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  List of Vietnam Law

Decision No. 242/QD-TTg dated February, 28, 2019 of the Prime Minister approving the scheme for “Restructuring securities and insurance markets by 2020 and vision to 2025”

Date: 2/28/2019


PRIME MINISTER
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness
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No. 242/QD-TTg
Hanoi, February, 28, 2019
 
DECISION
APPROVING THE SCHEME FOR “RESTRUCTURING SECURITIES AND INSURANCE MARKETS BY 2020 AND VISION TO 2025”
PRIME MINISTER
Pursuant to the Law on Organization of the Government dated June 19, 2015;
Pursuant to the Law on Securities dated June 29, 2006; Law on amending some articles of the Law on Securities dated November 24, 2010;
Pursuant to the Law on Insurance Business dated December 09, 2000 and the Law on amending some articles of the Law on Insurance Business dated November 24, 2010;
Pursuant to the Law on Investment dated November 26, 2014;
Pursuant to the Resolution No. 05-NQ/TW dated November 01, 2016 of the Fourth Plenum of the Twelfth Communist Party's Central Committee on major policies for renovation of growth models and improvement of growth quality, economic productivity and competitiveness;
Pursuant to the Resolution No. 24/2016/QH14 dated November 08, 2016 of the National Assembly on economic restructuring plan from 2016 to 2020; Resolution No. 25/2016/QH14 dated November 09, 2016 of the National Assembly on national 5-year financial plan from 2016 to 2020;
Pursuant to the Resolution No. 27/NQ-CP dated February 21, 2017 on the Government's action program for implementing the Resolution No. 05-NQ/TW dated November 01, 2016 of the fourth plenum of the twelfth communist party’s central committee on major policies for renovation of growth models and improvement of growth quality, economic productivity and competitiveness and the Resolution No. 24/2016/QH14 dated November 07, 2016 of the National Assembly on economic restructuring plan from 2016 to 2020;
Pursuant to the Government’s Resolution No. 01/NQ-CP dated January 01, 2017 on main methods for managing the implementation of the social-economic development plan and state budget estimates for 2017;
Pursuant to the Resolution No. 11-NQ/TW dated June 03, 2017 of the fifth plenum of twelfth communist party’s central committee on development of the socialist regulated market economy; the Government’s Resolution No. 99/NQ-CP dated October 03, 2017 on the Government’s action program for implementing the Resolution No. 11-NQ/TW;
At the request of the Minister of Finance,
HEREBY DECIDE:
Article 1. Approving the scheme for restructuring securities and insurance markets by 2020 and vision to 2025" (hereinafter referred to as "Scheme") enclosed with this Decision.
Article 2. Implementation
1. Ministry of Finance
a. Direct the State Securities Commission to focus on consistency in methods for restructuring the commodities business, investor mechanism, securities trading organizations in the market and the market organization.
b. Cooperate with related ministries and sectors in developing the amended Law on Securities and documented guidelines, and submit them to the National Assembly and the Government for promulgation; amend the Law on Securities Business and documented guidelines for implementation of such Law. Such implementation is carried out on the basis of risk management and supervision; develop supervision criteria to strengthen post-inspection through inspection.
c. Promulgating mechanism and policies specified in the Appendix hereto.
d. Develop and promulgate the mechanism and policies on “Road map to development of the bond market in Vietnam from 2017 to 2020, and vision to 2030". Such mechanism and policies are approved by the Prime Minister and specified in the Decision No. 1191/QD-TTg dated August 14, 2017.
dd. Establish the Department of Stock Exchange of Vietnam based on the model and road map which have been approved by the Prime Minister and specified in the Decision No. 32/QD-TTgdated January 07, 2019.
e. Take charge and cooperate with related ministries and sectors in establishing the Securities Market Management Team.
g. Take charge and cooperate with the State Bank of Vietnam in issuing the Circular on guidelines for debt securitization based on the Decision No. 1058/QD-TTg of the Prime Minister dated July 19, 2017.
h. Take charge and cooperate with the State Bank of Vietnam in guiding the commercial bank on how to participate in providing clearing services in the derivative securities market.
i. Cooperate with the State Bank of Vietnam in enhancing the exchange of information on capital flow monitoring between the securities market and the currency market, foreign investment, and capital raise through issuance of cybercash and crypto-assets.
k. Cooperate with the Ministry of Health, Vietnam Social Security and related agencies in studying and suggesting the method for strengthening the cooperation between social health insurance and commercial health insurance. Such strengthened cooperation aims to protect, care for and improve the health of citizens and to implement the Resolution No. 20-NQ/TW dated October 25, 2017 of the Communist Party’s Central Committee on strengthening protection, healthcare and improvement of the health of citizens in new circumstances and the Resolution No. 139/NQ-CP dated December 31, 2017 of the Government on the Government's action program for implementing the Resolution 20-NQ/TW.
l. Develop and implement the scheme for applying international accounting standards in Vietnam.
m. Take charge and cooperate with the Ministry of Labor, Invalids and Social Affairs and Vietnam Social Security in developing the method for connecting and sharing existing information and database, in order to ensure a regular provision and sharing of such information and database between the management and supervision agencies.
n. Take charge and cooperate with the Ministry of Labor, Invalids and Social Affairs in developing the establishment method for the voluntary and additional pension funds in Vietnam, and guiding the agreements on participation in the above-mentioned funds. Such agreements are signed by employers and employees.
o. Take charge and cooperate with related ministries and sectors in monitoring, promoting and supervising the equitization and divestiture of state assets at the enterprises.
p. Take charge and cooperate with the Ministry of Planning and Investment in issuing the guidelines for listing shares and registering for stock trading at foreign-invested enterprises in the Vietnamese market.
q. Take charge and cooperate with related ministries and sectors in evaluating the implementation of the Scheme, in order to send a report to the Prime Minister.
2. State Bank of Vietnam
a. Strengthen cooperation in the exchange of information, inspection and supervision between the Ministry of Vietnam and the State Bank of Vietnam. Such actions are carried out at the financial-banking corporations and are related to financial transactions and capital flows between credit institutions and securities trading organizations, insurance companies, especially securities trading organizations and insurance companies which are under the management of credit institutions.
b. Cooperate with the Ministry of Finance in managing and implementing the monetary financial policy, in order to create a consistency between the monetary, credit and securities markets.
c. Carry out the method for balancing the credit policies and the capital mobilization policies in the capital market, in order to reduce risks for the banking system by complying with the capital adequacy ratio of credit institutions and limiting credit supply.
d. Study and amend the regulations on opening and use of indirect investment capital account towards creating more benefits for foreign investors and foreign investment funds when they open and use the payment account.
dd. Cooperate with the Ministry of Finance in guiding the commercial bank to participate in providing clearing services in the derivative securities market.
3. Ministry of Labor, Invalids and Social Affairs
a. Cooperate with the Ministry of Finance in developing the legal framework and method for establishment of the voluntary and additional pension funds and guiding the agreements signed between employers and employees on participation in the above-mentioned funds.
b. Cooperate with the Ministry of Finance in developing the method for connecting and sharing existing information and database to serve the management and supervision activities.
4. Ministry of Planning and Investment
Cooperate with the Ministry of Finance in guiding the listing of shares and registration of stock trading of foreign-invested enterprises in the Vietnamese securities market.
5. Ministry of Health
Take charge and cooperate with the Ministry of Finance, Vietnam Social Security and related agencies in developing and suggesting the method for strengthened cooperation between social health insurance companies and commercial insurance companies. Such strengthened cooperation aims to protect, care for and improve the health of citizens and to implement the Resolution No. 20-NQ/TW dated October 25, 2017 of the Communist Party's Central Committee on strengthening protection, healthcare and improvement of the health of citizens in new circumstances and the Government’s Resolution No. 139/NQ-CP dated December 31, 2017 on the Government’s action program for implementing the Resolution No. 20-NQ/TW.
6. Ministries, sectors and localities
a. Cooperate with the Ministry of Planning and Investment in guiding the scope of investment, investment field, proportion of capital shares of foreign investors in Vietnamese enterprises and other specific fields.
b. Within their functions and assigned duties, strengthen monitoring and exchange of information and cooperate with the Ministry of Finance in improving the efficiency of management and supervision activities in the securities market.
7. The State Securities Commission
a. Focus on consistency in methods for restructuring commodities business, securities trading organizations in the market and the market organization as guided by the Ministry of Finance.
b. Review and amend the regulations on ranks of securities trading organizations, establishment and operation of the risk management system of such organizations and their company management; direct and guide the business securities organizations on how to develop the restructuring plan, as well as carrying out regular inspection and supervision for the plan’s implantation process and results.
c. Strengthen supervision and inspection for public companies, securities issuance institutions, securities trading organizations, securities trading practitioners, auditing agencies and auditors making financial reports for public interest organizations in terms of securities field; take charge and cooperate with related agencies in imposing strict penalties for entities who violate the law regulations;
d. Carry out methods, strengthen exchange of information and establish regular relations with related organizations, in order to raise Vietnamese securities market to a higher rank.
dd. Promote the application of information technology in management and supervision of the securities market; develop and implement the general scheme for information technology of the State Securities Commission.
e. Direct the Department of Stock Exchange and Vietnam Securities Depository to improve the quality of current ratios; develop and implement new regulations and widen the trading band based on each classification table of listed shares; develop a corporate bond information portal; accelerate the process for transferring information technology system in the whole market; develop the central model of clearing services; strengthen supervision to detect any controlling, spying and fraudulent actions against the regulations on information disclosure.
g. Strengthen exchange of information and periodical counseling with professional associations, such as disseminating information, providing training, issuing regulations on professional ethics, carrying out inspection and supervision to improve the practice quality and professional ethics of organizations and individuals participating in the securities market; develop plans and step by step transfer the activities for administrating tests and issuing certificates of securities business practice for professional associations on the basis of satisfying the potential requirements of each association.
h. Take charge to cooperate with media companies, enhance the provision of information for the public, disseminate the policies on securities and securities market, in order to reassure people and create a high consensus in the society and prevent negative impacts to the development of the market.
Cooperate with related agencies in fulfilling the commitments and implementing the international cooperation programs in the securities field and the securities market.
Article 3. Implementation
Ministry of Finance, State bank of Vietnam, Ministry of Labor, Invalids and Social Affairs, Ministry of Justice, Ministry of Planning and Investment, Ministry of Health and other ministries, sectors, localities shall implement the Appendix and road map which are enclosed with this Decision.
 
