During the working program in Hong Kong (from April 7 to April 10, 2025), the Ministry of Finance coordinated with the World Bank (WB) and the Asian Securities and Financial Markets Association (ASIFMA) to organize the Dialogue Conference with international institutional investors. This is an activity to maintain dialogue, share and provide information regularly and continuously between securities regulators and market members, domestic and international investors, financial institutions and index providers.
The conference was chaired by Deputy Minister of Finance Nguyen Duc Chi, with the participation of Chairwoman of the State Securities Commission Vu Thi Chan Phuong, especially with the presence of nearly 60 delegates representing market rating organizations, international organizations, international investment funds in Hong Kong and the region.
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| The dialogue conference in Hong Kong in April 2025 was attended by nearly 60 delegates representing market rating organizations, international organizations, and international investment funds. |
Speaking at the opening of the Conference, Deputy Minister of Finance Nguyen Duc Chi said that the Conference is one of the regular activities of the Ministry of Finance and the State Securities Commission in maintaining dialogue, sharing and providing information regularly and continuously between securities management agencies and market members, domestic and international investors, financial institutions and index providers.
“To develop a stable and sustainable stock market, the Government has set out orientations and strategies, and management agencies, directly the Ministry of Finance and the State Securities Commission , have developed solutions and implemented goals to develop a safe and stable stock market with a long-term development roadmap. In particular, upgrading the Vietnamese stock market from a frontier market to an emerging market is one of the important tasks on the long-term development journey of the Vietnamese stock market.”
Along with updating market information, at the Conference, representatives of the State Securities Commission also shared more details, practical activities and the latest solutions that have been implemented recently. In particular, after the research process, actively receiving multi-dimensional opinions from organizations and individuals, the Ministry of Finance officially issued Circular 68/2024/TT-BTC allowing foreign institutional investors to place orders without requiring 100% of the money, and at the same time providing a specific roadmap for disclosing information in English...
Regarding the criteria for upgrading the stock market from frontier to emerging, the Vietnamese stock market has basically met the criteria of FTSE Russell. “The criteria on payment cycle and handling of failed transactions have basically been met after Vietnam issued Circular 68/2024/TT-BTC and applied it effectively in practice. Accordingly, foreign investors have been able to trade and buy securities without requiring sufficient funds before placing orders and the handling of failed transactions (if any) has been standardized and processed to ensure convenience for market members as well as safety for the stock market,” said a representative of the State Securities Commission .
At the conference, many delegates from international organizations highly appreciated the Government's determination, efforts to develop and implement solutions, as well as the results achieved by management agencies, directly the Ministry of Finance and the State Securities Commission .
Delegates also expressed their appreciation for the roadmap for developing Vietnam's capital market in a stable, healthy and sustainable direction, especially the recent announcement of the roadmap for implementing actions to create the most favorable conditions for investors (including foreign investors) in accessing, investing and trading on the Vietnamese stock market. The specific actions and implementation roadmap officially announced by the management agency have been positively recognized even though these are not the criteria for upgrading according to FTSE standards that Vietnam needs to meet, such as: the omnibus account mechanism, the STP communication mechanism between securities companies and custodian banks, the deployment of the KRX information technology system, the construction and operation of the central clearing mechanism (CCP), and especially the support for the establishment of a Policy Dialogue group with foreign investment organizations...
Mr. Julian Casal, Financial Sector Coordinator of the World Bank, said that since August 2023, the State Securities Commission has announced short-term solutions to facilitate foreign investors to better access the Vietnamese stock market, notably the solution to remove the requirement to have enough money before placing an order to buy securities of foreign institutional investors. And in fact, many measures have been implemented drastically and effectively. After only one year, the Ministry of Finance issued Circular No. 68/2024/TT-BTC and foreign institutional investors have directly experienced the service since November 2, 2024. After 4 months of implementation, according to data from custodian banks, more than 50% of transactions of foreign institutional investors have used the mechanism of not requiring enough money before placing an order.
“Such results reflect Vietnam's determination and the right direction in achieving the goal of upgrading its stock market from a frontier market to an emerging one,” said Mr. Julian Casal.
Talking to delegates at the Conference, Deputy Minister Nguyen Duc Chi also continued to emphasize the Government's viewpoints and policies, and the Ministry of Finance's policies, which all set out goals and desires to develop the Vietnamese stock market to grow stably, with quality, transparency, healthiness and sustainability.
“Despite many challenges, especially the global economic, financial and trade situation, the Government and the Prime Minister are determined to maintain the target of striving for GDP growth of 8% or more in 2025, creating the premise for double-digit growth in the coming period. Therefore, Vietnam needs a huge amount of resources for this goal and identifying the development of the stock market as the main medium- and long-term capital channel for the country's economic development plays an important role. In particular, we are currently continuing to research and develop products such as construction bonds, project bonds... to diversify resources, especially resources from the private sector, promote the public-private partnership (PPP) mechanism to implement important infrastructure projects of the country, contributing to economic development, as well as diversify investment channels, mobilize capital for market participants", the Deputy Minister emphasized.
During the discussion at the conference, many questions from representatives from international financial organizations, especially investors, investment funds, etc. were directly answered by Deputy Minister Nguyen Duc Chi, leaders of the State Securities Commission and specialized units. Many opinions expressed consensus and appreciation for the commitments and efforts in practical implementation, especially the proactive spirit, openness and willingness to dialogue, share and remove obstacles to achieve the highest efficiency of the Ministry of Finance and the State Securities Commission .
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| Investment fund representatives asked questions at the Conference. |
Also at this conference, market rating organizations such as FTSE Russell and international financial organizations, investor associations continued to demonstrate their commitment to continue accompanying the Ministry of Finance and the State Securities Commission in their efforts to reform, build, perfect legal policies and implement them in practice, in order to continue developing a dynamic and attractive Vietnamese stock market for the domestic and international investor community, contributing more effectively to Vietnam's economic development in the new context.
Previously, in the recently released market classification report, FTSE Russell also highly appreciated the “progress” of the Vietnamese stock market in implementing the Non Pre-funding (NPF) model, which allows domestic securities companies to provide foreign institutional investors (FIIs) with an appropriate amount of capital to support their securities purchase orders, thereby eliminating the pre-funding requirement for FIIs. The organization also affirmed that it will continue to monitor the market and seek feedback from investors participating in the market on the NPF model and the management of unsuccessful transactions.
Source: https://baodautu.vn/them-tin-hieu-tich-cuc-trong-tien-trinh-nang-hang-thi-truong-chung-khoan-d265424.html
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