Vietnam PM Orders Urgent Review of Stock Market Systems Following Glitches

Prime Minister Pham Minh Chinh has directed a comprehensive and urgent review of Vietnam's securities trading and information technology systems to prevent technical malfunctions.

The directive aims to strengthen the financial system's security and protect investor interests following recent disruptions.

The Prime Minister's Office issued Notice 122/TB-VPCP, outlining these instructions based on discussions at the 2024 Stock Market Development Conference. The Ministry of Finance will lead the review in collaboration with relevant agencies.

The Prime Minister has also called for the expedited implementation of Decision No. 1726/QD-TTg, which outlines the Stock Market Development Strategy until 2030.

Key aspects include infrastructure modernization, digital transformation, and enhanced regulatory oversight. The goal is to foster a market that aligns the interests of the state, businesses, and investors.

The State Securities Commission has been specifically tasked with a thorough examination of trading and IT systems to proactively identify risks, implement controls, and develop contingency plans. These measures are crucial to prevent future technical failures and protect financial system integrity.

The Ministry of Finance will spearhead efforts to accelerate Vietnam's stock market upgrade from "frontier" to "emerging" market status. This involves addressing bottlenecks and meeting specific upgrade criteria.

It will collaborate closely with the State Bank of Vietnam, the Ministry of Planning and Investment, and other relevant agencies to achieve this goal. Progress reports are due to the Prime Minister in June 2024.

Furthermore, the Ministry of Finance will lead the revision of Decree No. 155/2020/ND-CP to ensure stricter regulations, transparency, and alignment with international standards. The revised decree is expected by June 30, 2024.

In a move to facilitate foreign investment, the Ministry of Planning and Investment, in coordination with the Ministry of Finance, State Securities Commission, and other agencies, will revise and publicly announce limits on foreign ownership in sectors with conditional or restricted access. Updates will be available on the Ministry's bilingual website by May 2024.

Finally, the State Bank of Vietnam will work with the Ministry of Finance and State Securities Commission to simplify and expedite procedures for foreign investors opening indirect investment capital accounts.

The bank will also explore payment and clearing solutions that are safe, efficient, and compliant with both legal and market rules. These initiatives are also due for completion in May 2024.