State Securities Commission promotes international integration and enhances the capacity of securities companies

(Chinhphu.vn) - On July 21, the State Securities Commission (SSC) in collaboration with the Singapore Stock Exchange (SGX) organized a seminar on depository certificates and risk management training programs. The events contributed to strengthening the integration foundation of the Vietnamese stock market, both expanding international opportunities for businesses and improving the safety capacity of securities companies, moving towards a modern market.

Workshop with the theme "Depository certificates - New opportunities and investment tools for Vietnamese securities investors" - Photo: VGP/HT

Depository Certificates: New Investment Opportunities and Tools for Vietnamese Investors

The 2019 Securities Law has created an important legal foundation for the offering of securities by Vietnamese issuers abroad. Decree 155/2020/ND-CP and Circular 119/2020/TT-BTC also provide detailed regulations on the conditions and procedures for registration of securities offering and listing, including depository receipts (DR). This is the foundation for Vietnam to deploy and develop securities offering and listing activities, including DR, in a systematic and professional manner.

Speaking at the workshop with the theme "Depository Certificates - New Investment Opportunities and Tools for Vietnamese Securities Investors", Mr. Vu Chi Dung said that after more than 20 years of development, the Vietnamese stock market has expanded in scale, quality and depth. In the context of globalization, promoting the offering and listing of securities abroad, especially through DR, is inevitable to expand international capital mobilization channels, enhance the position of Vietnamese enterprises and create conditions for global investors to have easier access to Vietnamese enterprises.

The State Securities Commission will continue to improve the legal framework, coordinate with international financial institutions, major exchanges and experts to support Vietnamese enterprises, ensuring that the DR offering and listing process takes place smoothly, transparently and effectively.

Mr. Nguyen Quang Thuong, Deputy General Director of VNX, emphasized that Vietnam has a legal basis for issuing and listing depository certificates on Vietnamese stocks abroad. Currently, depository certificates on Vietnamese stocks have been issued in the Thai market. In the coming time, VNX will strengthen cooperation with SGX to share experience in developing new products and technologies and coordinate the issuance of DRs on Vietnamese stocks in Singapore.

Ms. Bernice Tan, Vice President of Singapore Stock Exchange, presented at the Workshop - Photo: VGP/HT

From an international perspective, Ms. Bernice Tan, Vice President of SGX, gave an overview of the SGX market and shared her experience in building a legal and technical framework for DR issuance and management. She also highlighted the collaboration between SGX and ASEAN exchanges to develop inter-exchange depository receipts, aiming to connect regional liquidity, support retail investors and issuers, and increase liquidity in both domestic and local markets.

During the discussion, many questions were raised about the differences between depository receipt listing and direct listing, as well as risk management measures for investors participating in DR transactions. The workshop created conditions for management agencies, exchanges and market members to discuss and develop legal orientations for new products, promoting the sustainable development of the Vietnamese stock market.

Vice Chairman of the State Securities Commission Ha Duy Tung speaks at the training program - Photo: VGP/HT

Risk management training for securities companies

On the same day, at the headquarters of the State Securities Commission, this agency organized a training program on "Risk Management for Securities Companies". The program focused on sharing information on the legal framework, the process of building a risk management strategy and basic content on risk management in new market conditions.

Vice Chairman of the State Securities Commission Ha Duy Tung said that the Vietnamese stock market recorded positive growth, with the VN-Index nearly reaching 1,500 points - the highest level in the past 3 years. The stock capitalization reached nearly 7.7 million billion VND, equivalent to nearly 70% of GDP in 2024. The number of securities accounts reached 10.3 million, exceeding the target of 9 million accounts set by the Stock Market Development Strategy to 2030.

Mr. Tung emphasized that in the context of Vietnam aiming to upgrade from a frontier market to an emerging market, risk management plays a key role in helping the market develop healthily, protect investors' rights and increase transparency.

According to Mr. Ha Duy Tung, securities companies need to proactively identify, evaluate and respond to risks, considering risk management as the "gatekeeper" to ensure stable operations when the market fluctuates. He requires personnel in charge of risk management to understand concepts and processes, have knowledge of finance and securities and skills to build effective defense strategies and handle situations.

SGX experts share experiences during training session - Photo: VGP/HT

Speaking at the event, Mr. Tan Boon Gin emphasized the extensive cooperation between Vietnam and Singapore at all levels, from government to business. Singapore is currently the largest foreign investor in Vietnam, and the two countries have upgraded their relationship to a Comprehensive Strategic Partnership in early 2025, including cooperation on securities market connectivity and depository certificates.

Mr. Tan Boon Gin also said that SGX has signed many memorandums of understanding with VNX and ASEAN exchanges, promoting cooperation in providing depository certificates. With experience as a central partner and risk management, SGX hopes to support Vietnam in its efforts to upgrade its market.

During the training, experts presented many contents: financial, liquidity, credit risk management; technology and operational risk management; legal framework for risk management; and measures to protect assets, cash, and deposits for customers. After the course, students were awarded a Certificate of Completion.

Mr. Minh

Source: https://baochinhphu.vn/ubcknn-thuc-day-hoi-nhap-quoc-te-va-nang-cao-nang-luc-cong-ty-chung-khoan-102250721213546958.htm