Improving the efficiency of Vietnam's capital market management in the context of the 4.0 industrial revolution

SUMMARY OF RESEARCH CONTENT

Firstly, the thesis is based on the theoretical basis of capital market management efficiency to clarify the concepts, characteristics and roles of capital markets in the economy. At the same time, it provides concepts and contents of evaluation criteria revolving around the efficiency of capital market management. At the same time, through the study of capital market management in Singapore and China in the context of the 4.0 industrial revolution, lessons learned in capital market management in Vietnam are drawn.

In addition, based on the current status of Vietnam's capital market management in the context of the 4.0 industrial revolution (including: organization; management model; role, functions and tasks of organizations and competent State agencies in management) to clearly see the current status of the monitoring mechanism of Vietnam's capital market. At the same time, summarize the results achieved in the 4.0 industrial revolution associated with the management of Vietnam's capital market. From there, point out some current shortcomings and limitations as well as understand the underlying causes and related implications.

Through analysis based on the theoretical basis and the current status of Vietnam's capital market management in the context of the current industrial revolution 4.0, the thesis proposes directions and viewpoints to improve the efficiency of management work and proposes solutions to improve and enhance the efficiency of capital market management in the context of the industrial revolution 4.0 such as: improving the legal environment; modernizing the information technology system in innovating capital market management; improving supervision, inspection and sanctioning work; improving coordination mechanisms; improving the capacity of management staff.

Maybe you are interested!

1. Urgency of the topic

INTRODUCTION

After more than 20 years of development, the Vietnamese financial market has clearly formed and developed. In order to create an effective capital channel for the economy in general and enterprises in particular, the Vietnamese financial market has been divided into two main components: the capital market (or capital market) and the money market (or credit market through the banking system). However, due to the need for large investment capital to develop the economy, it is creating pressure and promoting credit growth at banks at a rather hot rate, which is extremely worrying. The rapid development of the credit market in the context of limited control capacity of the Government, combined with inherent endogenous defects and the remaining old economic mechanism, has caused the credit market to reveal many problems, lack of stability and not really healthy development. Therefore, focusing on developing the capital market is extremely urgent. Although Vietnam's capital market is on the path of development, there are still many shortcomings and potential risks in operation and management.

Unlike many countries in the world, after the Vietnamese capital market was formed and put into operation for a period of time, the State management agency built a legal framework to control and regulate activities in the market. Specifically, on July 11, 1998, the Government issued Decree No. 48/1998/ND-CP on securities and capital markets. After 5 years of implementation, the Decree revealed many limitations in management and was replaced by Decree No. 144/2003/ND-CP, which is synchronous for activities such as issuance, listing, trading, transaction, information disclosure, handling of violations... However, the replacement by another Decree has not made many breakthrough changes in the Vietnamese capital market and by January 3, 2020, the Government issued a document abolishing related contents. The root cause of this problem is that the document was drafted before the capital market came into operation and at that time the State agencies did not have experience in operating and managing the market. In response to the requirement to improve the legal effectiveness of legal documents on securities and to overcome conflicts with existing legal documents,

Relatedly, the problem is to build an operating and management mechanism so that the capital market operates synchronously, uniformly and is optimized to become a medium and long-term capital channel for the economy.

In addition, for other countries in the world, especially countries with emerging capital markets such as Singapore and China, the key to opening the door to the 4.0 industrial revolution is information technology based on the development of each country. Practice shows that information technology plays an important role in the formation and development of the capital market. Gradually, the use of information technology has become an indispensable need for the management activities of competent state agencies, contributing to the formation of a digital government. Returning to the current situation in Vietnam, the progress in applying modern information technology to the management and supervision of the capital market by the State Securities Commission is an urgent issue, deciding the development direction of the Vietnamese economy in general. At the same time, with the important goal of upgrading Vietnam's capital market on the list of emerging markets, much effort is needed and it is impossible not to mention the development of the capital market associated with the context of the 4.0 industrial revolution.

The shortcomings and weaknesses in the management of Vietnam's capital market are now more evident than ever. Therefore, the State continues to revise regulations related to capital market activities in accordance with the new development situation with the aim of establishing additional liquidity support mechanisms and forming a legal framework, thereby promoting long-term investment demand in the financial market in general. In addition, the context of international financial market integration will increase competitiveness with other countries in the region, which requires Vietnam's capital market to catch up with the economic development of other countries through improving management efficiency in the next stages.

The problem is to find solutions to improve the efficiency of capital market management to become the most optimal capital channel for the Vietnamese economy. Therefore, I have chosen the topic for my master's thesis as: Improving the efficiency of capital market management in Vietnam in the context of the 4.0 industrial revolution.

2. Research purpose:

Based on the analysis of theoretical issues on capital market management activities and the analysis of the current status of capital market management activities in Vietnam, the thesis proposes a number of solutions to improve the effectiveness of capital market management in Vietnam in the coming time, in conjunction with the context of the 4.0 Industrial Revolution.

3. Research status:

Currently, there have been research topics in the country on some aspects related to the topic of "capital market management in the period of industrial revolution 4.0." A typical topic is: " Management mechanism for securities companies in the conditions of the fourth industrial revolution " led by the Department of Business Management under the State Securities Commission. This topic has researched and studied the impacts of the fourth industrial revolution on the operation of the capital market in general, as well as the impacts on the operation of securities companies in particular. In addition, this study has pointed out a number of obstacles that need to be resolved to create conditions to promote the application of technology in capital market activities, which are clearly related to basic infrastructure, technical infrastructure, anti-money laundering, information security and customer protection. At the same time, this study also analyzes the opportunities and challenges for securities companies in transforming their business models in the context of changes in traditional business models in the banking and finance sectors that have become a common trend. From there, proposals and solutions are proposed to strengthen the management and supervision of securities company operations in the changing market conditions created by the 4.0 revolution and to orient the development of technology to support the development of capital market services. However, the recommendations for market management agencies revolve around the following contents: perfecting the transaction technology infrastructure system, building a suitable legal and management framework, management and supervision methods, licensing and innovation support mechanisms (with specific forms including innovation centers - "innovation hub", startup promotion organizations - "accelerators" and experimental legal framework - "relulatory sandbox"); However, the scope of application and implementation is still limited and only focuses on securities companies. Therefore, the compatibility and synchronization in the mechanism have not been highlighted.

