Vietnam and South Korea strengthen exchanges on stock market supervision

The meeting, held in Seoul on August 25, was part of the MoF and State Securities Commission's working trip to study and exchange experiences in securities market supervision. This new system is expected to offer enhanced utilities for businesses and investors, and lay the groundwork for developing new financial products to meet the evolving needs of the market.

Deputy Minister of Finance Chi thanked the leaders of the Financial Services Commission of South Korea (FSC) and the Securities and Futures Commission (SFC) for their effective cooperation in the development of Vietnam's financial markets and stock market.

Chi also briefed the South Korean agencies on Vietnam's recent economic developments and the current state of its stock market. Over more than 25 years of establishment and growth, Vietnam's stock market has made continuous progress with many positive outcomes. In early-May, the new IT system KRX was successfully launched and has been operating smoothly, marking a significant milestone in efforts to upgrade the Vietnamese stock market to emerging status.

To further develop the market and meet the growing demands of both domestic and foreign investors, the MoF delegation proposed that the FSC and SFC continue to strengthen cooperation and knowledge exchange. The focus will be on building and refining the legal framework for digital assets, improving regulatory guidelines under the new IT system, and ensuring the protection of legal rights and interests of all market participants.

Dae-young Kwon, FSC's vice chairman, hoped that relevant agencies from both countries would continue to collaborate on a broader range of activities, paving the way for deeper and more comprehensive cooperation.

Building on the long-standing partnership between the two sides, the FSC leadership declared their readiness to continue sending experts to Vietnam to advise on policymaking and provide training to enhance market supervision and management capacity, especially in securities and digital asset regulation.

They also expressed willingness to host Vietnamese officials for practical training and exchanges in South Korea. These steps are seen as concrete contributions to helping Vietnam improve its regulatory and supervisory capabilities, as well as prepare for the emergence and development of a future digital asset market.

The meeting was held in an open, constructive, and friendly atmosphere, reflecting the strong commitment of both sides to strengthen Vietnam-South Korea financial and securities cooperation. The outcomes of the working trip will provide valuable experience for Vietnam in operating its new IT trading system and open up promised opportunities for deeper collaboration, supporting the sustainable development of Vietnam's stock market and advancing its market upgrade goals.

The Ho Chi Minh City Stock Exchange (HSX) launched a new platform to mark the 25th anniversary of the Vietnamese stock market on July 28.

An upgrade to Vietnam's stock market status from frontier to emerging would improve the country's image and attract long-term capital flows, raise market standards, and promote institutional reform.

A proposal to introduce a 20 per cent tax rate on net profits from securities trading is drawing significant attention from the investment community.