Minister of Finance Ho Duc Phoc (Photo: VNA). In light ofrecent turbulence experienced by the stock market, especially the sharp fall onApril 25, what solutions have been put in place to reassure investors by theMinistry of Finance?
The ministryviews the stock market as a key channel to funnel investment into the economyfor the medium-term and long-term. With a goal to ensure sustainable andtransparent development of the stock market, the ministry has proposed andintroduced a number of amendments to the country's current stock marketregulations including the issuing and offering of company bonds to domestic andinternational buyers.
Regarding theevent on April 25, the ministry as well as the State Bank of Vietnam and theMinistry of Public Security have released a public statement to denounce therampant baseless rumours that caused temporary panic among someinvestors.
We have,however, implemented a number of steps to ensure the rights of investors andcompanies, including those who have been found to be rule-breakers. Theministry wants them to have a chance to address the damage caused by theirviolations, help mitigate losses by investors, protect jobs and possibly make acomeback.
Recently,Prime Minister Pham Minh Chinh on behalf of the government said Vietnam willrefrain from over-criminalising civil cases. How will it affect the stockmarket?
It's importantto note that the government's top priority is the sustainable and robustdevelopment of the stock market and the rights of investors and companies.Recent arrests of certain business executives were meant to be a warning shot,not an escalation of law enforcement, in a bid to steer the stock market backto a path that will ensure stability and fair play for all.
In the comingmonths, the ministry is to take measures to raise awareness of the country'sBusiness Law and Securities Law as well as other stock market-relatedregulations among the business and investor community. It is our hope thatbusinesses and audit firms will learn to play by the rules and understand thatviolations will have consequences.
In otherwords, audit firms are to be held jointly responsible for their client auditreports. Violations may result in their licenses being revoked and heavy financialpenalties. The ministry considers said responses as deterrents as well asmeasures to protect the rights of investors and bond issuers.
Someinvestors have voiced their demand for more stringent regulations to overseethe stock market. What is the ministry's stand on said demand?
We understandthat the market has its own rules but such rules must also adhere to thecountry's legal framework. Our view is that the State still has a significantrole to play in guiding the development of the stock market. The ministry'sfocus is on what measures to put in place to prevent unfairness, abuse andexploitation. Violations must also be severely punished to ensurean environment that is fair-for-all and transparent.
Working intandem with stricter punishments, the ministry is also to step up scrutiny oninspection and audit activities. For us, this is a top priority as we value thestock market highly as a channel to seek investment for the country'ssocio-economic development./.
VNA
