Increase the possibility of upgrading the stock market

Urgently implement necessary measures to upgrade the stock market from marginal to emerging market in 2025. This is one of the contents of Directive 12 recently signed by the Prime Minister. The plan to deploy a new transaction system according to global standards from the beginning of May is considered to help Vietnam take a new step forward in the upgrade process.

For investors, the electronic board on the new KRX trading system is basically not much different from the current price board. The difference lies in the fact that the current individual systems of the two departments and the Vietnam Depository Corporation are packaged in a single system, according to a common standard.

According to a common standard, securities companies need to ensure that old and new data are synchronized, order placement is smooth, as well as depository, transfer and authentication.

Mr. Phan Minh – Deputy Director of VCBS Securities Company said: “The step of converting data, scoring data with the Depository Corporation and planning to test online trading applications with customers to ensure Ensuring that customer transactions during the system conversion days do not encounter any obstacles.”

Securities companies also increased capital to support payments to foreign institutional investors according to upgrade criteria. This also helps reduce the ratio of domestic investors’ loan use to securities companies’ capital resources by 30% compared to the end of 2023.

Mr. Nguyen The Minh – Director of Analysis, Yuanta Vietnam Securities Company commented: “The current margin-to-equity ratio is approximately 55%. At the same time, recently, there has been pressure on the ratio Margin on market capitalization also decreased significantly, so margin space is still quite large for the current stock market.”

To be upgraded, the biggest bottleneck is that foreign institutional investors do not need to have 100% of the money before placing a trading order. The solution to change the regulations has been consulted.

Mr. Pham Hong Son – Vice Chairman of the State Securities Commission shared: “In mid-May, the circular will expire for comments, after which we will consider submitting to the Ministry for signature, a circular amending many information. investment related to allowing foreign investors to transfer money and securities when placing orders until T+2. This is a common practice of markets and Vietnam will aim for.

Emerging market capital flows are 200 times higher than frontier markets, so when upgraded, capital flows into Vietnam can increase by 5-7 billion USD and about 25 billion USD by 2030.

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