Minister of Finance Ho Duc Phoc has responded in writing to a delegate of Lam Dong Province on issues related to the management of capital, stock and bond markets.
Minister Phoc said that the capital market's growth rate was over 28.5 per cent a year in 2016-21, while the stock and corporate bond markets grew over 30 per cent a year. This gradually narrowed the gaps between these markets with the bank credit market and balanced them.
Total capital mobilisation in the capital market, including the issuance of stocks, bonds, and equitisation auctions in 2021, reached over VND1.12 quadrillion (US$4.8 trillion), equivalent to 38.7 per cent of the total investment capital of the whole economy.
The Ministry of Finance (MoF) assessed that the capital market had played an essential role in mobilising medium and long-term capital for investment in economic development and balanced development between the monetary and credit markets.
However, the Ministry also said that recently in the stock and derivatives markets, prices have been manipulated with more and more sophisticated methods, while many ticker symbols have been pushed up without relation to the business situation, like the case of FLC Louis.
The MoF has implemented many solutions for specific inspection to stabilise the stock market.
The Ministry has checked and cancelled transactions of 74.8 million shares, blocked accounts, and administratively handled the case of Trinh Van Quyet, former chairman of FLC Group, proactively transferred the files of Louis Holding and 34 companies violating regulations to the investigation agency. In the stock market alone, the MoF has proposed prosecuting six cases.
In the corporate bond market, in 2021, the Ministry inspected nine securities companies and two issuers, issued three decisions on sanctioning administrative violations, and transferred one case to the police.
In 2022, it coordinated with the investigative agency in the case of Tan Hoang Minh Group and organised inspections at five securities companies related to this case. Many issuers and service providers will be examined from now until the end of the year.
The MoF said it would strengthen the capacity of market regulators such as the State Securities Commission, the stock exchanges, and the Vietnam Securities Depository.
It will also strengthen management and supervision, including inter-supervising of the State Bank on credit institutions' issuance, investment, and service provision of corporate bonds.
In addition, it will ensure the formation and operation of professional investment institutions and professional securities investors, with a focus on long-term investors such as investment funds, voluntary pension funds and assurance companies. — VNS