Prime Minister Nguyen Xuan Phuc beat the gong at a ceremony held in Ho Chi Minh City on July 20 to mark 20 years of Vietnam’s stock market and the Ho Chi Minh City Stock Exchange - HOSE (July 20, 2000-2020).
Speaking at the ceremony, PM Phuc said that the event had an important meaning in the context that the country is focusing all its efforts on the dual goals of fighting COVID-19 and boosting socio-economic development.
As a "barometer" of the economy and an important and effective capital mobilisation channel, as well as a window for Vietnam to connect with international financial and monetary markets, the stock market’s development has been defined as a consistent policy of the Party and State in the renovation and international integration processes, the government leader said, while acknowledging the efforts and achievements of the Vietnamese stock market during the past 20 years.
During this “new normal” development period, the PM stressed the need to effectively take advantage of Vietnam’s success in curbing COVID-19 to resume and boost national socio-economic development, especially the attraction of domestic resources and international capital flows to meet huge financial needs, both in immediate and long-term run.
The PM urged a breakthrough development in both the scale and quality of the stock market after 20 years of operation in order to better meet the needs of medium and long-term capital for the economy, while sharing the task of mobilising capital with the banking system, thus contributing to the development of a more efficient and sustainable business system.
To upgrade Vietnam's stock market with high quality and competitiveness, the cabinet leader urged drastic actions in the early completion of institutions, mechanisms and policies for the synchronous development of financial and monetary markets in general and the stock market in particular, thereby creating a favourable business environment and bringing about fair and equal opportunities for businesses and investors.
Prime Minister Nguyen Xuan Phuc beats the gong to mark the 20th anniversary of the Vietnam stock market and Ho Chi Minh City Stock Exchange. (Photo: VGP)
The Ministry of Finance, the State Securities Commission and relevant ministries and agencies should work closely to ensure a smooth and synchronised development of markets, including the securities market, money market and insurance market, he asked, urging effective solutions to quickly develop the scale and quality of the markets, as well as accelerating the equitisation of State-owned enterprises associated with listing and promoting private enterprises in the market.
PM Phuc also asked for improvement of the securities market organisational structure, ensuring the technical infrastructure for stable, safe and sustainable market development, and focusing on substantially renewing IT systems and applying the achievements of the Fourth Industrial Revolution to serve the system’s efficiency.
From a securities trading centre with only two listed enterprises, the Vietnamese stock market now has more than 1,600 listed enterprises, trading on two exchanges with a market capitalisation of more than VND4 quadrillion, equivalent to 65% of Vietnam’s GDP. The HOSE has affirmed its leading position, accounting for nearly 80% of market capitalisation and the largest of all major listed enterprises.
In the past decade, the total capital mobilised through the Vietnamese stock market has reached over VND2.4 quadrillion, equivalent to 14% of total social investment, making an important contribution to overall capital mobilisation.