Stock Market Upgrade: Results to Share in September

(Dan Tri) - Vietnam has met 9 criteria of upgrading organizations. However, this is only a necessary condition, the sufficient condition depends on foreign investors' assessment of the market investment situation.

Prospects for stock market upgrade in September

This afternoon (May 6), sharing at the regular Government press conference in April, Deputy Minister of Finance Tran Quoc Phuong affirmed that upgrading the stock market is a task strongly directed by the Prime Minister.

Based on the Prime Minister 's direction as well as the strategic orientation for developing the Vietnamese stock market until 2030, recently, the Ministry of Finance and the State Securities Commission have actively implemented solutions to promote upgrading from a "frontier market" to an "emerging market".

"There are two parallel processes here. The State Securities Commission has just worked with upgrading organizations such as FTSE or MSCI. With the 9 criteria of these organizations, Vietnam has met the upgrading conditions. However, this is only a necessary condition, the sufficient condition depends on foreign investors' assessment of the investment situation in the Vietnamese stock market. The higher the ratio, the more we achieve," Mr. Phuong shared.

In the coming time, the Ministry of Finance will orient a number of major solutions to increase foreign investors' confidence in the market, as well as strengthen support for the upgrading decision of organizations.

The first is to effectively deploy the KRX system with many new features on payment, transaction, and risk prevention in foreign investors' trading activities.

Second, review and amend Decree 155, clearly specifying the deadline for public companies to complete the notification of the maximum foreign ownership ratio to make ownership information transparent for market participants. Implement clearing and settlement activities according to the central clearing counterparty mechanism.

Deputy Minister of Finance Tran Quoc Phuong (Photo: VGP).

Third is to simplify procedures for opening indirect investment capital accounts. With this solution, the Ministry of Finance is coordinating with the State Bank to support foreign indirect investment activities in Vietnam, aiming to attract diverse capital sources in the stock market.

Fourthly, research and implement general trading accounts in the direction of initially applying to foreign investment funds, then propose amendments and supplements to related regulations. The implementation of general trading accounts will help foreign institutional investors and fund management companies simplify the placement of orders for funds and ensure order matching at the same price for each fund that the company manages.

Fifth, increase the supply of goods and develop new products for the stock market such as shortening the process of listing shares after IPO (initial public offering); develop investment indexes in addition to the current market indexes as a basis for investment activities of funds...

Finally, establish a policy dialogue group consisting of members of the State Securities Commission, experts, investment funds, international investment organizations, securities companies... to support the upgrading process.

"With such solutions, the Ministry of Finance believes that the story of upgrading the market this September will have specific results to share," Deputy Minister Tran Quoc Phuong shared.

There will be a 500,000 billion VND credit package for infrastructure and digital technology.

At the meeting, Mr. Dao Minh Tu, Deputy Governor of the State Bank, also informed that banks are preparing to deploy a credit package of 500,000 billion VND for lending to the infrastructure and digital technology sectors.

He said the VND500 trillion credit package aims to create financial resources for businesses to invest in key infrastructure projects, digital technology, and smart manufacturing, as a premise to achieve the double-digit GDP growth target in the coming period.

According to him, the State Bank has worked with 21 commercial banks to plan the implementation of this package. Of which, 4 state-owned commercial banks (Vietcombank, VietinBank, BIDV and Agribank) each registered 60,000 billion VND.

In addition, 12 large private banks registered 20,000 billion VND each. 5 other banks participated with about 4,000 billion VND each.

"The State Bank and banks will continue to prepare in May to soon implement the credit package according to the Government's direction," said Mr. Tu, adding that this is a macro management tool, not simply a credit policy.

Deputy Governor of the State Bank of Vietnam Dao Minh Tu (Photo: VGP).

According to Deputy Governor Dao Minh Tu, the VND500 trillion credit package does not use money from the budget or foreign loans. Commercial banks will mobilize resources for the credit package based on capital restructuring and loan terms.

The preferential interest rate is expected to be at least 1% lower than the current average rate, maintained for two years to facilitate businesses in implementing projects. "With this form, the credit package ensures flexibility, reduces the budget burden, while still supporting areas that need medium and long-term capital," said Mr. Tu.

Loan terms for infrastructure projects are often long, 5-10 years, while banks' mobilized capital is mainly short-term, so according to Mr. Tu, it is necessary to coordinate flexibly and comply with principles to ensure liquidity and safety of the credit system.

Source: https://dantri.com.vn/kinh-doanh/nang-hang-thi-truong-chung-khoan-thang-9-se-co-ket-qua-de-chia-se-20250506195416919.htm