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Anticipated Stock Market Enhancement by September

Finance Ministry actively executing detailed strategy to boost market potential, aligning with severe standards imposed by credit rating bodies like FTSE Russell and MSCI.

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3 min read
Financial authorities are proactively carrying out a far-reaching strategy to amplify market...
Financial authorities are proactively carrying out a far-reaching strategy to amplify market potential and comply with the rigorous standards demanded by influential rating bodies like FTSE Russell and MSCI.

Anticipated Stock Market Enhancement by September

Unfiltered, Unhinged, Unapologetic: Vietnam's Stock Market's Race to Emerging Market Status

Street-Level View:

Alright, mate, let's dive into Vietnam's stock market's bloody hell of a transformation. This place is on the verge of being a significant player in the global economy, and they're gunning for an upgrade to emerging market status by September, alright?

Capital City Chatter:

Government movers and shakers, led by Deputy Finance Minister Tran Quoc Phuong, are ramping up efforts to make this dream a bloody reality. They're busy implementing a comprehensive plan to beef up market capabilities, tick off all the criteria set by well-known rating agencies, like FTSE Russell and MSCI.

So, what's the hold-up? Foreign investors remain bloody reluctant, and the investment environment's not transparent enough for their liking. But the Ministry of Finance ain't backing down. They've got a bloody six-point plan to win over the foreign investors and speed up the process, like a bloody dog with a bone.

Assault on the Challenges:

Crucial to the plan is the implementation of the KRX system—a bloody new tech platform that'll streamline transaction processing, boost trading efficiency, and improve risk management for foreign investors. Think of it as a damn blood transfusion for their investment process.

Recent regulatory changes are also coming to the rescue. For example, Circular 68/2024/TT-BTC has dumped the annoying requirement for foreign institutional investors to pre-fund all their trading cash before transactions. This bloody change'll make the investment process more bloody fluid and entice more foreign capital.

Moreover, the Ministry's revising Decree 155 to shine a bloody light on the timelines for public companies to report their foreign ownership limits. And they're bloody simplifying procedures for opening indirect investment accounts to smoothen foreign capital inflows.

Innovative Approaches:

The MoF is also introducing omnibus trading accounts for foreign funds, which'll make transaction processes more efficient for fund managers. They'll be able to execute trades for multiple portfolios all in one go, saving time and energy.

Beyond that, they're stepping up efforts to increase the supply of financial products and improve the listing process for companies after IPOs. Developing new investment indices will provide more tools for fund managers, adding bloody depth to the investment landscape.

Collaboration and Conversation:

To ensure all parties are on the same page, a policy dialogue group is being formed, comprising representatives from the State Securities Commission, investment funds, and securities firms. This'll foster timely discussions on market needs and regulatory responses, keeping everyone in the loop.

Wrap-up:

Vietnam's got a bloody ambition, and the Ministry of Finance is pulling out all the bloody stops to get their stock market upgraded to emerging status by September. It ain't going to be easy—FTSE Russell's recent report classified the country as a bloody frontier market, citing bloody concerns about payment systems and market accessibility. But the MoF's bloody determined, and they're bloody hopeful that their efforts'll pay off, positioning Vietnam as a bloody premier investment destination in the region.

An investor watches market movements on his screens. - Photo vietnamplus.vn

  1. The government, spearheaded by Deputy Finance Minister Tran Quoc Phuong, is working tirelessly to transform Vietnam's stock market into a significant player in the global economy, aiming for an upgrade to emerging market status by September.
  2. To achieve this goal, they are implementing a comprehensive plan to enhance market capabilities, meet the criteria set by rating agencies like FTSE Russell and MSCI, and win over foreign investors.
  3. The implementation of the KRX system, a new technology platform, is crucial to streamline transaction processing, boost trading efficiency, and improve risk management for foreign investors.
  4. Recent regulatory changes, such as the elimination of the pre-funding requirement for foreign institutional investors, have been made to make the investment process more fluid and attract more foreign capital.
  5. The Ministry is also introducing omnibus trading accounts for foreign funds, simplifying procedures for opening indirect investment accounts, and developing new investment indices to add depth to the investment landscape.
  6. To ensure effective communication, a policy dialogue group is being formed, consisting of representatives from the State Securities Commission, investment funds, and securities firms, to discuss market needs and regulatory responses.

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