The Hanoitimes - Improving the transparency of Vietnam’s securities market is necessary due to rapidly increasing market capitalization in the context of further transition to the market economy and development of the private sector.
The Japan International Cooperation Agency (JICA) will help the government of Vietnam improve transparency of the equity market as an effort to speed up the equitization of state-owned enterprises.
Under the three-year project for “Capacity Building on Improving Fairness and Transparency of Vietnamese Equity Market”, the JICA will improve the capacity of the State Securities Commission (SSC), the Ho Chi Minh City Stock Exchange (HSX) and the Hanoi Stock Exchange (HNX).
In front of the HSX. Photo: Bloomberg
Accordingly, the SSC, HSX, and HNX will conduct market surveillance, supervise market intermediaries, manage listing and public offering, and raise the awareness of investor protection among enterprises’ leaders.
As part of the project to start from early 2019, the JICA will provide supports to SSC and the two stock exchanges, through various activities such as review on current framework, close consultancy, capacity building on various related matters, and update of internal operation manual/guideline and/or revision of legal framework.
The government of Vietnam has recognized the need to enhance the capacity of the relevant authorities and upgrade the level of the equity market conducive to sustained socio-economic development of the economy.
The project was also prepared in the context of the implementation of “Strategy for development of Vietnamese securities market for the period of 2011-2020” approved by the Prime Minister in 2012, which outlines clear visions to enable the Vietnamese security market to integrate into the ASEAN and international markets.
Improving the transparency of Vietnam’s securities market is necessary due to rapidly increasing market capitalization in the context of further transition to the market economy and development of the private sector.
Vietnam's equity has grown remarkably over the past five years, with its market capitalization reaching 70% of GDP in 2017, three years ahead of the initial timeline target of 2020.
Vietnam witnessed the equitization of hundreds of SOEs and the listing of more SOEs and private firms in the equity market. As a result, the listing will require diversified funding sources, according to Record of Discussions (R/D) signed on November 5, 2018.
For more than two decades, the JICA has been supporting the government of Vietnam to liberalize the economy and promote international economic integration through various technical and financial cooperation projects.