“We had an additional meeting with the Ministry of Public Security, the spirit of not criminalizing civil and economic relations was highly unified.”

That is the sharing of Minister of Finance Ho Duc Phuc in an exchange with the press regarding the sharp fluctuations of the stock market in April.

The reason why the stock market fluctuated strongly in April

According to Minister Ho Duc Phuc, in the first quarter of 2022, the stock market basically maintained a good and stable growth rate. After setting a new peak, by the end of the first quarter of 2022, the VN-Index only decreased slightly by 0.4% compared to the end of last year. The new market has been under downward correction pressure and strong volatility since the end of March until now. The VN-Index closed on April 25 at 1,310.92 points, so it has adjusted down by more than 200 points compared to the end of March.

“This is a relatively strong correction of the Vietnamese stock market under the combined influence of many different domestic and international reasons, both objective and subjective,” he said.

Accordingly, in the world, inflationary pressure increased, causing major central banks to tighten policies, most notably the US Federal Reserve (FED) raised the operating interest rate after 3 years. . Along with that, the conflict situation between Russia and Ukraine increases the risks for the global economic recovery, especially when energy prices, input material prices increase sharply, etc. That has affected many markets. stocks in the world, causing many markets to drop sharply.

The minister said that the Vietnamese stock market was no exception when selling pressure gradually increased at the end of the first quarter and corrected sharply since the end of March after a long process of continuous increase. In addition to the external macro impacts, the stock market is also partly psychologically affected when the authorities and management agencies strictly handle cases on the stock market and corporate bonds. odd.

“The Vietnamese stock market’s sharp decline was also partly similar to the general decline in the world, for example, in the sharp drop (more than 68 points) on April 25, the world’s major markets also fell sharply. Besides, the adjustment pressure after a long uptrend and the cautious sentiment in the market before single cases caused the market to fluctuate strongly in the downward direction, “said the Minister.

Remove the “grains”, “clear the sea” for the stock to develop

Analyzing the partial impact of recent actions to purge and strictly handle violations in the stock and corporate bond markets, Minister Ho Duc Phuc affirmed that the recent events were just incidents. A single incident has an impact on market sentiment in the short term. This is a great effort and determination from the Government, the Ministry of Finance and other functional agencies to purify and healthy the stock market.

“Although it is difficult to avoid psychological impacts in the short term, the removal of the grit will have a positive impact on the development of the market in the medium and long term. Because the goal of the management agency is to build Building and developing a safe, transparent and sustainable securities market, so purifying the market will contribute to ensuring the interests of businesses and genuine investors, increasing the attractiveness of the stock market in the future. attracting more investment flows both at home and abroad, contributing to support the process of upgrading from marginal to emerging”, the Minister said.

The Minister also emphasized that resolute handling of violations may affect investor sentiment in the short term, causing the market to slow down, but it is an effort to make the market grow transparent and sustainable. more stable. In every development process, changes are always needed, steps are needed to improve and so is the stock market, “we think that, after the development stages, it is also necessary to take actions to clarify, open in”.

The Minister affirmed that Vietnam’s stock market still remains intact, with positive supporting factors based on the macro-economy and the internal market. Therefore, we completely believe in the future, that the Vietnamese stock market will develop more and more complete and of better quality, affirming its role as an important medium and long-term capital mobilization channel for investors. economy, business; At the same time, it is an attractive, safe and effective investment channel for investors.

Do not criminalize civil and economic relations, creating conditions for wrongful organizations to soon stabilize production and business

Minister Ho Duc Phuc said that at the recent capital market development conference, no less than twice the Prime Minister affirmed and emphasized: Our Party and State have consistently advocated not to criminalize relations. economy and always have policies to support and encourage businesses to comply with the Constitution and laws, do business effectively, justly, transparently, and legitimately enrich themselves, contribute to society, and contribute to building building a strong and prosperous country, bringing happiness and prosperity to the people.

Quoting President Ho Chi Minh, “a sore, even if it hurts, must be removed, to prevent it from spreading dangerously”, the Prime Minister also said that, if we do not act aggressively, “the worm will be a worm.” spoil the pot” will affect the medium and long-term capital mobilization, the bond and stock market, the policy of capital market development, the confidence of domestic and foreign investors and affect the economy. economy.

Following the Prime Minister’s direction, the Ministry of Finance is determined to implement a solution to make the market healthy, not to let a number of cases affect investor confidence and legitimate interests of market members. market, enterprises and the highest is the issue of raising capital through the stock market, corporate bonds to serve the economic development of the country.

