Since early 2013, SSC has proposed the 8 groups of supporting solutions for the securities market. How do those solutions have impacts on the evolution of the securities market in the past year?
We have proposed the 8 groups of solutions and so far, although the results are not really as good as we wish, the solutions being implemented in 2013 have contributed positively to the achievements of the economic goals of the nation, which has promoting performance of the securities market in the past year.
The securities market has been recognized with its true nature roles; the companies can issue under- par-value stocks, which is to remove the difficulties in capital raising; the legal framework for the new type new of investment funds have been fully enacted, thereby contributing to the formation of the new funds.
Decision to replace Decision No. 55/2009/QĐ-TTg on the participation of foreign investors on the securities market is basically completed to be soon issued. The procedures of issuing trading codes to foreign investors is improved and the reporting regime and transparency of the foreign capital flow is also enhanced.
Financial mechanisms, accounting/auditing regime have also continued to be deployed. In order to increase liquidity and demand of the market, we have adopted measures such as tax cut for stock transfering, lengthening trading time, imposing market-orders (MP), loosening trading band. The market restructuring is promoted.
Due to the improvement of macroeconomic conditions and the synchronized implementation the 8 groups of solutions, Vietnam's securities market in 2013 had positive evolution and results. The VN-Index increased by 23 %; HNX Index rose by nearly 19 % compared with that of 2012 year- end. Vietnam's stock market is considered as one of the 10 most recovered markets in the world .
In 2013, the market restructure was deployed dramatically, accordingly the market recorded some positive initial results. Could you please reveal how this work will be promoted in 2014?
In 2013, the stock market restructure has been implemented in a radical way, synchronizing the 4 main pillars, basing on the principles of ensuring the compliance with the law and the respect for the market discipline. Therefore, we have achieved initial positive results which are quite positive. In terms of restructuring the products base, the criteria of offering, listing was improved; the openness and transparency of the market was improved. The investors base of the market has been improved. As for restructuring securities businesses, the fundamental objectives has been achieved, which is gradually narrowing the quantity of companies and improving the quality of operations. Regards to restructuring the trading market, the Master Plan of consolidating the 2 Stock Exchanges to adopt the common standards was built to submit to the Prime Minister; the Master Plan of developing a Clearing, Settlement House with the CCP model and the Program of transfering cash settlement functions from commercial bank to the central bank have been developed and initially implemented. The Master Plan of developing securities derivatives market was completed for submiting to the Prime Minister.
In 2014, the securities market restructuring process will be promoted bading on the following core solutions:
- To complete the programs such as the Master Plan of developing derivatives market; the Decree on the derivative market; the Master Plan of developing Vietnam Stock Exchange and the Decision on the participation of foreign investors on Vietnam’s securities market. At the same time, to review and evaluate the system of legal documents in order to accelerate the process of market restructuring and market development.
- To review the categories of listed companies at the stock exchanges, in which to focus on quality of the listed companies.
- To emphasize the development of institutional investors; to adjust the regulations on the participation rate of foreign investors; to continue deploying the new investment fund types; to develop the base of institutional investors, market makers...
- To continue restructure the system of securities businesses basing on the classification of businesses and the improvement of service quality.
- To continue the development and completion of the Master Plan, the Decision on organization and operation of Vietnam Stock Exchange; to improve the model of independent agency of Vietnam Securities Depository (VSD) towards adopting CCP functions; to develop the Securities Borrowing and Lending system (SBL); to promote the methods of settlement, clearing; to transfer the bonds transaction settlement from commercial bank to the State Bank of Vietnam...
As the Leader of Vietnam’ securities market regulator, could you please share with us the intentions, plans of SSC in the market management, and the orientation of market development in the coming time?
In 2014, the world economy is estimated to have brighter prospects but also have potential risks. The national economy has basic premises but many challenges still remain. n this context , the securities market in 2014 will target: (i) To ensure the stability and sustainability of the securities market; (ii) To continue implementing effectively the market development and market restructure with long -term solutions; (iii) To develop the mechanisms and policy solutions to remove difficulties of enterprises and the securities market; (iv) To strengthen international integration and ensure implementation of international commitments.
To accomplish the above goals, it should continue to implement the following measures in the coming time:
The first is to continue developing and completing the framework of legal documents, mechanisms, policies.
The second is to continue deploying the Exchange Traded Funds. To develop the CCP functions, the program of Securities Borrowing and Lending (SBL), transfering the cash settlement functions to the State Bank of Vietnam. To promote research on deploying new products like covered warrants, when-issued, to conect with Bloomberg...
The third is to improve attraction of foreign investment and implementation of international commitments in WTO and TPP.
The forth is to continue reviewing, competing the regulations on information disclosure, corporate governance, to develop and enact the regulations guilding audting, accounting regimes in conformity with international standards.
The fifth is to continue promoting securities businesses restructuring basing on classification by criteria and to impose the necessary remedies.
The sixth is to continue promoting the market regulation, supervision, to strictly handle violations; to deploy the programs of routine inspection, examination in 2014.
Finally, to continue implementing the programs of applying IT and technology for securities market and the market management, supervision. To upgrade the infrastructure of the market including the trading system, the securities depository, registration, clearing, settlement system, the disclosure and the market surveillance system.