More boost for stock market

The liquidity of tens of thousands of billions of VND per recent trading session shows the undeniable attraction of the Vietnamese stock market. However, the pressure to reform to improve the quality of goods and develop sustainably is becoming urgent...

Experts propose considering tax exemptions and reductions for long-term investments to encourage long-term investment in the stock market - Photo: HA QUAN

In order to not only be a "hot" investment channel but also become a sustainable capital foundation for the economy , the Vietnamese stock market needs to enter a period of strategic reform, focusing on listing quality, attracting sustainable cash flow and a policy framework - especially taxes - capable of "nurturing" the market in the long term.

Need more quality goods

Mr. Dang Tran Phuc, Chairman of the Board of Directors of AzFin Vietnam - a company specializing in training solutions and financial consulting for securities, believes that the attractiveness of the stock market must start from the quality of goods on the floor. Therefore, improving the quality and quantity of "goods" - that is, listed companies - must be the top priority.

"We cannot expect a healthy market if growth is based solely on speculative games or depends on the price movements of a few large-cap stocks," Phuc warned, adding that a healthy market cannot lack the presence of leading businesses that are capable of setting new standards in governance, scale and transparency.

Therefore, encouraging large corporations, especially those in the technology sector and industries with the potential to lead future trends such as semiconductors, artificial intelligence (AI), e-commerce, etc. to participate in the market is a strategic task, the expert emphasized. In addition, a simple and transparent listing process is needed to encourage businesses to actively go public.

Meanwhile, according to securities experts, many large enterprises with close ties to banks are not interested in listing because they have access to cheap and easy credit and are less concerned about "transparency". "Over-reliance on loans not only distorts the capital market, but also poses risks to the banking system," he warned.

Therefore, according to this person, it is necessary to regulate conditions for accessing preferential credit and large loans at banks that must be accompanied by financial transparency standards - including the publication of audit reports, periodic information disclosure...

In addition, it is possible to consider limiting the ratio of bank credit granted to unlisted and non-transparent enterprises - to create motivation to shift to the stock market channel to raise capital.

Accelerating the equitization process and divesting state capital from large listed enterprises is also considered an important lever to increase quality goods for the market.
"Over the past years, divestment plans at "big guys" such as FPT, Vinamilk, Sabeco, Vietnam Airlines ... have been announced many times, but most of them have remained at the policy level...", the expert said.

Need tax policy to encourage capital market development

According to securities experts, a market that wants to develop in the long term needs a tax system that is both fair and promotes a positive investment spirit, limiting speculation. Meanwhile, the recent proposal by the Ministry of Finance to impose a 20% tax on securities investment profits for individual investors is causing much controversy and concern for many investors.

Mr. Nguyen The Minh, director of analysis for individual clients at Yuanta Securities Vietnam, said that applying a fixed tax rate of 20% for all transactions is not appropriate. According to Mr. Minh, for a newly emerging frontier market like Vietnam, there should be a tiering system based on the time of holding stocks, in order to encourage and give more incentives to long-term investors than speculative investors.

Even in developed markets like the US, although the tax on securities transfers is based on net profits, the tax rate depends on the holding period and the individual's income. In particular, the US allows capital loss deductions. If you sell stocks at a loss, you can deduct profits from other transactions or deduct them from your taxable income, and the remaining loss can be carried forward to the following year.

"Applying a time-differentiated tax mechanism not only helps create motivation to keep capital in the market longer but also contributes to developing the capital market in depth, in line with the orientation of reducing dependence on bank credit," said Mr. Minh.

Mr. Dang Tran Phuc also said that tax policies need to be carefully studied and classified according to investment objectives, holding period and transaction scale. "It is necessary to apply them in accordance with the development orientation of the stock market, with each investment subject... to both help collect good budget revenue and create peace of mind for investors," Mr. Phuc suggested.

Meanwhile, Trinh Hong Tham, a stock investor, expressed concern that if individual investors had to compile transactions, documents and complete tax declarations on their own within the prescribed time limit, the time costs and legal risks could exceed the tax payable. "This could reduce the motivation to participate in the market in a long-term and formal manner," Tham warned.

Increase the proportion of institutional investors, reduce the proportion of "self-playing" investors

Mr. Nguyen Duc Thong, CEO of SSI Securities, said that individual investors account for a very large proportion of the structure, causing the market to fluctuate frequently. Therefore, it is necessary to create a mechanism to easily establish and operate funds, diversify products and market well so that investors know and choose, and at the same time promote financial education so that investors understand the benefits of indirect investment instead of just "playing by themselves".

According to Mr. Dang Tran Phuc, Vietnam needs to soon promote T0 products, short selling and midday trading so that the market can reach the regional and world level.

Market outlook is positive but caution is needed

The Vietnamese stock market is entering a "sublime" phase with the VN-Index surpassing the 1,500-point threshold - an important psychological milestone reflecting optimistic expectations of cash flow. However, experts warn investors to be cautious and avoid the "buying and chasing" mentality of the market.

Mr. Nguyen An Huy, senior financial advisor at FIDT, said that VN-Index is trading at P/E 14.66 and P/B 1.9, while VN30 - a group of large-cap stocks - recorded P/E 13 and P/B 2. Based on long-term average data, these are still reasonable valuation thresholds, not reflecting the "overheated" state of the market.

However, the index increasing too quickly in a short period of time still has the potential risk of correction, when investors' psychology begins to "re-evaluate" expectations. In particular, with growth stocks, which have increased significantly in recent times, investors should avoid chasing buying, instead waiting for corrections to accumulate gradually, avoiding the risk of being stuck in high price areas.

"When cash flow turns around or market sentiment cools down, speculative stocks can easily return to their starting point, or even lower," Mr. Huy warned.

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BINH KHANH

Source: https://tuoitre.vn/them-luc-day-cho-thi-truong-chung-khoan-20250724092111089.htm