The stock market is proving to be an efficient capital mobilization channel for Vietnam’s economy, according to Prime Minister Nguyen Xuan Phuc.
Prime Minister Nguyen Xuan Phuc at the ceremony. Source: VGP.
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Capital mobilization in the private sector through the issuance of shares and corporate bonds increased by 70% in 2017 and over 30% in 2018 to reach VND86 trillion (US$3.7 billion), taking the country to become the most successful stock market in Southeast Asia in raising capital from initial public offerings (IPOs) and mergers & acquisitions (M&A) activities, Phuc added.
Moreover, the stock market has laid a solid foundation for the success of leading corporations, supported the privatization process of state-owned enterprises and become a balanced and efficient capital market alongside the banking system.
Phuc requested the Ministry of Finance to work with related government agencies in finalizing the legal framework for the stock market, with a view to submitting the revised securities law to the National Assembly for approval in 2019.
Phuc also expected better measurements in place to protect minority investors as the country currently ranks 89th out of 190 countries and territories for this criteria inthe World Bank’s 2018 Doing Business ranking, which is much lower compared to regional countries.
The PM also urged the Ministry of Finance to facilitate the establishment of the Vietnam Stock Exchange based on the merger of the HNX and the Ho Chi Minh City Stock Exchange (HoSE) for greater efficiency in operation.
Additionally, the ministry is tasked with speeding up the divestment process of SOEs and their subsequent listing on the stock market, at the same time ensuring the reclassification of Vietnam’s stock market from “frontier market” status to “emerging market.”
The PM considered the application of Industry 4.0 in the financial sector, including key technologies such as block chain, big data, artificial intelligence, among others, as key for creating breakthroughs in the sector.
Referring to the upcoming second summit between the US and North Korea, Phuc said this important event shows that Vietnam’s business environment is improving, the economy’s growth model is developing on the right track, and especially the country’s capability of ensuring safety for international events.
