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Digital platform to promote transparency and efficiency in stock market

The talkshow "Digital transformation and the future of the market".

Commenting on the role of the digital transformation process for the stock market, the head of Macroeconomics Department under Ho Chi Minh City Securities Corporation (HSC)Mr. Pham Vu Thang Long said the Government has set eight priority sectors in the National Digital Transformation Program to develop the digital economy, including the finance and banking industry.

This is a big task that the Government assigns to regulatory agencies and market participants, including the stock market.

Long said when the stock market improves its technological capacity and positive macroeconomic indicators, cash flow will certainly flow more strongly into the investment channel, not only from domestic investors but also from foreign investors.

To receive capital flows from domestic and foreign investors, digital transformation activities on the stock market need to move faster. Vietnam's stock market has more and more products. In addition to underlying goods such as stocks, corporate bonds, there are products on the derivatives market. Securities companies have many options in consulting, supporting customers and investors themselves also have many choices in their trading decisions.

“When operations are processed on a digital platform, it will promote transparency and efficiency in the market and especially the quality of risk management of each investor and securities companies will be improved," said Long.

Assessing the industries with growth potential in the moving trend of the digital economy, the HSC expertexpects the recovery of the tourism and transportation industries.

According to Mr. Long, although these two industries are currently most affected by the pandemic, the future for the economy in general and the two specific industries will be different when Vietnam has enough vaccines to protect people and international markets reopen.

Regarding the improvement of HoSE's system to solve congestion on the market, Vice Chairman of the State Securities Commission Pham Hong Son said that relevant units will try to launch a new trading system that can settle the number of transaction orders 3-5 times higher than the current system, in July 2021.

Son said HoSE's report shows that so far, the congestion has been settled. The testing of the new trading system implemented by FPT Company has been completed.

Regarding solutions to develop the stock market from now until the end of the year as well as in the future, Son said, along with continuing to promote the restructuring of the stock market on four pillars including restructuring of goods, investors, securities trading organizations and stock exchanges, the State Securities Commission will focus on building a stock market development strategy for the 2021-2030 period.

A key solution that will be implemented in the second half of the year is to focus on inspecting and monitoring the market activities to ensure the strictness and discipline of the market.

Forecasting the prospects of the stock market in the last six months of the year, Son said that the movement of the stock market cannot be separated from the activities of all aspects of socio-economic life.

Therefore, with the Government's drastic measures in disease prevention and control, and reopening of economic activities and investment by countries after the pandemic is controlled, it is expected that Vietnam's stock market will attract new capital from foreign investors.

Given that the stock market in the last six months of the year continued to see new developments, Son recommended that market members should be cautious in their market participation activities in the current context.