PM urges drastic measures to stabilize stock market

Prime Minister Pham Minh Chinh has issued a directive calling for urgent measures to stabilize the financial, monetary, and stock markets.

Investors at a securities company in Hanoi. Photo: Tran Quynh

Under the directive, the Ministry of Finance (MoF) and the State Securities Commission of Vietnam (SSC) are responsible for instructing public firms to disclose information by the law.

“In case of releasing inaccurate or false information, firms would be subject to strict penalties by the regulations,” noted the directive.

In addition, Chinh expected Government agencies to provide official information on the country’s socio-economic prospects to help calm investors and companies committing to long-term business.

Meanwhile, Minister of Finance Ho Duc Phoc stressed the agency would continue to supervise the stock market to prevent acts of manipulation, especially in the stock market via disclosing false information or using multiple trading accounts to artificially create strong demand for shares.

“Perpetrators of market manipulation would face severe punishment.  On the other hand, the authorities are committed to supporting compliant companies to ensure the sustainable development of the stock market,” Phoc stressed.

In the latest move to regain the transparency of the stock market, police arrested Do Thanh Nhan, chairman of Louis Holdings, and Do Duc Nam, general director of Tri Viet Securities Company,  yesterday [April 20]  on charges of market manipulation.

Nhan was accused of colluding with Nam in opening trading accounts to manipulate stock prices of Louis Capital Company (TGG), Louis Land (BII), and others to gain millions of dollars illegally.

After a year of price skyrocketing in the stock market, the value of stocks related to Louis company has plummeted since the beginning of this year and prompted investors to sell out.

Shares of BII and TGG are now being sold at around VND7,500 and 15,300 respectively, down by 70-80% from their peaks last September.

These were other high-profile arrests of FLC Chairman Trinh Van Quyet and Chairman of Tan Hoang Minh Group Do Anh Dung, on charges of market manipulation and wrongdoings in corporate bond issuance.