### The Evolution of Vietnam’s Stock Markets: A Major Reform Unveiled
#### Introduction to the Major Markets
Vietnam’s financial landscape is undergoing significant transformation as the government’s latest reforms reshape the roles of its two principal stock exchanges: the Hanoi Stock Exchange (HNX) and the Ho Chi Minh City Stock Exchange (HoSE). This shift is pivotal for investors, regulators, and businesses alike, as it aims to streamline operations and improve market efficiency.
#### Key Changes: The Shift in Responsibilities
As of July 1, 2023, HNX has officially ceased accepting new applications for stock listings. The responsibility for all new equity listings has now transitioned to HoSE. This pivotal change was enacted under Circular 69/2023/TT‑BTC, released by the Ministry of Finance the previous November. The decision supports an overarching vision outlined in Decree 155/2020/NĐ‑CP, which stresses the need for a cohesive approach to Vietnam’s capital markets.
#### A Unified Market Structure
The recent reforms not only clarify the roles of HNX and HoSE but also establish a structured and unified market environment. HoSE will now oversee stock trading, while HNX will focus specifically on bonds, derivatives, and non-equity securities. This delineation of responsibilities enhances operational efficiency and enhances the ability to monitor trading activities across different securities.
#### Continuity for Applicants
One of the primary concerns during such substantial changes is the impact on current applications. To address this, any entity that submitted a listing application to HNX before the July 1 cutoff, but has yet to receive approval, must see its application transferred to HoSE by July 8. This ensures a smooth transition and minimizes disruption for companies waiting to go public.
#### The Intent Behind the Reforms
According to statements from the Ministry of Finance, the restructuring aims to unify share listing practices at HoSE. The government’s goal is to cultivate a consistent and well-organized market framework, optimizing the overall investment environment. By consolidating listings under HoSE, the government hopes to attract more investors to partake in the growing Vietnamese market.
#### Background: The Roadmap for Reorganization
The recent reforms build upon an earlier framework set by Circular 57/2021/TT-BTC, which outlined a roadmap for the reorganization of various securities trading markets. This includes not just the stock market but also bond and derivatives trading. The earlier circular aimed to consolidate market activities under a clearer regulatory structure, paving the way for increased investor confidence and participation.
#### Timeline and Future Expectations
The Ministry of Finance has indicated that the reorganization roadmap extends until December 31, 2026. This timeline gives regulators and market participants sufficient opportunity to adapt to the new structure while ensuring proper oversight and efficacy in operations. Stakeholders are keenly observing how these changes will influence trading patterns and market liquidity.
#### Conclusion
Vietnam’s stock market reforms signify a strategic move towards a more organized and efficient financial environment. As HoSE takes the helm of stock listings and HNX pivots towards bonds and derivatives, the potential for growth and international investment increases. Investors, businesses, and regulators are all part of this evolving narrative that aims to enhance Vietnam’s stature in the global financial arena.