World Bank (WB) experts have suggested several things that Vietnam should do to attract foreign investment in the stock market at the recent Inter-Agency Seminar on Unlocking the Potential of Vietnam’s Capital Markets.

According to Ketut Ariadi Kamusa, a senior financial sector specialist at the bank, the Vietnamese capital market has shown its strong growth on the back of the stable marcro economic situation.

However, he said improvements should be made in margin trading and securities blockade before transaction, foreign ownership limit, extension of foreign room, and equal access to information.

Meanwhile, Carolyn Turk, WB Country Director for Vietnam, said competent agencies should enhance coordination to develop the capital market, which holds huge potential for growth.

Besides, the upgrade of Vietnam’s stock market from a frontier to an emerging market requires close cooperation between the market regulator and the management agency of the banking sector, she said.

Chairwoman of the State Securities Commission (SSC) Vu Thi Chan Phuong underlined the necessity of the cooperation with the WB under the Joint Capital Markets Programme (J-CAP) amidst the rapid development of the stock market in Vietnam.

The WB has bridged the SSC with international financial institutes, helping the sides share, update and discuss the development of the market as well as efforts to remove bottlenecks and shortcomings of the market, especially the issue related to the upgrade of the Vietnamese stock market, she said.

Phuong spoke highly of the WB experts’ recommendations, and described them as a valuable source of reference to help the SSC handle challenges ahead.

VNA