Bring violations to light, improve market health: Prime Minister

Bringing violations to light will help safeguard legitimate investors and keep the bond and stock markets healthy, Prime Minister Pham Minh Chinh said on Friday.

Chinh was referring to some arrests by the investigative agency for alleged market manipulation and violations of information disclosure.

Do Thanh Nhan, Chairman of Louis Holdings, and Do Duc Nam, General Director of Tri Viet Securities, were arrested on Wednesday for allegedly manipulating the stock market. On April 14, Dang Nhu Quynh, a well-known Facebook blogger in Hanoi, was detained over accusations of using social media to disseminate "unverified" information that caused harm to the stock market.

Do Anh Dung, Chairman of property developer Tan Hoang Minh Group, was arrested on April 5 by investigative police for “defrauding to appropriate property”. On March 29, Trinh Van Quyet, Chairman of developer FLC Group was detained on charges of “manipulating” and “concealing information in securities activities”.

"Violators are the minority. These moves are necessary to make the markets cleaner, healthier, safe and more sustainable," the prime minister told a conference on capital market development in Hanoi.

Vietnam’s capital market has recorded fast growth in recent years, averagely expanding 28.5% annually between 2016 and 2021. It was equivalent to 134.5% of the nation’s GDP last year, rising 3.5 times from 2015, according to a report released at the event.

Notably, the stock market and bond market were equivalent to 93.8% and 39.7% of GDP, respectively. However, the duo’s rapid growth has posed risks like market manipulation, defrauding to appropriate property in bond issues, and law infringements, the report noted.

Chinh reiterated the government is determined in its target to stabilize the macro-economy, controlling inflation, and effectively implementing the socio-economic recovery and development program.

He said with solid foundational factors, the economy's dynamism, and international supports, Vietnam is likely to become a successful emerging market in the region and world.

Minister Ho Duc Phoc said the Ministry of Finance is focusing on a string of measures to improve the transparency, efficiency and sustainability of the bond and stock markets. These include developing a transparent secondary market, providing market standards, tightening supervision over issuances of corporate bonds and shares, and improving the quality of intermediary institutions.

By the end of 2021, 41 credit institutions had invested in corporate bonds, with a total value of VND274 trillion (around $11.93 billion), accounting for 2.63% of the banking system’s credit balance, State Bank Governor Nguyen Thi Hong told the conference.

The central bank has put these investments under tightened control and supervision, based on a wide range of regulations, she added.