Speaking at the conference, Minister Hồ Đức Phớc stated that Vietnam - Singapore will have many opportunities for development, attracting more attention from investors around the world and in the region to Vietnam, especially in the field of financial markets, capital markets, and stock markets.
The Minister emphasized: “Under the attention and guidance of the Government, the Vietnamese stock market has developed increasingly effectively, qualitatively, and sustainably, becoming an important channel for medium- and long-term capital for the economy. Although there have been initial successes, Vietnam is determined to continue developing a transparent, safe, effective, and sustainable stock market".
At the same conference, the State Securities Commission (SSC) provided information to Singaporean investors about the overall situation of the Vietnamese stock market, prospects, and development targets and policies in the coming time. Chairman of the SSC Vũ Thị Chân Phương confirmed that upgrading the Vietnamese stock market from a frontier market to an emerging market is one of the major targets that the Vietnamese Government is striving for.
As a member actively and continuously developing with the market's momentum, Ms. Lê Thị Lệ Hằng - Head of Strategy at SSI Securities Corporation - delivered a speech on the preparation work of securities companies for upgrading the Vietnamese stock market.
Ms. Hằng stated that the implementation of the Securities Law and the establishment of the Vietnam Stock Exchange have laid a solid foundation for the market's transparency and protection of investors. To maintain this momentum, focus should be placed on upgrading the market's infrastructure, improving the legal framework, and promoting financial literacy among the people. Accelerating the IPO and listing process can truly add diversity to the market. Moreover, developing foreign institutional investors as well as domestic institutional investors is essential for a healthy investment ecosystem.
Regarding solutions to address the difficulties in upgrading the market, particularly the requirement for pre-settlement margin, Ms. Hằng stated: “The management agencies of Vietnam, particularly the Ministry of Finance and the SSC, have actively worked with FTSE, advisors such as the World Bank, ASIFMA, investors, and market participants to overcome this barrier. Although CCP is a long-term goal of the government, there is still a short-term solution for this non-prefunding transaction, in which securities companies will participate as payment partners for investors. This flexibility can stimulate growth, improve liquidity, and attract more investors".
Recently, the Government has issued a draft circular to amend, providing a comprehensive and more practical legal framework for parties involved in non-prefunding transactions. The latest draft allows securities companies to be responsible for fulfilling payment obligations if foreign institutional investors do not make payments on the payment date.
Ms. Hằng assessed that this limit is appropriate as it ensures that the new circular is still consistent with existing securities regulations and does not cause new instability for the market. In addition, this limit helps minimize operational risks by setting boundaries for securities companies in providing non-prefunding services to customers, while also requiring securities companies to strictly comply with and manage risks in payment operations.
The risk management system of securities companies must be upgraded to limit payment risks and operational risks. Securities companies will need to upgrade their systems to improve their ability to implement and develop operating systems and provide synchronized products and services for foreign investors. It is known that SSI Securities Corporation is one of the pioneering securities companies to implement these requirements.
