Vietnamese Prime Minister Pham Minh Chinh (C) visits the New York Stock Exchange (NYSE) (Photo: VNA) In his meeting with NYSE leaders, the Vietnamese PM expressed his pleasureto visit the largest stock exchange in the world in terms of marketcapitalisation, and thanked them for the warm welcomeand the privilege to ring the bell to end the trading session of May 16.
PM Pham Minh Chinh meets with representatives of NYSE (Photo: VNA) He asked the NYSE to cooperate andshare experience in developing an effective, sustainable stock market in Vietnam as well as realising thecountry’s ambition to successfully build a regional-level financial centre, foster the win-winpartnership between the NYSE and Vietnamese agencies and companies, contributing tothe development of the US-Vietnam comprehensive partnership.
Prime Minister Pham Minh Chinh strucks hammer to end the trading session on May 16 at NYSE (Photo: VNA) On the occasion, PM Chinh witnessedthe awarding ceremony of two cooperation documents in the fields of finance,banking and investment funds between Vietnamese and US partners, including acooperation document between Vietnam’s State Securities Commission and the NYSEregarding the support to upgrade Vietnam’s stock market and build a mechanismfor investors to participate in the two stock markets.
The same day, the Vietnamese Government leader had aroundtable with CEOs from world-leading firms and investment funds listed onthe NYSE.
PM Pham Minh Chinh has a roundtable with CEOs from world-leading firms and investment funds listed on the NYSE (Photo: VNA) In the opening address, PM Chinh said global instabilitieshad impacted both Vietnam and the US, requiring companies to help addressthe challenges.
Vietnam in recent times had striven to keep macroeconomic stability, including exchange rates, inflation and interestrates, as well as budget revenues and expenditure balances, food security,imports and exports.
The country is currently in serious need of developing healthy, sustainable capital, monetary securities and bonds markets, according to the PM.
The PM also informed the company executives of theimplementation of the recovery package worth 4 percent of the national GDP,with focus priorities being the reopening of the economy in association withraising healthcare capacity and pandemic response, ensuring social welfare andcreating jobs, support for businesses, investing into infrastructures, andimproving institutions and business environment.
A leader of Amphenol Corporation, who manufacture electronicequipment for supply to Boeing, Apple and Tesla, said that they wanted toswitch their production lines to Vietnam and asked the PM for more informationon the Government’s measures to attract investment in the processing andmanufacturing industry. The leader of the Amphenol Corporation added that hetravelled to Vietnam when he was 20 years old and had a personal fondness forthe country and its cuisine.
In response, PM Chinh said Vietnam had carried outsignificant reforms since 1986 with the three main pillars – cutting back onred tape, implementing multi-ownership and international integration.
To attract international investors, the PM stressed theprinciple of “straightforwardness, trust, responsibility” and “harmonisedbenefits, shared risks,” between the two sides.
Vietnam was also bettering its institutions and legalframework to match its international commitments, including 15 free tradeagreements (FTAs) that the country had signed, which include the most developedeconomies in the world, he said.
The country was also focusing on developing infrastructure,including digital transformation (e-Government, digital society, and digitaleconomy), transport, energy and healthcare to lure in direct and indirectinvestors.
Vietnam was committed to building a stable and openbusiness and investment environment, with administrative procedures handledquickly and effectively and transparently, he noted.
The country was also enjoying a high level of political andsocial stability, including the successful control of COVID-19, that investorscould be reassured when doing business in Vietnam.
A representative of Herbalife noted that Vietnam was amongthe 5-6 fastest developing markets, and was one of the focus countries inthe company’s growth plan with very positive prospects.
The company appreciated the Vietnamese Government’s effortsto collect input and feedback from businesses in the development of legaldocuments and policies and wanted to inquire more about what the companiescould do to assist the Government.
In response, the PM said the Vietnamese Government attachedgreat importance to the gathering of opinions from people and businesses,including foreign enterprises, for example, in the development of the draftpower master plan.
In the development phase, other than State resources, theresources from the private sector and foreign enterprises would be criticallyneeded and mobilised via a public-private partnership, PM Chinh said.
In response to Deutsche Bank’s question on the support fromthe Vietnamese Government in helping businesses to successfully list on foreignstock markets, including the NYSE, PM Chinh said the Government had theresponsibility to assist Vietnamese enterprises to grow in a sustainable,healthy and legal manner.
In the context of a fast-changing world, all Governmentdirections and policies needed to quickly adapt to these adjustments to createthe best environment for the companies, he noted, but on the other hand, thebusinesses themselves needed to always try their best to create a reputationdomestically and overseas, actively cooperate with foreign businesses,including US businesses, to expand their capacity and operations.
The businesses would also need to focus on research anddevelopment, application of new technology and diversifying supply chains.
PM Chinh noted that many Vietnamese businesses had set uptheir presence in the US such as Vietcombank, FPT, and VinFast and they neededthe support and cooperation of local businesses.
Goldman Sachs, the leading global investment managementfirm, wanted to know more about the cap of foreign ownership in the bankingsector, as well as the access to and usage of foreign currencies.
In this regard, PM Chinh said Vietnam was directing ministries tostudy and perfect the legal framework for investment in the banking sector,enhancing the transparency of banking operations, and improving the managementin line with international practices.
However, he remarked frankly that the approach of adeveloping economy like Vietnam “cannot possibly resemble that of developedeconomies like Japan, the Republic of Korea or the US.”
“We have limitations in infrastructures, institutions andpolicies, and we are also inexperienced, so our approach will be cautious andgradually changes as we learn more, without rushing. This is beneficial to bothinvestors and Vietnam itself, and I hope investors could be understanding ofthis,” PM Chinh said.
With that being said, PM Chinh underlined that Vietnamwanted to create trust and secure opportunities in business, and not causetrouble or worries for investors.
He said Vietnam was always open to foreign investors inemerging sectors such as securities, energy transition, digital transformation,healthcare, and biopharmaceuticals.
In the discussion with the CEO of Vietnamese carmaker VinFast,who is seeking to list on the US stock market in a couple of years withelectric vehicle ambitions, PM Chinh said it would be important that thecompany respects US laws and business culture, closely watches the market andlearns from the lessons it had from the domestic market and US partners, andcommits to digital transformation and technology innovation.
He noted that the investment into EVs was a decision thatmeets the global trend, but the shift needed to be much more robust, with a focuson diversification of supply chains./.
VNA
