The urgency of the topic The process of globalization, first of all, globalization of the economy has strongly influenced the development of the securities. Today, securities not only plays an important role in developed countries but also has a great position in capital circulation in developing countries. In Vietnam, since the transition of the economy from a centralized planning mechanism to a socialist mechanism, it is required to form and develop each step of the securities and this view has been shown in the Official documents of the Party and the State. The Government has conducted a series of preparation steps to establish and put into operation the securities.
By proactively building a legal framework, building the securities model, creating a specialized state management apparatus, establishing market organization agencies and preparing other necessary conditions that the first step is to establish Ho Chi Minh City Securities Trading Center, in July 2000, our securities was officially born and put into operation, opening a new channel of medium and long-term capital mobilization for the economy, serving the industrialization and modernization. The securities's contribution in Vietnam is also a complete complement to a financial market structure in the direction of developing a financial foundation in line with the policy of building a socially oriented market economy and once again affirm the Party's consistent approach in line with the trend of internationalization and the integration of regional and international economies. Vietnam's securities does not form spontaneously but comes from the Party and State's guidelines. The state plays a role as the builder and market maker.
Therefore, the State is also the subject to manage all activities of the securities as required by economic rules. ensure the openness and transparency of the market. That is an objective request. comes from the 1 function of state management tasks.
After nearly 20 years of operation, due to the positive transformation of the Vietnam securities in recent years, the state management activities for the securities have made significant strides, including the improvement of the legal framework, Create goods for the market. building and operating the Stock Exchange, the Securities Trading Center, establishing the VSD. With the aim of going deeper into the issues related to the state management of the Vietnam securities, I chose the thesis thesis: "State management with Vietnam securities ”. Research objectives and tasks - Systematizing and clarifying the theoretical basis of state management for the securities.
- Analyzing and assessing the status of state management activities for the Vietnam securities in the past time, thereby pointing out the achieved and limited results. - Studying management agency model and management experience for securities in some countries to draw lessons for Vietnam - Proposing solutions to enhance the role of state management for Vietnam securities. Object and scope of the study: - Research object: State management disturbance for Vietnam securities. - Scope of research: The basic contents of the securities and state management of the securities; study the status and state management activities for Vietnam securities from 2007 to March 2019: at the same time, the thesis also studies and summarizes the lessons learned from some countries in securities management and propose some solutions to enhance the role of state management for Vietnam securities.
Research Methods: Based on the scientific research methodology, the views and guidelines of the Party and State to study. evaluate activities on the securities; studying legal 2 policies and management tools in use as well as the market trend of securities: systematization method. interpretation, inductive, comparison. The meaning of research: Through research and thesis, it is necessary to clarify some basic issues about securities and state management for securities.
From the state management situation for the Vietnam securities, the thesis will synthesize and make assessments about the achieved results as well as the limitations to be overcome. The solutions are derived from the practical state management work for the Vietnam securities (in recent years, with reference to lessons learned from some countries around the world. Together with the associated development strategy Vietnam securities until 2019 to contribute to perfecting and improving the quality and efficiency of the state management work for Vietnam securities. Structure of the thesis In addition to the index, the list of abbreviations, references, appendices, lists of tables and diagrams, the content of the thesis is divided into 3 chapters.
Detail: Chapter I: General theoretical basis of the Securities and State management of the securities. Chapter II: Current state management for Vietnam securities. Chapter lII: Some solutions to improve the state management of Vietnam securities 3 Chapter 1. GENERAL THEORETICAL BACKGROUND ON SECURITIES MARKET AND STATE MANAGEMENT FOR SECURITIES MARKET 1.
General theoretical background on securities market 1. Objective necessity of the formation and development of the stock market in a market economy. In a market economy, entities involved in production and business can be divided into two groups of opposing subjects: a group of people who need to find a place to invest to make a profit; invest in their production and business activities. How to make people with capital meet people who need capital is the process of capital exchange.
This process of capital exchange is not always encouraged, where development is the foundation for a nation's growth stimulus. The function of the social exchange process belongs to the intermediary financial institutions with increasingly diversified capital mobilization channels. In general, in the market economy, there are two capital mobilization channels: indirect capital channel and direct capital channel. - Indirect capital channel: formed through intermediary financial institutions.
This capital channel was formed right from the beginning of the process of goods production and monetary circulation. It was created to mobilize and focus the temporary idle capital in society to redistribute to the national economy by credit method. Characteristics of indirect capital channel is a temporary source of monetary idle formed in society, this source of capital is mainly short term. Therefore, the appearance of the Bank is an important step in the process of capital exchange.
