Sunday,  Nov 18, 2018,18:57 (GMT+7) 0 0
JICA supports Vietnamese stock market
By Le Anh
Tuesday,  Nov 6, 2018,12:50 (GMT+7)

JICA supports Vietnamese stock market

By Le Anh

Konaka Tetsuo (L), JICA’s chief representative in Vietnam, and Tran Van Dung, chairman of the State Securities Commission, at the signing ceremony - PHOTO: JICA

HCMC – The Japan International Cooperation Agency (JICA) and the State Securities Commission (SSC) on November 5 signed a Record of Discussion on a project in Hanoi City to make the equity market in Vietnam fairer and more transparent.

The technical cooperation project for “Capacity Building to Improve Fairness and Transparency of Vietnamese Equity Market” was aimed at improving the capacity of the SSC and two stock exchanges (SEs) in Hanoi City and HCMC to conduct market surveillance, supervise market intermediaries, manage listings and public offerings and raise the awareness of investor protection among enterprises’ leaders.

Under the project, JICA will provide support to the SSC and two SEs for various activities such as reviewing the current framework, close consultancy, capacity building for various related matters and updating the internal operations manual/guideline and/or revising the legal framework. The project is expected to start in early 2019 and will be completed in three years.

In recent years, market capitalization has been rapidly growing in Vietnam in the context of further transitioning to a market economy and developing the private sector. During the 2011-2015 period, Vietnam witnessed the equitization of 508 State-owned enterprises (SOEs). In the following years toward 2020, a more dynamic divestment process has been projected and gradually rolled out, including the equitization of the largest SOEs. Meanwhile, along with the listing of SOEs in the market, the listing of more private enterprises in the Vietnamese equity market is also expected to expand their business and diversify their funding sources.

The Government of Vietnam has recognized the need to enhance the capacity of the relevant authorities and upgrade the equity market for the sustained socioeconomic development of the economy. It has requested the Government of Japan to support its efforts through joint activities.

The project was also prepared in the context of executing the “Strategy for the development of the Vietnamese securities market for the 2011-2020 period,” approved by the prime minister in 2012, which outlines a clear vision to enable the Vietnamese securities market to integrate into the ASEAN and international markets.

For more than two decades, JICA has been supporting Vietnam to develop a liberalized economy and promote international economic integration through various technical and financial cooperation projects. It is hoped that the new project, tailored to meet the urgent needs of the Vietnamese equity market, will contribute to sound and sustained socioeconomic development.

Share with your friends:         
 
Business
World
Sport
Travel
 
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.