 
PRIME MINISTER
(Signed and sealed)




Nguyen Xuan Phuc
 
FOR RESTRUCTURING THE SECURITIES AND INSURANCE MARKETS BY 2020 AND VISION TO 2025
(Enclosed with the Decision No. 242/QD-TTg dated February 28, 2019 of the Prime Minister)
A. OBJECTIVES AND RULES FOR RESTRUCTURING THE SECURITIES AND INSURANCE MARKETS BY 2020 AND VISION TO 2025
I. OBJECTIVES
1. For securities market
a. General objective: continue to restructure the overall securities market to make it become an important channel of medium- and long-term capital for the economy; develop a reasonable and balanced structure between the monetary market and the capital market, between the securities market and the bond market, between government bonds and corporate bonds; provide positive support for the restructuring process of state enterprises, renew the economic growth model and enhance the development of private economic zones; and increase openness and integration with regional and international markets.
b. Specific objectives:
- The scale of securities market shall reach 100% of GDP by 2020 and 120% of GDP by 2025, the scale of bond market shall reach 47% of GDP by 2020 and 55% of GDP by 2025. The quantity of listing companies shall be increased by 20% than 2017.
- The quantity of investors in the market shall reach 3% of the population by 2020 and 5% of the population by 2025. There must be a reasonable structure between the private investors and institutional investors, between domestic and foreign investors, and the development of professional investors in the securities market shall be greatly enhanced.
- Diversify products in the securities market; launch covered warrants, corporate bond futures contracts and futures contracts based on indexes other than VN30 by 2020; develop stock-based options and future contracts by 2025.
Diversify the bond products to satisfy the demands of investors; establish the standard yield curve in the financial market; inspect the ability to issue new bonds based on a suitable road map; bonds with floating rates, bonds of which the principles and interests are traded separately, or bonds attached to inflation index; and restructure the list of Government bond debts through swap pay and buyback.
- Improve financial situation and management ability of securities trading organizations as regulated by laws; raise the financial security index of securities trading organizations by 20% compared to the current index.
- By 2020, renew and synchronize the overall transaction technology and clearing service payment in the securities market.
- By 2025, the management quality of listing companies in Vietnam shall reach the average number of ASEAN-6.
- Before 2025, raise the rank of Vietnamese securities market in the list of new securities markets.
2. For insurance market
a. General objectives: develop the overall insurance market towards a safe, sustainable and effective market that satisfy the diversified insurance requirements of organizations and individuals, as well as ensuring social security; the insurance enterprises shall have a sustainable financial capability and management ability that satisfy the international standards. Also, these enterprises shall have the ability to participate in domestic and regional competitions.
b. Specific objectives:
- The average growth speed of the total assets, total investments, total provisions, total own funds and total revenues shall be increased by 20% by 2020 and 15% from 2021 to 2025.
- By 2020, 11% of the population shall have life insurance and by 2025, this number shall be increased by 15%.
- The revenues from average insurance premiums shall increase to a maximum of 3% of GDP by 2020 and 3.5% by 2025.
- Diversify insurance products to satisfy different insurance needs of organizations and individuals; and modern technology shall be applied in all activities of the insurance trading field, in order to provide optimum conditions for insurance clients.
II. RULES
1. Be fully aware of and strictly implement the points of view and policies of the Communist Party, laws and the Government, as well as the Resolutions of the National Assembly and the Government and Decisions of the Prime Minister on securities and insurance fields associated with the new growth model, restructured economy and financial market.
2. The securities and insurance markets shall be restructured towards development of both the scale and the quality; to develop and enhance competitiveness of organizations participating in the market and create a connection between the activities of securities and insurance markets and the monetary - credit market, in order to balance the compositions of the financial market towards satisfying the best international standards and general rules. Such balance must be suitable to the actual conditions. And the innovation and application of science and technology shall be focused on, as well as the efficiency of the fourth technology revolution.
3. Improve the risk management ability; promote management, supervision and inspection activities of the management agency; strictly impose penalties for any violations against the law regulations in the securities and insurance markets; ensure the legal rights and benefits of investors and customers and ensure safety for the whole system; reduce social expenditures; ensure that the market can maintain a safe, positive and sustainable operation.
4. Methods must ensure consistency and comprehensiveness and specific plans and roadmaps must be developed; transparency must be ensured; enterprises shall apply the mechanism of self-reliant and self-responsibility based on the market principles; activities of the stock and insurance markets shall not be disordered; and State Budget shall not be used.
B. RESTRUCTURING THE STOCK AND INSURANCE MARKETS BY 2020 AND VISION TO 2025
1. Improve the legal basis
- By 2019, submit the Law on Securities, which is amended as follows, to the National Assembly: diversify and improve the service and commodities quality of the listing enterprises; attract foreign investors; develop functions, tasks and power of the state regulatory agencies in the securities field and the securities market.
- Develop legal frameworks and use them as the basis for effectively carrying out the "Vietnamese securities market development road map from 2017 to 2020, and vision to 2030” under the Decision No. 1191/QD-TTg dated August 14, 2017 of the Prime Minister.
- Develop and amend the documented guidelines for activities of the securities trading organizations. Such guidelines shall specify the financial safety index and methods for handling organizations that do not satisfy such index; specify the regulations on classification of securities trading organizations which are issued to classify and timely notice about these organizations’ poor-performance activities that are facing high risks, as well as developing methods for handling such organizations; specify the regulations on guiding the establishment and operation of the risk management system for securities trading organizations.
- Promulgate the legislative documents to guide the online trading, AI asset management and robo-advisory; digitalize the main assets in the securities market by applying Fintech.
- Provide legal framework for crowdfunding.
2. Restructure commodities
a. Diversify commodities business in the market
- Promote the equitization plan and the state capital withdrawal plan from 2017 to 2020 according to the portfolio approved by the Prime Minister; carry out inspection and timely handle enterprises that do not comply with the regulations on listing/registration for transactions after equitization.
- Joint-stock commercial banks shall list their shares and register to have their shares traded until the end of 2020. All commercial banks shall carry out the above-mentioned activities in the official market.
- Issue the road map for selling derivative products from the simple to the complex: in 2019, develop covered warrants and futures contracts based on the new index and the Government bond futures contract; step by step sell the products specified in the futures contracts and option contracts based on odd lots or round lots whenever possible.
- Develop VN30 Securities Index Principles in compliance with international treaties; develop more index numbers to use them as the basic assets for the derivative securities market.
- Diversify the bond products; establish the standard yield curve in financial market; suggest the plan for issuing new bonds by following a suitable road map; bonds with floating rates, bonds of which the principles and interests are traded separately, or bonds attached to inflation index; restructure the list of Government bond debts through swap pay and buyback.
- Issue green bonds to mobilize capital for serving the green economic development and sustainable development, and attracting foreign investors.
- Simplify requirements for application documents and procedures for issuance of corporate bonds to the public and issuance of separate bonds, in order to enable enterprises to raise capital through the issuance of corporate bonds.
- Develop Exchange-Traded Funds (ETF) and real estate investment funds, in order to diversify the fundraising products.
