Prime Minister leads stock market development conference

On 28 February 2024, the State Securities Commission hosted a conference dedicated to the development of the stock market, attended by EuroCham Vice-Chair Minh Nguyen and Head of Hanoi Office cum External Relations Manager Van Nguyen from EuroCham. The conference was distinguished by the presence of Prime Minister Pham Minh Chinh as the chair, alongside key figures such as the Minister of Finance Ho Duc Phoc, Deputy Head of the Office of Government Mai Thi Thu Van, and the Chairwoman of the State Securities Commission Vu Thi Chan Phuong.

The conference brought together a wide array of participants including representatives from the Ministry of Planning and Investment, the State Bank of Vietnam, the World Bank, the Korean Embassy, and several major corporations and financial institutions such as MB Bank, BIDV, FPT, Ree Corporation, PhatDat Corporation, BaF Vietnam Agriculture JSC, Dragon Capital Vietnam, and Ho Chi Minh City Securities Corporation. This diverse gathering highlighted the collective effort and interest in advancing Vietnam’s stock market.

Prime Minister Pham Minh Chinh articulated a clear vision for the stock market’s future, expressing an ambitious goal to elevate the market from its current marginal status to an emerging market by 2025. This upgrade is seen as a crucial step towards achieving an annual target of approximately US$25 billion in foreign indirect investment. To this end, the Prime Minister called for concerted actions from various government departments and agencies.

During the conference, Vu Thi Chan Phuong, the chairwoman of the State Securities Commission, stated that despite significant challenges posed by volatile international financial and stock markets, the Vietnamese stock market experienced a positive recovery. This was attributed to the stable domestic macroeconomic foundation, as well as proactive and effective management by the Government, supported by close collaboration among various ministries, sectors, and units.

A key directive from the conference was for the Ministry of Planning and Investment to review and publicly announce the maximum foreign ownership limits in various business sectors. Additionally, there was a push for regularly updating information on official portals in both Vietnamese and English to facilitate foreign investment. The Prime Minister also highlighted the necessity of allowing FDI enterprises to be listed on the Vietnamese stock market, which would further open up the market to international investors.

The State Bank of Vietnam was urged to streamline administrative procedures, particularly concerning the opening of indirect investment capital accounts by foreign investors. This move is intended to simplify the process for international stakeholders looking to invest in Vietnam’s stock market, thereby enhancing its attractiveness and accessibility.