To urgently implement the necessary measures to upgrade the stock market in Vietnam

To urgently implement the necessary measures to upgrade the stock market in Vietnam (Internet image) 

On March 27, 2024, the Government Office of Vietnam issued Notice 122/TB-VPCP on Prime Minister's conclusions at the conference on implementing the tasks of developing the stock market in 2024.

To urgently implement the necessary measures to upgrade the stock market in Vietnam

According to Notice 122/TB-VPCP dated March 27, 2024, the Prime Minister concluded the following points regarding the task of upgrading the stock market from a frontier market to an emerging market:

- The Ministry of Finance, in coordination with relevant agencies:

+ Urgently implement necessary measures to upgrade the stock market, with a focus on resolving difficulties and obstacles to meet the criteria for upgrading; closely coordinate with the State Bank of Vietnam, the Ministry of Planning and Investment, and relevant agencies to promptly and effectively handle obstacles within the functions and tasks of these agencies to meet the criteria for upgrading the Vietnamese stock market from a frontier market to an emerging market; and report the implementation results by June 2024.

+ Thoroughly review, amend, and supplement Decree 155/2020/ND-CP to ensure strict, transparent, consistent, and harmonized regulations in accordance with legal provisions and international practices, and report to the Government before June 30, 2024.

- The Ministry of Planning and Investment, in coordination with the Ministry of Finance, the State Securities Commission, and relevant agencies, urgently reviews and fully discloses the maximum foreign ownership ratios for conditional or restricted business sectors or access for foreign investors; regularly updates this information on the bilingual Vietnamese-English website of the ministry, to be completed by May 2024.

- The State Bank of Vietnam, in coordination with the Ministry of Finance, the State Securities Commission, and relevant agencies, urgently reviews and proposes amendments and supplements to legal provisions to simplify procedures and shorten the process of opening indirect investment capital accounts for foreign investors, creating favorable conditions for foreign investors to participate in the stock market. Study and implement safe, efficient, legally compliant payment and settlement methods in accordance with market rules, to be completed by May 2024.

- The Ministry of Planning and Investment and the State Bank of Vietnam should proactively implement the above tasks and report the implementation results to the Ministry of Finance before May 31, 2024, for consolidation and reporting to the Prime Minister in June 2024.

- The State Securities Commission, in charge of coordinating with relevant agencies, should thoroughly review and carefully inspect the securities trading system, information technology system, actively establish risk control procedures, measures to handle and respond to urgent situations, and prevent technical incidents to ensure the security and safety of the financial system and the rights of investors.

More details can be found in Notice 122/TB-VPCP, dated March 27, 2024.

To Quoc Trinh

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