(Photo: VOV)

A recent government decree introduced two groups of solutions to improve the securities market. One allows enterprises to swap bond debt for payment with other assets to solve maturity problems, negotiate with bondholders, and extend the term for debt restructuring. The second suspends the enforcement of regulations on credit rating results for bond issuers until the end of 2023 in order to increase the success of new deposits.

Do Ngoc Quynh, Secretary General of the Vietnam Bond Market Association, said: "The degree will immediately help enterprises in debt restructuring, have more time to improve their transparency and professionalism, and issue their bonds more smoothly. Businesses need to improve their capacity to meet new standards to become more professional and transparent."

State management agencies have enhanced management and oversight to ensure the publicity and transparency of the market. In the past 4 years, with the support of the Japan International Cooperation Agency (JICA), the State Securities Commission has implemented the project "Strengthening capacity to improve the fairness and transparency of the Vietnamese stock market”.

Pham Hong Son, Vice Chairman of the State Securities Commission, said: "It’s necessary to revise laws related to the management and oversight of the securities market to meet development needs. We will use AI for the oversight, strengthening the oversight capacity of management agencies, transaction agencies, securities companies, and commissions. Multiple layers of supervision will make the securities market more transparent."

At the same time, the Government and the Ministry of Finance have issued instructions on reinforcing management and strict oversight of the stock market, demonstrating their determination to make the market healthy.

Ta Thanh Binh, Director of the Market Development Department of the State Securities Commission, said: "We will strengthen sanctions. Though the current Securities Law stipulates that the sanction for violations is high compared to the common ground. The maximum administrative fine is 3 billion VND (about 130,000 USD) for organizations and 1.5 billion VND (about 60,000 USD) for individuals. Recent developments in the market show that this fine is not enough. More breakthrough regulations are needed. Only then can we expect to restore confidence and develop a transparent and sustainable stock market."