Vice Minister of Finance Nguyen Duc Chi has urged the State Securities Commission of Vietnam (SSC), the country’s stock market watchdog, to accelerate the testing process of the new stock trading system provided by the Korea Exchange (KRX), South Korea’s bourse operator.

Investor at a securities company in Hanoi. Photo: Viet Dung

“The launch of the new system would allow the introduction of new services and products in the stock market,” Chi noted.

In 2012, the HoSE and KRX signed a deal worth VND600 billion (US$26.14 million) for the latter to develop a new IT system to be used in the local stock market. The completion, however, was delayed until now due to the Covid-19 outbreak.

Chi also called for the Vietnam Stock Exchange to set up a warning system to detect irregularities in stock transactions.

To ensure the market's long-term development, Chi stressed the necessity for the SSC to revise the current legal framework and address obsolete regulations in stock market management.

“Greater efforts needed to supervise the operation of securities companies and timely deal with violations,” he added.

Meanwhile, Chi called for major improvements in the market operation for a possible upgrade from the current status of the frontier to an emerging market.

The benchmark Vn-Index underwent a major correction phase from its peak of 1,500 to around 1,170 in just a month and a half.  

The SSC noted the market slump was in line with the situation of stock markets around the world and expected a soon recovery given the strong support from the Government and bright economic outlook.

At the close yesterday, Vn-Index rose by nine points to 1,294, marking the fifth consecutive rise for a cumulative  80 points.