Business
Vietnam’s stock market remains on track for sustainable development: Minister
Vietnam stock market has stood firm and developed in many aspects to become an attractive destination for foreign investment flows, local media reported.
With efficient government’s leadership and macroeconomic stability, Vietnam's stock market will continue to develop in a sustainable manner to make larger contributions to the country’s economic development, according to Minister of Finance Dinh Tien Dung.
Vietnam's stock market has stood firm and developed in many aspects to become an attractive destination for foreign investment flows, thanks to macroeconomic stability and the policies on market development, Dung said at a conference held on February 22 on securities market development in 2019.
The size of the market has also enhanced to VND3,900 trillion (US$168.11 billion), up 12.7% year-on-yer and equivalent to 72% of 2018's GDP, thereby fulfilling the target set in the stock market development strategy until 2020, Dung added.
Foreign investors continue to be net buyers of Vietnamese securities while being net withdrawers in regional markets. In fiscal year 2018, foreign investors were net buyers of VND43.9 trillion (US$1.89 billion) of stocks and fund certificates, he continued.
For 2019, the minister requested stock market authorities to deploy synchronously measures of market developments, strengthen supervision, management and compliance with state management agencies for the openness, transparency of the market and equality for domestic and foreign organizations and individuals participating in the market.
The State Securities Commission (SSC) – the country’s stock market watchdog - will continue to complete the amended Securities Law and launch future derivative products for several new indexes, treasury bond futures; and warrants, Dung requested.
Tran Van Dung, chairman of the SSC, stated in January that the SSC would ensure that Vietnam is on track to be upgraded from the status of frontier market to secondary emerging market, following its addition to the watch list for possible upgrade of FTSE Russell last September
The official previously said he expected Vietnam to achieve the target in the next two years.
Similarly, local brokerage Viet Dragon Securities Company predicted that Vietnam could be upgraded to the emerging market status in 2020, if the country can maintain high level of development throughout the ongoing review year.
Overview of the conference. Source: Dan Tri.
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The size of the market has also enhanced to VND3,900 trillion (US$168.11 billion), up 12.7% year-on-yer and equivalent to 72% of 2018's GDP, thereby fulfilling the target set in the stock market development strategy until 2020, Dung added.
Foreign investors continue to be net buyers of Vietnamese securities while being net withdrawers in regional markets. In fiscal year 2018, foreign investors were net buyers of VND43.9 trillion (US$1.89 billion) of stocks and fund certificates, he continued.
For 2019, the minister requested stock market authorities to deploy synchronously measures of market developments, strengthen supervision, management and compliance with state management agencies for the openness, transparency of the market and equality for domestic and foreign organizations and individuals participating in the market.
The State Securities Commission (SSC) – the country’s stock market watchdog - will continue to complete the amended Securities Law and launch future derivative products for several new indexes, treasury bond futures; and warrants, Dung requested.
Tran Van Dung, chairman of the SSC, stated in January that the SSC would ensure that Vietnam is on track to be upgraded from the status of frontier market to secondary emerging market, following its addition to the watch list for possible upgrade of FTSE Russell last September
The official previously said he expected Vietnam to achieve the target in the next two years.
Similarly, local brokerage Viet Dragon Securities Company predicted that Vietnam could be upgraded to the emerging market status in 2020, if the country can maintain high level of development throughout the ongoing review year.
