09:51 | 12/01/2018 Finance - Banking
(VEN) - The Ministry of Finance has focused on expanding cooperation with financial markets and stock exchanges in order to attract investment capital into Vietnam and contribute to the restructuring process of the domestic stock market.
The Vietnamese stock market is an important medium- and long-term capital mobilization channel for the economy, attracting the participation of many foreign investors and organizations.
According to an analysis by the National Financial Supervisory Commission (NFSC) in its latest report on Vietnam’s economy, the net buying value of foreign investors on the stock market was estimated at US$343 million in November. In the first 11 months of the year it reached US$1.77 billion, a six-fold increase compared to the same period in 2016.
Deputy Minister of Finance Tran Xuan Ha said the size of the Vietnamese stock market has not met its potential. The Ministry of Finance and the State Securities Commission of Vietnam plan various measures to promote the restructuring of the domestic stock market, such as improving the quality of listed shares, restructuring securities companies towards enhancing financial capacity and service quality, and unifying the stock market.
Cooperation with China
The Ministry of Finance views cooperation with international financial markets and large stock exchanges as an important goal to help the domestic stock market develop stably in line with international practices.
At a recent meeting with delegates of China’s Shenzhen Stock Exchange (SZSE), Tran Xuan Ha said that based on a 2005 memorandum of understanding between the State Securities Commission of Vietnam and the China Securities Regulatory Commission, the two sides annually exchange market management experience. He suggested that with its management experience, the SZSE should further strengthen cooperation with the State Securities Commission of Vietnam and Vietnamese stock exchanges in order to meet management and supervision requirements, promote information exchanges, support training and provide technical assistance.
SZSE Chairman Wu Lijun said Vietnam’s capital market has experienced tremendous growth in recent years. With solutions provided by the Ministry of Finance and the State Securities Commission of Vietnam, Vietnam will have additional room to develop the stock market, he predicted. Wu Lijun affirmed the SZSE would strengthen exchanges and share experience with the Vietnamese stock exchanges to improve administration, upgrade technical infrastructure and develop new products.
The Singapore connection
Vietnamese Minister of Finance Dinh Tien Dung emphasized cooperation in the securities sector between Vietnam and Singapore at a meeting with Singaporean Ambassador to Vietnam Catherine Wong. The two sides have promoted exchanges and strengthened financial cooperation through many joint activities in recent times.
In order to further enhance cooperation in the securities sector, Dinh Tien Dung suggested Singapore continue to provide technical assistance, share management experience, organize human resource training in terms of management and supervision of the derivatives market, improve corporate administration of listed companies and establish voluntary retirement funds. Also in the pipeline are plans to promote investment by introducing the Vietnamese stock market to Singaporean investors, promote the equitization process of state-owned enterprises in Vietnam and create favorable conditions for the listing of Vietnamese companies on the Singaporean stock exchange.
Catherine Wong said the Singaporean stock market is willing to support Vietnamese companies. With the development of the capital market, the Vietnamese stock market will see more and more Singaporean businesses, thereby fostering good relations between the two countries, she added.