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.