31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Addressing crashes on HoSE is national emergency: Stock authority
Ngoc Thuy 21:02, 2021/06/24
Since the first crash last December, stock authorities have been actively working on solutions to solve the issue.

Upgrading the transaction system on the Ho Chi Minh Stock Exchange (HoSE) for greater processing capability and liquidity is of national emergency.

 Overview of the conference. Source: The Hanoi Times

Chairman of the State Securities Commission of Vietnam (SSC) Tran Van Dung stressed the view in an online conference discussing the issue on June 24.

“Since the first crash on December 21, 2020, leaders of the Ministry of Finance (MoF) have instructed the SSC and HoSE to mobilize resources and solve the issue as soon as possible,” Dung noted.

According to Dung, the MoF has set up a Steering Committee led by Vice Minister Huynh Quang Hai to work out a solution in this regard, noting a new stock trading system provided by the Korea Exchange (KRX) is under the testing phase from June 14-August 6.

“The system is set for officially launch by late 2021,” he added.

 Investor at a securities company in Hanoi. Photo: Pham Hung

Dung acknowledged the fact that a surge in the number of transaction orders has exceeded the maximum figure that the system can handle at 900,000 per day. This was a reason that the overload of orders has forced the stock exchange to halt market trading several times over the past six months.

Duong Dung Trieu, chairman of FPT Information System (FIS) under FPT Group, said as the HoSE is waiting for the new system to be ready, FPT is working on a backup system that would be launched in July at the latest.

“This temporary system could process three to five million orders per day,” Trieu stated.

While seeing the issue has been causing negative impacts on the local stock market, Chairman of the SSI Securities Corporation (SSI) Nguyen Duy Hung argued that this could be a golden opportunity to make significant changes to the market.

“The most important factor for the market's growth is domestic investors, therefore, stock authorities should listen to concern from investors and improve the market transparency,” he added.

Despite the recurrence of the overload issue on the HoSE, Vietnam’s stock market remained among the world’s best performers in the five months as the benchmark Vn-Index rose by over 16% against early 2021 to 1,283.93 by late May.

Along with the index’s strong growth, market liquidity has also been markedly improved in the past months with an average transaction value of around VND25-30 trillion (US$1.1 – 1.3 billion) on the HoSE, a more than 10-fold increase against the pre-pandemic period in early 2020.

With Vietnam’s positive economic outlook, experts suggested the Vn-Index may hover around 1,300-1,400 this year.

RELATED NEWS
TAG: Vietnam HOSE KRX stock market SSC transaction system VN-Index
Other news
15:54, 2022/54/24
Vietnam's stock market on foreign funds’ radar amid possible upgrade to EM status: HSBC
Vietnam has outperformed major regional indices, making the market nearly quadrupled in size compared with the start of 2012 and the trading exceeding $1 billion a day.
10:52, 2022/52/23
Gov’t extends excise tax payment deadline for domestic cars
This has been the third extension of excise tax compliance due date for local cars since 2020, with an expected amount subject to a tax break of VND20 trillion ($US$863 million).
11:26, 2022/26/17
The Vietnam-US comprehensive partnership facilitates investment activities: PM
The prime minister held meetings with executives of US major financial corporations such as KKR, Visa, S&P, and Citigroup over future cooperation in the financial sector.
15:35, 2022/35/11
Vietnam's securities accounts surpass 5-million mark
As of the end of April, Vietnam’s stock market has over 5.2 million securities accounts, of which retail investors make up 98.9%.
08:24, 2022/24/10
Finance ministry proposes extending tax payments worth US$870 million for domestic cars
The ministry considered this an urgent solution for businesses, which should take effect immediately from the date of signing to the end of 2022.
13:44, 2022/44/09
Foreign capital returns to Vietnam's stock market in 2022: SSI
The stability of the VND-USD exchange rate helped Vietnam attract substantial attention from investors in the region, such as Thailand, Taiwan, and Singapore.