Topic: State Securities Commission

Addressing the OECD Asia Roundtable on Corporate Governance in 2022, organized by the State Securities Commission in cooperation with the OECD on October 20 and 21 in Hanoi, Deputy Minister of Finance Nguyen Duc Chi said, “Vietnam has made many advances in corporate governance, helping to increase capital raising via the stock market by nearly 30 per cent each year. However, stronger measures are still needed to improve corporate governance at Vietnamese enterprises.”

Under Directive No. 02/CT-BTC issued recently by Minister of Finance Ho Duc Phoc, the State Securities Commission (SSC) will closely examine registration documents for listing / registering for securities trading, especially for companies that raise capital quickly and also newly-established enterprises. The SSC will also work with the country’s three exchanges to closely monitor stocks with large liquidity, making unusual movements, or having valuations that are not suitable with the production and business situation.

The Ministry of Finance will compile a list of bond-issuing businesses showing unusual signs, such as “hidden” issuances by subsidiaries in the same ecosystem, issuances with high interest rates, and outstanding loans many times larger than equity. It has also assigned the State Securities Commission to review and amend regulations relating to the offering and trading of corporate bonds.