The bank acts as an intermediary between people with capital and those who need capital by 4 mobilizing deposits and lending. Banks and other credit institutions have made the capital exchange process develop rapidly. - Direct capital channel: not through financial intermediaries. Blocked with capital when there is sufficient legal environment.
The financial environment. will directly invest its capital into production and business through the securities. The characteristics of direct capital channel are medium and long-term capital sources for businesses and long-term mobilized funds for the State budget. The concept of the securities: There are many ways to approach the concept of the securities.
If approaching from a purely market perspective: "The securities (Securities market) is a market in which people buy, sell, transfer, exchange securities for the purpose of making a profit." According to Longman-Dictionary of Business English, 1985: "The securities is a place where people with capital either contribute to the use and ownership of capital for those who need capital to jointly manage, exploit, and share profits from investment capital or transfer of rights. use of capital for those who need capital for a certain period of time on the principle of repayment and compensation in the form of income ". According to the current law of Vietnam on securities and securities market, there is no concept of securities market but only concept of Securities Trading Center and Stock Exchange. Characteristics of the securities: 1.
Commodities exchanged in the securities are special goods: The use value of securities as a commodity is not a capital feature that is contained within the physical form of securities itself, but depends on the performance and repayment capacity of the TCPH. Therefore, the securities requires quite strict regime of providing information compared to all other markets. The adequacy, clarity, accuracy and timeliness of information are the 5 leading factors that make the securities operate effectively. The price of securities is determined by capitalizing the income it can bring.
Capitalization depends on market interest rates, bond interest rates, dividends and risk levels. In turn, interest rates depend on capital supply and demand, dividends depend on activities. dynamics of issuers as well as risks of psychological factors of securities market participants. Trading method on securities is quite specific: In addition to some agreed transactions between major financial institutions, most transactions of individual investors must be done through brokerage companies.
In order to be able to operate the securities, it is necessary to have a high level of organization, in which the requirements of honesty, publicity and fairness are top priority. Because the stock exchanges often involve large asset values, therefore, if fraud occurs, it will cause damage to the people involved. Therefore, when participating in transactions, the subjects must meet honest requirements, must comply with the strict principles of the securities and operate publicly to prevent fraud. The securities is quite competitive: Acts of fraud, monopoly, collusion and price manipulation.
have sanctions to prohibit and punish more strictly than other types of markets. At the same time, the securities must have a public information system on prices, transaction dynamics must also be strictly controlled to maintain fairness and transparency. The transactions on the market must be standardized and managed in a public manner. All of these unique features have made the securities not only a market in which spontaneous supply and demand mechanisms determine higher prices.
prices in other markets are also quite competitive. Function of securities: 1. The securities creates a channel to mobilize medium and long- term capital for the economy: 6 Compared to capital mobilization through credit institutions, the securities is more advantageous in that it provides venture capital to develop new sectors and sectors, creating a mechanism to convert short-term capital into long-term capital, expand regulations capital mobilization for enterprises and the State; provide the ability to actively select for both the capital and the need. The securities participates in redistributing national income.
Along with the system of credit institutions, money markets, the securities implements the distribution process based on ownership rights through securities prices. However, it can be seen that this is a distribution system that is more or less unfair because the profit earned through price difference does not reflect the contribution of investors or securities traders. This profit to some extent depends on the anticipated talent of the stock trader, but the subject depends on the chance and the trend of market volatility. On the securities, investors can get rich very quickly but can lose very quickly.
The securities market is the domestic and foreign capital exchange channel: Through the securities, investors can buy foreign securities or issue securities to attract foreign investment easily. The advantage of buying foreign securities versus direct investment is that investors can quickly convert capital between industries, businesses, and can diversify investment portfolios to avoid risks. Attracting capital through foreign securities markets helps businesses find rare sources of capital, or expand the scale of securities companies. The securities regulates the allocation of social investment capital among sectors, industries and enterprises: The ups and downs of stock prices affect the profit that shareholders get from stocks and information so that they decide to shift their capital from low-profit stocks to high-profit stocks.
Through the decision of investors, 7 inefficient businesses, the stock price will be difficult to mobilize capital, while businesses with high profits, stock prices will easily mobilize capital. However, in practice, this function of the securities is often disturbed by speculation and incomplete information. The securities provides an indicator and a macro-regulatory environment: The stock price indexes show a general way of realizing the state of the economy in a sharp and accurate manner. Through the securities, the State can regulate the economy by buying, selling stocks or dealing with state bond issuance.