STABILIZING AND STRENGTHENING OF VIETNAM SECURITIES MARKET OPERTIONS

AGAINST BOOMS AND BUSTS

Duong Ngoc TuanSenior Managing Director

Vietnam Securities Depository

VIETNAM SECURITIES MARKET IN BOOMS AND BUSTS

OPPORTUNITIES

Enhancing labor resources

Improving service quality

Expansion of market operations

CHALLENGES

Market unconfidence and instability

Lack of comprehensive legal framework

Intensive competition

Increasing profits

Greater indirect investments

Non-transparency in information disclosure

Difficulty in securities issuance

POSITIVE IMPACTS OF SECURITIES MARKET BOOMS

3

ACHIEVEMENTS

Increasing trading volume

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Additional establishment of intermediaries

Mobilizing capital for economy

Enhancing equitization of state enterprises

Larger number of foreign investors

Diversifying trading products

NEGATIVE IMPACTS OF SECURITIES MARKET BOOMS

4

INVESTMENT

+ Inside trading+ Stock price manipulation+ Fraudulence+ Money is not invested appropriately

in some cases+ Cross-ownership

LARGE PARTICIPATION IN THE MARKET

+ Increased number of issuing companies+ Difficult to control+ Too many intermediaries+ Higher competition+ A large part of human resource focuses on a risky

business+ Appropriating investors’ property

LEGAL FRAMEWORK

+ Legal framework does not cover cases+ Lack of close supervision and monitoring+ Conflict of rules and regulations+ Lack of timeliness and comprehensiveness

IMPACTS OF SECURITIES MARKET BUSTS

5

POSITIVE

+ Restructuring securities market+ Strengthening legal framework+ Adjusting investment behavior

NEGATIVE

+ Down securities indexes+ Decreased profit+ Lower trading volume+ Unfair competition+ Non-transparent information

disclosure+ Weak corporate governance

REGULATORS’ DEVELOPMENT SOLUTIONS

▶ Establishing long-term development strategy for securities market

▶ Co-operating closely among related agencies

▶ Strengthening and improving legal framework

▶ Further monitoring and controlling securities market

▶ Increasing market transparency and integrity

▶ Diversifying trading products

VSD ‘S POLICIES AND STRATEGIES

Increasing supervision, management and monitoring operations of depository members Strengthening risk management activities Co-operating with regulators to handle cases of default, insolvency, etc. Enhancing infrastructure

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Researching and introducing new products: SBL, derivatives, CCP…

Empowering IT system

Improving quality of human resource

Corporate governance