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Vietnam unveils roadmap to reorganise stock market

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The headquarters of the Ho Chi Minh City Stock Exchange (HoSE) in Vietnam’s most populous city. HOSE

Vietnam unveils roadmap to reorganise stock market

Vietnamese Minister of Finance Ho Duc Phoc plans to rearrange the securities trading market in a newly-promulgated Circular as a move towards the merging of the two national stock exchanges into one named the Vietnam Stock Exchange (VNX).

Phoc promulgated Circular No 57/2021, stipulating the roadmap to rearrange the stock market, the bond market and the derivatives market. The circular went into effect on July 20.

Under the circular, by the end of June 30, 2025, the Ho Chi Minh City Stock Exchange (HoSE) shall unify the organisation of a trading market for listed shares, fund certificates and warrants.

From July 1, 2023 until December 31, 2023, HoSE will receive shares of listed companies from the Hanoi Stock Exchange (HNX). Meanwhile, from January 1, 2025 to the end of June 30, 2025, HoSE will receive shares of enterprises from the Unlisted Public Company Market (UPCoM).

For HNX, from July 1, 2023, the exchange will no longer accept the listing of new shares from enterprises.

As for the bond market, by the end of December 31, 2022, HNX will have completed the organisation of government bond market, government-guaranteed bonds, and listed corporate bonds, privately issued corporate bonds and receive listed corporate bonds from HoSE.

According to Decision No 37/2020, VNX operates under the model of parent-subsidiary company on the basis of the re-organisation of HNX and HoSE. The state will hold 100 per cent of its charter capital, which will be roughly three trillion dong ($130 million).

According to the decision, HNX is tasked with organising and operating the derivatives and bond trading market. Meanwhile, HoSE will organise and operate the stock market and other securities trading markets. The current charter capital of HoSE is 1.2 trillion dong and HNX 750 billion dong.

VIET NAM NEWS/ASIA NEWS NETWORK

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