The first trading session of Vietnam’s stock market in 2019 began with a gong-beating ceremony held at the Hanoi Stock Exchange (HNX) on January 2.
At the gong-beating ceremony (Photo: VNA)
Addressing the ceremony, Finance Minister Dinh Tien Dung said with reforms and resolve of the Government, it is hoped that the national economy will make progress and the quality of the stock market will be improved in the year.
Despite the complex development of the global economy, Vietnam recorded impressive economic results in 2018, he said, noting the national gross domestic product (GDP) grew by 7.08 percent, the highest level since 2008, while the inflation rate was at 3.54 percent.
Vietnam maintained trade surplus, stabilised the financial market and kept public debt lower than the target set by the National Assembly, the official added.
The country’s stock market capitalisation rose 10.6 percent against 2017 to nearly 3.9 quadrillion VND (167.7 billion USD), equivalent to 70.2 percent of the GDP, exceeding the target of 70 percent set in the national stock market development strategy for the 2011-2020 period.
Some 6.5 trillion VND (279.5 million USD) worth of bonds were traded during each session, a year-on-year rise of 29 percent. The bond market was valued at nearly 1.2 quadrillion VND (51.6 billion USD), up 10.5 percent year-on-year and making up 22.4 percent of the GDP last year.
The minister said up to 62.2 trillion VND (2.67 billion USD) was mobilised from stocks, corporate bonds, equitisation and divestment, an increase of 30.7 percent as compared with the previous year.
With the performance, the stock market has proven its role as an effective capital mobilisation channel of both the Government and private enterprises, he said, stressing that Vietnam’s stock market has been seen as the most successful one in Southeast Asia in this regard.
The Finance Ministry will make greater efforts to continue improving institutions, mechanisms and policies, focusing the adoption of the revised Law on Securities and guidance documents, while restructuring the stock market with importance placed on improving capacity of intermediary organisations and making them healthy.
The Vietnam Stock Exchange is expected to be established under the Prime Minister’s decision on the basis of the rearrangement of the HNX and the Ho Chi Minh Stock Exchange, Dung said, noting that the national securities market is expected to be elevated from the marginal status to the emerging one.
Besides, the ministry will work to complete the legal framework and submit synchronous solutions to the Government to develop the market, remove difficulties facing businesses and protect the legitimate right of investors, he affirmed.VNA