December 09, 2019 15:41

Advertisement Contact us RSS Vietnamese

The Prime Minister notes 6 key tasks of stock market development

16:11 | 29/11/2016

VCN- Speaking at the 20th anniversary of Vietnam’s stock market and the celebration of the Second Class Independence Medal of the State Securities Committee on the morning of 28th November 2016, the Prime Minister, Mr. Nguyen Xuan Phuc stressed: In the progress of reforming the economy, the stock market plays an important role in effectively building a dynamic economy.

the prime minister notes 6 key tasks of stock market development Propose to the Government about operating a derivatives stock market in December
the prime minister notes 6 key tasks of stock market development The stock market should increase the "quantity" and "quality" to absorb foreign capital
the prime minister notes 6 key tasks of stock market development Over 146 foreign investors are granted the stock transaction code
the prime minister notes 6 key tasks of stock market development
The Prime Minister, Mr. Nguyen Xuan Phuc speaks at the ceremony.

The Prime Minister hoped that Vietnam’s stock market would contribute to the development of industrialization and modernization of the country, improving the image of Vietnam in international markets.

The Prime Minister said that Vietnam’s stock market was not only an investment capital mobilization channel from domestic economic sectors, people and society, but it also attracts foreigner investors, creating financial resources to promote economic growth and helps enterprises use their capital efficiently, raising transparency in production and business activities.

After more than 20 years of construction and development with the initial introduction of the State Securities Committee, the Securities sector has been growing. Accordingly, Vietnam's stock market has flourished on the scale, contributed to the reform of the market structure, promoted international integration, became an important capital channel of the economy, reformed the structure of the modern financial system, especially for State-owned enterprises to enhance transparency.

Starting with two stocks listed on the stock exchange, the HCM City Stock Exchange now has more than 1,000 listed companies with two stock exchange centres. The total value of capital raised through the stock market currrently is estimated at 2 million billion vnd, equivalent to 30% of the total investment of the country. Thus, the Vietnam’s stock market has become an important channel for capital mobilization.

Residual value of bonds accounted for about 40% of GDP, with stock market capitalization of around 39% of GDP, and the overall stock market accounted for about 63% of GDP. This is a positive figure, showing a rapid growth in the stock market in the Vietnam’s financial system.

On this occasion, on behalf of the Government, the Prime Minister has praised and recognized the achievements of all officials and public servants and employees of the Ministry of Finance, the State Securities Committee, the Department of Stock Exchange, the Securities Depository Center, as well as market participants and the media system. In particular, the Prime Minister has appreciated the support of senior officials who have contributed to the success of the Vietnam’s stock market.

In addition to the outstanding achievements, we still have problems and shortcomings in legislation, assimilation quality and market organization which urgently need to be resolved to ensure the sustainable development of the stock market.

The Prime Minister has directed to perform some key tasks as follows:

First, amending and supplementing institutions, mechanisms and policies in line with national economic conditions and international practices to further develop the stock market in the national financial system, thereby making the stock market become a medium and long term capital mobilization channel, contributing to the development of economic strategy.

Second, developing a sustainable stock market at several levels, increasing the scale and enhancing quality, diversifying products and improving the quality of participants in the market to ensure the stock market is safe, efficient and sustainable.

Third, developing the stock market to ensure transparency in line with current standards and practices, strengthening management, inspections, monitoring and enforcement to ensure the legitimate interests of stakeholders, especially stock market investors.

Fourth, enhancing the stock market with the innovation of capacity management transparently, continuing to put many equitized State-owned enterprises on the stock market. By the way, the Prime Minsiter has also asked the functional authorities to coordinate to carry out the equitization of State-owned enterprises, ensuring transparency against interests of individuals and preventing the loss of State assets.

Fifth, developing the stock market on the basis of the development of the monetary market and the insurance market in order to create a unified financial system. The stock market should become a diversification of capital and investment financing channel, reducing short-term borrowing procedures of commercial banks, improving the competitiveness of businesses and the economy.

Sixth, strengthening the attraction of foreign investors, promoting international cooperation with international securities centers, improving competitiveness in line with the trend of advanced technology in the management and transaction system, ensuring the privacy, security and safety of transactions, gradually narrowing the gap between Vietnam’s stock market and foreign countries, reaching targets and roadmaps to enhance Vietnam's stock market.

The Government is committed to keep a stable economy, building a transparent economy, a healthy and competitive environment, protecting the legitimate interests of investors in the stock market, promoting economic restructuring and creating favourable conditions for the sustainable development of Vietnam's stock market.

the prime minister notes 6 key tasks of stock market development Vietnam's stock market on track to hit $100 billion by end of 2016

The VN Index has climbed 19 percent since the end of last year, the most among the ...

After more than 20 years of stock market development, the construction of the Vietnam’s stock market has been the right policy in line with the development of the economy. The achievements derive from the close and strict guidance of the National Assembly, the Ministry of Finance, the State Securities Committee, the Department of Stock Exchange, and the Securities Depository Center which gradually promote the development of the Vietnam economy.

By Hong Van/ Hoang Anh