The Vietnam Stock Exchange (VNX) and the Singapore Exchange (SGX) agreed on August 5 to strengthen cooperation between the two markets.

The signing ceremony on August 5. Photo: VGP

Under the agreement, both exchanges will continue to communicate to foster their mutually beneficial relationship. The two parties will share information on their operations, regulatory frameworks and existing securities products.

VNX and SGX will share information on their market structures, exchange market management and governance practices, and accelerate the quality of corporate governance for institutional investors and listed companies.

Both parties will also support and enhance listing compliance oversight, promote listed companies in both markets and explore opportunities for product development and cross-listing in the securities and derivatives markets.

Vietnam’s Minister of Finance Ho Duc Phoc said that Singapore has always been a significant and special partner for Vietnam in various fields such as economy, trade, investment and finance.

In terms of investment, Singapore was the largest foreign direct investment (FDI) source to Vietnam in the first half of the year, with a total registered capital of nearly US$5.6 billion. In terms of trade, Singapore remained one of Vietnam's top import-export partners.

"We hope to receive support from the Singapore Ministry of Finance to modernize tax and customs administration and strengthen system security," he said.

Minister Phoc also suggested that the two sides work to build the capacity of securities regulators and stock exchanges and support the development of carbon credit trading.

Singapore's Second Minister for Finance, Chee Hong Tat, agreed with Minister Phoc's ideas.

He said Singapore wants to share experiences with Vietnamese counterparts in tax and customs activities to foster mutual benefits and create opportunities for businesses in both countries.