b. Enhance transparency and improve product quality
- Strengthen inspection and supervision for the capital raising activities and utilize the raised capital in the securities market; timely detect and handle the cases where the virtual capital is increased and the capital is used for the wrong purposes.
- Classify the listed shares, improve listing conditions and conditions for maintaining the listed shares of each classification table; establish additional criteria for the company management, proportion of transferable shares and return on capitals.
- Set additional requirements for capital scale, quantity of shareholders, percentage of shares owned by minority shareholders in the public companies.
- Strengthen the inspection of financial reporting quality and the audit activities of auditing units and auditors; closely cooperate with the Association of Practicing Auditors in providing trainings and evaluating the financial reporting quality, supervision and handling of violations of auditing units and practicing auditors.
- Develop and implement the scheme for applying international accounting standards; encourage listing enterprises with large scale to publish the financial reports based on international financial reporting standards (IFRS);
- Strengthen the management training of the company and the dissemination of information about such management and the annual program for ranking the management of listing companies; improve the role and responsibility of the Department of Stock Exchange in supervising the implementation of regulations on disclosure of information about the company's management.
- Encourage credit rating organizations with good reputation to establish enterprises with good reputation in Vietnam, work towards having enterprises with good reputation (as required) issuing and listing bonds to the public.
3. Restructure investor mechanism in the securities market
a. For individual investors
- Issue the norms and standards for professional investors, in order to classify investors and move towards restructuring the products and the market based on the classified groups of investors.
- Promote the activities for providing trainings and knowledge and disseminating information about securities and security market.
- Enable small investors and foreign investors to get access to the market by giving the securities companies the permission to form e-contract and establish electronic Know Your Customer (eKYC).
b. For organization investors
- Promulgate the policies for encouraging the development of the voluntary pension scheme (pension insurance products and pension funds).
- Permit credit institutions to partially use the compulsory reserves which are government-issued bonds; develop the regulations on the portion of government-issued bonds held by credit institutions.
c. For foreign investors
- Develop the legal framework for foreign ownership ratios at enterprises, moving towards spreading foreign ownership in the fields of which the shares are not held by the state as regulated by laws and according to the international treaties.
- Strengthen administrative procedures reforms and enable foreign investors to get access to the Vietnamese securities market.
4. Restructure the securities trading organizations
a. General methods for securities companies and fund management companies
- Require all securities companies and fund management companies to develop and implement the restructuring plan, in order to renew the operation model, improve the financial ability, strengthen the risk management ability and company management ability, as well as enhancing transparency and professionalism in operating the companies.
- Develop the risk evaluation and classification system and send early notification to securities companies and fund management companies; classify these companies for management and supervision.
- Evaluate and classify account receivables and financial assets of securities companies and fund management companies.
- Carry out inspection and supervision for the unofficial funding activities pertaining to the securities trading in the market; impose penalties to the securities companies that violate the regulations on margin trading and participate in supporting the unofficial funding activities that pertain to securities trading.
- Apply the highest principles and standards for professional ethics and require the managers of securities companies and fund management companies and the securities practitioners to satisfy such principles and standards.
b. Methods for handling securities companies
- For the group of securities companies that safely operate (the financial safety index must be higher than 180%, the equity must be more than 1.000 billion VND and there must be no accumulative loss):
+ Enable the expansion of scale, scope and domestic and regional business locations, in order to ensure financial safety and quality of risk management and company management.
+ Develop strategic orientation and provide specific guidelines to support the application of financial technology in renewing and diversifying products and services which are provided for investors.
+ Those who are allowed to participate are members of the bond market and derivative market and shall provide new products and services such as warrants, options and day trading; perform the function as the market establishment organization of the Department of Stock Exchange and participate in providing the services related to equitization and state divestment.
+ Encourage the participation in handling the securities companies that are classified as poor-performing companies.
- For the group of securities companies that normally operate (the financial safety index must be higher 180%, the equity must be less than 1.000 billion VND or there is still accumulative loss):
+ Continue to restructure the business operation towards focusing on the fields, locations, professions, products and types of profitable customers; restructure the investment list and limit the investments with high risks and focus on service provision activities.
+ Support the internal re-structuring activities by encouraging the domestic and foreign financial institutions and banks with good reputation to participate in stock ownership and capital contribution.
- For the group of poor-performing companies (with the financial safety index of less than 180%):
+ Strengthen inspection and supervision of financial status, capital adequacy index and trading activities.
+ The amount of money for securities trading of investors shall not be directly managed.
+ Suspend some or all professional activities of the companies of which the equity is lower than the legal capital and that do not satisfy the requirements for maintaining their other activities.
+ Strengthen the supervision of the activities for handling debts and bad assets, and request 100% of their values to be provided according to the regulations on account receivables overdue or extended under all forms of trading with related parties.
+ Limit investment activities and activities for paying dividends, buying-back shares and contributing capital; the securities companies of this group are not allowed to perform any trading activities that face high risks.
+ Enable securities trading organizations that have accumulation loss and bad assets to reduce the charter capital on the basis of re-evaluating the reasonable values of such assets and complying with the current regulations.
+ Limit the trading rights of the members of securities companies which are currently under control or special control.
+ Only approve the transfer of shares by partners or shareholders so the potential to restore financial capability and the operation capability of securities companies in this group after the transfer can be proved.
- For the group of securities companies that no longer have the potential to restore their capability (after the termination decision or the dissolution approval is received):
+ Promptly resolve the interests of customers and investors. Cooperate with inspection agency and the court to handle the accounts of customers that are related to the cases and disputed accounts.
+ Based on the actual situation in which the company’s obligations to the customers must be resolved, withdraw the establishment and operation permissions; request the company's managers, including the legal representatives and members of the Management Board and the Members' Council to take responsibility for the dissolution of the company after the establishment and operation permissions are revoked.
c. Methods for the system of fund management companies
- For the group of securities companies that safely operate (the financial safety index must be higher than 180%; the scale of portfolio management and entrusted capital management must be more than 100 billion VND):
+ Enable the companies under this group to mobilize and establish different types of investment funds.
+ Step by step professionalize the service provision based on international standards.
+ Enable the expansion of scale, scope and business location, especially the activities for providing services for the international market.
