Speakers at a talk show titled ‘The importance of Financial education for Investors’ held as part of the “Ring the Bell for Financial Literacy’ event in HCM City on Monday. — VNS Photo

Financial literacy remains low in Viet Nam and so improving financial education and literacy is imperative to help the public make wise investment decisions and manage potential risks, an event heard in HCM City on Monday.

Speaking at a conference titled ‘Ring the Bell for Financial Literacy’, Nguyen Thi Viet Ha, a member of the board of directors of the Ho Chi Minh Stock Exchange, said: “The Vietnamese stock market currently has two million active accounts, a fairly small rate compared to Viet Nam’s population.

“Many investors and the public still have limited financial knowledge. Improving the financial knowledge and financial skills of investors and the public is crucial to increasing the number of investors participating in the market.”

Nguyen Anh Vu of the Banking University of HCM City told a talk show titled ‘The importance of Financial education for Investors’, held as part of the conference, that when a person has better financial literacy, they would see more good investment opportunities.

Truong Hien Phuong, senior director of KIS Vietnam Securities Corporation, said most stock investors depend on their own information sources and understanding of companies or advice from brokerage firms.

The best way for them is to seek consultancy from professional organisations, but they should themselves have solid financial knowledge to make rational investment decisions, make higher returns and reduce risks, he said.

Speakers from intermediary organisations and financial education agencies shared their experiences in educating investors and the public in financial knowledge and offered recommendations to operators and regulators to improve financial literacy.

Organised by HOSE, the Institute of Chartered Accountants in England and Wales and Smart Train, ‘Ring the Bell for Financial Literacy’ event was held to coincide with the World Investors Week (WIW), a week-long campaign organised by the International Organization of Securities Commissions (IOSCO) and World Federation of Exchanges (WFE) from September 30 to October 4.

Within the framework of WIW, ‘Ring the Bell for Financial Literacy’ was held by 33 global stock exchanges to raise public awareness of financial literacy and connect market operators and intermediary organisations with financial academies to improve accountability in training and investor protection.

According to IOSCO, the need for investor education and financial literacy has never been greater than today as the financial marketplace continues to evolve and innovate, investment products get complicated and financial services become increasingly diversified. — VNS