Vietnam PM orders comprehensive financial market reform plan by end-July

Vietnam's Prime Minister has instructed the Ministry of Finance to submit a comprehensive reform plan for the country's financial markets by the end of July, as part of broader efforts to strengthen capital markets, revive the corporate bond market, and accelerate the development of the International Financial Center.

PM Le Minh Hung issued the directive at a meeting with the business community on Saturday under the theme "Removing Bottlenecks - Unlocking Resources - Driving Growth", according to the government's news portal.

The Prime Minister instructed the Ministry of Finance and relevant agencies to continue developing the capital market and corporate bond market in a healthy and sustainable manner, with priority given to expanding the domestic capital market as a long-term funding channel for the economy.

He also ordered the ministry to submit the Comprehensive Reform Plan for Vietnam's Financial Market for approval within this July, while accelerating the development of the International Financial Center, located in both Ho Chi Minh City and Danang.

The finance ministry and local authorities were also tasked with resolving longstanding issues related to land clearance, site compensation, and investment procedures. They were instructed to review and classify delayed projects and ensure they are handled in accordance with the law to prevent further waste of land, public assets, and other resources.

Government agencies and project owners were directed to expedite value-added tax refunds, public investment disbursements, and other state payment obligations to ensure businesses are not deprived of working capital because of administrative delays.

The government will also review business concerns over regulations requiring land users to pay an additional annual charge of 3.6% during periods when authorities have yet to determine official land prices, as well as issues related to work permits and visas.

The finance ministry was instructed to complete a restructuring plan for state-owned enterprises and companies with state capital, including measures to accelerate equitization, and submit it to higher authorities in August. The ministry will also prepare a restructuring proposal for the State Capital Investment Corporation (SCIC).

Separately, the Ministry of Industry and Trade was tasked with preparing a restructuring plan for state utility Vietnam Electricity (EVN) to align the company with the country's competitive electricity market, with a report due in the third quarter.

The Prime Minister also instructed the State Bank of Vietnam to pursue a proactive and flexible monetary policy aimed at containing inflation and maintaining macroeconomic stability, while improving businesses' access to credit and managing credit growth quotas for lenders more flexibly.

The central bank was further directed to finalize a plan to modernize the banking system, address weak financial institutions, and improve access to financing for businesses, particularly small and medium-sized enterprises, for submission to the government in July.

The Government Office was assigned to work with the finance ministry and other agencies to finalize the conference's official conclusions, specifying responsibilities, implementation timelines, expected outcomes, and monitoring mechanisms for each assigned task.