+ Encourage the application of advanced technology in order to improve the service quality.
- For the group of securities company that normally operates (the financial safety index must be higher than 180%, the scale of portfolio management and entrusted capital management must be more than 100 billion VND):
Encourage the companies in this group to carry out consolidation and acquisition and internal restructuring by transferring the contributed capital to the leading shareholders which are domestic and foreign banking financial institutions.
- For the group of poor-performing companies (the financial safety index must be less than 180%):
+ Restructure the quantity of companies by reducing the quantity and handling the poor-performing companies: the fund management companies shall have their operation suspended, including the companies of which the equity capital is lower than the legal capital; companies which are not able to alleviate the special control within the regulated period of time; companies of which the personnel and facilities do not satisfy the requirements for permission maintenance. Also included in this group are fund management companies of which the operation permission is revoked; including companies that are not able to carry out securities investment management within a consecutive period of time; companies that are not able to rectify the violations that lead to an operation suspension within the period of time regulated by law.
+ Strengthen annual inspection and impose administrative penalties on the organizations that carry out inspection for specific contents, such as inspecting the conditions for maintaining the permission status in professional activities and inspecting the risk management activities and internal control.
+ Request the organizations in this group to strengthen their financial capability: increase capital without distributing profits and buying treasury shares, but restructuring the investment portfolio and business activities by reducing investment items and services with high risks.
- For the group of companies that is no longer able to restore their capability (after the permissions to terminate and dissolve the company are received)
+ Request the companies to promptly resolve the interests of customers and investors; cooperate with the inspection agency and the court to handle the accounts of customers that are related to the cases and disputed accounts.
+ Withdraw the establishment and operation permissions and request the heads of the company, including the legal representatives and members of the Management Board and the Members’ Council to take responsibility for the dissolution of such company after the above-mentioned permissions are revoked.
5. Restructure the market organization
a. Restructure the market organization
- Establish the Department of Stock Exchange of Vietnam based on the model and road map which have been approved by the Prime Minister and specified in the Decision No. 32/QD-TTg dated January 07, 2019; divide the market based on the scale, operation quality and liquidity without disordering the organization but maintaining a consecutive operation and market stability.
- Develop and bring the new information technology system into a synchronized operation at two Departments of Stock Exchange and Vietnam Securities Depository in 2019, in order to modernize the technology infrastructure to serve the trading management and supervision and make clearing payments for the whole market.
- Develop the central counterparty at Vietnam Securities Depository according to the international treaties: study the Scheme for connecting the clearing house system and securities settlement system with the inter-bank payment system, in order to make clearing payments for other securities trading; provide collateral management services and carry out secured transaction activities at Vietnam Securities Depository.
- Change the operation model of the custodian banks in compliance with the international treaties: consider permitting the commercial banks to provide clearing services in the derivative securities market.
- Study the possibility to apply block chain in some segments of the market or in some stages of the trading and payment process, in order to improve efficiency, transparency and integrity of the data of investors.
b. Strengthen market liquidity
- Implement new regulations in the securities market, especially the regulations that are suitable to the needs of professional investors.
- Carry out transaction activities within the day to satisfy the requirements of the market.
- Widen the daily permitted trading band, based on the characteristics of each classification table of listed shares; apply the circuit breaker measure in case there are fluctuations in the market and extend the transaction period for some special transactions.
- Develop the securities lending and borrowing model in compliance with the financial capability and the risk management ability of the securities trading organizations.
- Improve the market organization model and the bond trading system in compliance with the trading agreement, in order to timely make an accurate report and develop the standard yield curve in the market.
- Issue additional bonds, swap and buy-back bonds to establish the standard bonds and thus improve liquidity, stabilize the market, minimize risks to the government pond portfolio.
- Hire market makers and provide them with full benefits and obligations to carry out their duties in the primary and secondary markets according to the international treaties.
- Build a central information center to issue corporate bonds at the Department of Stock Exchange and provide information to the investors and enterprises when they participate in raising the capital through issuance of bonds.
6. Strengthen the ability to carry out supervision management and improve enforcement
a. Establish the securities management group under the guidance of the Ministry of Finance and cooperation with related ministries and sectors.
b. Step by step change the management and supervision model of the State Securities Commission from compliance monitoring model to management and supervision model which is risk-based, in order to optimize the resources and improve the management and supervision efficiency.
c. Develop the securities market supervision system on the basis of clearly determining the responsibilities, and developing securities trading organizations to become a supervision unit at first level in the market.
d. Strengthen application of information technology in managing and monitoring the securities market, especially the supervision carried out for public companies and trading supervision in the market.
dd. Strengthen the regular exchange of information and cooperation between the securities market management agency and the monetary market management agency. Such cooperation is carried out to manage and supervise the cash flow between the securities market and the monetary market, as well as supervising the foreign investment capital; mobilizing capital through issuance of cybercash and crypto-assets.
e. Develop the cooperation mechanism between the State Securities Commission and the Department of Stock Exchange. Such cooperation is carried out to supervise, detect and handle the violations related to controlling, spying and fraudulent behaviors and violations against the obligation to announce information; cooperation between the State Securities Commission and presiding agencies in the fight against criminals in the securities field, especially 04 securities crimes specified in the Criminal Code.
g. Fulfill the international commitments on cooperation in the exchange of information and the cross-border investigation between securities market surveillance authorities.
h. Effectively fulfill the commitments on international economic integration in the securities field, and carry out the cooperation programs with international organizations and partners, especially securities services specified in FTAs to which Vietnam is a signatory.
Develop and implement the strategy for training the public officials to carry out management, supervision and inspection, as well as enforcement. Strengthen the cooperation with international economic organizations and foreign securities management agencies in the provision of supports and trainings for public officials of the State Securities Commission.
7. Method for raising the rank of the market
a. Ensure equal rights for foreign investors to get access to information by developing and regularly updating the English websites of the State Securities Commission and Departments of Stock Exchange. Encourage public companies to publish information in English.
b. Continue to reduce and simplify the administrative procedures for issuance of trading codes and registration procedures for sale of open-end fund certificates. Provide guidelines for electronic voting and online meeting.
c. Amend the regulations on opening and use of indirect investment account, in order to continue to enable foreign investors and foreign investment funds to open and use payment accounts.
