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SSC officials disciplined in move to ‘clean’ the stock market

The Central Inspection Commission has announced the expulsion of Le Hai Tra, General Director of the HCM City Stock Exchange (HOSE), and has disciplined a number of leaders and former leaders of the State Securities Commission (SSC).

The announcement, released on May 18 by the Central Inspection Commission, also said that Tran Van Dung, chair of SSC, was dismissed from all Party positions; and that Vu Bang, former chair of the SSC, Nguyen Thanh Long, secretary of the Hanoi Stock Exchange Party Committee, and Nguyen Son, chair of the management board of the Vietnam Securities Depository (VSD), received warnings.

The move was taken amid investigations into stock exchange violations recently.

As such, nearly all leaders of SSC and Hanoi and HCM City bourses have been strictly punished, which the public and investors have long been waiting for. The move aims to force the officials to pay for violations they have committed, thus helping the stock market operate in a healthy and transparent way.

They will receive appropriate disciplinary measures from the government. This is a stern warning for those who have, are or intend to commit wrong acts, disturbing or damaging the stock market. 

No one is irreplaceable and anyone who makes mistakes will have to pay a heavy price for their actions. The principle is true not only for entrepreneurs like Trinh Van Quyet or Do Anh Dung but also for high-ranking officials.

In the last few days, the stock market had record index decreases and electronic boards were lit red. The green color returned over the last two days. With information about the discipline of a series of high-ranking officials, investors, listed companies and the public understand that those who violate the laws will be punished.

With what has been happening with the Vietnam stock market, though mistakes are personal, the impact is heavy: they affect market operation and ‘erode’ investors’ confidence. Those who violate the laws must pay a heavy price for that, though the price can hardly be compared with the material losses and mental damage incurred by investors.

VND500 billion to supervise the market

Le Hai Tra, 48, spent 25 years working with the Vietnamese stock market. A report found that under the ‘reign’ of Tra, HOSE spent nearly VND500 billion to supervise the market.

The total expenses of HOSE in 2021 was VND701.34 billion, an increase of 95 percent over 2020. The noteworthy feature is that expenses on market supervision accounted for the largest proportion of total expenses – 70.6 percent, or VND494.86 billion.

The newly released annual report of HOSE shows that HOSE’s revenue comes from three major operations, including professional activities, service providing and financial activities.

In 2021, Le Hai Tra held the post of general director and HOSE’s total revenue was VND3.237 trillion, an increase of VND2.185 trillion, or 208 percent compared with 2020. The revenue from professional activities accounted for a large proportion in HOSE’s total revenue (92.93 percent), reaching VND2.985 trillion, up by 228.8 percent over 2020.

According to HOSE, the increase in revenue from professional activities was driven by growth in securities trading activities. The revenue from service providing also increased by 30.87 percent (VND110.78 billion). Meanwhile, revenue from financial activities dropped by 12.58 percent (VND51.37 billion).

In 2021, HOSE paid VND2.315 trillion to the State budget and higher-level agencies, an increase of 356.4 percent over 2020. This included VND507.3 billion worth of corporate income tax, up by VND267 percent (VND369 billion) over 2020.

Nguyen Thi Viet Ha, acting president of HOSE, said the stock market had a prosperous year in 2021, leading ASEAN countries in the growth rate of trading value and market capitalization value. The VN Index reached a new peak of 1,500.81 points, the highest level over the last 21 years of operation.

The share market capitalization value on HOSE reached VND5.8 quadrillion as of the end of 2021, with 46 listed companies having capitalization value of over $1 billion and three companies having the capitalization value of over $10 billion. More than VND49 trillion was mobilized through the stock market, or five times higher than 2020.

MOF: personnel ready for SSC

The Ministry of Finance (MOF) has said the ministry has prepared for different scenarios, including personnel for SSC, HOSE and VSD.

Deputy Minister of Finance Nguyen Duc Chi, at a meeting with the press on May 18, said MOF respects the conclusions of the investigation agency. 

“MOF will join forces with appropriate agencies to heavily punish the individuals who commit violations of the laws,” Chi said.

MOF will have a plan to strengthen the capacity of securities market management agencies as well as securities transactions and depository center; and appoint qualified and ethical staff to key positions so that these agencies have sufficient capacity and conditions to manage the market and run the market effectively.

The ministry said that they will always be proactive and have a plan to ensure the continuous, smooth and stable operation of the stock market.

Ha Phan - Luong Bang

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