Notes being counted at a government bond auction. — VNA/VNS Photo

HÀ NỘI - The State Securities Commission announced that it will implement a separate corporate bond trading system from July this year to develop a transparent secondary market and increase liquidity for corporate bonds.

This is the information announced by Tạ Thanh Bình, Director of the Market Development Department under the State Securities Commission (SSC), at the seminar "Drawing capital flows into the stock market", organised by the Securities Investment Newspaper on Thursday.

When this market is operated, securities companies must ensure that all investors participating in bond trading are professional investors, Bình said.

SSC is speeding up the restructuring of securities companies, continuing to change products in the market in a new direction, meaning that the HCM City Stock Exchange (HoSE) will be specialised for stock trading and Hà Nội Stock Exchange (HNX) will be used for derivative products and bond trading, according to Bình.

“SSC is actively amending Decree 155, adding issues directly related to the bond offering in the direction of simplifying administrative procedures so that businessmen can access bond trading easily and make documents conveniently,” she said.

Over the past three years, Việt Nam's stock market has experienced many ups and downs. However, it still attracts a lot of people's attention. The number of investors participating in the market has reached the target of over 5 per cent of the population, which exceeds the 3-year plan. There was a trading session that even saw liquidity up to more than VNĐ30 trillion (US$1.3 billion), helping many businesses mobilise medium and long-term capital.

Since the second quarter of 2022, Việt Nam's stock market has entered a period of decline in both scores and liquidity, making it more difficult to raise capital through the market.

"The fluctuations and unpredictable variables in the market are a great experience for investors and also for the management agency," said Bình.

SSC has developed a strategy to develop the stock market towards 2030 and is waiting for the Prime Minister's approval. One of the important ideas of this strategy is the concentration on sustainable development, not focusing too much on growth in number and scale, according to Bình.

In order for the stock market to develop, it is necessary that listed companies and public companies operate effectively. Therefore, companies need to improve the governance quality, gradually embracing adopting environment, society and governance (ESG) principles to create a foundation for businesses to access capital from international market.

One of the reasons why derivative market fluctuates so much was because the lack of new products. In the near future, SSC would try to immediately launch other products on the derivatives market such as VN100 index futures, Bình said.

SSC would also soon put into operation the new trading system KRX, which would not only support the implementation of new products, but also assist the market regulators in monitoring, based on information technology application. VNS