Japanese helps VN improve equity market transparency

Friday, Jun 21, 2019 08:00

The Japan International Cooperation Agency (JICA) and the State Securities Commission (SSC) on June 20 jointly held a seminar to launch the “Project for Capacity Building on Improving Fairness and Transparency of Viet Namese Equity Market”. — Photo JICA

A project was launched on Thursday during a seminar in Ha Noi to enhance the fairness and transparency of the Vietnamese equity market.

The Japan International Cooperation Agency (JICA) and the State Securities Commission (SSC) jointly held the seminar on June 20.

At the event, JICA’s team of consultants announced key findings of a baseline survey of Viet Nam’s securities market and market participants, which can provide background for analysis and feasible solutions to build the capacity of Vietnamese counterparts.

Addressing the event, Chairman of the SSC Tran Van Dung said that the project is part of the co-operation between the Vietnamese and Japanese Governments to support the Vietnamese stock market, which directly benefits the SSC and the stock exchanges in Ha Noi and HCM City.

Dung said that the project would make important contributions to the sustainable growth of Viet Nam’s stock market and the Vietnamese economy in general.

Under the framework of the JICA-funded project, JICA’s team of top Japanese experts from the Japan Exchange Group, Daiwa Research Institute and Nomura Research Institute provide support directly to the SSC and the two Stock Exchanges in Ha Noi and HCM City, through various activities including close consultancy and capacity building for updating internal operation guidelines and revising the related legal framework, Dung told Viet Nam News.

After the event, Japanese experts will be sent to Viet Nam to start the project, he added.

The project is hoped to bring the best international practices to Viet Nam in an important transition period when the Securities Law is now under scrutiny for revisions, the “Strategy for Restructuring of Securities Market by 2020 with a vision to 2025” has just been renewed, and the two exchanges in Ha Noi and HCM City were soon to unite into a single Viet Nam Stock Exchange, Dung said.

The Record of Discussion of this Project, signed on 5 November 2018, set the first stone for the 3-year project aiming at improving the capacity of the SSC and two exchanges.

It will share techniques and experiences with Vietnamese counterparts to conduct market surveillance, supervise market intermediaries, manage listing and public offering, and raise the awareness of enterprise leaders on investor protection.

From that, the project is expected to help bring more qualified products of State-owned and private enterprises to the market, as one factor in upgrading the stock market and contributing to socio-economic development.

JICA Viet Nam Chief Representative Tetsuo Konaka said that in the future, Viet Nam should make improvements I then stock market’s equality and transparency, making it a channel to mobilise capital for enterprises.

The official lauded Viet Nam’s efforts in the field, including the revising of the Securities Law and the plan to unite the stock exchanges in Ha Noi and HCM City.

For more than two decades, the JICA has been supporting the Government of Viet Nam to develop a market-oriented economy and promote international economic integration through various technical and financial cooperation projects. For the securities sector, it has been supporting many capacity-building activities including joint research, surveys and training courses on bond and stock markets. — VNS

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