Determine to soon upgrade Vietnam’s stock market

VCN- Despite fluctuation over the past time, Vietnam's stock markets recognized to have positive growth compared to other countries in the region and the world. In 2024, the stock market is forecast to be more positive due to many supporting factors. At the recent conference to deploy the task of developing the stock market in 2024, experts and businesses proposed many important solutions to boost the market in both quality and scale.
Securities attractive investment channel Securities attractive investment channel
Accelerate development of Stock market in 2024 Accelerate development of Stock market in 2024
Determine to soon upgrade Vietnam’s stock market
Vietnam's stock market is considered a positive growth market compared to other countries in the region and the world. Photo: Internet

Maintain growth in both scale and quality

In 2023, the total mobilized capital value from Vietnam's stock market saw a year-on-year increase of 33.5% to VND 418,271 billion. Along with the economic recovery, the VN-Index grew by 12.2% compared to the previous year, facilitating businesses to mobilize capital through the stock market. Production and business results of listed companies and large-scale public companies still faced difficult but showed signs of recovery in the last months of the year. Vietnam's stock market is considered a positive growth market compared to other countries in the region and the world.

Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission said that the positive results of the market in 2023 and the effective changes in macroeconomic growth, as well as the improved business results of enterprises, have boosted investor confidence in the early stages of 2024. In the opening session of Giap Thin Lunar New Year, the VN-Index officially surpassed the 1,200 point mark, expecting a more prosperous year for the Vietnam’s stock market in 2024.

The domestic stock market in 2024 is forecast to be better than 2023 thanks to the support of many positive factors. The Government has drastically directed ministries, sectors and localities to implement solutions to remove difficulties stabilize and promote economic growth. The more positive trend continues to be maintained in many sectors, thereby creating favourable conditions for operation of businesses to restore, facilitating Vietnam's stock market to maintain its stability, good liquidity, and growing in parallel with both scale and quality.

According to Ms. Nguyen Thi Mai Thanh, Chairwoman of the Board of Directors of Refrigeration Electrical Engineering Joint Stock Company (REE), investors always expect listed companies to have good growth and are willing to pour more capital for this goal. REE representatives proposed that listed companies are considered "goods" on the stock market, so that the goods must be authentic and not be fake goods. Ms. Mai also said that besides financial issues, technology or management capacity, the key matter of businesses and listed businesses is the stability of the legal framework. She proposed that the Government should continue to create a more open and transparent legal business environment, towards one-stop service, reducing the ask-give mechanism, and gradually shifting to a registration mechanism, and businesses are responsible for themselves within the legal framework.

Attracting foreign investors

Recommending solutions to promote the development of Vietnam's stock market, Minister-Counsellor, Korean Embassy to Vietnam emphasized solutions to expand Vietnam's stock market. Accordingly, it is necessary to diversify HOSE-listed stocks by changing the exchange of UpCOM-listed stocks, because 50% of UpCOM's capitalization belongs to the industrial goods and services, food and drinks sectors while the banking and real estate industries account for the majority of HoSE's capitalization.

He proposed to raise foreign ownership limits to increase the supply of stocks for foreign investors, with depository certificates without voting rights to match with state management goals for each industry and occupation group; create favorable conditions for the listing of startups and FDI enterprises to improve market diversity.

The Minister-Counsellor said that it is necessary to encourage banks and insurance companies to invest in stocks, promoting diverse asset management strategies and high yields. In addition, it is necessary to introduce a people's share system to distribute shares of reputable state-owned enterprises at lower prices than those issued to the public, promoting the growth of assets of citizen.

At the same time, it needs to deploy a pension fund to encourage people who prepare for retirement through long-term investment plans. To attract foreign investment, it is necessary to raise foreign ownership limits and provide equal rights for foreign investors; regularly organize investment promotion conferences to introduce reputable Vietnamese companies to foreign investors. At the same time, improve the trading system to safely handle various orders, including stocks, futures contracts and options with large volumes.

Mr. Dominic Scriven, Chairman of the Board of Directors of Dragon Capital Vietfund Management Joint Stock Company recommended that Vietnam needs to develop the infrastructure, platform, and ecosystem of the capital market, especially the network of investors in Vietnam. Besides, to control market fluctuations, the country should strengthen confidence of investors in the stock market. Mr. Dominic Scriven emphasized his support for upgrading Vietnam's stock market and hoped for the early launch of Vietnam's central clearing partner (CCP) model. He also said that it needs to research and promote the development of Vietnam's financial center and affirmed that this is a golden opportunity for Vietnam.

Proposing solutions to upgrade the stock market, Mr. Luu Trung Thai, Chairman of the Board of Directors of MB Bank, said that the quality of goods in the market is important. When the quality of goods on the market is good and the value is high, it will attract foreign investors to seek profits and investment opportunities in Vietnam.

Upgrading the stock market is a general policy and has been given attention and direction by the Government and the Prime Minister in recent times. This content was also stated in Resolution No. 86/NQ-CP dated July 11, 2022 of the Government and included in the Stock Market Development Strategy until 2030 approved by the Prime Minister. Recently, in Directive No. 06/CT-TTg dated February 15, 2024, the Prime Minister requested the Ministry of Finance to preside and coordinate with the State Bank and the Ministry of Planning and Investment to urgently handle problems to meet the criteria for upgrading the stock market from frontier market to emerging market.

By Hoai Anh/Hoang Loan

Related News

Diversify and innovate securities products to attract foreign investors

Diversify and innovate securities products to attract foreign investors

VCN - Mr. Kojima Kazunobu, Chief Advisor of the Japan International Cooperation Agency (JICA), said that Vietnam needs to make more efforts in developing the stock market in both quality and quantity to become a potential market, attractive to foreign investors.
Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Curbing stock market manipulation

Curbing stock market manipulation

VCN - Amending and supplementing a number of articles of the Law on Securities is necessary to ensure that the securities market operates more transparently and effectively, to ensure the rights of investors, to prevent fraudulent behavior, and to create conditions for the development of the securities market.
Vietnam always creates favorable conditions for foreign investors

Vietnam always creates favorable conditions for foreign investors

VCN - The Vietnam financial investment conference with the theme "Vietnam - Your Investment Destination" was recently organized by the Ministry of Finance in Singapore, recording a lively and high-quality exchange and sharing between investors and Vietnamese Minister of Finance Ho Duc Phoc and Leaders of units under the Ministry of Finance.

Latest News

M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.

More News

Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Read More

Your care

Latest Most read
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Mobile Version