An auction at the Ha Noi Stock Exchange. The local economy could see positive administrative reforms along with a better business environment, which will be the core elements to support the stock market in 2016. — VNA/VNS Photo Pham Hau

HA NOI  (VNS)  — Better prospects for the global and local economy would support the stock market in 2016, Vu Bang, chairman of the State Securities Commission (SSC) said yesterday in Ha Noi.

Bang told the SSC's meeting to develop the stock market this year in the midst of difficulties and uncertainties such as the recent plunge of the Chinese stock market, strong devaluation of renminbi, and the tightening monetary trends in many countries. The bright sides were the expectation of the US economy, and a series of free trade agreements signed within the year.

Bang thought the local macro-economics could see positive administrative reforms along with a better business environment, and will be the core element to support the stock market in 2016.

In order to develop the stock market from 2016 to 2020, SSC Deputy Chairman Nguyen Thanh Long said the commission would concentrate on increasing the size and liquidity and improving the operational efficiency of the market.

The commission said there should be more share auctions to the public and to its strategic partners, enhancing the quality of accounting, auditing to improve transparency, and applying the electronic voting systems for issuers.

The commission said they would merge the two local bourses and bring the exchange and stock depository to international standards to enhance the competitiveness of the local market in the context of integration.

The commission will continue to restructure securities trading organisations by giving them more professional training, building a code of ethics, applying international accounting standards in their works. At the same time, the commission will allow foreign securities companies to set up their branches in Viet Nam to provide more services and attract foreign investors. On the other hand, SSC will guide the listed enterprises to register and list their shares on the international stock markets.

In order to attract foreign investors, SSC will work with the Ministry of Planning and Investment for a specific guideline on opening room for foreign investors. They will also provide an online transaction code, and reduce administrative procedures for foreign investors.

Finally, the commission said they would foster the monitoring, inspection and management of the market to find and deal with any violation to ensure the best security of the local market. — VNS