The Ministry of Public Security has swiftly acted to clamp down on false information over Vingroup Chairman Pham Nhat Vuong, saying it has caused negative impacts on business operations and the stock market.

The Vietnamese Government remains steadfast in ensuring a safe, effective and transparent capital market, seen as a key factor to stabilize the macro-economic conditions and a sustainable capital mobilization channel for the economy.

The move was revealed in the Government’s Resolution No.86 on the vision for capital market development.

Under the plan, the Government would focus on finalizing regulations to support market operation and restructure the stock and monetary markets.

“The stock market is expected to become the main capital mobilization channel for the economy in mid-and long-term,” noted the resolution, expecting to ensure even development among monetary, and securities markets.

The Government bond market should become a standard in the finance market and help meet the Government's capital demand for socio-economic development.

By 2025, the Government expects the size of the stock market to reach 100% of the GDP, with outstanding loans of the bond market representing at least 47% of the GDP, of which that of the corporate bonds at 20%.

Meanwhile, the resolution calls for greater IT application in supervising the operation of the stock market.

The banking sector is tasked with restructuring credit institutions and resolving bad debts under the Government’s plan for the banking sector in the 2021-2025 period, targeting a bad debt ratio among banks below 3%.

Among the key tasks, the Government would tighten the supervision of corporate bond transactions and companies’ use of capital in the post-issuance period to ensure transparency and lawful rights of investors.

The stock market authorities are responsible for upgrading the infrastructure system for market healthy development and improving the quality of information disclosure, and financial statements of issuers.

The Government stays focused on addressing any violations in the market to protect investors and build the market’s confidence, especially on cracking down market manipulation.

The long-term goal would be for Vietnam’s stock market to be upgraded from the current frontier market status to an emerging one, which would allow more investment capital, including foreign investors.

The Ministry of Finance, the State Bank of Vietnam, the Ministry of Planning and Investment, and the Ministry of Security, are expected to follow closely the market situation to timely intervene, if needed, to stabilize the market.

“Government agencies are required to maneuver both monetary and fiscal policies in flexibly and effectively to promote sustainable development of the market while promoting the involvement of new participants,” it added.

Clamping down false information over Vingroup’s owner
The Ministry of Public Security on July 11 said it is dealing with nine individuals from seven provinces/cities for allegedly fabricating news over Chairman of Vingroup Pham Nhat Vuong, saying the tycoon is being banned from exiting the country.

According to the Chief of the Ministry of Public Security’s Office, Major General To An Xo, the Hanoi Department of Information and Communications will impose a fine against To Vi Hoan (Nam Tu Liem District), 38, on charges of “disseminating harmful information" related to Vingroup.

Such an act has undermined the credibility, and lawful rights of businesses, and caused negative impacts on the stock market, said Xo.

Hoan was fined VND7.5 million (US$320) by the municipal Department of Information and Communications and was asked to remove the false information.

Source: Hanoitimes