The Japan International Cooperation Agency (JICA) will carry out a project to help Vietnam improve the fairness and transparency of its stock market, according to a document on the November 5 meeting between the agency and the State Securities Commission of Vietnam (SSC) discussing the project.

The project will be implemented for three years, starting in 2019. It aims to improve the capacity of the SSC and the Hanoi and Ho Chi Minh City stock exchanges in monitoring the market and intermediaries, managing stock listing and offering and promoting businesses’ awareness of investor protection.
Under this project, JICA will provide support to the SSC and the two bourses review relevant laws, carry out capacity building activities and give advice.
According to JICA, Vietnam’s stock market capitalisation has increased rapidly over recent years amid economic growth and the development of the private sector. More State-owned enterprises have been equitised and many private firms listed on the stock market, helping them expand operations and diversify capital sources.
JICA said the Government had realised the need to promote agencies’ capacity and upgrade the stock market to boost sustainable development. Therefore, it asked for the Japanese government’s support in this regard.
At the signing ceremony, SSC Chairman Tran Van Dung said Vietnam’s stock market has developed for 18 years and is growing fast. It is worth more than 80 percent of the country’s GDP.
He appreciated Japan’s assistance in market development, noting that foreign investors with more than 21,000 accounts are investing in the Vietnamese stock market, including some 7,000 accounts from Japanese investors.
Dung said the project is necessary for Vietnam to enhance the management, inspection and monitoring capacity of the SSC and the two exchanges, thereby aiding the stock market’s sustainable development and consolidating Japanese investors’ trust.
Chief Representative of JICA’s Vietnam Office Konaka Tetsuo said there remains much room for Vietnam’s stock market to grow in both quantity and quality. Amid investors’ rising demand, it is important to create a friendly investment climate to tap into the market’s potential by promoting fairness, transparency and efficiency./.
Source:VNA