Decision No. 37/QĐ-UBCK on Promulgating the State Securities Commission's Action Program for Stock Market Development in 2005

DECISION

Regarding the promulgation of the Action Program of the State Securities Commission for the development of the stock market in 2005

CHAIRMAN OF THE STATE SECURITIES COMMISSION

Pursuant to Decision No. 161/2004/QD-TTg dated September 7, 2004, of the Prime Minister, defining the functions, duties, powers, and organizational structure of the State Securities Commission;

Pursuant to Resolution No. 01/2005/NĐ-CP dated January 14, 2005, of the Government on key solutions to direct the implementation of the socio-economic plan and state budget for 2005;

Pursuant to the 2005 work program of the Ministry of Finance;

Upon the proposal of the Chief of the General Office,

DECIDES:

Article 1.

Promulgate together with this Decision the Action Program of the State Securities Commission for the development of the stock market in 2005.

Article 2.

Units of the State Securities Commission assigned to lead specific projects, plans, and other work contents are responsible for coordinating with relevant units to organize implementation, reporting to the Commission's Leadership promptly in accordance with the prescribed schedule.

Article 3.

The Chief of the General Office and the heads of units under the State Securities Commission are responsible for implementing this Decision.

ACTION PROGRAM OF THE STATE SECURITIES COMMISSION

FOR THE DEVELOPMENT OF THE STOCK MARKET

(Promulgated together with Decision No. 37/QD-UBCK dated February 21, 2005 by the Chairman of the State Securities Commission)

In implementation of the Government's Resolution and the 2005 socio-economic development action program; the Ministry's work program; and the stock market development program to 2010, the State Securities Commission (SSC) has built an action program to develop the stock market (SM) in 2005 with the following main contents:

A. OBJECTIVES AND REQUIREMENTS OF THE ACTION PROGRAM

1. Objectives:

Enhance the operational efficiency of the stock market, encourage and create conditions for enterprises, especially State-Owned Enterprises (SOEs), to operate effectively, successfully transform into joint-stock companies, issue stocks and bonds, and participate in the stock market; establish and develop various types of markets uniformly to create a new stage of development for the SM, thereby contributing to accelerating economic growth in 2005 and laying the foundation for development during the 2006-2010 period.

2. Requirements:

• Fully implement the viewpoints and guidelines of the Party, Government, and Ministry of Finance; concretize general objectives, tasks, and solutions into specific works and measures, and effectively organize the implementation of the proposed programs;

• Expand the scale and rapidly develop SM activities: Perfect the legal framework to regulate market operations; implement stock auctioning for privatization through the Stock Trading Centers; launch and operate the Hanoi Stock Trading Center (HSTC) safely and efficiently; develop commodities and expand the activities of intermediary organizations; perform well in inspection, supervision, and enforcement of market operations; strengthen international cooperation while intensifying training and public education on securities and the SM.

B. CONTENTS OF THE ACTION PROGRAM

1. Perfecting the legal framework for the market

• Amend Decree 144 on securities and the SM to remove difficulties and obstacles for market development (Department of Market Development leads, in coordination with relevant units);

• Draft the Securities Law to submit to the Ministry of Finance and the Government by the end of 2005, for the Government to submit to the National Assembly in 2006 (Legal Department leads, in coordination with relevant units);

• Develop the action program for SM development for the period 2006-2010 (Department of Market Development leads, in coordination with relevant units).

2. Reviewing and amending regimes and policies to develop the market

• Propose additions and amendments to policies and holding ratios for foreign participation in the Vietnamese stock market (Department of Market Development leads, in coordination with relevant units);

• Research and propose tax policies for listed and registered organizations at Stock Trading Centers (Department of Market Development leads, in coordination with relevant units);

• Research and propose accounting regimes for Fund Management Companies and Securities Investment Funds (Business Management Department proposes content);

• Research and propose complete regulations on corporate governance applied to listed companies (Listing Management Department leads, in coordination with relevant units);

• Research policies on fees and charges for activities on the stock market (Department of Market Development leads, in coordination with relevant units).

3. Increasing quality goods for the Stock Market

• Participate with the Ministry of Planning and Investment in reviewing dossiers for the transformation of foreign-invested enterprises into joint-stock companies and guiding these companies to list on the stock market (Listing Management Department acts as focal point, in coordination with relevant units);

• Coordinate with the Department of State Capital and relevant units to build a plan for stock auctioning for privatization through Stock Trading Centers and organize the implementation of stock auctions (Listing Management Department coordinates with Stock Trading Centers and relevant units);

• Coordinate with the Department of State Capital to guide large, effective State General Corporations and State-Owned Enterprises (including commercial banks) to implement privatization linked to listing (Listing Management Department acts as focal point, in coordination with relevant units);

• Coordinate with the State Treasury to build a plan for issuing Government bonds through Stock Trading Centers (Listing Management Department acts as focal point, in coordination with relevant units);

• Coordinate with the People's Committees of Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, and other localities to implement solutions to create goods for the SM (Issuance Management Department coordinates with the 2 Stock Trading Centers and relevant units).

4. Developing intermediary institutions

• Build a plan for licensing, increasing scale, scope, and quality of service activities of securities business organizations in 2005 and the period 2006-2010 (Business Management Department leads, in coordination with relevant units);

• Build a plan for the development of securities investment funds (Business Management Department leads, in coordination with relevant units);

• Implement tasks such as building operational mechanisms, technical infrastructure, and staffing for the establishment of an independent Securities Depository Center (Business Management Department leads, in coordination with the Personnel and Organization Department, the 2 Stock Trading Centers, and relevant units);

• Coordinate with units under the Ministry to research projects for the establishment of a State Capital Investment Corporation (Listing Management Department leads, in coordination with the Department of Market Development and relevant units);

• Coordinate with relevant units under the Ministry to research the project for establishing a credit rating organization (Department of Market Development leads, in coordination with relevant units);

• Coordinate with the Securities Business Association to build a code of professional ethics for securities business (Business Management Department leads, in coordination with relevant units).

