The Vietnam stock market must be lifted to become an emerging market that has high quality and competitive capacity both regionally and globally, Prime Minister Nguyen Xuan Phuc said July 20 while attending a ceremony marking the 20th anniversary of the local stock market.
PM Phuc addresses the ceremony marking the 20th anniversary of the local stock market.
He noted the Vietnam stock market is enjoying one of the fastest recoveries and is the most stable in the region despite the negative effects of the global financial crisis in 2008-09 and the current novel coronavirus (COVID-19) pandemic.
The PM described the local stock market as an important part of the market economy, contributing to accelerating the integration process and strengthening connectivity with financial markets internationally.
According to the PM, since its inception, the Vietnam stock market, formerly the securities trading centre, which is now comprised of the Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange, has enjoyed strong development and served as an efficient channel of capital mobilisation for the national economy.
From just two companies joining the securities trading centre at the beginning, the market now features 1,600 listed companies across the two trading floors in Hanoi and Ho Chi Minh City with a market capitalisation of over VND4 quadrillion, accounting for 65% of the country’s GDP.
Simultaneously, a Government bond market and a derivatives market have also been developed in an effort to effectively support capital mobilisation for the State Budget, with the Government bond market being considered as the best developed bond market throughout the region.
Over the past 10 years, the total amount of capital mobilised through the stock market has reached over VND2.4 quadrillion, becoming an effective capital mobilization channel for many banks and firms such as Vietcombank, Vinamilk, and Vingroup.
The PM emphasised that Vietnam is entering into a new stage of development with both opportunities and challenges ahead following the COVID-19 outbreak. It is therefore necessary to take advantage of this unique opportunity to restore the fragile economy in an effort to attract both domestic and foreign capital inflows in the near future.
To this end, PM Phuc requested the Ministry of Finance and the State Securities Commission work closely together toward further developing the local stock market, fine-tuning the legal system, and creating a favourable business climate to benefit both businesses and investors
He underlined the need to effectively implement measures aimed at accelerating the equitisation of State-owned enterprises and applying international standards on finance and auditing activities. This should be done while simultaneously strengthening inspection and supervision activities to ensure transparency along with the legitimate rights and interests of market participants.
Source: VOV