On April 2, 2026, under the project “Capacity Building on Promoting the Efficiency of Vietnam’s Equity Market,” the State Securities Commission of Vietnam (SSC), in collaboration with the Japan International Cooperation Agency (JICA), organized a working session titled “Sharing Japan’s Experience in Risk-Based Supervision.” The program forms part of a series of activities marking the 30th anniversary of the establishment and development of Vietnam’s securities industry.

The event brought together representatives from SSC-affiliated units, the Stock Exchanges, the Securities Research and Training Center (SRTC), the Vietnam Securities Depository and Clearing Corporation (VSDC), as well as JICA project experts, including Mr. Ikeda Norichika from the Japan Financial Services Agency (JFSA).

The program aimed to share Japan’s regulatory experience and practical approaches to risk-based supervision of securities companies, liquidity management for investment funds, and coordination mechanisms among regulatory authorities and industry associations.

Strengthening risk-based supervision toward international standards

During the sessions, presentations focused on Japan’s Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, with particular emphasis on risk-based supervision.

Experts highlighted an approach that concentrates supervisory resources on areas with higher risk exposure rather than applying broad-based oversight, thereby enhancing regulatory effectiveness and improving the early detection and mitigation of potential market risks.

Participants also discussed and analyzed case studies on strengthening liquidity management for investment funds through coordination between state regulators and self-regulatory organizations and industry associations.

Representative cases on improving liquidity regulations for investment funds were presented and examined, underscoring the role of multi-stakeholder cooperation in enhancing market oversight.

Promoting policy dialogue and reinforcing bilateral cooperation

Building on the presentations, participants exchanged views on current supervisory practices and future development directions in Vietnam. The program concluded with a policy dialogue session, contributing to enhanced mutual understanding and strengthened cooperation in financial market supervision.

The event was held at a timely juncture, as the SSC is implementing the Strategy for the Development of the Securities Market to 2030, while Vietnam’s stock market has been upgraded by FTSE Russell from frontier market to secondary emerging market status, effective from October 2025.

In this context, strengthening supervisory capacity, accelerating the adoption of risk-based supervision, and enhancing investor protection, particularly as the securities market and investment funds continue to expand have been identified as key priorities to improve market quality and align with international standards.

Building on the long-standing cooperation between Vietnam and Japan in the financial sector, through working programs and collaborative initiatives, the SSC and JICA continue to reaffirm their shared commitment to building a fair, transparent, and efficient securities market, thereby contributing to socio-economic development and promoting deeper integration into regional and global capital markets.