The stock market may recover in the short term but is expected to see a downward trend in the medium term, though Vietnam’s economic growth rate is among the highest in the world. The tight cash flow has had an adverse impact on share prices.

The ministry has been in frequent contact with both MSCI and FTSE Russell to update new information and their requirements to finalize the legal framework or address shortcomings in the market.

Amid the market's downward movement, most investment funds in Vietnam recorded negative performance in the first six months of this year.

According to the new draft, securities will be transferred to investors' accounts within the trading hours of T+2.

The Vietnamese stock market has gone through nearly half of 2022 with turbulence and remarkable events, especially the Government's crackdown on illegal activities manipulating the market.

In addition to plans to list their shares or move to another stock exchange, many banks have planned to increase their charter capital by paying dividends in shares and offering shares to foreign stakeholders this year.

Representatives of the World Bank (WB) and FTSE Russell have committed to further supporting Vietnam to build a sustainable stock market, particularly via regularly exchange and coordination in the market upgrading matter.

Selling pressure from pillar stocks made the VN-Index continue to drop on June 22 despite receiving support from banking and securities stocks.

Hoa Phat Group JSC (HPG) has proposed developing infrastructure for the Bai Goc seaport and Hoa Tam industrial park in Dong Hoa Town in Phu Yen Province, with a total cost of some VND120 trillion.

Vietnam’s stock market is still cheap at 11.5 times forward P/E and expectations of EPS growth of over 20 per cent this year compared to an average P/E of 16.2 for its emerging market ASEAN peers.

As many as 476,455 securities accounts were opened in May, twice as many as the previous month, according to the Vietnam Securities Depository (VSD).

Trinh Van Quyet, former chairman of FLC Group, was found to have directed his younger sister and relatives to establish 20 companies and use the identity cards of 26 relatives to open 450 securities trading accounts,

Nguyen Anh Nhuong Tong, Boss Thuy and Boss Duc have sold all of their shares in their companies.

High market liquidity, information transparency, and expanding foreign ownership limits are expected to further attract foreign investors.

The stock market has experienced sharp falls in trading volume, trading value, and the VN Index.

Vietnam Stock Exchange (VNX) reported an after-tax profit of VND1.343 trillion in 2021, which is the consolidated earnings from HOSE and HNX, the local media reported.

The stock market of Vietnam fell for six consecutive weeks with a drop of over 20%. Liquidity also fell sharply, causing concern.

At a meeting with 23 securities companies and market members on May 14, the State Securities Commission (SSC) asked local stock exchanges to disclose information about proprietary trading by securities companies.

The Government has submitted to the National Assembly a report about the implementation of the 2021 socio-economic development plan and the deployment of the 2022 plan.

An upgrade to emerging status will not only help the stock market develop quickly, transparently and sustainably, but also attract huge foreign capital inflows, said experts.