Thursday, December 12, 2024 8:25:42 PM - Markets closed
VN-INDEX 1,267.35 -1.51/-0.12%
HNX-INDEX 227.99 -0.19/-0.08%
UPCOM-INDEX 92.68 -0.06/-0.07%
Vietnam's stock market moves closer to emerging market status amid key policy changes
vietnamnews - 11/5/2024 4:13:51 PM
 (0 ratings. You must sign in to rate.)
The swift efforts by the Vietnamese securities regulator to eliminate pre-funding requirements have garnered praise from FTSE Russell and Morgan Stanley. 
 
 
Delegates from the SSC, FTSE Russell and Morgan Stanley at the meeting on November 4. — Photo courtesy of the SSC
 
The swift efforts by the Vietnamese securities regulator to eliminate pre-funding requirements have garnered praise from FTSE Russell and Morgan Stanley. 
 
During a meeting on November 4 with representatives from FTSE Russell and Morgan Stanley to discuss the upgrade of Việt Nam's stock market, Vũ Thị Chân Phương, Chairwoman of the State Securities Commission (SSC), shared updates on new initiatives being implemented by the Vietnamese government and the Ministry of Finance (MoF) aimed at enhancing foreign investment in the country's financial market and meeting emerging market reclassification criteria.
 
Phương said that Circular 68/2024/TT-BTC, issued by the Ministry of Finance (MoF) on September 18, 2024, eliminated the requirement for international investors to have sufficient funds before carrying out stock purchases. 
 
This regulation introduced new provisions related to securities trading, payment processes, clearing operations and the activities of securities companies, as well as enhancing information disclosure requirements.
 
The Vietnam Securities Depository Center (VSDC) had also rolled out new regulations concerning depository membership, the clearing and settlement of securities transactions and the registration and transfer of securities ownership at the centre.
 
Upon returning to Việt Nam after six months, Wanming Du, Director of Index Policy, Asia-Pacific, at FTSE Russell, was impressed by the advancements made by the regulator and the Vietnamese stock market on the very first day Circular 68 came into effect. 
 
Du also affirmed that FTSE Russell would increase engagements with relevant stakeholders in Việt Nam to support foreign investor transactions in the country, as well as to share insights and transaction methods used by FTSE clients in other emerging markets.
 
Young Lee, Managing Director of Equity Business for Asia at Morgan Stanley, acknowledged that the new regulations under Circular 68 had aligned Vietnam's stock market more closely with FTSE Russell’s essential requirements. 
 
He pointed out that the removal of the pre-funding requirement for order placements was a crucial demand from investors. While adjustments to mechanisms and policies typically take time, he commended Vietnam's regulatory authorities for implementing this significant change swiftly and expressed gratitude for their efforts.
 
Looking ahead, Lee noted that upgrading the country’s stock market to an emerging market status could attract approximately US$800 million from passive investors tracking the FTSE index and an additional $2 billion from those following other indices. 
 
He also suggested that this upgrade could foster increased engagement from active funds, potentially resulting in an influx of $4 - 6 billion.
 
During the meeting, the FTSE Russell delegation and the SSC also addressed various topics, including processes for managing account shortfalls on failed buy and sell transactions, registration procedures for foreign investor assets, omnibus account mechanisms, foreign ownership limits and trading infrastructure.
 
Phương said that the SSC was ready to engage with FTSE Russell and Morgan Stanley through both online and in-person meetings to better address the needs of foreign investors into Việt Nam's stock market. — VNS
 
 
Read original article here
Newer News
16:52 Market declines for the third consecutive session
09:01 Market continues slight correction as VN-Index slips below 1,270 points
10/12 Stock market starts the second week of December on a positive note
10/12 Corporate bond market sees steep issuance decline amid persistently high default rates
09/12 Finance ministry to use AI in stock market surveillance
09/12 Realty stocks see signs of recovery
05/12 Pharma stocks on the rise
02/12 Public investment stocks face challenges
02/12 Positive short-term signals emerge in Vietnam’s stock market
29/11 Market edges up as liquidity continues to decline
Older News
04/11 Vietnam stock market opens the week with a downturn as foreign investors continue net selling
04/11 Opportunities and challenges in a transitional phase
01/11 Eyeing the stock market post the US presidential election
30/10 Market continues moving upward as foreign investors record strong net sales
29/10 HOSE delists Sao Thai Dương (SJF) shares from 1 November
29/10 Market begins the week on a positive note
28/10 Caution prevails in market amid rising selling pressure
28/10 Securities clearing regulation amendment proposed
25/10 Market in sharp decline as investors resume strong net selling
24/10 Poor performances cast shadow over securities firm prospects
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,267.35 -1.51/-0.12%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.