SSC gains 2nd-class Independence Order

Tuesday, Nov 29, 2016 09:07

The Finance Ministry’s State Securities Commission (SSC) was awarded the Independence Order, second class, during a ceremony yesterday on the 20th anniversary of its foundation.— Photo

The Finance Ministry’s State Securities Commission (SSC) was awarded the Independence Order, second class, during a ceremony on November 28 on the 20th anniversary of its foundation.

Prime Minister Nguyen Xuan Phuc said the stock market has overcome many difficulties and challenges in the last 20 years to develop and become an important channel, which provides middle- and long-term capital resources to develop the economy and support the equitisation and restructuring of State-owned enterprises.

The PM lauded the efforts made by officials and market members to improve transparency, creditability and enhance corporate governance.

The PM asked the Ministry of Finance and the SSC to complete their management mechanisms to assist local companies with business development, ensure the transparency, equality and efficiency of the securities market, which contribute to the development of Viet Nam’s economy on its path to globalisation and integration.

Minister of Finance Dinh Tien Dung said the ministry will support the securities sector to refine policies in line with market mechanisms and international practices while improve State management of the securities market.

Vu Bang, Chairman of the SSC, said that the SSC will make efforts to increase the size and trading liquidity of the securities market, open the market more for foreign investors and improve the competitiveness of the local securities market against international ones.

To achieve those targets, the SSC will have to complete its legal framework and improve the quality of its management as well as diversify products and services for the market and ensure proper monitoring of product quality.

The SSC will also have to improve investment conditions to attract more investors and achieve sustainable development, while enhancing the capabilities for market members and helping them develop organisations to support the market.

The securities market will also be restructured, completed and equipped with advanced technological infrastructure to improve the quality of market trading and operation, along with strengthening international co-operation in training, education and information.

According to the SSC, capital mobilised from the securities market for social investment has reached more than VND2 quadrillion (US$88.9 billion) since 2011, nearly five-fold the figure during 2005-10, contributing to 23 per cent of the total social investment.

The bond market has an annual growth rate of 31 per cent, the highest among emerging markets in the Southeast Asia and ASEAN+3 regions, and is one of the most important channel for the Government to mobilise capital. In 2010-15, the State mobilised nearly VND796 trillion via the bond market.

There are now more than 1,000 companies listed on the two local exchanges from only two on the HCM Stock Exchange in 2000 and 79 securities companies with total chartered capital of VND4.2 trillion from seven companies at the beginning. — VNS

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