Decision 32/QD-TTg 2019 establishment of Vietnam Stock Exchange

THE PRIME MINISTER

Decision No. 32/QD-TTg dated January 7, 2019 of the Prime Minister on approving the proposal for establishment of the Stock Exchange of Vietnam

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Securities dated June 29, 2006 and the Law on Amendments and Supplements to certain Articles of the Law on Securities dated November 24, 2010;

Pursuant to the Law on Enterprises dated November 26, 2014;

Pursuant to the Law on Management and Use of State Capital Invested in Business Activities of Enterprises dated November 26, 2014;

Upon the request of the Minister of Finance,

HEREBY DECIDES

Article 1. Approval of the proposal for establishment of the Stock Exchange of Vietnam, including the following main contents:

1. Objectives

a) Overall objectives

Establish the Stock Exchange of Vietnam in the form of a parent – subsidiary company on the basis of rearrangement of the Stock Exchange of Hanoi and the Stock Exchange of Ho Chi Minh city with the objective of unifying markets for trading of securities, ensuring effectiveness, equality, public disclosure and transparency for securities markets; intensify the management, surveillance and protection of legitimate rights and interest of market participants; contribute to promoting the rank of the stock market of Vietnam; enhance the competitiveness and gradually approach international standards and practices.  

b) Specific objectives

- Set up the perfect machinery on the basis of using only one focal point of administration and risk management with a view to improving the efficiency of the organization structure of the Stock Exchange of Vietnam; enhance the autonomy and self-responsibility in organizing market activities according to the provisions of law.

- Carry out the effective restructuring of the securities trading market in Vietnam on the basis of clearly distinguishing the three main market zones, including: stock trading market, bond trading market and derivative securities market; focus on the specialization and professionalization of activities, and promote the roles of a stock market in the economic growth.

- Develop modern and synchronous infrastructure and information technologies for stock markets, including transmission lines, databases and standby systems, in order to create favorable conditions for participants in the stock market and develop the ability to connect with regional and global stock markets.

- Carry out the uniform financial and technological investment management; promote the efficiency in use of funds and concurrently set up the perfect financial mechanism in order to ensure relevance to the operational characteristics of a Stock Exchange.  

- Expand the well-organized stock market, diversify trading securities products and investors, narrow down the free market, ensure the market operates effectively, equally, openly and transparently, and protection of legitimate rights and interests of investors.

2. Viewpoints and principles

Establishing the Stock Exchange of Vietnam on the basis of rearrangement of the Stock Exchange of Hanoi and the Stock Exchange of Ho Chi Minh city must adhere to the following directives and principles:

a) Comply with relevant legislative regulations, including Securities Law, Enterprise Law, Law on Management and Use of State Capital invested in production and business activities of enterprises, especially the Securities Law as a specialized law that is preferred.

b) The Stock Exchange of Vietnam must be established according to the roadmap and appropriate steps to ensure that such establishment will not affect the trading activities on the stock market, will not make any increase in the number of employees, and will not cause any disruption to the organizational structure, personnel, professional operations and financial management of stock exchanges.

c) Strengthen the roles in state management and supervision of and the roles of state ownership representatives at enterprises, ensure the securities market operates safely, openly and transparently, and improves the operational efficiency of stock exchanges.

3. Major contents

a) Operational model

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