Representatives of JICA and the State Securities Commission of Vietnam sign a record of their discussion on November 5 (Photo: organising board)Hanoi (VNA) – The JapanInternational Cooperation Agency (JICA) will carry out a project to helpVietnam improve the fairness and transparency of its stock market, according toa document on the November 5 meeting between the agency and the StateSecurities Commission of Vietnam (SSC) discussing the project.
The project will be implemented for three years,starting in 2019. It aims to improve the capacity of the SSC and the Hanoi andHo Chi Minh City stock exchanges in monitoring the market and intermediaries,managing stock listing and offering and promoting businesses’ awareness ofinvestor protection.
Under this project, JICA will help the SSC andthe two bourses review relevant laws, carry out capacity building activities andgive advice.
According to JICA, Vietnam’s stock marketcapitalisation has increased rapidly over recent years amid economic growth andthe development of the private sector. More State-owned enterprises have beenequitised and many private firms listed on the stock market, helping themexpand operations and diversify capital sources.
JICA said the Government had realised the needto promote agencies’ capacity and upgrade the stock market to boost sustainabledevelopment. Therefore, it asked for the Japanese government’s support in thisregard.
At the signing ceremony, SSC Chairman Tran VanDung said Vietnam’s stock market has developed for 18 years and is growingfast. It is worth more than 80 percent of the country’s GDP.
Meanwhile, in the bond market, Government bonds accountfor more than 22 percent of the total GDP. Including corporate bonds, the valueof this market has surpassed 30 percent of GDP.
He appreciated Japan’s assistance in marketdevelopment, noting that foreign investors with more than 21,000 accounts areinvesting in the Vietnamese stock market, including some 7,000 accounts fromJapanese investors.
Dung said the project is necessary for Vietnamto enhance the management, inspection and monitoring capacity of the SSC andthe two exchanges, thereby aiding the stock market’s sustainable developmentand consolidating Japanese investors’ trust.
Chief Representative of JICA’s Vietnam OfficeKonaka Tetsuo said there remains much room for Vietnam’s stock market to growin both quantity and quality. Amid investors’ rising demand, it is important tocreate a friendly investment climate to tap into the market’s potential bypromoting fairness, transparency and efficiency.-VNA
VNA
