REVIEW
of
FINANCE -
Apr. 2018
19
with protecting investors, expanding investor
base is an important issue that many countries
have to pay attention to and consider as a
solution on the demand side to attract domestic
and foreign investment capital sources. With
the integration process and implementation of
WTO commitments, it is necessary to loosen
the ownership ratio of foreign investors in the
Vietnamese stock market.
Fourthly,
to develop intermediary institutions
and market services; To further strengthen the
restructuring of securities trading organizations
such as securities companies, fund management
companies, securities investment companies,
etc., in order to improve their financial capacity
and ensure their operations to be healthy, liquid
and systematically secure; At the same time, to
restructure the banking system by thoroughly
resolving the problem of bad debts, cross-
ownership between enterprises and banks, banks
and securities companies.
Fifthly,
to complete the bond market structure.
Experiences in countries around the world show
that, to develop the bond market, it is firstly to
develop the stock market as the foundation,
thereby promoting the market of corporate bonds.
The outstanding debts of government bonds in
Vietnam account for a large proportion of total
outstanding debts but are still low in comparison
with that in other countries in the region (53.84%
in Thailand and 51.73% in Malaysia). Therefore,
in order to further develop the stock market
under the Roadmap for the development of
the bond market up to 2020, it is necessary to
develop a comprehensive market including the
legal framework, activities in the primary market,
secondary market, investor development as well
as associated services.
Sixthly,
to continue topromote the restructuring
of the stockmarket, infrastructure, and technology;
To continuously build a model and roadmap for
the process of merging two Stock Exchanges;
to complete the central counterbalancing
partnership model; To formulate and implement
a scheme on connection of the system of clearing
and settlement of securities with the inter-bank
payment system.
Seventhly,
to improve systematic security,
performance and competitiveness of insurance
companies; to encourage and support businesses
to develop and diversify insurance products;
besides, to diversify and professionalize insurance
distribution channels.
Eighthly,
to improve the legal framework,
efficiency and effectiveness of management and
supervision of the State; To complete the system
of unified and uniformed legal frameworks
meeting the requirements of management,
supervision and integration with regional and
international capital markets; To add serious civil
and criminal penalties to prevent and handle acts
of violation in the capital market and securities
market, strengthen the apparatus and enhance
the managerial and supervisory competencies of
the State for the capital market.
References:
1. Resolution No. 15/NQ-CP dated June 3
nd
, 2014 by the Government on
some Solutions to Promote Equitization, Divestment of State Capital in
Enterprises;
2. Decree No. 42/2015/NĐ-CP dated May 5
th
, 2015 on Derivative and
Derivative Securities Market;
3. Decree No. 60/2015/NĐ-CP Amending and supplementing a number
of articles in Decree No. 58/2012/NĐ-CP dated July 20
st
, 2012 by the
Government regulating and guiding the implementation of some
articles stated in the Law on Securities and the Law on Amendments
and Supplements to a Number of Articles of the Law on Securities;
4. Project “Restructuring the system of Credit Institutions in the period
of 2011-2015” and the project “ Restructuring the system of Credit
Institutions associated with bad debt resolutions in the period of 2016-
2020”;
5. Some website: mof.gov.vn, ssc.gov.vn...
TABLE 2. THE CAPITALIZATION OF VIETNAM SECURITES MARKET AS OF FEBRUARY 2018 (VND BILLION)
Capitalization of
securites market
HOSE
HNX
UPCoM Government bond/
Corporate Bond
Total
%GDP
31/12/2016
1,491,778
150,521
306,629
931,340
2,880,268
68.7
29/12/2017
2,614,150
222,894
677,629
1,013,833
4,528,506
100.57%
31/01/2018
3,010,052
234,878
714,941
1,005,083
4,964,954
110.27%
28/02/2018
3,039,209
235,328
696,153
1,026,843
4,997,533
110.99%
Source: State Securities Commission
