Measures sought to lift Vietnam securities market status in 2019

VOV.VN - Vietnam is seeking solutions to ensure a possible lift from a frontier securities market to an emerging one in 2019, on a par with international ratings, says an securities official.

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Speaking at a February 22 conference on reviewing the performance of the securities market throughout 2018 and setting forth missions for 2019, Pham Hong Son, Vice Chairman of the State Securities Commission (SSC), underscored the key tasks for developing the market this year with a particular focus on finalizing a new amended draft law on securities as well as draft decrees and guidelines on how to implement the new law.

Son also called for greater efforts to come up with solutions aimed at improving the competency of brokerage units this year while hastening the establishment of Vietnam Stock Exchange as approved by the Prime Minister.

The financial sector plans to launch new derivative securities futures based on some new indices, government bond futures, and covered warrants.

Furthermore, the securities official stressed the need to deploy solutions aimed to have Vietnam’s securities market upgraded from a frontier market to an emerging one in 2019, added to the watch list of the US-based Morgan Stanley Capital International Inc (MSCI) and Britain’s Financial Times Stock Exchange Group (FTSE).

Additionally, drastic measures will be outlined to better improve the efficiency of market management and supervision work and handle relevant violations.

Also at the conference, the SSC asserted new solutions to accelerate the restructuring of securities units, develop the corporate bond market, and speed up the progress of state-run enterprises’ initial public offerings and listing shares on bourses after their equitization.

Dinh Tien Dung, Minister of Finance noted that despite being affected by the global market fluctuations, the local securities market still served as a key capital mobilization channel for the Vietnamese economy.

Following the downward trend of the global securities market, the benchmark VN-Index in 2018 dropped for the first time after its five consecutive years of growth.

The benchmark index touched its all-time high of 1,204.33 points on April 9, 2018 but it finished the year at 892.54 points, down 9.3 per cent compared to the previous year.

Meanwhile, the securities market of China, Germany and the Republic of Korea experienced sharp drops of 24.6 per cent, 18.3 per cent and 17.3 per cent, respectively.

The stock market capitalization in 2018 rose by 12.7 per cent on year, equivalent to 71.6 per cent of the country’s 2018 GDP value, exceeding the target set by the Government by 2020.


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