Upgrading the stock market: The journey to build trust
(Chinhphu.vn) - Upgrading the stock market is not only a technical goal, but also a process of building a foundation for sustainable development. The key factor is to strengthen trust, improve governance quality and investor experience.
Báo Chính Phủ•17/07/2025
Workshop "Raising investor awareness towards upgrading the stock market" - Photo: VGP/HT
Upgrading isthe journeyto create a sustainable market ecosystem
Speaking at the workshop "Raising investor awareness towards upgrading the stock market" on July 17, Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), affirmed: Upgrading is not the final destination but a long-term journey, aiming to develop a transparent, modern and integrated stock market.
According to Ms. Vu Thi Chan Phuong, in recent times, the Vietnamese stock market has made great strides in terms of scale, liquidity and quality of goods. The average liquidity of the last 10 sessions has led the Southeast Asian region, becoming a positive signal for investors, especially foreign investors.
The State Securities Commission assessed that attracting indirect investment capital - especially from large institutional funds - can create positive multi-dimensional effects for the stock market, while developing a medium- and long-term capital mobilization channel to serve economic growth.
Among the solutions to attract foreign investment, upgrading the market is the top priority. Resolution 86/2022 of the Government on developing a safe, transparent, efficient and sustainable capital market to stabilize the macro economy and mobilize resources for socio-economic development has set a specific goal of upgrading Vietnam's stock market from frontier to emerging. Next, the Stock Market Development Strategy to 2030 (Decision 1726) sets a target of achieving the upgrade by 2025.
Recently, Resolution 68 of the Politburo continued to emphasize the urgent need to upgrade the stock market and comprehensively restructure to expand capital channels for the private sector. On that basis, the State Securities Commission has developed specific plans, announced a roadmap to meet international criteria, and regularly organized conferences with foreign investors and rating organizations such as MSCI and FTSE Russell to exchange, provide feedback and improve policies.
According to Ms. Chan Phuong, the upgrade cannot be done by the management agency alone, but is the responsibility of all market participants. In particular, the experience of foreign investors is an important factor for rating organizations to evaluate the upgrade.
Therefore, securities companies need to improve service quality, ensure transparency, and publish bilingual information, contributing to enhancing the experience and trust of international investors. Listed companies also need to improve governance and disclose accurate and timely financial information.
Domestic investors, who account for a large proportion of the market, need to be properly trained to avoid emotional investment, contributing to market stability. The State Securities Commission is currently completing two important projects: Investor Training and Investor Restructuring. In particular, the investment fund development project will increase the proportion of the fund industry to the equivalent of 6% of GDP (about 29 billion USD), creating a long-term and sustainable capital flow.
Chairwoman of the State Securities Commission Vu Thi Chan Phuong speaks at the Workshop - Photo: VGP/HT
Need for synchronous reformfrom institutions to technology platforms
Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission, said that Vietnam has met most of the criteria for upgrading, especially after implementing the NPF (non-pre-funding) mechanism to help foreign investors trade more flexibly. Currently, more than 50% of foreign buying orders are through the NPF, showing high confidence in policy reform.
However, upgrading is just the beginning. The SSC is coordinating the implementation of the CCP (central clearing house) mechanism - a necessary step to maintain the new status. Along with that, it is necessary to develop green financial products, ESG, administrative reform and remove barriers on foreign room and complicated regulations on registered industries.
Mr. Nguyen Son, Chairman of the Board of Directors of the Securities Depository and Clearing Corporation, emphasized that although the stock market has prepared for upgrading, training and raising investor awareness is still a continuous task. The current rate of individual investors accounts for more than 99.7%, making the market vulnerable to fluctuations. Therefore, it is necessary to promote training, develop investment funds and have preferential tax policies to encourage investment through professional institutions.
From a business perspective, Mr. Hoang The Hung, representative of Eximbank, said that it is necessary to make the market transparent through standardizing governance, disclosing information fully and fairly, creating a healthy investment environment for foreign investors.
Mr. Phan Duc Hieu, Member of the National Assembly's Economic and Financial Committee - Photo: VGP/HT
Emphasizing the need to improve intermediary capacity and encourage long-term investment, Mr. Phan Duc Hieu, member of the National Assembly's Economic and Financial Committee, assessed that training 99.98% of individual investors to become professionals is not easy. Therefore, it is necessary to promote the development of financial consulting services, asset management, as well as investment services through professional funds.
To do this, Mr. Hieu recommended reviewing barriers to entering the fund market, diversifying investment fund products and preferential tax policies for institutional investors.
From a business perspective, Ms. Nguyen Thi Hang Nga - General Director of Vietcombank Fund Management Company (VCBF) said: Investors often invest based on emotions, lacking long-term strategies. Investing through funds helps investors access knowledge, experience and professional management. With a team of more than 75 years of international experience, VCBF is a typical example of effective long-term portfolio management.
Sharing the same view, Mr. Le Duc Khanh, Director of Analysis of VPS Securities JSC, said: The company continuously organizes seminars to improve investors' understanding of stocks, bonds, fund certificates and personal finance. Long-term investment direction of 5-10 years will help investors increase sustainable profits and reduce risks.
Mr. Vo Hoang Hai, Deputy General Director of Nam A Commercial Joint Stock Bank, said that comprehensive finance is a tool to support vulnerable groups, including people in remote areas, workers, and small businesses. In the stock market, individual investors also need to be protected through fair access to information and support from the banking system and securities companies.
It is necessary to build a transparent information platform, reduce psychological shock and restore confidence in the market – which was damaged during the bond and insurance crisis.
Emphasizing the role of the media, Mr. Phan Xuan Thuy, Deputy Head of the Central Propaganda and Mass Mobilization Commission, stated that developing the stock market is an important driving force to achieve the GDP growth target of 8% by 2025. To successfully implement the upgrading roadmap, the role of the media in raising investor awareness is extremely essential.
Mr. Phan Xuan Thuy proposed 5 key solutions including: Promoting official communication; requiring businesses to be transparent and provide information promptly; training a team of specialized financial journalists; popularizing investment knowledge for individual investors; and strictly handling false information that causes market manipulation.
Sharing the same view, Dr. Nguyen Anh Tuan, Chairman of the Association of Foreign Investment Enterprises, emphasized the role of specialized press on financial securities. In order for investors to understand the increasingly diverse and complex products, specialized columns and a team of well-trained reporters are needed. Misinformation can negatively affect market sentiment and cash flow, especially for F0 investors.
"It is necessary to strengthen coordination between the State Securities Commission, the press and financial institutions in training and providing accurate and in-depth information," Mr. Nguyen Anh Tuan suggested.
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