CFA Institute Role in Development of Vietnam Investment Industry

Following the meeting of CFA Institute with the State Securities Commission of Vietnam, NDH has a brief interview with Mr. Paul Smith, CFA, President and CEO of CFA Institute regarding the CFA Institute’s mission and role in the establishment of the CFA Society Vietnam.

CFA Institute has a long history of establishment and strong presence globally. How has the CFA Institute contributed to the development of capital markets and how has the CFA Program benefited the investment professionals worldwide? 

Mr. Paul Smith: The CFA Institute establishes global professional standards for the human capital of the investment sector by offering professional qualifications and providing continuing education for investment analysts worldwide. The objectives are to develop investment professionals with the highest level of ethics and professionalism, meeting the demands of investors and the wider society.

In addition, we set global standards for businesses operating in the investment industry, the two sets of standards that the CFA Institute has initiated including the Asset Management Code of Professional Conduct and Global Investment Performance Standards.

The principals of these two sets of standards are that all investment activities must put the clients interest first. So the value we bring to each charterholder and the capital market is a qualification that investors can trust.

Paul Smith, CFA discussing the development of Vietnam investment industry

How are Emerging Markets in Asia positioned in the CFA Institute’s strategy? Could you please tell us about the CFA Institute’s plans in regional emerging markets and in Vietnam?

At present, emerging markets in Asia are our top priority. These are where young professionals who demand education and self-development make up the majority. In developing countries, we realize that our effort will deliver the greatest positive impacts. Developing markets need talents and the talents need also to realize the importance of their own development. Together, they build a sound financial infrastructure that benefits the nation. Our mission is consistent with the development of Vietnam.

CFA Institute is in preparation to set up a professional association for financial analysts in Vietnam. Can you share with us about the purposes of this upcoming organization?

As I said, the CFA Institute has a mission to help young professionals in Vietnam achieve their career goals as well as to support CFA Charterholders in contributing to the development of the financial system in Vietnam. To realize these goals, we need to pool the resources of CFA Charterholders in Vietnam to support their ongoing professional development and to help expanding their professional network. 

In addition, they will work with governments and regulators to build a sound financial system. This can be made more effective through the establishment of a professional association for financial analysts in Vietnam. This organization will take advantage of the global resources of the CFA Institute to benefit the country.

In Vietnam as well as in the whole world, the CFA Certificate is highly appreciated by employers, how do you rate the career opportunities for those with CFA Certificates (position, salary, etc.)?

Many positions in the investment industry in Vietnam and around the world require our CFA Certificate. Well trained and committed to continuous professional development, you will always have the advantage of finding a job because it shows that you have invested in your future in the right way.

What do you think about how the CFA Institute contributes to the capital markets and market participants in Vietnam (including regulators, financial institutions, investment professionals and individual investors? )?

Regulators in Vietnam are eager to develop the derivatives market, open-end funds and retirement programs. Based on decades of experience and access to best practices around the globe, the CFA Institute can fully assist in these areas. Regulators also want to improve their ethics and standards of work in the financial sector. This is at the heart of the CFA Institute and we can assist you by providing regular qualifications and training programs.

At present, we are translating into Vietnamese Professional Code of Professional Asset Management (AMC), the Global Standard for Global Effectiveness (Global Investment Performance Standards (GIPS) and the Statement of Investors Rights (CFA) Statement. AMC and GIPS will help institutionalize ethical standards and business practices to the maximum, including investment professionals and asset management companies. Meanwhile, the CFA Statement on Investor’s Rights will help individual Vietnamese investors learn more about their rights and what they can expect from those who manage their money.

He visited the key members of Vietnam’s financial market (State Securities Commission (SSC), Securities Research Training and Research Center (SRTC), Hanoi Stock Exchange (HNX) , Ho Chi Minh City Stock Exchange (HSX), SSI Securities Joint Stock Company, Ho Chi Minh City Securities Corporation (HSC) .He can please share the results of the working sessions. present

We continue to build relationships among key members of the Vietnamese financial market to find the best way to support and contribute to them. In all our meetings, we always receive a warm welcome and full support from the above agencies and organizations. Currently, the CFA Institute is jointly implementing a number of education and research projects that are expected to bring benefits to the capital market of Vietnam.

With your understanding of the market, how do you assess the financial markets of Vietnam in general and capital markets in particular? Where is the difference of Vietnam’s capital market in the two times you come here?

Vietnam’s capital markets are quite young in comparison to the world but have grown strongly and have a high reputation in the Asian market. Recent cooperation with ASEAN will play an important role in the continued development. The head has “swept away” and we expect to see further market access reforms for foreign investors, corporate governance issues in general, legal framework for the fund Mutual funds and retirement funds.

Having a late start point is an advantage for Vietnam because capital markets can learn from the mistakes of other countries in the region to build the best quality infrastructure. I believe this is going to happen and is very happy because we have the opportunity to contribute positively to this process.

The government has committed to reform and Vietnam is very fortunate because it has a young, plentiful, well-educated young manpower. They will be the ones driving the development.