d. Hold regular dialogues between the management agency and the index providers, in order to develop methods and policies which are suitable to the actual conditions of Vietnam.
dd. Promote the activities for disseminating information about the Vietnamese securities market to foreign countries.
8. Enhance the roles of professional associations.
a. Periodically exchange information and consult professional associations about the mechanism, polices and methods for developing the securities market.
b. Review and develop training programs for securities practitioners in harmony with the general standards of ASEAN; regularly update knowledge for securities practitioners; cooperate with the Broker Association to strengthen management and supervision of securities practitioners.
c. Cooperate with the professional associations to promulgate professional and ethical standards and carry out supervision for the implementation of these standards, in order to improve the professional quality and ethics of organizations and individuals participating in the securities market.
d. Strengthen the cooperation with professional associations in disseminating information and providing professional trainings and legal knowledge about securities and securities market for the public.
dd. Develop plans and step by step transfer the activities for administering and issuing the certificates of securities business practice for the professional associations. Such transfer is done on the basis of satisfying the ability requirements of each of these associations.
e. Develop the set of principles for company management which apply to listing companies in the securities market.
1. General methods
a. Improve the legal basis
Develop the Law on Insurance Business and submit it to the Government for the Government to submit it to the National Assembly for approval in 2020. At the same time, develop the documented guidelines for risk management and how to satisfy the international integration requirements, as well as strengthening the initiation ability and self-responsibility of insurance companies in business and while making capital contribution, managing risks and personnel. Also, develop the regulations on insurance contracts; develop the state management method towards simplifying administrative procedures, strengthening post-inspection through inspection, boosting connectivity with international management, integration and cooperation agencies.
b. Improving information transparency
Request the insurance enterprises to timely disclose full, comprehensive and related information, in order to help the insurance buyers and related organizations to clearly understand the organization structure, business activities, business results and financial status of these enterprises, in order to strengthen discipline in the market, at the same time, help all related organizations and individuals to clearly understand about these enterprises, the types of risk that affect their operation and the way they handle such risks.
c. Develop and professionalize the insurance distribution channels
- Develop diversified channels in order to promote the development of insurance business activities towards professionalism and catch up with the development of 4.0 technology revolution, provide the best service to the insurance buyers and enable customers to get insurance access easily and in the most professional way.
- Carry out management under principles for the insurance backup service providers by regulating the operation requirements and standards for such providers in compliance with each type of service (counseling service, risk management service; actuary service, compensation management service, loss assessment service, etc.).
d. Improve the effectiveness of state management and the efficiency of inspection, supervision and administrative penalty activities.
- Change the state management model of Insurance Supervisory Agency to risk-based management and supervision model according to the new Law on Insurance Business to be submitted to the National Assembly for approval in 2020.
- Continue to simplify the administrative procedures and enable and give business opportunities for insurance enterprises.
- Improve the role and responsibilities of the Ministry of Finance in managing and supervising inspection, supervision and penalty activities related to the violations in the insurance field and of the insurance brokerage enterprises.
dd. Develop and improve the personnel quality
- Study and apply potential framework which is suitable to the actual conditions and the development of the market; issue the regulations on personnel quality standardization, focusing on professional certificates and the compliance with the above potential framework; strengthen training for officials of the insurance sector.
- Study the model for establishment of Insurance Development Institute. Such establishment is carried out to socialize the Insurance Research and Training Center (without establishing a new Center), in order to propose the minimum premiums, premium determination method and reserve determination method, provide trainings for personnel who participate in issuing the practice certificates, and contribute in developing the policy mechanism.
e. Strengthen the roles of professional associations
Strengthen the roles of professional associations as the centers of the whole market for collecting the opinions, feedbacks and suggestions of members of such associations on mechanism, policies and methods for developing the insurance market and connecting with related agencies to efficiently implement the policies.
g. Strengthen the interconnection between the social health insurance with commercial health insurance.
Develop and suggest the plan for sharing information and strengthening the interconnection between social health insurance and commercial health insurance as specified in the Resolution No. 20-NQ/TW dated October 25, 2017 of the Party Central Committee, as well as encouraging the development of the insurance products that are in high demand by the society, and ensuring efficiency and bringing the maximum benefits to the insurance users.
h. Promote dissemination of insurance information
Disseminate information about the role, meaning and necessity of insurance, as well as the law on insurance business to agencies, sectors, organizations, individuals and the citizens.
i. Establish information technology system and technical infrastructure; develop database for the insurance market.
Develop the information system project to carry out systematization for all data of the insurance sector in a synchronous and comprehensive manner, in order to serve the management and supervision activities and develop the basis for calculating the net premium, controlling risks and insurance frauds, reducing unfair competition, and catching up with the 4.0 technological revolution.
2. For non-life insurance sector
a. Enhance the competition ability and operation efficiency of non-life insurance companies, and ensure system safety.
- Fully develop the risk control system at insurance companies and timely detect the risks that occur from professional activities, financial activities and enterprise management activities. On that basis, measure, evaluate, control and eliminate risks, as well as supervising and re-evaluating the risks of each activity and the risks related to these activities.
- The insurance companies shall carry out self-evaluation and self-classification and take initiative to develop the methods for controlling, preventing and reducing risks. Also, they shall reduce loss and timely intervene and adjust the operation process, in order to prevent the risk of not being able to make payments and enhance the business efficiency.
- Improve financial capability and strengthen financial management. From there enhance the competition ability to satisfy the requirements of the market.
b. Strengthen the ability to comply with the regulations of non-life insurance companies
Strengthen inspection, supervision and strict handling of violation against the law, in order to warn these companies and strengthen their ability to comply with the law.
c. Strengthen business cooperation between non-life insurance companies.
Strengthen the cooperation in non-life insurance business, in order to promote healthy competition; strengthen cooperation in information sharing, in order to develop the basis of net premium and prevent the decrease of premiums that may affect financial safety, as well as reducing the risks of insurance fraud.
3. For life insurance sector
- Encourage the development of new and diversified product. Have mechanism and policies for encouraging the development of products which carry community meaning and social security meaning, such as micro-insurance, health insurance and pension insurance.
- Diversify methods and develop insurance products in compliance with the business trend which is associated with the 4.0 technology revolution. From there, satisfy the demands of customers and ensure assessment simplicity. Also, pay the insurance benefits for customers using high technology and still ensure safety and caution for the insurance companies, as well as preventing and controlling risks./.
 
