Vietnam among top 5 high growth securities markets in Southeast Asia
![]() | Allowing securities companies to invest indirectly overseas |
![]() | Securities at the end of 2016: More opportunities, less risks |
![]() | Pace of equitisation fails to meet the target |
![]() |
Mr. Vu Bang reports the situation of the stock market in the first 8 months of 2016. Photo: Thuy Linh. |
High growth rate
According to the State Securities Commission, despite the negative impact of the world economic situation, Vietnam's stock market has recovered quickly and maintained high growth rate. The VN Index has reached a peak for 8 years (since May 2008) with a strong liquidity and the market capitalization has reached its highest level for 6 years. Thus, Vietnam's stock market is considered as one of the top 5 world market with the highest growth and profitability in the second quarter of 2016 in Southeast Asia.
Regarding results of the stock market operations in the first 8 months of 2016, Mr. Vu Bang, chairman of the State Securities Commission said that by August 23, 2016, the VN-Index had increased by 13.8%; and the HNX-Index increased by 4% compared to that at the end of 2015. The level of market capitalization reached 1,590 billion vnd, equivalent to 38% of GDP (an increase of 17% compared to that the end of 2015). The market liquidity also increased and the average transaction of a session reached nearly 6,200 billion vnd. This figure in an increase of 25% over the previous year, particularly with the government bond transactions increasing by 34% and stock transactions increasing by 16% over 2015.
Regarding the mobilization of capital and the equitization, Mr. Vu Bang said that the mobilization of capital in the first 7 months of 2016 increased by 81% (nearly 254.5 billion vnd); the equitization auction for 58 State Owned-Enterprises was 5,291 billion vnd with a rate of 66%.
According to Mr. Vu Bang, the reason for these outstanding results was that the Government continuously transmitted positive messages to support businesses, improved the business environment and built an effective system of administration services.
Although the growth slowed down, there were some positive factors, specifically: the industrial production situation in the first 6 months of 2016 increased by 7.5% over the same period last year; the PMI Index of the manufacturing sector in May and June was above 52 points; and FDI inflows increased dramatically with registered capital of more than $US 12.9 billion, etc. In addition, the operation of listed companies improved over the same period, with an increase of revenue of 6.8%. Moreover, a series of restructuring measures to remove difficulties for enterprises and measures to support the market, as well as develop new products have been implemented.
Mr. Vu Bang said that, recently, the State Securities Commission has shortened the payment period to “T+2”, allowing the opposite transaction in the first session; and coordinating to develop pension funds in order to create sustainable demand for the market. The State Securities Commission is currently implementing measures to improve the market grade. Basically, the State Securities Commission has sought some solutions for important criteria such as: Loosening rules, simplifying the registration, opening accounts for foreign investors and encouraging disclosure of information in English, etc.
The State Bank will be responsible for the Government bonds payment
Currently, the State Securities Commission is cooperating with the State Bank to implement schemes to transfer the function of the Government bonds payments from commercial banks to the State Bank. In addition, in order to develop corporate bonds, the State Securities Commission is coordinating other relevant units to build a legal framework for corporate bonds and a complete infrastructure of the trading market, supporting liquidity and market information, etc.
In the near future, the State Securities Commission will promote the equitization and divestment of the State-owned enterprises; provide additional sanctions for State-owned enterprises without equitisation or delays to list and register transactions. Also, the State Securities Commission will improve the quality of listed shares by improving the quality of corporate management, risk management and enhancing transparency in the stock market.
The State Securities Commission will also diversify the Government bonds to promote the development of products of floating-rate bonds and focus on the “repo” bond with diversified investors on the basis of the system of primary bond trading.
![]() | Vietnam stock market sees sharp rise in foreign investor number A total of 630 new foreign investors registered with Vietnam's stock regulator in the first five months, ... |
Notably, Mr. Vu Bang said that the State Securities Commission proposed the Government to issue a Decision establishing the Vietnam Securities Exchange. Along with the model of partnership, the State Securities Commission will implement the project to connect the system of securities settlement with the bank payment system. Then, the State Securities Commission will also complete the change of the Government bonds payment function from commercial banks to the State Bank.
Related News

Five solutions for developing stock market in 2025
10:01 | 07/02/2025 Finance

Vietnam's stock market to develop strongly and sustainably
19:08 | 21/12/2024 Finance

Agree to continue reducing VAT by 2%
11:02 | 29/11/2024 Finance

Recurrent spending seriously controlled: Deputy PM and MoF Ho Duc Phoc
09:31 | 07/11/2024 Headlines
Latest News

Securities 2025 expects a breakthrough in scale and quality
14:37 | 10/02/2025 Finance

Cash reserves in stock accounts at six-quarter low amid margin rise
08:23 | 10/02/2025 Finance

Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday
14:43 | 04/02/2025 Finance

The stock market after Tết 2025 presents both challenges and opportunities
07:55 | 04/02/2025 Finance
More News

Opportunities and challenges in Việt Nam's crypto boom
14:27 | 03/02/2025 Finance

Đà Nẵng aiming to become a regional financial centre before 2050
19:05 | 01/02/2025 Finance

Which investments to make in 2025?
20:53 | 30/01/2025 Finance

5 strategies for reallocating houses and land
18:36 | 29/01/2025 Finance

Stock market expected to rebound positively after Tết holiday: expert
18:36 | 28/01/2025 Finance

Ministry of Planning and Investment proposes piloting a cryptocurrency exchange at financial centres
23:07 | 27/01/2025 Finance

Banks selling mortgaged assets to recover bad debts
10:19 | 24/01/2025 Finance

Keeping inflation in check a priority for 2025
11:05 | 22/01/2025 Finance

Debt repayment pressure continues to weigh on corporate bond market
14:11 | 20/01/2025 Finance
Your care

Securities 2025 expects a breakthrough in scale and quality
14:37 | 10/02/2025 Finance

Cash reserves in stock accounts at six-quarter low amid margin rise
08:23 | 10/02/2025 Finance

Five solutions for developing stock market in 2025
10:01 | 07/02/2025 Finance

Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday
14:43 | 04/02/2025 Finance

The stock market after Tết 2025 presents both challenges and opportunities
07:55 | 04/02/2025 Finance