REVIEW
of
FINANCE -
Jan. 2018
7
Exchange (HOSE) and Hanoi Stock Exchange
(HNX) have joined the initiatives on information
exchange linkbetweenthestockexchanges (www.
aseanexchange.org), participating in cooperation
in the field of marketing-communication,
connecting securities companies, attending
seminars introducing investment opportunities
(Invest ASEAN). The Ministry of Finance (SSC)
has also initially joined ACMI (ASEAN Capital
Market Area Infrastructure Development
Plan).Due to some legal discrepancies in the
Vietnamese stock market, it is necessary to have
the time to control and supplement in line with
the general provisions of ASEAN and will enter
into after having enough eligibility.
Cooperation in the framework of ASEAN +3
Asian Bond Market Development Initiative
(ABMI)was initiated in 2003 with the aim
of promoting the domestic bond market
development and moving towards a more
accessible regional bond market for both issuers
and investors.
The main contents of ABMI are as follows: (1)
Encourage the issuance of bonds in dong (increase
supply); (2) Boost demand for local currency
bonds (increasing demand); (3) Strengthen the
legal framework through the operation of the
ASEAN +3 Bonds Forum (ABMF); (4) Enhancing
infrastructure related to the bond market; and
(5) Develop technical assistance for developing
countries using funds from the Japan Special Fund
(JAFTA) to shorten the development gap between
the member countries and increase cooperation
and sharing information among the countries.
Currently, Phase 8 of technical assistance
to Vietnam in the area of bonds is underway,
including the contents such as enhancing the
legal framework for voluntary retirement funds,
derivative bond market and derivative bond
repurchase.
and Governors discussed monetary policy, fiscal
policy and other prudent policy measures to
maintain economic growth, financial stability
and macroeconomic stability.
Opening up financial and insurance services:
In financial services, Vietnam has opened the
market for insurance and securities services
in ASEAN with the same level as the WTO.
By 2015, Vietnam has negotiated TPP and
EVFTA. Vietnam’s commitments on financial
services are built on the basis of Vietnam’s
general commitments in the WTO and free
trade agreements signed by Vietnam, with the
exception of some commitments committed at a
high level and broader scope and with the higher
market access requirements.
ASEAN financial services liberalization under
the ASEAN Framework Agreement on Trade in
Services (AFAS) was signed in 1992 and AFAS
will be upgraded to the current ASEAN Trade in
Services Agreement (ATISA). Negotiations on the
liberalization of ASEAN financial services follow
a separate roadmap and are currently negotiating
to the 8th round. Within ASEAN, Vietnam and
the ASEAN countries have signed the Protocol
implementing the Seventh Package on ASEAN
financial services on June 23rd, On February 6th,
the Government of Vietnam issued Resolution No.
06/NQ-CP approving the Protocol. The Protocol is
an important step towards the goal of liberalizing
financial services adopted by the Members of the
Bali Declaration. The goal of signing the Protocol
is to promote the level of service liberalization of
the region to a higher level.
Vietnam joined the annual ASEAN Insurance
Forum (AIRM). The ASEAN Insurance
Integration Framework guides the steps of
liberalization in insurance activities, enhancing
the competitiveness of the market and extends
the range of options to consumers. The insurer’s
insurance capacity is stronger because the risk
is diversified. Enhancing the market penetration
of natural disaster insurance will help improve
the capacity of ASEAN economies to recover.
In addition, more in-depth liberalization in the
field of life insurance will help the planning of
ASEAN citizens when they retire.
On the connection and development of
ASEAN capital markets: Ho Chi Minh City Stock
With the bilateral, regional and multilateral
cooperation forums, along with the process
of improving the domestic institutions,
the financial market in Vietnam will have
new opportunities in the coming years and
gradually integrate into the regional financial
market, world financial institutions.