ROAD MAP FOR IMPLEMENTING THE RESTRUCTURING METHODS OF SECURITIES AND INSURANCE MARKETS 
(Enclosed with the Decision No. 242/QD-TTg dated February 28, 2019 of the Prime Minister)
No.
Contents
Unit in charge
Cooperation unit
Implementation period
2018
2019
2020
2025
A. FOR SECURITIES SECTOR
I. DEVELOPMENT OF THE LEGAL FRAMEWORK
1
Develop the amended Law on Securities and submit it to the National Assembly for approval in 2019
Ministry of Finance
Ministry of Justice, Ministry of Planning and Investment, State Bank
 
 
 
 
2
Develop the legal framework to carry out effective implementation of the "Road map for developing the Vietnamese bond market from 2017 to 2020, and vision to 2030.” Such road map is approved by the Prime Minister in the Decision No. 1191/QD-TTg dated August 14, 2017.
Ministry of Finance
State Bank, Ministry of Planning and Investment, Ministry of Justice
 
 
 
 
3
Develop and issue the guidelines for digitalization of main assets in the securities market; issue guidelines for standardization of activities for opening online accounts and establishing eKYC, online-trading, AI asset management and robo-advisory, and digitalizing main assets in the securities market with Fintech.
Ministry of Finance
 
 
 
 
 
4
Develop and amend the documented guidelines for financial safety index and methods for handling securities trading organizations that do not meet such index.
Ministry of Finance
 
 
 
 
 
5
Provide legal framework for crowdfunding.
Ministry of Finance
 
 
 
 
 
6
Review and amend the Regulation on classification of securities trading organizations, in order to carry out early classification and give early warning.
The State Securities Commission
 
 
 
 
 
7
Amend the Regulation on guiding the establishment and operation of the risk management system of securities trading organizations.
The State Securities Commission
 
 
 
 
 
II. RESTRUCTURING COMMODITY BUSINESS IN THE SECURITIES MARKET
1
Promote the equitization plan and the state capital withdrawal plan from 2017 to 2020 according to the portfolio approved by the Prime Minister; carry out inspection and timely handle enterprises that do not comply with the regulations on listing/registration for transactions after equitization.
Ministry of Finance
Related ministries and sectors
 
 
 
 
2
Commercial banks shall list their shares and register to have their shares traded until the end of 2020. 100% of commercial banks perform the above-mentioned activities in the official market.
Ministry of Finance
State Bank
 
 
 
 
3
Issue the road map for selling derivative products from the simple to the complex: in 2019, develop covered warrants and futures contracts based on the new index and the Government bond futures contract; step by step sell the products specified in the futures contracts and the option contracts based on odd lots or round lots whenever possible.
Ministry of Finance
 
 
 
 
 
4
Develop VN30 Securities Index Principles in compliance with international treaties; develop more index numbers to use them as the basic assets for the derivative securities market.
State Securities Commission
Departments of Stock Exchange
 
 
 
 
5
Diversify the bond products to satisfy the demands of the investors; establish the standard yield curve in the financial market; inspect the ability to issue new bonds based on a suitable road map; bonds with floating rates, bonds of which the principles and interests are traded separately, or bonds attached to inflation index; restructure the list of Government bond debts through swap pay and buyback.
Ministry of Finance
 
 
 
 
 
6
Issue green bonds to mobilize funds for serving the green economic development and sustainable development and attracting foreign investors.
Ministry of Finance
 
 
 
 
 
7
Simplify requirements for application documents and procedures for issuance of corporate bonds to the public and issuance of separate bonds, in order to enable enterprises to raise capital through the issuance of corporate bonds.
State Securities Commission
 
 
 
 
 
8
Develop different types of investment funds, in order to diversify the fund products for the investors.
State Securities Commission
 
 
 
 
 
9
Strengthen inspection and supervision for the capital raising activities and utilization of the raised capital in the securities market; timely detect and handle the cases where the virtual capital is increased and the capital is used for the wrong purposes.
State Securities Commission
 
 
 
 
 
10
Classify the listed shares, improve listing conditions and conditions for maintaining the listed shares of each classification table; establish additional criteria for the company management, proportions of transferable shares and return on capital.
Ministry of Finance
 
 
 
 
 
11
Set additional requirements for capital scale, quantity of shareholders, percentage of shares owned by minority shareholders in the public companies.
Ministry of Finance
 
 
 
 
 
12
Strengthen the inspection of financial reporting quality and the audit activities of auditing units and auditors; closely cooperate with the Association of Practicing Auditors in providing trainings and evaluating the financial reporting quality, supervision and handling of violations of auditing units and practicing auditors.
State Securities Commission
Association of Practicing Auditors
 
 
 
 
13
Develop and implement the scheme for applying international accounting standards; encourage listing enterprises with large scale to publish the financial reports based on international financial reporting standards (IFRS);
Ministry of Finance
 
 
 
 
 
14
Strengthen the management training of the company and the dissemination of information about such management and the annual program for ranking the management of listing companies; improve the role and responsibility of the Department of Stock Exchange in supervising the implementation of regulations on disclosure of information about the company's management.
State Securities Commission
Department of Stock Exchange
 
 
 
 
15
Encourage credit rating organizations with good reputation to establish enterprises with good reputation in Vietnam, work towards having enterprises with good reputation (as required) issuing and listing bonds to the public.
Ministry of Finance
 
 
 
 
 
III. RESTRUCTURE INVESTOR MECHANISM IN THE SECURITIES MARKET
1
Issue the norms and standards for professional investors, in order to classify investors and move towards restructuring the products and the market based on the classified groups of investors.
Ministry of Finance
 
 
 
 
 
2
Promote the activities for providing trainings and knowledge and disseminating information to raise the society awareness of securities and securities market.
State Securities Commission
 
 
 
 
 
3
Enable small investors and foreign investors to get access to the market by giving the securities companies the permission to form e-contract and establish electronic Know Your Customer (eKYC).
State Securities Commission
 
 
 
 
 
4
Permit credit institutions to partially use the compulsory reserves which are government-issued bonds; develop the policy regulations on the portion of government-issued bonds held by credit institutions.
Ministry of Finance
State Bank of Vietnam, Ministry of Labor, Invalids and Social Affairs
 
 
 
 
5
Develop and promulgate the incentive policies to promote the development of voluntary pension scheme (pension insurance products and pension funds)
Ministry of Finance
Ministry of Labor, Invalids and Social Affairs
 
 
 
 
6
Develop the legal framework for foreign ownership ratios at enterprises, moving towards spreading foreign ownership in the fields of which the shares are not held by the state as regulated by laws and according to the international treaties.
Ministry of Planning and Investment
Ministry of Finance and related ministries and sectors
 
 
 
 
IV. RESTRUCTURING THE SYSTEM OF INTERMEDIARY ORGANIZATIONS
1
Request all securities companies and investment management companies to develop the restructuring plan.
State Securities Commission
 
 
 
 
 
2
Evaluate and classify account receivables and financial assets of securities companies and fund management companies.
State Securities Commission
 
 
 
 
 
3
Develop the risk evaluation and classification system and send early notification to securities companies and fund management companies. Classify these companies for management and supervision.
State Securities Commission
 
 
 
 
 
