Overview of the workshop on July 17 in Hanoi - Photo: BN
Market meets most of the upgrade requirements?
Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission (SSC) - commented at the Workshop on Raising Investor Awareness towards Upgrading the Stock Market, organized by Investor Magazine on July 17 in Hanoi.
One point of expectation for the market, according to Mr. Hai, is that foreign investors will return to net buying, more than 13,000 billion VND in the first half of July.
"We regularly maintain an exchange mechanism with foreign investors and they have positive assessments of the Government 's reforms and efforts. For example, applying the NPF (Non-Prefunding) mechanism for foreign investors helps increase the number of transactions.
There have been hundreds of thousands of NPF transactions (transactions without deposit), the number of NPF accounts for more than 50% of foreign block buying orders today. Regarding the mechanism for handling failed transactions, out of hundreds of thousands of NPF transactions, only a few failed and all had a satisfactory processing mechanism. Therefore, the expectation for upgrading is quite high," Mr. Hai added.
According to Mr. Hai, upgrading the rating is not the destination, we still have to continue to maintain the rating and aim for a higher rating, but the highest thing is to develop the Vietnamese stock market in an increasingly transparent, fair, and modern direction, meeting the function of a channel to attract and allocate medium and long-term capital for the economy .
The leader of the State Securities Commission also said that up to now, the commission has coordinated with VSDC (Vietnam Securities Depository and Clearing Corporation) to develop a roadmap, preparing to announce the roadmap for implementing CCP (central clearing counterparty mechanism) for the market, with an expected preparation time of 1 - 1.5 years for implementation.
Next, when upgrading foreign investors, there must be something for them to invest in. Therefore, we must increase transparency in information disclosure, develop clean green products, ESG products suitable for current funds, and continue to reform administrative procedures to make it easier for foreign investors to access.
The second problem is the foreign ownership ratio of foreign investors. Currently, this ratio is extremely complicated, more than 400 enterprises have an ownership ratio of 0. When the market is upgraded, foreign investors come in but there is no room, so how can they invest?
In addition, foreign room is currently stuck with two problems, which are that foreign room regulations are very complicated. Many industries do not really need to apply foreign ownership restrictions but still apply them. It is a waste for businesses to register too many industries but do not really use them but are limited in their ability to attract foreign capital.
Mr. Bui Hoang Hai (sitting in the middle), Vice Chairman of the State Securities Commission, shared at the workshop - Photo: BN
Leading Southeast Asia in liquidity
Sharing this view, Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, assessed that the Vietnamese stock market has developed strongly in terms of scale, liquidity and quality of goods, gradually becoming an important medium- and long-term capital channel for the economy.
"As of yesterday's session (July 16), the average liquidity of 10 sessions on the market led Southeast Asia. This is important information for the development of the market because investors, especially foreign investors, when looking at the development of the market, in addition to factors such as market mechanisms and policies, liquidity is also very important," said Ms. Vu Thi Chan Phuong.
Ms. Phuong shared: "International experience shows that upgrading the stock market is a highly effective solution. Therefore, from 2022, Resolution 86 of the Government on developing a safe, transparent and sustainable capital market has set a very specific goal of developing the stock market to become the main medium and long-term capital mobilization channel for the economy, urgently implementing necessary solutions to upgrade the Vietnamese stock market from a frontier market to an emerging market."
Next, in 2023, the Prime Minister also approved the Strategy for developing the Vietnamese stock market to 2030 and set a specific goal of upgrading from a frontier market to an emerging market by 2025.
According to Ms. Nguyen Ngoc Linh, General Director of DNSE Securities Company - recently, the management agency, especially the State Securities Commission, has created a complete, methodical, professional roadmap for the market, securities companies and investors, approaching international practices.
"The legal reform and information transparency to make it easier for international investors to access information and the abolition of pre-funding requirements for foreign investors from November 2024 have received many positive responses from foreign investors," Ms. Linh assessed.
Lifespan of stock investor is only 2 years
According to VSDC data as of June 30, the stock market has 10.2 million trading accounts, of which individual investors account for 99.82%, institutional investors only 0.18% and foreign investors nearly 0.5%. Individual investors account for over 80% of the total market transaction value.
However, according to Ms. Linh, individual investors have limitations in terms of personal factors, short-term investment, and do not trust experts but trust themselves more. Therefore, most actions in the market are being controlled by psychological factors and crowds.
That is why there is a statistic that 95% of investors are losing money, the average life span of investors participating in the market is very short, they only participate for 2 years and lose money so they leave the market.
Source: https://tuoitre.vn/thanh-khoan-cua-thi-truong-chung-khoan-viet-nam-dang-dung-dau-dong-nam-a-ky-vong-nang-hang-kha-lon-20250717194324672.htm
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