Previously, the Government submitted to the National Assembly a proposal to amend a number of laws, including the Securities Law, to implement resolutions and programs for law and ordinance making in 2024. The draft law has been sent to relevant ministries, branches, localities, agencies, organizations, and individuals for comments and appraisal by the Ministry of Justice.
According to the Securities Committee, after more than 3 years of implementation, the 2019 Securities Law and its detailed implementing regulations have created a relatively complete, synchronous, and unified legal framework to comprehensively regulate securities activities and the securities market; contributing to ensuring that the securities market operates fairly, publicly, transparently, safely, and protects the legitimate rights and interests of investors.
However, the rapid development of the market has led to a number of shortcomings and difficulties in the practical implementation of the Law that need to be considered, promptly amended, supplemented and perfected to promptly overcome limitations and risks in market operations.
To perfect the legal system in the securities sector, the basic content to be amended and supplemented will aim at a number of issues:
Firstly, amend and supplement a group of regulations to improve transparency and efficiency in securities issuance and offering activities.
Second, amend and supplement regulations to strengthen supervision and strictly handle fraudulent and deceptive acts in securities issuance and offering activities, clearly define the responsibilities of relevant organizations and individuals, and ensure effective prevention and handling of violations in the stock market.
Third, amend and supplement a group of regulations to remove practical obstacles, promote the development of the stock market with the goal of upgrading the stock market. Accordingly, complete the legal basis to implement the clearing and settlement of securities transactions on the market according to the central clearing counterparty mechanism on the Vietnamese stock market.
Regarding the market upgrade, most recently, the Ministry of Finance issued Circular 68 amending 4 circulars related to foreign institutional investors being able to trade and buy shares without requiring sufficient funds (Non Pre-funding solution - NPS) and the roadmap for information disclosure in English.
This is a move to untie the pre-funding knot, a step closer to upgrading the stock market.
According to Mr. Huynh Minh Tuan - Chairman of FIDT Joint Stock Company, the issuance of Circular 68 is very good for the Vietnamese stock market. When the market is officially "upgraded", it will create a lot of buzz, as well as the attention of the regional and international financial community.
Sharing the same view, Mirae Asset analysts also predicted that after being upgraded, Vietnam could attract cash flows from large funds, such as Vanguard FTSE Emerging Markets ETF.
"Foreign money flowing into Vietnam comes not only from funds using the FTSE Emerging Markets Index as a reference, but also from other funds when the market is upgraded," Mirae Asset emphasized.
Synthesizing a number of ETF funds using the FTSE Emerging Markets Index as a reference, with an allocation ratio of 0.6%, Mirae Asset estimates that Vietnam can receive investment of about 516 million USD (nearly 12,500 billion VND).
