Econ
Vietnam’s stock market provides one-fourth of capital supply
According to Minister of Finance Dinh Tien Dung, the stock market has provided 25 percent of the total capital for Vietnam’s economy,
Speaking at the ceremony to open the year’s first transaction session of the stock market in Hanoi, Dung said after 20 years of operation, the stock market has become an important channel to mobilize capital for the economy. Total stock market capitalisation was equal to 74 percent of GDP in 2016.
In 2016, the total amount of capital mobilised through the stock market was 348 trillion VND (15.7 billion USD), up 54 percent from 2015. Of which, 312 trillion VND (14 billion USD) was raised from the government bond, and 36 trillion VND (1.62 billion USD) came from the securities market.
The Finance Minister said the stock market is an effective tool to promote the restructuring of State-owned enterprises and attract foreign indirect investment. In 2016, 118 State-owned enterprises joined the UPCoM market after equitisation, bringing the number of enterprises joining UPCoM to 408 and quadrupling the UPCoM market capitalisation.
Dung predicted positive developments for the stock market in 2017 and affirmed the Party and State’s policy to develop a modern stock market in line with international practice to create an effective capital mobilisation channel.
He urged the stock market sector to continue perfecting mechanisms and policies, restructuring the stock market and the management agency. The integration of the two stock markets should be accelerated and supervision be boosted to ensure transparency, he said.
The MoF will continue researching and submitting solutions to the government, the National Assembly to develop the stock market comprehensively, he added. Vietnam’s stock market capitalisation ratio, including bonds and stocks, to gross domestic product, was 74% in 2016, up 35 percentage points from a year earlier, according to Finance Minister Dinh Tien Dung.
He said on January 3 at the first trading session of 2017 that over the past 20 years the stock market has become an important capital channel, providing 25% of capital for the economy. In 2016 total capital mobilised through the stock market rose 54% from a year earlier to more than VND348 trillion (US$15.3 billion), including VND312 trillion (US$13.7 billion) mobilised through government bonds.
Minister Dung said that the stock market is an effective tool to accelerate State-owned enterprise reform and attract foreign indirect investment. In 2016, 118 equitised SOEs were put onto the unlisted public company market or UpCom, raising the total number of enterprises on this market to 408, with capitalisation four times the 2015 figure.
At the first trading session of 2017, two major State-owned companies, Vietnam Airlines and Vietnam National Textile and Garment Group (Vinatex), made their debut on the UpCom market. Vietnam is planning to merge the two stock exchanges in Hanoi and Ho Chi Minh City while a derivatives market is scheduled to be launched in the second quarter of this year.
In 2016, the total amount of capital mobilised through the stock market was 348 trillion VND (15.7 billion USD), up 54 percent from 2015. Of which, 312 trillion VND (14 billion USD) was raised from the government bond, and 36 trillion VND (1.62 billion USD) came from the securities market.
The Finance Minister said the stock market is an effective tool to promote the restructuring of State-owned enterprises and attract foreign indirect investment. In 2016, 118 State-owned enterprises joined the UPCoM market after equitisation, bringing the number of enterprises joining UPCoM to 408 and quadrupling the UPCoM market capitalisation.
Dung predicted positive developments for the stock market in 2017 and affirmed the Party and State’s policy to develop a modern stock market in line with international practice to create an effective capital mobilisation channel.
He urged the stock market sector to continue perfecting mechanisms and policies, restructuring the stock market and the management agency. The integration of the two stock markets should be accelerated and supervision be boosted to ensure transparency, he said.
The MoF will continue researching and submitting solutions to the government, the National Assembly to develop the stock market comprehensively, he added. Vietnam’s stock market capitalisation ratio, including bonds and stocks, to gross domestic product, was 74% in 2016, up 35 percentage points from a year earlier, according to Finance Minister Dinh Tien Dung.
He said on January 3 at the first trading session of 2017 that over the past 20 years the stock market has become an important capital channel, providing 25% of capital for the economy. In 2016 total capital mobilised through the stock market rose 54% from a year earlier to more than VND348 trillion (US$15.3 billion), including VND312 trillion (US$13.7 billion) mobilised through government bonds.
Minister Dung said that the stock market is an effective tool to accelerate State-owned enterprise reform and attract foreign indirect investment. In 2016, 118 equitised SOEs were put onto the unlisted public company market or UpCom, raising the total number of enterprises on this market to 408, with capitalisation four times the 2015 figure.
At the first trading session of 2017, two major State-owned companies, Vietnam Airlines and Vietnam National Textile and Garment Group (Vinatex), made their debut on the UpCom market. Vietnam is planning to merge the two stock exchanges in Hanoi and Ho Chi Minh City while a derivatives market is scheduled to be launched in the second quarter of this year.