5. Developing stock trading markets

• Organize stock auctioning for privatization at the 2 centers; summarize, evaluate, and adjust policies, mechanisms, and auction procedures (Stock Trading Centers lead, in coordination with relevant units);

• Perfect the legal framework, infrastructure, and prepare goods to launch the Hanoi Stock Trading Center (HSTC); organize stock auctioning for privatization and put the secondary trading market into operation from mid-2005 (HSTC, Department of Market Development, Listing Management Department coordinate with relevant units);

• Implement the construction of projects to upgrade the trading system, clearing and settlement depository system, information disclosure, and supervision of the Ho Chi Minh City Stock Trading Center (Ho Chi Minh City Stock Trading Center leads, in coordination with relevant units);

• Build a project to transform the Ho Chi Minh City Stock Trading Center into a Stock Exchange (Ho Chi Minh City Stock Trading Center leads, in coordination with relevant units);

• Build and develop the bond trading market, initially for Government bonds; connect the bond market with the money market (Department of Market Development leads, in coordination with relevant units);

• Research the feasibility of participating in the regional stock market connectivity program (Department of Market Development leads, in coordination with the International Cooperation Department and relevant units).

6. Strengthening market management and supervision

• Build a supervision process for securities issuing organizations offering to the public (Listing Management Department leads, in coordination with Inspection and relevant units);

• Build a supervision process for Fund Management Companies and Securities Investment Funds (Business Management Department leads, in coordination with Inspection and relevant units);

• Strengthen state management of securities and SM activities by intensifying supervision; promptly inspect and strictly handle violations (Inspection leads, in coordination with the 2 Stock Trading Centers and relevant units);

• Build a program and organize regular inspections of listed companies, securities companies, and fund management companies (Inspection leads, in coordination with Listing Management, Business Management, and relevant units);

• Maintain supervision and evaluation of the operational status of intermediary financial organizations; evaluate the financial activities of securities companies and fund management companies according to established criteria. (Business Management Department coordinates with Inspection and relevant units).

7. Intensifying international cooperation and integration

• Build a plan and roadmap for the integration of the securities industry in the region and the world (International Cooperation Department leads, in coordination with relevant units);

• Strengthen bilateral cooperation with countries such as China, South Korea, Thailand, Switzerland (GTZ), Japan, etc., to exchange information and experience in building and developing stock markets and to support the perfection of the legal system (International Cooperation Department leads, in coordination with relevant units);

• Implement Phase II of the Asian Development Bank (ADB) financial loan program; implement the World Bank (WB) support project on technical assistance for strengthening capital market development (International Cooperation Department leads, in coordination with relevant units);

• Coordinate with the World Bank in commenting on the report evaluating corporate governance conditions in Vietnam (Listing Management Department leads, in coordination with relevant units);

• Continue to participate in IOSCO activities, research the roadmap for applying IOSCO market management principles, and the roadmap for participating in memoranda of understanding on information provision with member countries within the IOSCO framework (International Cooperation Department leads, in coordination with relevant units).

8. Perfecting the organizational structure and staff, and administrative procedure reform

• Build a staff planning plan to 2010. (Personnel and Organization Department leads, in coordination with relevant units);

• Continue to implement the administrative procedure reform program according to the plan (Personnel and Organization Department leads, in coordination with relevant units);

• Implement staff retraining, focusing on training IT staff for management and staff to operate trading systems for Stock Trading Centers (Personnel and Organization Department leads, in coordination with the Science and Technology Training Center and relevant units).

9. Intensifying the modernization of information technology in the securities industry

• Implement IT projects under Project 112; application software programs in managing licensing for listing and securities company operations, fund management companies; build a Data Integration Center (Data Integration Center leads, in coordination with relevant units);

• Build a project for the development of information technology in the securities industry to 2010 (Data Integration Center leads, in coordination with relevant units).

10. Propaganda, public education, and scientific research

• Maintain regular activities and upgrade the quality of the SSC website (General Office leads, in coordination with the Data Integration Center and relevant units);

• Intensify public training and coordinate with central and local media agencies such as Vietnam Television, Hanoi Radio and Television to propagate and educate the public on securities and the SM (Science and Technology Training Center, SSC, General Office, and relevant units);

• Conduct scientific research (Science and Technology Training Center acts as focal point, in coordination with relevant units).

11. Practicing economy and intensifying infrastructure construction for the market

• Perfect the budget allocation project (Finance Department leads, in coordination with relevant units);

• Investors accelerate the progress of infrastructure construction projects to put them into use early (Finance Department coordinates with investors);

• Revenue-generating public service units enhance initiative, actively seek revenue sources, practice economical spending; the Commission's Office block implements administrative budget allocation.

12. Other tasks

• Launch movements to create a competitive atmosphere to strive to complete the assigned political tasks of the unit (Standing Council of the SSC Merit Council coordinates with units);

• Organize the conference to summarize 5 years of operation of the Vietnamese stock market (General Office leads, in coordination with relevant units).

C. ORGANIZATION OF IMPLEMENTATION

1. The General Office leads, in coordination with units, to build the program and specific monthly, quarterly, and annual schedules for reporting to the SSC Leadership for decision;

2. Functional units assigned to lead the construction of projects, plans, and work contents are responsible for proactively coordinating with relevant units to implement and report to SSC Leadership promptly according to the prescribed schedule;

3. Leaders in charge of blocks directly direct functional units to implement. For large projects involving many units, the Leadership together with relevant units holds meetings to unify viewpoints and methods of resolution.