Want to be in the loop?
subscribe to
our notification
Business News
VIETNAM'S STOCK MARKET FACES CHALLENGES, BUT POSITIVE LIQUIDITY OUTLOOK REVEALED
While navigating the obstacles, Vietnam's stock market has shown promising liquidity prospects as the State Securities Commission (SSC) unveils strategic measures to bolster stability, transparency, and international investor appeal.
In a report delving into the realm of stock market development and stability solutions, the SSC conducted an evaluation of the stock market's outlook for the latter half of 2023, revealing a series of influential factors poised to positively impact liquidity.
However, the broader economic landscape of Vietnam in general, and the stock market in particular, are anticipated to grapple with a multitude of obstacles throughout the year.
To guarantee the seamless, stable, and transparent functioning of the market, while simultaneously propelling sustainable and transparent market growth, a set of five major solutions has been proffered.
Firstly, the SSC and its parent ministry, the Ministry of Finance (MoF), will continue to improve the legal and institutional framework. This includes reviewing existing regulations under the Securities Law and providing clear guidelines to address any shortcomings.
The aim is to define the activities and services offered by securities companies and implement additional regulations to better manage investors and enforce penalties for violations. These efforts aim to foster a healthy, transparent, and sustainable stock market.
Secondly, efforts will be made to expedite the implementation of the Korean Stock Exchange technology system, enabling the introduction of new products and services in the stock market.
Additionally, the MoF is working on establishing a separate trading platform for corporate bonds, fostering heightened transparency within the secondary market, as per regulatory agency requests.
Furthermore, the restructuring of the stock market and the improvement of market intermediaries will be pursued through the restructuring of securities companies and fund management firms.
In terms of market supervision and inspection, the SSC aims to strengthen the role of securities companies as first-line supervisors. This includes enhancing their compliance with regulations and the timely detection of market violations. Efforts will also be made to enhance the quality of human resources involved in inspection and supervision, utilising an upgraded transaction monitoring system with advanced analysis, alerting, and statistical features.
The SSC will closely watch both domestic and international market developments and collaborate with relevant agencies to strengthen market supervision, provide early warnings about risks, and conduct inspections and investigations to address violations. This will contribute to deterrence, regulatory improvement, and market discipline, fostering a transparent and sustainable stock market.
Efforts will also be made to improve communication by providing comprehensive, accurate, and timely information to investors, helping them access reliable sources and mitigating the negative impacts of rumours and misinformation in the market.
Lastly, it is pivotal to align with international organisations to orchestrate the cohesive implementation of measures aimed at expediting the upgrade of Vietnam's stock market, thereby enticing foreign investors to participate within the nation's marketplace.
Source: VIR
Related News
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.