Illustrative image (Photo:VNA)
Hanoi (VNA) – The State Securities Commission (SSC) plans to issue legal documents this month to assist in the implementation of its five primary policy orientations for development of Vietnam's stock market.
This statement was made by Nguyen Son, head of SSC's Development Market at a bilateral cooperation seminar between creditors and entrepreneurs of Vietnam and the Republic of Korea late last week.
The first orientation is aimed at increasing the supply of products on the securities markets through the acceleration of the State-owned enterprise restructuring, divestments of State capital from big companies and introduction of structured products like derivatives (index futures and bond futures), and covered warrants, in addition to non-voting depository receipts (NVDRs) or global depository receipts (GDRs).
The second policy focuses on stimulation of market demand and the encouragement of capital inflows in the market, together with the task of upgrading Vietnam's stock market to the emerging market status in the MSCI's ranking.
Son said Vietnam had satisfied some criteria of the MSCI, the world leading index construction provider, and the ranking promotion would happen in the near future. He also added that some legal documents would be soon issued to implement Decree 60 which increases foreign holdings in domestically listed companies.
The legal framework for information disclosure of public companies and development of professional investment institutions (exchange-traded funds, pension funds, investment-linked insurance products and investor protection funds) would be further developed.
The third group of policy is to speed up the market restructuring, including consolidation and dissolution of weak securities companies, permission of higher foreign ownership (between 50 percent and 100 percent) in domestic securities firms, and restructuring the two stock exchanges.-VNA
