Upgrading the stock market with the spirit of 'saying and doing'

On the morning of February 28, Prime Minister Pham Minh Chinh chaired a conference to deploy the task of developing the stock market in 2024. According to the Prime Minister, the stock market is a flexible and attractive investment channel for organizations and individual investors; at the same time, it is an important medium- and long-term capital mobilization channel for businesses. "In short, economic development cannot be without the stock market, and developing the stock market is an objective requirement," the Prime Minister emphasized.

Prime Minister Pham Minh Chinh with delegates attending the conference

At the conference, one of the issues that many delegates mentioned was upgrading the Vietnamese stock market. According to Deputy Governor of the State Bank of Vietnam (SBV) Pham Thanh Ha, Vietnamese stocks are currently classified in Group 3 (frontier market) by two market rating organizations, MSCI and FTSE Russell.

In particular, FTSE Russell is currently putting Vietnam on the waiting list for upgrading to Group 2 (emerging market). The State Bank has worked with the above two organizations to answer questions and concerns of investors related to the banking sector, gradually develop the foreign exchange market, support foreign exchange liquidity when necessary to serve the growing needs of investors, especially foreign investors. The State Bank recommends that the Ministry of Finance and the State Securities Commission continue to diversify investors participating in the market, encourage funds, insurance companies, foreign investors... to participate more deeply and widely in the market.

Mr. Ketut Ariadi Kusuma, Head of the Finance, Competitiveness and Innovation Group of the World Bank (WB) in Vietnam, said that the WB estimated that upgrading the stock market could bring 25 billion USD of new investment capital from international investors to the Vietnamese market by 2030, with some conditions, such as Vietnam must be upgraded by both FTSE Russel and MSCI. In addition, Vietnam must consider resolving issues of foreign ownership limits (FOL) and continue to equitize large state-owned enterprises. Solutions include improving information disclosure, increasing access to stocks that have reached the limit and most importantly, increasing the foreign ownership limit.

Concluding the conference, Prime Minister Pham Minh Chinh stated that in 2024, Vietnam will continue to maintain macroeconomic stability, ensure major balances, and maintain political and social stability to reassure investors. "We are determined to upgrade Vietnam's stock market from frontier to emerging in 2025," the Prime Minister affirmed.

The head of the Government requested to urgently implement necessary measures to upgrade the Vietnamese stock market, especially focusing on resolving difficulties and obstacles to meet the upgrading criteria with the spirit: "If you say you must do it, if you commit, you must implement it, with products and measurable results". The Prime Minister assigned the Ministry of Finance, the State Securities Commission, the State Bank of Vietnam, and the Ministry of Planning and Investment to urgently coordinate, quickly handle, and soon have results on the obstacles under their responsibilities to meet the regulations and criteria for upgrading the stock market, and report the results before June 30.

Source: https://thanhnien.vn/nang-hang-thi-truong-chung-khoan-voi-tinh-than-da-noi-la-lam-185240228235233663.htm