The plan says comprehensive restructuring is needed to turn the stock market into an important medium- and long-term capital mobilization channel. 

At present, commercial banks remain the major capital source for the national economy. This is a burden on the banking system as well as state management agencies that regulate monetary policies.

The second goal is to have a balanced structure between the monetary and capital market, between the stock and bond markets, and between government and corporate bonds. 

Currently, bonds account for a small proportion in the stock market.

One report found that Vietnam’s bond market balance is less than 40 percent of GDP,  half that of Singapore and Malaysia, one-third of South Korea’s, and lower than Thailand and China.

The stock market has to play an important role in reshuffling state-owned enterprises, reforming the economic growth model and stimulating the development of the private sector.

To reach these goals, Vietnam will have seven groups of tasks to fulfill prior to 2025.

Vietnam hopes that the stock market value will reach 100 percent of GDP by 2020 and 120 percent of GDP by 2025, and the bond market 47 percent and 55 percent, respectively. It is expected that the number of listed companies would increase by 20 percent by 2020 compared with 2017.

Analysts say that while the targets for the bond market are ‘moderate’, the tasks for the stock market are ambitious. A report from the National Finance Supervisory Council showed that by the end of 2018, the capitalization value of the stock market was equal to 75 percent of GDP, a slight increase of 5 percent compared with 2017, though many big corporations entered the bourse that year.

As such, to fulfill the task, the increase must be 25 percent per annum in the next two years.

Increasing the number of securities investors to 3 percent of the total population by 2020 and 5 percent by 2025 also is a difficult task.

According to the State Securities Commission (SSC), by the end of January 2019, Vietnam had 2,197,735 securities accounts. If noting that the current population increase is 1 percent per annum and Vietnam would have 99 million people by the end of 2020, Vietnam needs 2.97 million accounts by that year, or 770,000 accounts more.

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