Bolster institutional investors and attract foreign capital: SSC

Investors scrutinise the market’s movements. — Photo vietnamplus.vn

HÀ NỘI — The key priority of the State Securities Commission (SSC) in the future is to cultivate the institutional investor ecosystem, encouraging long-term foreign investment, said Vũ Thị Chân Phương, Chairwoman of the SSC.

The SSC’s leader also asked the SSC units, as well as exchanges and the Vietnam Securities Depository and Clearing Corporation (VSDC), to continue refining the legal and policy framework to support the securities market development, with a focus on implementing its Action Programme aligned with the 2030 strategy.

Modernising the technological infrastructure and bolstering the application of science and technology across the industry will be another priority.

Phương added that oversight, inspection and auditing functions need to be strengthened to ensure sustainable, transparent, and accountable market development, enabling timely detection and handling of any violations.

Restructuring of securities and fund management companies will persist to enhance their operational and financial capabilities.

It is also necessary to diversify the investor base, cultivate institutional investors, encourage long-term foreign investment, and provide training for retail investors.

In addition, international engagement and cooperation will be intensified through regular dialogues with foreign regulators and organisations to formulate solutions aligned with global conditions and Việt Nam’s context, Phương said.

At a conference chaired by Phương on July 16 to review the SSC’s guidance and management work in the first half of the year, the SSC highlighted that the Government’s measures had driven macroeconomic growth and stability.

This, in turn, had helped the Vietnamese stock market achieve stable, safe, transparent and highly liquid growth.

As of the end of June 2024, the VN-Index had reached 1,245.32 points, an increase of 10.2 per cent from the previous year. The average daily trading value across the entire stock market had reached nearly VNĐ24.6 trillion per session (US$971.2 million), up 39.9 per cent year-on-year.

As of June 28, the total market capitalisation exceeded VNĐ7 quadrillion, an increase of 19 per cent over last year. This amounted to approximately 69.1 per cent of the estimated 2023 GDP.

The number of securities trading accounts held by investors continued to grow, reaching over eight million accounts by the end of June 2024.

During the period, the derivatives market and the government bond market both operated in a stable manner and maintained robust liquidity.

The positive recovery of the domestic macroeconomic conditions supported the business performance of most listed companies and large-scale registered trading enterprises. This resulted in a 3.4 per cent year-over-year increase in total profits after tax for the first quarter.

Over the first half of 2024, the SSC continued to closely coordinate with relevant agencies, helping the Vietnamese stock market meet the criteria for a potential market upgrade.

The SSC’s initiatives have been positively recognised by international organisations and domestic market participants. — VNS