4
Strengthen inspection and supervision of the unofficial funding activities pertaining to securities trading in the market. Strictly impose penalties to the securities companies that violate the regulations on margin trading and participate in supporting the unofficial funding activities that pertain to securities trading.
State Securities Commission
 
 
 
 
 
5
Implement the restructuring methods for the group of companies with safe operation, group of companies with normal operation, group of companies with poor performance and group of companies that no longer be able to restore their capability.
State Securities Commission
 
 
 
 
 
V. RESTRUCTURING THE ORGANIZATION OF SECURITIES MARKET
1
Establish the Department of Stock Exchange of Vietnam based on the model and road map which have been approved by the Prime Minister and specified in the Decision No. 32/QD-TTg dated January 07, 2019; divide the market based on the scale, operation quality and liquidity without disordering the organization but maintaining a consecutive operation and market stability.
Ministry of Finance
 
 
 
 
 
2
Develop and bring the new information technology system into a synchronized operation at two Departments of Stock Exchange and Vietnam Securities Depository in 2019, in order to modernize the technology infrastructure to serve the trading management and supervision and make clearing payments for the whole market.
State Securities Commission
 
 
 
 
 
3
Develop the central counterparty at Vietnam Securities Depository according to the international treaties: study the Scheme for connecting the clearing house system and securities settlement system with the inter-bank payment system, in order to make clearing payments for other securities trading; provide collateral management services and carry out secured transaction activities at Vietnam Securities Depository.
Ministry of Finance
 
 
 
 
 
4
Change the operation model of the custodian banks in compliance with the international treaties: consider permitting the commercial banks to provide clearing services in the derivative securities market.
State Securities Commission
 
 
 
 
 
5
Study the possibility to apply block chain in some segments of the market or in some stages of the trading and payment process, in order to improve efficiency, transparency and integrity of the data of investors.
State Securities Commission
Department of Stock Exchange, Vietnam Securities Depository
 
 
 
 
6
Implement new regulations in the securities market, especially the regulations that are suitable to the needs of professional investors.
State Securities Commission
Departments of Stock Exchange
 
 
 
 
7
Carry out trading activities within the day to satisfy the requirements of the market.
State Securities Commission
Departments of Stock Exchange
 
 
 
 
8
Widen the daily permitted trading band, based on the characteristics of each classification table of listed shares; apply the circuit breaker measure in case there are fluctuations in the market and extend the transaction period for some special transactions.
State Securities Commission
Departments of Stock Exchange
 
 
 
 
9
Develop the securities lending and borrowing model in compliance with the financial capability and the risk management ability of the securities trading organizations.
State Securities Commission
Departments of Stock Exchange
 
 
 
 
10
Improve the market organization model and the bond trading system in compliance with the transaction agreement, in order to timely make an accurate report and develop the standard yield curve in the market.
Ministry of Finance
 
 
 
 
 
11
Issue additional bonds, swap and buy-back bonds to establish the standard bonds and thus improve liquidity, stabilize the market, minimize risks to the government bond portfolio.
Ministry of Finance
 
 
 
 
 
12
Hire market makers and provide them with full benefits and obligations to carry out their duties in the primary and secondary markets according to the international treaties.
Ministry of Finance
 
 
 
 
 
13
Build a central information center to issue corporate bonds at the Department of Stock Exchange and provide information to the investors and enterprises when they participate in raising the capital through issuance of bonds.
State Securities Commission
Departments of Stock Exchange
 
 
 
 
VI. STREGHTHEN THE ABILITY TO CARRY OUT SUPERVISION MANAGEMENT AND IMPROVE ENFORCEMENT
1
Establish the Securities Market Management Team.
Ministry of Finance
Ministry of Justice, State Bank of Vietnam, Ministry of Planning and Investment, and National Financial Supervisory Commission
 
 
 
 
2
Step by step change the management and supervision model of the State Securities Commission from compliance monitoring model to management and supervision model which is risk-based, in order to optimize the resources and improve the management and supervision efficiency.
State Securities Commission
 
 
 
 
 
3
Develop the securities market supervision system on the basis of clearly determining the responsibilities, and developing securities trading organizations to become a supervision unit at first level in the market.
State Securities Commission
 
 
 
 
 
4
 Strengthen application of information technology in managing and monitoring the securities market, especially the supervision activities carried out for the public companies and trading supervision in the market.
State Securities Commission
 
 
 
 
 
5
 Strengthen the regular exchange of information and cooperation between the securities market management agency and the monetary market management agency. Such cooperation is carried out to manage and supervise the cash flow between the securities market and the monetary market, as well as supervising the foreign investment capital; mobilizing capital through issuance of cybercash and crypto-assets.
State Securities Commission
 
 
 
 
 
6
Develop the cooperation mechanism between the State Securities Commission and the Department of Stock Exchange. Such cooperation is carried out to supervise, detect and handle the violations related to controlling, spying and fraudulent behaviors and violations against the obligation to announce information; cooperation between the State Securities Commission and presiding agencies in the fight against criminals in the securities field, especially 04 securities crimes specified in the Criminal Code.
State Securities Commission
Departments of Stock Exchange
 
 
 
 
7
 Fulfill the international commitments on cooperation in the exchange of information and the cross-border investigation between securities market surveillance authorities.
State Securities Commission
 
 
 
 
 
8
Effectively fulfill the commitments on international economic integration in the securities field, and carry out the cooperation programs with international organizations and partners, especially securities services specified in FTAs to which Vietnam is a signatory.
State Securities Commission
 
 
 
 
 
9
Strengthen the cooperation with international economic organizations and foreign securities management agencies in the provision of supports and trainings for public officials of the State Securities Commission.
State Securities Commission
 
 
 
 
 
VII. RAISING THE RANK OF THE MARKET
1
Ensure equal rights for foreign investors to get access to information by developing and regularly updating the English websites of the State Securities Commission and Departments of Stock Exchange; encouraging public companies to announce information in English.
State Securities Commission
Departments of Stock Exchange, public companies
 
 
 
 
2
Continue to reduce and simplify the administrative procedures for issuance of trading codes and registration procedures for sale of open-end fund certificates; provide guidelines for electronic voting and online meeting.
State Securities Commission
Vietnam Securities Depository, Departments of Stock Exchange
 
 
 
 
3
 Amend the regulations on opening and use of indirect investment account, in order to continue to enable foreign investors and foreign investment funds to open and use payment accounts.
Ministry of Finance
State Bank of Vietnam
 
 
 
 
4
 Hold regular dialogues between the management agency and the index providers, in order to develop methods and policies which are suitable to the conditions of Vietnam.
State Securities Commission
 
 
 
 
 
5
Promote the activities for disseminating information about the Vietnamese securities market to foreign countries.
Ministry of Finance
 
 
 
 
 
VIII. ENHANCING THE ROLES OF PROFESSIONAL ASSOCIATIONS IN DEVELOPING THE SECURITIES MARKET
1
Periodically exchange information and consult professional associations about the mechanism, polices and methods for developing the securities market.
State Securities Commission
Related associations
 
 
 
 
2
Review and develop training programs for securities practitioners in harmony with the general standards of ASEAN; regularly update knowledge for securities practitioners; cooperate with the Broker Association to strengthen management and supervision of securities practitioners.
State Securities Commission
Securities trading association
 
 
 
