'Foreign investors trading stocks will have their margin conditions loosened'

This year, the Ministry of Finance will propose loosening deposit conditions for investors before trading, according to Deputy Minister of Finance Nguyen Duc Chi.

Vietnam aims to upgrade its stock market from frontier to emerging by 2025. At a regular Government press conference on the afternoon of February 1, Deputy Minister of Finance Nguyen Duc Chi said one of the conditions for upgrading the market is to handle the issue of pre-transaction margin deposits of investors, especially foreign investors.

According to current regulations, foreign investors must deposit 100% of transactions, and this is considered a bottleneck that rating organizations recommend Vietnam needs to remove.

"This year, the Ministry will work with agencies to review, evaluate and submit to competent authorities feasible solutions to remove obstacles regarding deposits before transactions," said Mr. Chi.

Another condition for Vietnamese securities to be considered for upgrading is to be transparent about the ownership ratio of foreign investors in enterprises listed on the stock exchange.

Mr. Chi said that the Ministry will issue regulations requiring listed companies to update and disclose information on the market in real time, and in both English and Vietnamese, to be transparent with investors. This will be implemented in the first half of this year and completed by the end of 2024.

In addition, the new securities trading system will also be put into operation by the management agency to ensure market depository payment requirements.

However, according to the Deputy Minister of Finance, for the Vietnamese stock market to be rated and upgraded to emerging status by organizations still depends a lot on other legal regulations. "Any solution proposed must ensure systemic risk management and safe market operation," the Deputy Minister of Finance concluded.

According to the stock market development strategy until 2030 approved by the Prime Minister , the stock market capitalization will reach 100% of GDP by 2025 and 120% of GDP by 2030. This figure is nearly double the current capitalization.

The number of securities trading accounts of investors in the target market will reach 9 million accounts in the next two years and 11 million accounts in 2030, focusing on developing institutional investors, professional investors and attracting the participation of foreign investors. The outstanding debt of the bond market will reach at least 47% of GDP (of which the outstanding debt of corporate bonds will reach at least 20% of GDP) in 2025 and at least 58% of GDP in 2030.

By the end of 2023, the total market capitalization by the end of this year will reach more than 240 billion USD, equivalent to 56.4% of GDP, of which the HoSE floor alone is 186 billion USD.

Mr. Minh

Source link