SSC leader: Global capital always follows confidence

To unlock the flow of capital from developed markets such as North America or Europe, the most important "passport" lies not only in financial figures but in investor confidence.

At the seminar "Vietnam Global Capital Access: Overseas Listings, Depositary Receipts and the IFC," held on June 18 and co-organized by SSI Securities and Deutsche Bank, Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission (SSC), set out an immutable principle in international finance: "Global capital follows confidence. Confidence is built through transparency, governance, operational efficiency and communication," the SSC leader emphasized.

That confidence comes not only from legal compliance or technical infrastructure but also from an enterprise's ability to proactively build relationships with international investors. Enterprises must be ready to meet higher expectations regarding accounting, governance, investor communication and transparency in the use of raised capital.

Mr. Hai recommended that enterprises wishing to access foreign capital should invest early in governance systems, financial reporting to international standards, professional investor relations (IR) and communicating in English.

Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission

Sharing the same view, Mr. Daniel Clark, Global Head of Depositary Receipts at Deutsche Bank, also said that in discussions about capital markets, people often talk a lot about lawyers, investment banks, auditors or advisory firms. However, the entity that determines the success of accessing international capital is still the enterprise itself.

To participate more deeply in the global financial market, in addition to basic information disclosure, the important factor is that enterprises must build a sufficiently convincing long-term growth strategy.

"Ultimately, Vietnamese enterprises themselves must decide whether accessing international capital fits their business operations," Mr. Daniel Clark observed.

The "bridges" connecting Vietnamese enterprises with the world

Vietnam's capital market is at a turning-point stage of development. FTSE Russell's upgrade of Vietnam to secondary emerging market status is proof of the tireless reform efforts of market participants.

Advances ranging from the KRX system and the central counterparty (CCP) model to the legal framework for depositary receipts under Decree 155 have created a solid foundation for connecting capital flows.

Nevertheless, the SSC representative noted that Vietnam should not regard this milestone as the end of the reform process, but as confirmation that Vietnam is entering a new phase. As the market becomes clearer to global institutions, investor expectations will also rise.

The seminar delved into analyzing specific tools for enterprises to achieve this goal. One of the standout solutions is Depositary Receipts (DRs). This is seen as a suitable intermediate step, helping Vietnamese enterprises increase liquidity and presence in the international market without necessarily having to completely change their current listing structure.

DRs allow international investors to access Vietnamese stocks through their familiar market infrastructure, thereby building the enterprise's reputation on a global scale.

In addition, overseas listing is assessed by experts from the LSE and Nasdaq as a "comprehensive test." The activity not only helps raise valuations and expand the investor base but also compels enterprises to raise themselves to the world's most demanding standards of information disclosure and governance.

The establishment of an International Financial Center (IFC) in Vietnam is assessed by SSC leaders as the best way to attract foreign institutions by creating confidence, infrastructure, a legal framework and a professional ecosystem. This will be the place that connects domestic resources with global capital flows, supports innovation and creates a solid foundation for market transparency.

Experts also affirmed that the companionship of domestic financial institutions such as SSI plays a pivotal role in the process of connecting global capital flows. By coordinating with global partners such as Deutsche Bank, SSI not only provides technical solutions but also helps enterprises shape a systematic and sustainable capital access strategy.

"SSI wants to play a connecting role between Vietnamese enterprises and international financial institutions, contributing to shaping new access approaches for Vietnam's capital market. We have been and are accompanying the process of raising market standards, supporting Vietnamese enterprises in accessing international capital channels in a systematic, substantive and sustainable manner," the SSI representative shared.

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