Deputy Minister of Finance points out 'core points' in upgrading the stock market

On the afternoon of January 2, at the regular Government Press Conference for January 2024, Deputy Minister of Finance Nguyen Duc Chi informed the press about the orientation of organizing the implementation of upgrading the stock market in 2025 from a frontier market to an emerging market.

Minister of Finance: Legal risk is the key point in boosting the stock market image 1 — Deputy Minister of Finance Nguyen Duc Chi informed at the regular Government Press Conference in January 2024.

According to Deputy Minister of Finance Nguyen Duc Chi, the upgrading of the stock market from a frontier market to an emerging market according to the criteria of international stock market rating organizations. The Government's Resolution has directed, Decision No. 1726/QD-TTg of the Prime Minister on approving the Stock Market Development Strategy to 2030 has also been included and the Ministry of Finance has determined that this is an overarching goal, striving with relevant ministries and branches to achieve this goal.

"To achieve this goal by 2025 at the earliest, in 2024, we must have many tasks to implement with other ministries and branches. We can share 4 tasks in 2024 that the Ministry of Finance and other ministries and branches must carry out and carry out well," Mr. Chi emphasized.

Specifically, according to Mr. Nguyen Duc Chi, the first is to handle the pre-transaction margin requirements of investors, especially foreign investors.

Accordingly, currently, foreign investors are required to make a 100% deposit before trading. This is a barrier that international stock market rating organizations need to address if they want to upgrade the market. The Ministry of Finance has coordinated with international stock market rating organizations as well as market members to review and evaluate. The Ministry will also submit to competent authorities a good and feasible solution to handle this issue in 2024 to resolve the issue of deposit before trading according to the recommendations of international stock market rating organizations. "That is a very important and essential issue in 2024," Mr. Chi emphasized.

Minister of Finance: Legal risk is the key point in boosting the stock market image 2 — Delegates attending the Press Conference.

Second, the Deputy Minister of Finance stated that the requirements of international stock market rating organizations are on the ownership ratio of foreign investors in listed enterprises trading shares on the stock market.

Regarding this issue, the Ministry of Finance has closely coordinated with the Ministry of Planning and Investment to implement and publish information in the clearest and most complete way in both Vietnamese and English on the Ministry's and the market's media. Along with that, the Ministry will have regulations requiring listed enterprises to update and publish this information in the clearest way on the market, almost in real time according to Vietnam's regulations, and at the same time be transparent with foreign investors about the ownership ratio of foreign investors in listed enterprises on the market.

Third is the issue of information transparency of listed enterprises on the stock market in both Vietnamese and English. According to Mr. Nguyen Duc Chi, the Ministry of Finance will implement this in the first half of 2024 to request listed enterprises as well as arrange the most appropriate steps so that by the end of 2024, listed enterprises must basically disclose their information according to market regulations in two languages: Vietnamese and English.

Fourth, the Deputy Minister of Finance said that the Ministry has proactively put the new securities trading system into operation on the market as soon as possible and ensured the requirements of the securities market's depository payment transactions. "It is also important to emphasize here that to be considered for assessment and upgrading depends a lot on our legal regulations. The work I just mentioned is expressed in legal documents but is also demonstrated in reality in the market. On that basis, foreign investors and foreign rating organizations will consider and evaluate to upgrade our securities market according to the progress and goals of our securities market development strategy," Mr. Chi stated.

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