Finance minister aims new height for Vietnam stock market in 2021
The stock market will continue to be an efficient capital mobilization channel for Vietnam’s economy and a useful instrument for macroeconomic management of the government.
Stable macro-economic environment and the effectiveness of the Securities Law are among favorable conditions to ensuring a strong growth for Vietnam’s stock market in 2021.
| Minister of Finance Dinh Tien Dung beats the ceremonial gong to open the first trading session. Photo: MoF |
Minister of Finance Dinh Tien Dung made the remarks at the opening of the first trading session of 2021 on January 4.
“The stock market will continue to be an efficient capital mobilization channel for Vietnam’s economy and a useful instrument for macroeconomic management of the government,” stated Mr. Dung.
In 2021, the finance minister expected the stock market to accelerate its restructuring efforts towards greater efficiency and transparency for sustainable development, including the establishment of derivatives and corporate bond markets, along with new securities products under the instruction of Prime Minister Nguyen Xuan Phuc.
“The Ministry of Finance will provide more solutions to speed up the privatization and State capital divestment at State-owned enterprises to help boost liquidity and the size of the stock market,” he noted.
As the finance ministry is in the process of drafting the national strategy for stock market development for the 2021-30 period, there will be a clear plan to support the long-term development of the stock and capital markets, stated Mr. Dung.
In 2020, Vietnam’s stock market was among those severely affected by the pandemic that had plummeted to its rock-bottom with a 25% slump.
|Minister of Finance Dinh Tien Dung. Photo: MoF.|
Since the benchmark Vn-Index fell to its rock-bottom in March 2020 with a 25% slump, the stock market has been on the steady rise and ended the last trading session of the year at 1,103.87, representing an increase of 14.9% against early 2020 and 67% compared to its lowest point.
The average trading value last year hit VND7.39 trillion (US$316.6 million), up 59% year-on-year, in which the average numbers in the November-December stood at VND10 trillion (US$433.6 million) and VND14 trillion (US$641.7 million), respectively, more than double the average figure in 2019.
The government bond market in 2020 mobilized VND333 trillion (US$14.43 billion), up 64% year-on-year, while the figure from the corporate bond market stood at VND400 trillion (US$17.34 billion), or 14.7% of the overall GDP.
As the stock market ended with a high note, nearly 84% of public firms have generated profit, which is a high rate amid the Covid-19 pandemic.
“Vietnam’s stock market could be included among the world’s best performing in terms of resilience and recovery capability,” noted Mr. Dung.
Vn-Index surge in 2021 first session
In the first trading session of the year, the stock market continued the strong momentum from last year with a large inflow of capital into the market. At the close today [January 4], the Vn-Index ended at 1,120.47, representing an increase of 16.6 points or 1.5%. Of the total, 380 were advancers and 75 decliners.
Top gainers from today sessions are securities firms, or those in real estate, construction, oil, steel or aviation, with a combined trading volume of VND19 trillion (US$824 million) from HoSE, Hanoi Stock Exchange and the Unlisted Public Company Market (UPCoM).
Foreign investors, however, remained net sellers with VND375 billion (US$16.2 million), focusing on VNM, MBB, CTG or HPG.
- JICA, Sumitomo Mitsui offer US$75 million to Vietnam SMEs
- Vietnam's National Assembly cuts taxes and fees for businesses
- Vietnam's first debt trading platform to start operation on October 15
- Vietnam's credit growth expands by 7.42% despite Covid-19 impacts
- Nearly 115,000 new securities accounts opened in September
- Government bonds reverse Vietnam's dependence on foreign loans
- Gov't likely to kick start Mobile Money this month
- Vn-Index set to go sideways this week
- Vn-Index set to hover around 1,350-mark this week
- Banks foregone over $1 billion in profit to support businesses during Covid-19 outbreaks
ASEAN+3 countries to prioritize Covid-19 response and recovery plan
EVFTA provides platforms for businesses to navigate Covid-19 impacts
Vietnam's child coronavirus vaccination drive kicks off in HCMC
Vietnam postpones 31st SEA Games to May 2022
Vietnam in need of national strategy for veggie exports to EU
Vietnam donates Laos US$2 million for pandemic fight
Mao Bookstore - the oldest bookstore in Dinh Le Street
Vietnam’s biggest Covid-19 makeshift hospital to be closed
UN Security Council holds emergency meeting over North Korea