“The stock market has a phenomenon of increasing capital, and manipulating prices is increasingly sophisticated”

Stock market, corporate bonds grow fast but unsustainably

On the afternoon of June 8, the National Assembly completed questioning the second group of issues in the financial sector.

Concluding remarks questioning this group of issues, President of Congress Vuong Dinh Hue affirmed that finance is a multidisciplinary field, playing an important role in the socio-economic development of the country. Many financial policies have a direct impact on people and businesses, so the selection of this field for questioning at the meeting has met the practical requirements and aspirations of voters and the people of the country.

Through question-and-answer questions on finance-related issues, 72 National Assembly deputies registered to ask questions, and 9 delegates debated directly with the Minister of Finance. The delegates asked questions related to the responsibilities of some Ministers, some issues related to the general administration of the Government. The remaining 45 delegates had questions, but due to time constraints, the National Assembly Chairman suggested that delegates send questions to the Finance Minister for consideration and written answers.

National Assembly Chairman Vuong Dinh Hue affirmed that the questioning session took place in a lively, responsible, frank and constructive manner. The questions of the National Assembly deputies closely followed the specific, clear and concise questioning content in the spirit of innovation in questioning activities of the National Assembly. The National Assembly highly appreciated that the Minister of Finance, although answering questions for the first time, was well prepared in terms of content, focusing on answering questions posed by the National Assembly deputies. Deputy Prime Minister Le Minh Khai, Minister of Education and Training, Minister of Culture, Sports and Tourism, Governor of the State Bank spoke to clarify a number of contents that the delegates care about.

Minister of Finance Ho Duc Phuc answered questions. Photo: VNA

The National Assembly Chairwoman emphasized that, through the Minister’s report sent to the National Assembly deputies and the progress of the questioning session, it shows that, in the context of the economy being adversely affected by the world economy and the COVID-19 epidemic. -19 Difficult budget revenue, increased budget expenditure to meet the needs of epidemic prevention and control, the Government and the Ministry of Finance have issued within their competence to complete and submit to the National Assembly, the National Assembly Standing Committee to promulgate many Resolution to deploy many solutions to ensure revenue sources and meet spending tasks. State budget revenue in 2021 is high, the progress of budget collection in the first five months of 2022 is quite good. Great balances are guaranteed; controlling inflation, public debt, budget deficit within the allowable level. Support people, businesses and employees to overcome all difficulties caused by the impact of the epidemic. Immediately after the National Assembly issued Resolution 43 in 2022, the Government issued Resolution 11 to implement the issued tax exemption and reduction policies and reduce pressure on commodity prices. The strict handling of violations of the stock market and the issuance of corporate bonds has contributed to the healthy capital market and financial market in general.

However, the President of the National Assembly also affirmed that there are some shortcomings and limitations in the field of this question: The implementation of Resolution 43 of the National Assembly on fiscal and monetary policies to support , the program of socio-economic recovery and development is still slow to implement. Many important policies are in the process of guidance, not yet applied in practice. Some policies have been implemented, but the results achieved are still low compared to the target. The Project on total mobilization of resources for the Program has not been completed, including ODA loans and foreign concessional loans. Budget revenue management is still inadequate, especially for real estate transfer tax, transfer pricing of enterprises, especially FDI in cross-border online transactions…

The coordination between the Ministry of Finance, the Ministry of Planning and Investment and the State Bank also needs to be more proactive, active and synchronous to complete the list of projects to allocate capital to projects using the Program’s capital. . Implement preferential credit policies, support interest rates to disburse the increase in overspending, additional resources, and rationalize the capital sources under the medium-term financial plan, plan and public investment in the 2021 period. -2025 and capital from the Economic Recovery and Development Program, especially in infrastructure investment. Inflationary pressure in the medium term is high, many essential commodities such as gasoline, oil, coal, agricultural materials, construction materials have increased, there is a phenomenon of speculation, unreasonable price increases, and shopping. Centralized procurement, standard procurement, asset norms such as headquarters, spending norms have not been guided specifically according to the Resolution of the National Assembly and the Government’s resolutions, so there is still a bottleneck in the procurement of drugs and supplies. health care in general, and epidemic prevention and control equipment in particular.

In addition, the implementation of equitization and divestment of state capital in enterprises is still very slow and stagnant due to inadequacies and obstacles both in the legal framework under the responsibility and authority of the Government and in the organization. perform. The process of converting public non-business units into joint stock companies encountered many difficulties and obstacles, and the implementation organization was still inadequate. The stock market and corporate bond market grew rapidly but unsustainably. The inspection, control, and correction of violations were not timely, so when detected and handled, the cases were very serious, adversely affecting the market and investors’ confidence.

Market share there is an increase in capital, price manipulation, making prices increasingly sophisticated. Some stocks and groups of stocks have unusual price fluctuations, which are not associated with business results of listed companies. The corporate bond market is growing rapidly, but there is a potential risk of fraud when identifying professional investors who violate regulations when providing corporate bond issuance services using mobilized capital. The proportion of corporate bonds without collateral or secured by risky assets is still large.

Hurry up implementation of Resolution 43

From the above inadequacies and limitations, National Assembly Chairman Vuong Dinh Hue suggested the Government, the Minister of Finance, and other ministers and sector heads to absorb the opinions of the National Assembly deputies and come up with effective solutions. results to overcome, focusing on the following key issues:

Urgently promulgate fully and guide the implementation of Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies, and support for the socio-economic recovery and development program.

Approving and implementing the Project on mobilizing resources for the Program, amending regulations on using the enterprise’s science and technology development fund. Review tax policy guidelines for effective implementation in practice, closely coordinate between the Ministry of Finance and the Ministry of Planning and Investment, the State Bank and relevant agencies to soon harmonize and allocate capital for the project.

Implement preferential credit policies, support interest rates, supplement the 2022 estimate, develop the 2023 estimate and disburse the increase in overspending and other resources. socio-economic development in the two years 2022-2023. Continue to control inflation according to the Resolution of the National Assembly, improve the quality of synthesis, analysis, forecast, closely monitor the economic – political situation, inflation movements, fuel prices, strategic materials in the country and in the world.

Develop scenarios and response plans for each item to control production, facilitate circulation and distribution, balance and control supply and demand, and stabilize prices. Carefully calculate when adjusting the prices of goods and services determined by the State, the price adjustment items according to the roadmap need to carefully evaluate the impact on the CPI.

Strengthen the inspection and supervision of the implementation of price declaration, price listing, the observance of the law on prices, strictly handle cases of violations of speculation, hoarding, unreasonable price increase, and have solutions to support income earners for the disadvantaged when the prices of essential goods are high, especially the price of petrol and the price of textbooks.

Amending and supplementing regulations on centralized procurement, public procurement bidding, standards and norms for using public assets. Study and issue guidelines on technical standards and estimated prices of assets on the list of concentrated procurement. Ensure procurement of essential supplies and services related to people’s lives in terms of health, education, social security and strengthen inspection, examination and close supervision of compliance with legal regulations. Law on procurement, management and use of public property, strictly handle violations.

The National Assembly Chairwoman also proposed to study and amend the Law on Management and Use of State Capital to invest in production and business at enterprises as soon as possible. Expeditiously promulgate the list and ratio of state capital held in enterprises. Focus on amending and perfecting legal provisions related to equitization and divestment of state capital in enterprises, especially Decree 32. Completing regulations on enterprise valuation and land value calculation enterprise value when equitization, individualizing responsibility in equitization, divestment of state capital in enterprises, especially the head.

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