PM Pham Minh Chinh (centre) chairs the conference on this year's stock market development tasks on February 28. (Photo: VNA)The State Securities Commission ofVietnam (SSC) reported that amid big pressure posed by complex developments ofglobal financial and stock markets, thanks to domestic macro-economicstability, strong and flexible directions from the Government, the PM and theMinistry of Finance, along with close coordination from relevant ministries,sectors and agencies, Vietnam’s stock market saw good recovery in 2023 with themarket structure increasingly perfected and many important targets achieved,thus remaining a magnet for domestic and foreign investors and a useful channelfor attracting capital to the economy.
As of December 29, 2023, thebenchmark VN-Index on the Ho Chi Minh City Stock Exchange (HOSE) reached 1,129.93points and the HNX-Index on the Hanoi Stock Exchange (HNX), 231.04points, respectively rising 12.2% and 12.5% from the end of 2022, which weregood growth rates compared to many other Asian countries’, the SSC said.
By the end of last year, the market capitalisationhit 5.937 quadrillion VND (241 billion USD), up 13.6% from 2022 and equivalentto 58.1% of the estimated GDP of 2023.
Therewere 739 stocks and exchange traded funds listed on the two trading platforms, and862 stocks registered for transactions on the unlisted public company market (UPCoM). Their value totaled 2.128 quadrillion VND, up 7.3% from the end of 2022.
Meanwhile,new investors joining in the market continued increasing sharply. Last year, thenumber of investors’ accounts rose 395,290 from 2022 to more than 7.29 million,equivalent to 7.5% of the population, exceeding the target of 5% set by theGovernment, statistics show.
PM Pham Minh Chinh talks to participants in the conference. (Photo: VNA)Thestock market is an important part of the financial market and the socialist-orientedmarket economy of Vietnam. It is a flexible and attractive investment channel,a channel for mobilising medium- and long-term capital for businesses, and acritical contributor to economic restructuring, State-owned enterprise equitisation,growth model reform, and socio-economic development, he affirmed.
The PM went on to say that for nearly25 years of development, though Vietnam’s stock market is still relatively youngcompared to others in the region and the world, it has become mature quickly,shown its potential and positive outlook, and gradually established itself as achannel for medium- and long-term capital mobilisation in the economy, therebyconsiderably helping with socio-economic development.
He underscored the task of developinga comprehensive, safe, healthy, effective, and sustainable stock market consistent with the country’s financial market and integrates into the world.
Market development needs to becarried out in tandem with growth model reform and economic restructuring. Besides,it is important to develop both the size and quality of this market, pay dueattention to IT application, adopt international norms and standards, andenhance management and monitoring to ensure market security and safety,according to PM Chinh.
Stressingthe spirit of ensuring legitimate interests of all market players, he asked ministries,sectors, localities, businesses, market members, and investors to join hands tostrongly and sustainably bolster the stock market to generate harmonious interestsfor all./.
VNA
