Hanoi (VNA) - Securities indexes have continually set n🍎ew records, helping the stock market enjoy the second fastest growth rate in the world.

The remark was made by Vice Chairman of the State Securities Commission of Vietnam (SSC) Pham Hong Son at a meeting that reviewed the SSC’s performance in the first six months and launched tasks for the rest of the year on July 9.

Securities companies record profit growth of 92 percent

Son said as the COVID-19 pandemic has continued taking its toll on every socio-economic aspect in the world, including Vietnam, the stock market experienced strong fluctuations and numerous difficulties and challenges during the first half of 2021. Despite that fact, the SSC still managed to basically fulfil the set targets, he noted. The commission helped the Prime Minister draft one decree and one decision while making nine guidance circulars. It put one securities company under special control, and raised charter capital for three others. In the first quarter of 2021, securities companies posted a surge of 57 percent in revenue and 92 percent in profit compared to the same period last year. It also licensed and launched offering for four new investment funds, raising the number of such funds to 58 with total net asset value rising 36 percent from the end of 2020. In addition, inspection and supervision have also been carried out seriously in spite of certain obstacles caused by the pandemic. As a result, the SSC issued 190 decisions to impose administrative fines worth 5.66 billion VND (246,400 USD) in total on 156 individuals and 34 collectives. Regarding tasks for the remaining months, Son noted the SSC will strive to enforce new regulations and policies under the Law on Securities, along with the documents guiding their implementation, so as to assist enterprises and protect investors’ rights and legitimate interests, thereby creating momentum for the Vietnamese stock market to develop sustainably. It will also push ahead with improving market management and supervision, strictly dealing with violations, restructuring the market, and completing IT projects to keep the smooth operation of the stock market.

Tightening market discipline

Addressing the meeting, Deputy Minister of Finance Huynh Quang Hai said in the face of the ongoing complex COVID-19 pandemic, agencies of his ministry will keep coordinating with the SSC to ensure the stable, safe, and effective operation of the market. Pointing out certain focal tasks, he asked the SSC to work harder to implement new regulations and policies under the Securities Law and the guidance documents, helping to foster the market’s sustainable development and the national economy’s recovery. It needs to finish the building of a stock market development strategy for the 2021 - 2030 period and submit the draft to the ministry and the Prime Minister for issuance. Hai also requested the commission to complete the application of the stock trading system from the Republic of Korea, known as KRX, to better serve transaction and payment activities, thereby meeting the strong development demand of the market. The last but not least is that the SSC keeps enhancing state agencies’ monitoring, management, and execution capacity, he said, adding that it should set up supervisory and early warning mechanisms, prepare response plans in case of crises, tighten discipline in the market, and stringently handle wrongdoings./.