Vietnam’s stock market has been evaluated as a bright spot in the region in terms of growth speed and foreign capital absorption for years, according to Chairman of the State Securities Commission (SSC) Tran Van Dung.
Illustrative image (Source: VNA)
He said the foreign indirect investment (FII) inVietnam reached 1.28 billion USD in the first six months of 2019.
Between 2016 and 2018, the FII sectorcontinuously net purchased local stocks worth 1.98 billion USD per annum, hesaid.
He added that Vietnam’s stock market hascontinued growing in scale and liquidity in recent years with the total marketcapitalisation touching nearly 4.3 million USD as of the end of June 2019,equivalent to about 78 percent of the gross domestic product (GDP) in 2018, up11.2 percent against the early 2019.
After 19 years of operation, the stock markethas basically completed its structure and diversified products such as stocks,bonds, fund certificates, derivatives and most recently covered warrants –securities that have collateral assets issued by securities companies, Dungsaid.
Vietnam’s stock market has also been added tothe watch list for possible upgrade to Secondary Emerging Market by FTSERussell, a leading global provider of financial services, he added.
According to Dung, these achievements wereattributed to the Government’s efforts in improving policies to develop thestock market and attract overseas investment in the field.
The draft revised Law on Securities has beensubmitted to the National Assembly to improve policies to develop the stockmarket in a stronger and more sustainable manner.
In March 2019, Prime Minister Nguyen Xuan Phucapproved a project restructuring the securities and insurance markets through2020 with a vision to 2025, aiming to develop the stock market into animportant capital channel for the economy in the medium and long terms as wellas increase integration into regional and global markets.
The Ministry of Finance and the SSC have beenactively implementing policies to upgrade the stock market from marginal levelto emerging one according to the MSCI Emerging Markets Index.
Along with improving the macro policies, theGovernment has been continuously promoting equitisation and divestment ofState-owned enterprises in association with the listing and registration oftrading on the stock market, Dung said.-VNA