Vietnamese Authorities Dismisses Several Senior Securities Officials over Corruption Concerns

Vietnamese authorities have reportedly dismissed and reprimanded several senior regulatory and stock market officials over "serious wrongdoings".

The dismissals come amid a crackdown on securities violations in Vietnam that began in March. The country's Communist Party's Central Inspection Commission has called for disciplinary action against a number of officials for alleged "violations and shortcomings" that resulted in market manipulation and illicit profits between 2015 and 2020.

The crackdown on securities violations is aimed at enhancing transparency in the domestic market as Vietnam seeks to improve how its capital market is perceived globally and draw in greater foreign investment.

In recent weeks, authorities have dismissed, and removed from all positions in Vietnam's Communist Party:

Tran Van Dung, head of the SSC (State Securities Commission); former chairman of HNX (Hanoi Stock Exchange); former general director of HoSE (Ho Chi Minh Stock Exchange)

Le Hai Tra, general director of HoSE

Several others were reprimanded:

Vu Bang, former chairman of the SSC

Nguyen Thanh Long, chairman of the members' council of VNX (Vietnam Stock Exchange) – the parent of HoSE and HNX

Nguyen Son, chairman of VSD (Vietnam Securities Depository)

Since late March, police have also detained a number company executives including:

Trinh Van Quyet, the former chairman of Bamboo Airways and its parent FLC Group, which was also fined VND 100 million (USD 4,300)

Do Duc Nam, former CEO of Tri Viet Securities

Do Thanh Nhan, former chairman of Louis Holdings

Vietnam's MOF (Ministry of Finance) has said an investigation into brokerage firms in the country would continue through 2022.

"It's a big step to take and it's all public" Baker McKenzie senior advisor Fred Burke said. "It sends a strong message: compliance with the law in terms of insider trading, transparency and enforcement of those rules." This is probably the biggest market crackdown in the history of Vietnam's stock market, he added.

The SSC recently ordered HoSE and HNX to start disclosing proprietary trading of securities companies. The exchanges are also required to disclose additional information on significant stock price movements.

Source: Regulation Asia