Expect breakthroughs from innovations.

With the new regulations, the Vietnamese stock market enters 2025 with the expectation of creating a transparent, safe, and attractive investment environment to become a reliable destination for investors.

Vietnamese Stock Market 2025: Expectations for Breakthroughs from Innovations

With the new regulations, the Vietnamese stock market enters 2025 with the expectation of creating a transparent, safe, and attractive investment environment to become a reliable destination for investors.

The new regulations will help reassure investors and promote future market development. Photo: D.T.

From the new standards

After more than two years of applying the HoSE-Index Construction and Management Rules version 3.1, the Ho Chi Minh City Stock Exchange (HoSE) has just issued version 4.0 with many important changes.

According to the new rules, for the first time, after-tax profit is included as a criterion when considering the constituent stocks of the VN30 index. Companies with negative after-tax profits will be excluded from consideration. HoSE will also only consider financial statements with a fully unqualified audit opinion. Companies with a fully unqualified audit opinion but with issues requiring emphasis, attention, or other considerations will need consultation with the Index Council.

Even if a stock has already been selected for the VN30 index, if it falls under the warning category due to violations of information disclosure regulations before the official implementation of the index, the stock will be replaced at the last minute. Information on business results and compliance with information disclosure regulations is also crucial input for decisions during the two index rebalancing periods in January and July each year.

The "new wave" stemming from policy changes not only impacts the VN30 index. Many amendments stipulated in Law No. 56/2024/QH15, which amends and supplements nine laws, including the Securities Law, effective from January 1, 2025, will directly affect the bond and stock markets in the coming period, especially the primary market between issuers and investors.

In the prospectus and related documents totaling nearly 1,200 pages that Vinpearl Joint Stock Company submitted to regulatory authorities and investors, the "giant" of the resort real estate industry included audited reports on owner's equity contributions for the period from 2011 to 2024. The company is ready for the new regulations as it prepares to launch its public offering in the first month of 2025.

Along with supplementing the documentation required for public offerings of securities, Law No. 56/2024/QH15 also introduces credit rating requirements for privately placed bonds that individual professional investors can purchase, in addition to requiring collateral for the bonds or a payment guarantee from a credit institution. Furthermore, the act of "manipulating the securities market" is included in the law, instead of being regulated only in a decree as before.

According to Mr. Dang Thanh Cong, Director of Investment Banking Services in the North at KB Securities Joint Stock Company (KBSV), while changes in the law create significant pressure on businesses and consulting firms, they will improve the quality of "goods" on the market. The new regulations will help investors feel more secure when investing and promote market development in the future.

Towards breakthrough expectations

At the opening bell ceremony for the first stock exchange trading session of 2025, Minister of Finance Nguyen Van Thang outlined six key tasks for the year. The first is to continue perfecting the legal framework, including decrees and guiding documents for the amended and supplemented Securities Law; and to implement the Securities Market Development Strategy until 2030, with the goal of upgrading the Vietnamese stock market from a frontier market to an emerging market by 2025.

It requires the efforts of all market participants.

- Mr. Nguyen Van Thang, Minister of Finance

The fulfillment of the securities industry's mission will require continuous efforts from all market participants, from improving infrastructure and service quality to attracting investors, especially international investors, and attracting medium and long-term capital for the state budget, businesses, and the economy . We need to create a transparent, safe, and attractive investment environment so that the stock market becomes a reliable destination for domestic and foreign investors.

The Ministry of Finance will coordinate with other ministries and agencies to direct the State Securities Commission, stock exchanges, and the Vietnam Securities Depository and Clearing Corporation (VSDC) to focus all efforts on developing the securities market sustainably.

Previously, the Ministry of Finance had urgently announced a draft amendment to Decree 155/2020/ND-CP for public consultation. Among the notable proposals were shortening the listing process from 90 days to 30 days; and removing the "adjusted securities registration certificate issued by the Vietnam Securities Depository and Clearing Corporation (VSDC)" from the listing/trading registration and changes to listing/trading registration documents.

The provision allowing public companies to decide on a lower maximum foreign ownership ratio than the one stipulated by the shareholders' general meeting and previously stipulated in the company's charter has also been removed. Instead, the drafting agency proposes that a lower "foreign ownership limit" than the stipulated ratio should only be decided by a competent state agency, in order to reduce risks for foreign investors who may not anticipate changes from the company.

Along with facilitating investors, reforming administrative procedures, and creating the best conditions for listed and registered trading organizations, intermediary financial institutions, and investors, the tasks set by the head of the finance sector for 2025 particularly focus on supervision, inspection, and strict handling of violations in the stock, derivatives, and corporate bond markets, as well as information disclosure obligations.

The Minister of Finance also requested the securities industry to focus on communication, improving the capacity of individual investors, providing timely information to investors, limiting the psychological impact of bad news on the stock market, and promoting the participation of domestic and international investors.

With six proposed solutions and tasks, including perfecting the legal framework, Minister Nguyen Van Thang expressed his hope that the Vietnamese stock market will experience a breakthrough in both scale and quality in 2025. Specifically, the Vietnamese securities industry needs to create a transparent, safe, and attractive investment environment. Through these changes, the stock market will become a reliable destination for domestic and foreign investors.

Source: https://baodautu.vn/chung-khoan-viet-nam-2025-ky-vong-dot-pha-tu-nhung-doi-moi-d238969.html