Delegates attending the opening ceremony of the Viet Nam Stock Exchange. — Photo courtesy of VNX
The Viet Nam Stock Exchange (VNX) was officially put into operation on Saturday morning, marking a new development for the domestic stock market.
The opening ceremony was held directly in Ha Noi and HCM City and held online at some places by the Ministry of Finance.
At the event, Deputy Prime Minister Le Minh Khai handed the operations over to the Board of Directors of VNX.
According to the establishment decision, the exchange will operate under the parent-subsidiary model as per the rearrangement of the Ha Noi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HoSE).
VNX has a charter capital of VND3 trillion, with the headquarters located in Ha Noi, and is a limited company with 100 per cent capital owned by the State.
The exchange is also the parent company holding 100 per cent of capital in HNX and HoSE.
After VNX comes into operation, HNX will have the main task of organising and operating the derivatives, bond and other securities markets.
Meanwhile HoSE is responsible for organising and operating the stock market and other securities according to regulations.
The Deputy Prime Minister said that developing the stock market to create a medium- and long-term capital mobilisation channel for economic development was a consistent policy of the Party and State.
Khai also said attention needed to be paid to the modernisation of technology infrastructure to master and strengthen the application of science and technology.
Digital transformation to promote market development in combination with risk management, ensuring the safety of the stock market and meeting the growth demand of the country was also needed, he added.
Nguyen Thanh Long, chairman of the VNX’s Board of Directors, said that in the past, the size of the Vietnamese stock market was fragmented, indices were not consistent, and there was a lack of a general index that fully represented the whole market.
This has affected the position of the country stock market and the upgrade process. Therefore, the establishment and operation of VNX was necessary.
The consolidation and merger of exchanges is a reasonable trend and follows the international trend, Long added.
The restructuring and reorganisation of the exchanges will unify the stock market to ensure the market's efficient, fair, open and transparent operation, heading to a unified Vietnamese stock market.
Since September, the exchange has completed seven regulations and one plan to restructure the corporate bond market, which is expected to be issued this December.
According to the plan, the system of regulations will be officially applied and implemented in 2022.
In the medium term, Long said that VNX had directed HoSE and HNX to develop a 3-year plan, while VNX will develop a medium- and longer-term development strategy. — VNS