Daily News

Ep 130: The establishment of VNX

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What’s going on?

  • The Prime Minister has issued Decision No. 37/2020/QD-TTg to establish the Vietnam Stock Exchange (Vietnam Exchange) that takes effect from February 20, 2021.
  • VNX follows the parent-subsidiary model based on the reorganization of the Hanoi Stock Exchange (HNX) and the Ho Chi Minh City Stock Exchange (HoSE).

VNX as an entity

  • VNX has a charter capital of VND 3 trillion owned 100% by the state, under the LCC model.
  • VNX’s head office is located in Hanoi
  • VNX holds 100% of the charter capital of HNX and HoSE.
  • VNX is responsible for
    • developing strategies, development investment plans, 5-year business plan, and annual plans;
    • developing and issuing regulations on securities listing, trading, and information disclosure;
    • managing and supervising 2 exchanges in accordance with the law;
    • developing plans for IT system development;
    • undertaking international cooperation on securities and securities markets with foreign stock exchanges;
    • reporting and proposing to the SSC measures to respond to and overcome incidents, events, and fluctuations affecting the safety, stability, and integrity of Vietnam’s stock market, international cooperation on securities and securities markets with foreign stock exchanges.

Reorganization of HNX and HoSE

  • HNX will be responsible for organizing and operating
    • the derivative securities market,
    • the bond trading market, and
    • other securities trading markets.
  • HoSE will be responsible for organizing and operating
    • the stock exchange market, and
    • other securities trading market.
  • The two exchanges are also responsible for
    • monitoring securities trading activities;
    • supervising information disclosure activities of listed companies;
    • investing, developing technology systems,
    • developing new products as assigned;
    • warning, controlling, restricting securities transactions in accordance with the law
Content source: 
1. Kim Phong. (2020) Thủ tướng quyết định thành lập Sở Giao dịch chứng khoán Việt Nam đặt tại Hà Nội. Viet Stock. Available at: https://vietstock.vn/2020/12/thu-tuong-quyet-dinh-thanh-lap-so-giao-dich-chung-khoan-viet-nam-dat-tai-ha-noi-143-815446.htm [Accessed on December 28, 2020]

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