September will have results of stock market upgrade

The above information was stated by Deputy Minister of Finance Tran Quoc Phuong at the regular Government press conference in April on the afternoon of May 6.

According to Mr. Phuong, 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 "frontier market" to "emerging market".

Overview of the regular Government press conference in April 2025. (Photo: VGP)

"There are two parallel processes here. The State Securities Commission has just worked with upgrading organizations such as FTSE or MSCI, in which, with the 9 criteria of these organizations, Vietnam has met the upgrading conditions. However, this is only a necessary condition, the sufficient condition is the remaining process, depending on the assessment of foreign investors on investment activities in the Vietnamese stock market," said Deputy Minister Tran Quoc Phuong.

Therefore, according to Mr. Phuong, a major solution is needed to increase foreign investors' confidence in the market, as well as strengthen support for the upgrading decision of organizations in the coming time.

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

Along with the previous issuance of Circular 68/2024/TT-BTC, supplementing regulations on stock purchase transactions that do not require sufficient funds when placing orders by foreign institutional investors, an important "bottleneck" has been removed, helping investment activities to be smooth.

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 mechanism.

Third, 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.

Fourth, research and implement general trading accounts in the direction of initially applying to foreign investment funds, then propose amendments and supplements to related regulations. General trading account (OTA - Omnibus trading account) is an account that allows the fund management company to simultaneously buy/sell securities for all funds that the company manages and does not have to execute separate buy/sell orders on each fund account as is currently the case.

The implementation of a general trading account will help foreign institutional investors and fund management companies simplify order placement 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 the 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.

Also at the press conference, Deputy Minister of Finance Tran Quoc Phuong informed that through the data, it can be affirmed that the situation of new business registration as well as businesses returning to operation in the first months of the year is very positive.

Specifically, the first quarter reached 36,400 enterprises, which is equivalent to 2024. However, compared to the previous period (2017 - 2023), it has increased by about 1.2 times. In particular, the registered capital of newly established enterprises also increased, up about 1.5% compared to the same period in 2024.

Through the above comments, it can be seen that in the first quarter of 2025, there will be an explosion in new business registrations and businesses returning to operation.

Thanh Lam

Source: https://vtcnews.vn/thang-9-se-co-ket-qua-nang-hang-thi-truong-chung-khoan-ar941765.html