage existing market infrastructure to achieve liquidity connectivity across ASEAN markets. The depositary receipt model benefits the domestic ecosystem by expanding opportunities for retail investors, intermediaries and institutional issuers. At the same time, depositary receipts will promote liquidity in the domestic and underlying markets.

During the discussion session, delegates from listed enterprises, securities companies, etc. asked many questions to SGX representatives about the listing of depository certificates of Vietnamese stocks on the Singapore market, the difference between listing depository certificates and direct listing on foreign markets, and risk management experience for investors when participating in depository certificate transactions, etc.

The workshop created an opportunity for management agencies, Stock Exchanges and market members to exchange and discuss in order to orient the development of a suitable legal framework, creating a foundation for the development of new products, contributing to promoting sustainable development and deep integration of the Vietnamese stock market.

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Source: https://nhandan.vn/chung-chi-luu-ky-co-hoi-va-cong-cu-dau-tu-moi-cho-nha-dau-tu-chung-khoan-viet-nam-post895267.html