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Urgently implement necessary measures to upgrade Vietnam’s stock market from marginal to emerging

On the afternoon of April 22, Prime Minister Pham Minh Chinh chaired a conference to develop a safe, transparent, efficient and sustainable capital market in order to stabilize the macro economy and ensure major balances of the economy. .

Speaking at the conclusion of the Conference, Prime Minister Pham Minh Chinh stated that all comments assessed that the Conference was organized in a timely manner, meeting the wishes of the market, investors, businesses, and people. effective in practice, has an important meaning to realize the goal of developing a healthy, efficient and sustainable capital market, serving socio-economic development, especially in the context that the whole country is deciding actively implement the Program for rapid recovery and sustainable socio-economic development after the COVID-19 epidemic has been controlled and the economy is open.

The delegates also affirmed that Vietnam’s capital market still has a lot of potential and room for development, it is necessary to create conditions for the development of a clean, healthy, transparent and efficient capital market ecosystem.

The Ministry of Finance and the State Bank of Vietnam and relevant agencies have reported in detail on the current situation, inadequacies and solutions for the capital market, especially the bond and stock market. Economic experts analyze many aspects of practice, science, policy, world situation and recommendations. On behalf of the Government, the Prime Minister highly appreciated the report and enthusiastic and responsible comments and assigned the Ministry of Finance to assume the prime responsibility for, and coordinate with relevant agencies in, studying, absorbing, explaining and perfecting. reports and draft documents submitted to the Government on this issue.

The Prime Minister affirmed: On the basis of assessment of all factors and goals towards a healthy, sustainable development, balance between capital market and money market, protect and create confidence for investors. The Government has set a high determination to implement a solution to make the market healthy, not to let a number of cases affect investor confidence, to mobilize capital through the bond and stock market to develop the market. country economy.

If we do not take drastic action, “the worm makes the soup pot”

In recent years, the capital market and the money market have had strong development in terms of scale, financial capacity, management, technology… In which, the legal framework of capital market, market The monetary market is regularly completed and updated to match the development of the market and to approach international standards. The Prime Minister highly appreciated the harmonious and reasonable coordination of fiscal and monetary policies to create a stable macro environment, ensuring great balances of the economy. This is a bright spot in the leadership, direction and administration, especially in the context of epidemics, natural disasters, and many difficulties in the world and domestic economic situation.

Besides the positive side, the Prime Minister stated, we must recognize, identify and evaluate frankly and objectively the internal shortcomings of the capital market in order to have a solution for stable and radical development in the immediate future. As long-term, even strong solutions are needed to make the market healthy.

Cases related to the capital market in recent times have objective and subjective causes. But subjective reasons are still the main cause, especially the state management is still loose and for a long time the supervision and inspection has not been promoted.

“We are all here today and many people question why there is a bond issue like Tan Hoang Minh, why is there a case of stock manipulation by the Chairman of FLC Company, or Tri Viet Securities Company… And there will be many questions related to the issuance of bonds, to the stock market…

If we do not act aggressively, “the worm that makes the soup pot” will affect the medium and long-term capital mobilization, the bond and stock market, the policy of capital market development, and the investor’s confidence. domestic and foreign investment and influence on the economy. We have to think and act about it.”said the Prime Minister. “Whoever violates must be handled, but the most important thing is to protect the genuine investors who make up the majority of the market, punish one person to save many people, and protect the majority of investors.”the Prime Minister emphasized.

The biggest shortcomings and shortcomings

The Prime Minister summarized the shortcomings and inadequacies of the financial market. Including the stock market. In recent years, the stock market has had strong development, becoming an important channel for mobilizing medium and long-term capital, but the scale is still small, not meeting the needs of the economy and also showing signs of development, the Prime Minister said. revealed limitations, causing frustration for investors in the recent period. This we have to admit frankly.

“I hear a lot of complaints about order congestion, technology application, poor market management, stock manipulation that damages investors and market confidence, standards, ethics, etc. There are problems with the ethics of a part of public service officials, accounting standards, handling sanctions, and penalties are inadequate… Information disclosed by a number of public enterprises, listed companies, Investors have not yet guaranteed the accuracy..There are businesses that even make losses, but the stock price increases by many times, without any rule… Then investors also question whether there is or not. the manipulation and price manipulation of the securities companies themselves, the sanctions are not appropriate… Because of these things, in recent times, the Government has directed the authorities to drastically handle them strictly. violations to make the market healthy and protect investors”said the Prime Minister.

Urgently implement necessary measures to upgrade Vietnam’s stock market

Within the scope of the Government’s authority, the Prime Minister proposed relevant ministries, branches and agencies to focus on a number of important contents.

Regarding the stock market: The Prime Minister requested the Ministry of Finance to urgently review and amend current inadequate regulations, especially related to regulations on transparency of corporate information, rights and responsibilities. of regulatory entities, market participants such as state management agencies, enterprises, securities companies, investors, strengthen sanctions solutions to severely penalize violations of the law. on the stock market to protect investors, thereby restoring confidence, especially strictly dealing with manipulation and price manipulation, and ensuring healthy, transparent and sustainable development.

Request the Ministry of Finance to direct to immediately overcome the situation of order congestion and invest in technological innovation and application of digital technology, and urgently implement necessary measures to upgrade Vietnam’s stock market from the low-income market. border to emerging markets to attract investment capital, especially foreign investment capital.

  Prime Minister: Urgently implement necessary measures to upgrade Vietnam's stock market from marginal to emerging - Photo 1.

Photo: VGP/Nhat Bac

After this conference, the Government assigned the Ministry of Finance to assume the prime responsibility, together with relevant ministries and agencies, to finalize the draft and soon submit to the Government for promulgation appropriate documents on stable development of the capital market.

The Prime Minister also agreed on the proposal to organize a periodical annual capital market forum; organize a forum on the real estate market in May 2022.

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