 
3
 Cooperate with professional associations to promulgate professional and ethical standards and carry out supervision for the implementation of these standards, in order to improve the professional quality and ethics of organizations and individuals participating in the securities market.
State Securities Commission
Departments of Stock Exchange, and related associations
 
 
 
 
4
Develop the set of company management principles which apply to listing companies in the securities market.
State Securities Commission
Departments of Stock Exchange, and related associations
 
 
 
 
5
Strengthen the cooperation with professional associations in disseminating information and providing professional trainings and legal knowledge about securities and securities market for the public.
State Securities Commission
Securities trading association
 
 
 
 
6
Develop plans and step by step transfer the activities for administering and issuing certificates of securities business practice for professional associations. Such transfer is done on the basis of satisfying the ability requirements of each of these associations.
State Securities Commission
Securities trading association
 
 
 
 
B. FOR INSURANCE SECTOR
GENERAL METHODS FOR THE INSURANCE MARKET
I. DEVELOPING THE LEGAL FRAMEWORK
1
Develop the amended Law on Insurance Business and documented guidelines for risk management and how to satisfy the international integration requirements, as well as strengthening the initiation ability and self-responsibility of insurance companies in business and while making capital contribution and managing risks and personnel. Also, develop the regulations on insurance contracts; develop the state management method towards simplifying administrative procedures, strengthening post-inspection through inspection, boosting connectivity with international management, integration and cooperation agencies.
Ministry of Finance
Ministry of Justice, Insurance Association of Vietnam
 
 
 
 
II. IMPROVING INFORMATION TRANSPARENCY
1
Request the insurance enterprises to timely disclose full, comprehensive and related information, in order to help the insurance buyers and related organizations to clearly understand the organization structure, business activities, business results and financial status of these enterprises.
Ministry of Finance
Insurance Association of Vietnam
 
 
 
 
III. DEVELOPING AND PROFESSIONALIZING THE INSURANCE DISTRIBUTION CHANNELS
1
Develop diversified channels in order to promote the development of insurance business activities towards professionalism and catch up with the development of 4.0 technology revolution, provide the best service to insurance buyers and enable customers to get insurance access easily and in the most professional way.
Ministry of Finance
Ministry of Justice
 
 
 
 
2
Carry out management under principles for the insurance backup service providers by regulating the operation requirements and standards for such providers in compliance with each type of service (counseling service, risk management service; actuary service, compensation management service, loss assessment service, etc.).
Ministry of Finance
Ministry of Justice, Insurance Association of Vietnam
 
 
 
 
IV. IMPROVE THE EFFECTIVENESS OF STATE MANAGEMENT AND THE EFFICIENCY OF INPSECTION, SUPERVISION AND ADMINISTRATIVE PENALTY ACTIVITIES.
1
Step by step change the management and supervision model of the Insurance Supervisory Agency from compliance monitoring model to management and supervision model which is risk-based and suitable to the capital model.
Ministry of Finance
Ministry of Justice, Insurance Association of Vietnam
 
 
 
 
2
Improve the role and responsibilities of the Ministry of Finance in managing and supervising inspection, supervision and penalty activities of the insurance companies and insurance brokerage enterprises.
Ministry of Finance
Ministerial inspectors
 
 
 
 
3
Continue to simplify the administrative procedures and enable and give business opportunities for insurance enterprises.
Ministry of Finance
Ministry of Justice
 
 
 
 
V. DEVELOPING AND IMPROVING THE PERSONNEL QUALITY
1
Improve the personnel quality of the insurance market; Study and apply potential framework which is suitable to the actual conditions and the development of the market; strengthen the training for officials of the insurance market.
Ministry of Finance
Insurance Association of Vietnam
 
 
 
 
2
Issue the regulations on standardization of personnel quality through a professional certificate system which is suitable to the potential framework.
Ministry of Finance
Insurance Association of Vietnam
 
 
 
 
3
Study the model for establishment of Insurance Development Institute. Such establishment is carried out to socialize the Insurance Research and Training Center (without establishing a new Center).
Ministry of Finance
Insurance Association of Vietnam
 
 
 
 
VI. ENHANCING THE ROLES OF PROFESSIONAL ASSOCIATIONS IN DEVELOPING THE SECURITIES MARKET
1
Strengthen the roles of professional associations as the centers of the whole market for collecting the opinions, feedbacks and suggestions of members of such associations on mechanism, policies and methods for developing the securities market and connecting with related agencies to effectively implement the policies.
Ministry of Finance
Insurance Association of Vietnam
 
 
 
 
VII. STRENGTHEN THE CONNECTION BETWEEN THE SOCIAL HEALTH INSURANCE WITH COMMERCIAL HEALTH INSURANCE.
1
Develop and suggest the plan for sharing information and strengthening the interconnection between social health insurance and commercial health insurance as specified in the Resolution No. 20-NQ/TW dated October 25, 2017 of the Party Central Committee, encouraging the development of the insurance products that are in high demand by the society, and ensuring efficiency and bringing the maximum benefits to the insurance users.
Ministry of Finance
Ministry of Health, Social Insurance
 
 
 
 
VIII. PROMOTING DISSEMINATION OF INSURANCE INFORMATION
1
Disseminate information about the role, meaning and necessity of insurance, as well as the law on insurance business to agencies, sectors, organizations, individuals and the citizens.
Ministry of Finance
Insurance Association of Vietnam
 
 
 
 
IX. ESTABLISHING INFORMATION TECHNOLOGY SYSTEM AND TECHNICAL INFRASTRUCTURE; DEVELOPING DATABASE FOR THE INSURANCE MARKET
1
Carry out the project on data information system in the insurance sector, in order to serve the management and supervision activities
Ministry of Finance
Insurance Association of Vietnam
 
 
 
 
METHODS FOR NON-LIFE INSURANCE SECTOR
ENHANCING THE COMPETITION ABILITY AND OPERATION EFFICIENCY OF NON-LIFE INSURANCE ENTERPRISES TO ENSURE SYSTEM SAFETY
1
Develop the risk control system at the insurance companies
Ministry of Finance
Insurance Association of Vietnam
 
 
 
 
2
Issue legal documents as guidelines for the risk management framework. Such documents shall specify the responsibilities of the companies in taking the initiative to apply the risk prevention, control and reduction methods.
Ministry of Finance
Ministry of Justice
 
 
 
 
II. STRENGTHENING THE ABILITY TO COMPLY WITH THE REGULATIONS OF NON-LIFE INSURANCE COMPANIES
1
 Inspect, supervise and strictly handle violations against the law.
Ministry of Finance
 
 
 
 
 
III. STRENGTHENING BUSINESS COOPERATION BETWEEN NON-LIFE INSURANCE COMPANIES
1
Create a general database to develop the net fee schedule of some insurance products
Ministry of Finance
 
 
 
 
 
METHODS FOR LIFE INSURANCE SECTOR
1
Encourage the development of new and diversified products. Have mechanism and policies for encouraging the development of products which carry community meaning and social security meaning, such as micro-insurance, health insurance and pension insurance.
Ministry of Finance
Ministry of Justice
 
 
 
 
2
Diversify methods and develop insurance products in compliance with the business trend which is associated with 4.0 technology revolution.
Ministry of Finance
Ministry of Justice
 
 
 
 
  (This translation is for reference only)



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