26-4-2024 (HANOI) Vietnam has announced the postponement of the highly anticipated launch of its new stock trading system, which was originally scheduled for next week, according to the State Securities Commission (SSC).
The debut, initially planned for May 2, has been delayed due to regulatory obstacles and the unpreparedness of securities firms to connect to the new system and provide trading services to investors. The SSC issued a document on April 25 explaining the reasons for the delay.
Furthermore, the Ho Chi Minh City exchange, Vietnam’s main stock exchange, failed to report the launch plan to the finance ministry and obtain the necessary approvals for information security. However, no specific details regarding a new timeframe for the launch were provided in the document.
The new trading system, provided by the Korea Exchange (KRX), aims to expedite the settlement of transactions as part of efforts to upgrade Vietnam’s stock market. By leveraging the KRX system, transactions will be settled within a day, significantly speeding up operations and facilitating trading, particularly for short selling, which has been hindered by the current slower system.
The successful implementation of the upgraded trading system could enhance Vietnam’s prospects of being reclassified as an emerging market. Currently, both the MSCI and FTSE indices classify Vietnam as a frontier market, which restricts investment opportunities for many funds, family offices, and other entities interested in investing in listed companies in the country.
