Linking up the financial market in Vietnam. 04/08/2024 06:34:00 49

The Vietnam - Australia Financial Market Connection Seminar was organized on August 2, in Sydney, by the Vietnam Consulate General's Office in collaboration with the Australian Ministry of Foreign Affairs and Trade, the State Securities Commission, and the Australian Ambassador to Vietnam, as part of the Working Program of the Vietnamese Ministry of Finance in Australia.

The State Securities Commission Chairwoman, Ms. Vu Thi Chan Phuong, Mr. Luong Hai Sinh, Chairman of the Board of Members of the Vietnam Stock Exchange, Mr. Nguyen Son, Chairman of the Board of Members of the Vietnam Securities Depository and Clearing Corporation, Ms. Tran Anh Dao, Deputy General Director in charge of the Executive Board of the City Stock Exchange, Ho Chi Minh, Mr. Nguyen Anh Phong, General Director of the Hanoi Stock Exchange, and representatives of Vietnamese banks and companies were present at the discussion on the Vietnamese side.

The Australian government's special envoy to Southeast Asia, Mr. Nicholas Moore, the head of the department's state office, Mr. David Cava Lough, the second secretary of the Australian embassy in Vietnam, Ms. Arabella Bennette, and representatives of Australian companies and investors are all present.

Ms. Vu Thi Chan Phuong discussed financial investment collaboration potential in Vietnam with the attendees during the conversation

Vietnam has shown remarkable ongoing economic progress, according to Mr. Nicholas Moore. Along with numerous additional benefits in terms of location and labor force, this has drawn attention from all around the world.

The shift to green energy, digital transformation, and the growth of green financial markets are just a few of the many issues that Australia and Vietnam share. Vietnam's stock market is attempting to become an emerging market, as stated by the special envoy of the Australian government to Southeast Asia. In order to improve the circumstances that allow foreign investors to access Vietnam's stock market, these are critical initiatives.

"This effort is crucial to support robust growth in trade and investment relations between the two countries, and we hope to achieve more positive outcomes in the future through the working program of the Ministry of Finance's Working Group."

According to Ms. Vu Thi Chan Phuong, the State Securities Commission has been working under government direction to support the longer-term, higher-quality, and more efficient development of the Vietnamese stock market. Vietnam's stock market, which has been open for business for almost 24 years, has demonstrated its appeal to investors both domestically and internationally based on the volume of commodities traded, robust liquidity, and high participation.

As of July 2024, the stock market in Vietnam has over 1,600 stocks and fund certificates listed and registered for trade; the market value is over 278 billion USD, or 65% of the country's GDP in 2023. With 8 million securities accounts, the number of investors is increasing significantly. It is ranked #1 and second in the ASEAN area for liquidity, with a daily volume of roughly $1 billion USD.

Delegates shared information at the discussion

The National Strategy on Green Growth, which includes the transformation of public energy, was authorized by the Vietnamese Prime Minister in 2021 and will run until 2030. Equity, ecological shift, circular economy, and cutting greenhouse gas emissions in the direction of a long-term carbon neutral economy.

The SSC prioritizes the promotion of responsible investment, green finance, and sustainable finance. Recently, the State Securities Commission has made a strong case for the corporate and investor community's proactive involvement in laying the groundwork for sustainable development and green growth.

Financial institutions that have issued green bonds in line with the most recent best practices and guidelines have been successful in raising green money in the market. In particular, the EVNFinance Green Bond, worth $75 million USD, was successfully issued by Electricity Finance Company; BIDV Bank is the first bank in the domestic market to issue green bonds valued at around $100 billion USD, in accordance with the ICMA's Green Bond Principles.

Participants in the meeting included representatives of several companies and investors

Following the discussion session, Mr. Nicholas Moore, the moderator, and the banks, companies, and investment funds of the two nations shared and traded chances to highlight their accomplishments and areas of strength. My passion for green projects, sustainable development initiatives, green financial solutions, and the green financial market. With significant financial potential, BIDV can fully support partners with loans with support of billions of USD, including green buildings and projects, according to Mr. Vuong Thanh Long, Director of Capital Resources and Monetary Business Department, BIDV. Not only does BIDV supply the market with green capital, it also issues green capital in the form of green bonds. BIDV has also succeeded in issuing nearly VND 25,000 billion in green bonds recently.

In the meantime, Vietcombank's Deputy Director of Capital and Market Operations, Mr. Vu Quang Dong, added that the bank is one of the top listed banks on the Vietnamese stock market. Furthermore, Vietcombank was among the first banks in Vietnam to offer green bonds. In addition, this Bank has a plan in place to create green capital in order to assist Vietnam's sustainable development and green economic growth.

Furthermore, Mr. Vu Quang Dong stated that Vietcombank aims to address its clients' needs by connecting business customers and offering knowledge and information.

Discussion overview

The CEO of the Australian Superannuation Fund Association, Ms. Mary Delahunty, stated that communication about investments is crucial to encouraging investment. As an illustration, a large number of pension funds in Australia have diversified investment portfolios that include investments in green financial products, but their interests extend beyond niche endeavors. but additionally the coherence and consistency of governmental rules and management agency practices.

The prospect for financial collaboration between the two sides was particularly acknowledged by Mr. Nicholas Moore, the special envoy of the Australian Government to Southeast Asia, who led the debate

Mr. Nicholas Moore, responded that there are chances for financial collaboration between the two nations because of their inherent potential when asked about such opportunities. He added that many Australian businesses, as well as others in the area, view Vietnam as a nation with enormous growth potential as they develop Australia's cooperation plan with Southeast Asia. fantastic. The goal of Australia is to make sure that Vietnam views Australia as a good growth partner in both trade and investment.

Thus, given the strength and potential of the economies of the two nations, we feel quite confident about the future of our cooperation.

Translator: Thúy Nga