Vietnam targets effective, safe growth of stock market

The Government and the State Securities Commission plan to carry out key measures to develop the stock market in a rapid and effective but also a safe manner, Minister of Finance Dinh Tien Dung has said.

Speaking at the Lunar New Year ceremony held by the ministry at the HCM Stock Exchange on February 23, the minister said the stock market has played its role well as a channel for mobilising medium and long-term capital for the economy.

It has also greatly contributed to the equitisation of State-owned enterprises and in the attraction of foreign investment.

Minister of Finance Dinh Tien Dung beats the gong at the Lunar New Year ceremony at the HCM Stock Exchange (Photo: VNA)

According to the minister, this year the Government will continue to implement policies to stabilise the economy, control inflation, promote sustainable development, develop the private sector, and speed up the equitisation and pestment of stakes in State-owned enterprises.

He directed the State Securities Commission to coordinate with relevant ministries and agencies to complete the legal framework so that securities can create a transparent environment for businesses and investors, and improve the quality of the market by adopting global principles and practises and risk management strategies.

The minister also encouraged the development of new products, enhancing the use of digital technology, and improving market management and oversight.

The market saw a breakthrough in 2017 with the successful introduction of derivatives market.

With many big businesses listing, the market capitalisation is already equivalent to over 70% GDP, a target earlier set for 2020.

The VN Index topped 1,100 points, up 62% from 2016 and the liquidity of the stock market rose by more than 63% on average last year compared to 2016.

The average revenue and profit of listed companies grew by 19% and 28%. The bond market also developed strongly last year./.

( VNF/VNA )