The government will study the application of short selling of stocks and day trading.

Deputy Prime Minister Ho Duc Phoc signed Decision 2014 approving the Project to upgrade Vietnam's stock market.

The Government has approved the Project to upgrade Vietnam's stock market with many groups of tasks - Photo: QUANG DINH

Stabilize the foreign exchange market, respond to foreign capital fluctuations

The short-term objective of the project is to fully meet the criteria for upgrading from a frontier market to a secondary emerging market by FTSE Russell in 2025; maintain the secondary emerging market rating by FTSE Russell.

The long-term goal is to meet the criteria for upgrading to MSCI emerging market status and FTSE Russell advanced emerging market status by 2030.

With short-term goals, the project proposes a series of solution groups to meet FTSE Russell's criteria for upgrading to a secondary emerging market.

This includes resolving the issue of "requiring advance payment for securities purchase", aiming to remove the barrier of margin requirement before trading for foreign investors during the time when the central clearing counterparty (CCP) mechanism has not been implemented for the Vietnamese underlying securities market.

At the same time, information on the maximum foreign ownership ratio in all sectors must be transparent, creating equal access to information for foreign investors.

Regarding the task group and solutions to maintain the short-term ranking, the project clearly states: The information system between the custodian bank and the securities company will be strengthened to serve the securities trading activities of investors (STP);

Implement the total transaction account (OTA) mechanism;

Proposing solutions to stabilize the foreign exchange market in order to respond to fluctuations in foreign investment flows;

Strengthening the management and supervision capacity of the securities market management agency (State Securities Commission) in terms of human resources and upgrading the information technology system to serve management and supervision.

Notably, in the coming time, coordination within the securities industry and inter-sectoral coordination between the Ministry of Finance, the State Bank of Vietnam and the Ministry of Public Security will be strengthened in monitoring activities in the securities market to better support the management work of each industry, improve the effectiveness of crime prevention and suppression, and ensure system security and safety.

Controlled short selling through the mechanism of selling pending securities, intraday trading

The Government's project also clearly states a group of tasks and solutions to implement long-term goals.

To meet the criteria for upgrading to a high-level emerging market by FTSE Russell, an emerging market by MSCI, the Government will review the legal regulations on foreign ownership ratio to increase the maximum foreign ownership ratio, and remove from the list of industries that do not require restrictions on foreign ownership ratio.

At the same time, develop advanced payment and clearing infrastructure to meet the 100% margin-free transaction payment mechanism and central clearing counterparty (CCP) mechanism.

According to the project, there will be research and a roadmap to allow securities borrowing and lending, controlled short selling through the mechanism of selling pending securities and intraday trading.

In addition, the foreign exchange market will be developed, allowing the deployment of risk hedging tools in the foreign exchange market for indirect investment activities.

To maintain the long-term ranking, the Government also emphasized the solution of strengthening coordination between foreign exchange management agencies and stock market management agencies in regularly monitoring the circulation of foreign indirect investment capital flows.

Encourage financial reporting according to international financial reporting standards (IFRS)

To improve transparency in the stock market, the Government's project proposes solutions to strengthen inspection of the quality of operations of auditing units and auditors; encourage large-scale listed enterprises to publish financial statements according to international financial reporting standards (IFRS); and strengthen corporate governance according to the standards of the Organization for Economic Cooperation and Development (OECD) for public companies.

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BINH KHANH

Source: https://tuoitre.vn/chinh-phu-se-nghien-cuu-ap-dung-ban-khong-chung-khoan-giao-dich-trong-ngay-20250914140325365.htm