The ministry is seeking the prime minister’s approval for a draft strategy for stock market development until 2030.

According to the draft, the stock market capitalization would equal to at least 100% of GDP by 2025 and 120% by 2030. Outstanding bonds would represent 47% of GDP at a minimum by 2025 and 58% by 2030.

The proportion of Government bonds held by non-banking investors would rise to 55% in 2025 and 60% in 2030.

Stock traders would make up 8% of the country’s population by 2025 and 10% by 2030.

To that end, it is necessary to complete the legal framework on the stock market, improve management capability and protect investors’ rights, the ministry said.

This year, GDP is projected at US$394.5 billion. If the country maintains an average economic growth rate of 6% per annum until 2025, GDP will reach US$470 billion. Achieving the target requires the stock capitalization to skyrocket by US$220 billion in just two or three years, while the current capitalization is below US$250 billion, said Le Dat Chi, vice dean at the Faculty of Finance at the HCMC University of Economics and Finance.

However, raising the number of stock traders to 10% of the population is unnecessary, Chi said, adding that the Government should focus on developing professional investment funds and creating healthy and safe investment conditions in the market.

Source: Saigon Times