“On the afternoon of April 25, we also continued to have another working session with leaders of the Ministry of Public Security and functional agencies of the two ministries. The spirit of not criminalizing civil economic relations was once again established. high consensus”, the Minister shared.

The Minister also emphasized that the Ministry of Finance will give full support to law-abiding businesses and genuine investors, but at the same time will strictly, decisively and quickly handle violations in the market. stock market. We respect the rules and marketability of the stock market, as it is a market, there are times when it goes up and down because it has to obey the supply and demand of buyers and sellers. The goal is to build the stock market into a transparent, fair and equal playing field for all players in the spirit of respecting the law. The State respects the objective laws of the market, but always has reasonable supervision, management and regulation based on the provisions of the law.

“The good, basic and positive value factors will always be supported, even the Ministry of Finance has directed functional units to create all conditions so that the organizations that have committed wrongdoing recently will soon recover. stabilize and quickly normalize production and business activities, best ensure the interests of shareholders and employees,” said Minister Ho Duc Phuc.

Proposal to amend the Law on Securities, strengthen “forefront, post-inspection”

Compared with the history of many developed stock markets in the world, Vietnam’s stock market is still young; However, Vietnamese securities have had a very fast and strong development and there is still a lot of room for development, with the goal of becoming the main medium- and long-term capital attraction channel, important for the national finance and the country’s economy.

In order to realize that goal, according to the Minister, besides many solutions to support and promote the stable and sustainable development of the market, the Ministry of Finance will have solutions to prevent, that is, “money lost in the market”. prevention, post-audit”, to protect the interests of investors, as well as companies operating in the market in the most equal, transparent and correct manner.

Accordingly, in terms of the legal framework, the Ministry of Finance will continue to perfect the legal framework to strengthen and tighten conditions for the healthy development of the market, like “building roads but adding new measures to the development of the market. regulations to prevent accidents. Accordingly, the Ministry of Finance has proposed to the Government to amend the Law on Securities; at the same time, it also proposes to amend the Law on Enterprises and other related regulations to create better conditions for development, closer to the reality and needs of the stock market. To soon complete the formulation of the stock market development strategy by 2030 to shape long-term goals, solutions and development roadmap. With regard to the corporate bond market, the Ministry has completed the revision of the provisions of Decree 153/2020/ND-CP and is submitting it to the Government for consideration and promulgation.

Regarding the operation and management, the Ministry of Finance has also directed the State Securities Commission, the Department of Finance and Banking, the Department of Management, Accounting Supervision, Auditing and other functional units to implement the same A set of solutions in the direction of both supporting and creating conditions for the market to develop stably, while strengthening supervision, inspection, examination and strict handling of violations to increase market discipline and discipline.

Minister Ho Duc Phuc: We had an additional meeting with the Ministry of Public Security, the spirit of not criminalizing civil and economic relations was highly unified - Photo 1.

Minister of Finance Ho Duc Phuc

As for the operation of the stock market, the Ministry has also directed to continue restructuring securities companies, fund management companies to review, classify, check on the spot, develop plans for each securities market. company to take measures to handle; continue to develop and diversify investment fund types in order to improve the quality of investment demand, towards sustainable investment demand. With that, implementing solutions to ensure a smooth transaction system, minimizing transaction order congestion; complete the project of information technology modernization; Researching the legal framework for the development of new services and products on the Vietnamese stock market.

Regarding the corporate bond market, in addition to perfecting the law, the Ministry has directed functional units to strengthen supervision, inspection and correction of violations. The State Securities Commission will inspect and correct securities trading organizations, especially in the matter of violations and circumvention of regulations on professional securities investors.

Minister Ho Duc Phuc said that he had directed the Accounting and Auditing Management and Supervision Department to apply both direct and indirect measures. Accordingly, it will directly check the audited financial statements at the issuers, and also check the auditing companies that have audited those businesses. If errors are detected, the independent audit units will be strictly handled without responsibility for errors.

In addition, the Ministry also directed units to further strengthen training to equip investors with financial knowledge; strengthen propaganda so that investors and businesses understand the legal regulations, opportunities and risks for effective investment in both the stock market and corporate bonds. su-hoa-cac-quan-he-dan-su-king-te-duoc-thong-nhat-cao-20220426172300484.chn

According to Anh Minh

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