Cross-management between State management agencies including: Ministry of Finance, State Securities Commission with self-governing organizations such as: Stock Exchanges (HNX, HOSE) and securities companies.

In addition, to improve the efficiency of capital market management in the context of the 4.0 industrial revolution, there are currently domestic research topics focusing on assessing the impact of financial technology (Fintech) on management in Vietnam. A typical example is the topic "Impact of financial technology (Fintech) on Vietnam's fund management industry" chaired by the Fund Management Department under the State Securities Commission in 2018. With the goal of clarifying the contents that Fintech has, is and will impact on the field of capital market management through the practical experience of countries around the world in deploying high-tech applications to thereby assess the opportunities and challenges that Fintech will bring to Vietnam's capital market management in the coming period. Although this topic has clarified the important role of Fintech in capital market management, the proposed recommendations mainly revolve around issues related to the implementation of high-tech systems to automate intermediate stages without highlighting the monitoring and inspection features - features that contribute greatly to the management of Vietnam's capital market.

Abroad, there are also many research works on the topic of capital market management that have been written into books. For example, the book " Capital Market Management " by author VA Avadhani, reprinted by Himalaya Publishing House for the fourth time in 2011. In this book, the author focused mainly on researching capital market management and mentioned the role of building and applying information technology related to service quality, as well as contributing to cost control and efficiency. However, from a business perspective, it seems that the technology system mentioned by the author here is mainly related to the ability to mobilize cash flow from the capital market rather than related to state management or self-governing organizations.

In the process of researching and completing this thesis, I encountered many difficulties because this is a complex topic that domestic documents have not yet specifically mentioned.

In depth, the work of improving the efficiency of capital market management is closely linked to the industrial revolution 4.0. On the other hand, although the Vietnamese capital market has been in operation for about 20 years, it is still in the restructuring stage, and state agencies are still having to reassign tasks and responsibilities in management, leading to the application of technology infrastructure being sketchy and fragmented.

This thesis raises the issue of studying capital market management in Singapore and China in the context of the 4.0 industrial revolution. From there, it presents new points of the thesis, such as drawing lessons as well as providing directions and solutions to improve the effectiveness of capital market management in Vietnam in a systematic and synchronous manner in the management mechanism from state agencies to self-governing organizations. At the same time, this thesis will focus on studying the modernization of the information technology system in the innovation of capital market management in Vietnam in general and typically the supervision and inspection work associated with high-tech infrastructure in particular.

4. Research object and scope

- Research object: Issues related to capital market management activities in Vietnam.

- Research scope:

Research content: The thesis studies theoretical issues on capital market, efficiency of capital market management, current status of management and supervision of Vietnam's capital market by current authorities; including HOSE, HNX and UPCOM. On that basis, propose solutions to improve the efficiency of capital market management in Vietnam in the context of Industrial Revolution 4.0.

Research space : The thesis focuses on the effectiveness of capital market management in Vietnam.

Research period: The thesis researches on capital market management in Vietnam from 2012 to present.

5. Research methods

The thesis uses qualitative research methods such as : Synthesis, induction, statistical methods, comparative description methods, and analysis methods. At the same time, it combines the use of the method of analyzing capital market management models of countries in the same region and in the world to assess the level of influence and impact on the effectiveness of capital market management and lessons learned for Vietnam.

6. Research objectives

Through studying the theoretical basis as well as clarifying the concepts of capital market management and providing criteria considered effective in the management of State agencies and self-governing organizations. At the same time, comparing the methods of capital market management in Singapore and China in the context of the 4.0 industrial revolution; thereby, drawing lessons for Vietnam in improving the effectiveness of capital market management. In addition, comparing the current status of capital market management in Vietnam to clearly indicate the criteria that have been achieved and have not been achieved in capital market management. Thereby, providing directions and solutions to improve the effectiveness of capital market management in Vietnam in the context of the 4.0 industrial revolution.

7. New points of the thesis

- Provide criteria for evaluating the effectiveness of capital market management, thereby creating a basis for comparing and contrasting the current status of capital market management results in Vietnam.

- Research the current status of capital market management in Singapore and China in the context of the 4.0 industrial revolution. From there, draw lessons for Vietnam in capital market management associated with information technology.

- Specify both achieved and unachieved criteria in capital market management. From there, get an overview of the current status of capital market management in Vietnam.

- Provide appropriate and necessary viewpoints and recommendations to improve the efficiency of capital market management based on the orientation of developing Vietnam's financial market in the context of the 4.0 industrial revolution.

- Proposing solutions to improve the efficiency of capital market management in Vietnam in the context of the 4.0 industrial revolution.

8. Structure of the thesis

In addition to the Introduction and Conclusion, the content of the Thesis includes 3 chapters as follows:

Chapter 1: Theoretical basis of capital market management efficiency

Chapter 2: Current status of capital market management in Vietnam in the context of industrial revolution 4.0.

Chapter 3: Directions and solutions to improve the efficiency of capital market management in Vietnam in the context of the 4.0 industrial revolution.

Improving the efficiency of Vietnam's capital market management in the context of the 4.0 industrial revolution - 2

Comment