REVIEW
of
FINANCE -
Jan. 2018
19
45 fund management companies in operation, 30
funds, of which 8 members funds, 18 open-end
funds, 2 ETF, 1 real estate fund and 1 closed-end
fund.
Development policy orientation in the period
2016-2020: Targeting at restructuring the stock
market, the Ministry of Finance currently is
focusing on restructuring 4 main pillars in the
stock market, including restructuring product
base, investor base, securities trading organization
and the institutional system of securities market.
The restructuring of the market needs to ensure
the comprehensive development, the overall
balance among equities, bonds and market of
derivative instruments to gradually increase the
role of the stock market in raising capital for
investment and development, linking Vietnam’s
stock market with stock markets in the region.
In terms of legal system, in the near future, more
research is necessary to revise the Securities
Laws, particularly the provisions on public offer,
listing, trading, modeling of securities trading
organizations, securitization, self-regulatory
organizations, investment funds. In addition,
information disclosure activities of public
companies should be carried out in accordance
with international standards, improving capacity
of themarket intermediaries system, strengthening
management and monitoring capacity...
References:
1. Parliament (2000), Law on Insurance Business No. 24/2000/QH10 dated
December 09th 2000 on insurance business;
2. Goverment (2012), Decision No. 450/QD-TTg dated April 18th 2012
approving the financial strategy until 2020;
3. Ministry of Finance (2017); The APEC Vietnam 2017 Joint Finance
Ministerial Statement;
4. Source from websites: mof.gov.vn, apec.mof.gov.vn, sbv.gov.vn...
working out to amend and supplement the Law
on Insurance Business No. 24/2000/QH10 and
the Law amending and supplementing some
articles of the Law on Insurance Business No.
61/2010/QH12 in a comprehensive way with the
documents guiding the Laws implementation
in the direction of a broader scope of regulation
and uniform insurance operations in conjunction
with the array of financial services markets.
The policy direction currently is to promote
restructuring of the insurance market through the
diversification of insurance products and services
associated with the development and improving
the insurance quality, such as development of
some insurance products that have important
implications for the economy such as natural
disaster insurance, public asset insurance, atomic
energy insurance… and significant products in
social living safety such as agriculture, fisheries
insurance, health insurance, micro insurance
... on a national scale. It is also important to
strengthen inspection and supervision of capital
adequacy level of insurance companies; raise
capital to expand the scale and financial capacity;
strengthen inspection and supervision of the
construction work and application of inspection,
internal control procedures.
On the stock market
Compared with the 2000-2006 period, before
Vietnam officially joined the WTO, in the 2007-
2015 period, Vietnam has recorded strong growth
rate of the stockmarket with a total trading volume
of approximately 6,423 trillion VND, more than
47 times compared to the previous period.
By the end of the August 2016: There were 689
companies listed on the two Stock Exchanges
and 326 companies registered for trading on the
UpCOMmarket with a total size of more than 630
trillion VND; as 250 times as compared to 2006,
the market capitalization reached 1,628 trillion
VND, equivalent to 38.8% of GDP. Total mobilized
capital through issuing shares (including private
placement), auctions in equitization process
and bonds auctions in the first 8 months of 2016
are estimated at 294 trillion VND, as twice as
compared to the same period in 2015, attracting
USD 17 billion of portfolio investment capital. In
the stock market, there are 79 securities firms and
With the signed FTAs, financial services
commitments of Vietnam are the same as
what has been committed within WTO.
Vietnam committed for financial service
sector conforming to GATS/WTO approach,
i.e. ‘positive listing”, including obligations
such as National Treatment and Market Access
in different Modes: cross-border supply,
consumption abroad, commercial presence.
