Set target of stock market capitalization reaching 120% of GDP by 2030

Sustainable market development

The approved strategy has the general goal of developing a stable, safe, healthy, efficient, sustainable and integrated stock market.

Along with that, improving the ability to withstand risks, having a reasonable structure between market components, becoming an important medium and long-term capital mobilization channel, mainly for the economy ; maintaining growth in scale, focusing on improving quality; developing green financial instruments, sustainable finance; promoting digital transformation in the securities sector; building a market management and supervision system associated with the application of modern information technology; strengthening international linkages and integration, gradually narrowing the development gap between Vietnam's stock market and the stock markets of developed countries.

Policy - Set target of stock market capitalization reaching 120% of GDP by 2030 — The strategy sets a target of stock market capitalization reaching 100% of GDP by 2025 and 120% of GDP by 2030.

The stock market capitalization will reach 100% of GDP by 2025 and 120% of GDP by 2030. The outstanding debt of the bond market will reach at least 47% of GDP (of which the outstanding debt of corporate bonds will reach at least 20% of GDP) by 2025 and at least 58% of GDP (of which the outstanding debt of corporate bonds will reach at least 25% of GDP) by 2030; The derivatives market will grow by an average of about 20% - 30% per year in the period 2021 - 2030.

The number of securities trading accounts of investors on the stock market will reach 9 million accounts by 2025 and 11 million accounts by 2030, focusing on developing institutional investors, professional investors and attracting the participation of foreign investors. Increase the proportion of government bonds held by non-bank institutional investors to 55% by 2025 and 60% by 2030.

Improve the quality of listed company governance above the average level in Southeast Asia; apply good practices on environmental, social and corporate governance standards (ESG standards) at the Stock Exchanges and the Vietnam Securities Depository and Clearing Corporation towards sustainable development according to international practices.

Complete the classification of listed stocks at the Stock Exchange in 2025. Strive to upgrade Vietnam's stock market from a frontier market to an emerging market by 2025 according to the stock market classification standards of international organizations.

Actively integrate into the world financial and securities markets, meet the requirements of financial security, improve competitiveness, risk management, apply international standards and practices; aim to reach the development level of the group of 4 leading countries in the ASEAN region by 2025.

Strengthen management, supervision, inspection and handling of violations

One of the solutions of the Strategy is to strengthen the capacity of management, supervision, inspection, examination and handling of violations.

Specifically, perfecting the functions, tasks, powers and organizational structure of specialized supervision and inspection agencies in the securities sector, ensuring adequate capacity to enforce the law.

Building a monitoring system connecting the State Securities Commission, Stock Exchanges, Vietnam Securities Depository and Clearing Corporation and market members.

Apply risk-based monitoring methods, build a system of early warning indicators, ensure effective, comprehensive, modern monitoring, and approach international practices.

Policy - Set a target of stock market capitalization reaching 120% of GDP by 2030 (Figure 2). — Inspection and supervision work needs to be carried out closely to ensure a sustainable and stable market.

Strengthening the implementation of inspection, examination and handling of violations comprehensively but with focus and key points, concentrating on cases that have a major impact on the stock market, and strengthening the interconnected supervision between components of the stock market.

Strengthen management and closely monitor the activities of securities companies and fund management companies. Strengthen the management and supervision capacity of management agencies to ensure the stock market operates stably, orderly, safely and transparently, aiming to apply a smart management and supervision system based on digital technology applications in the activities of storing, statistics, data analysis, forecasting and monitoring the stock market.

Establish a coordination mechanism between the Ministry of Finance and relevant ministries and branches to disseminate and monitor the implementation of legal regulations and conduct inter-sectoral supervision to promptly detect and handle violations.

Continue to invest in and upgrade modern information technology systems, ensure security and safety of information technology systems and databases to better serve market management and supervision.

Increasing the supply of goods to the market and improving the quality of supply is another solution of the Strategy.

Specifically, diversifying the commodity base in the market, including developing the stock market, encouraging all types of enterprises to conduct initial public offerings (IPOs) associated with listing and registering for trading on the stock market; attracting large-scale enterprises with good financial status and corporate governance to list on the stock market; actively supporting the completion of the equitization plan and divestment of state capital in accordance with the provisions of the law on equitization.

Diversified bond maturities

Regarding the development of the government bond market, issue a variety of terms of government bonds, government-guaranteed bonds and local government bonds to meet the capital mobilization goals of the issuing agency and suit the needs of investors.

Study the possibility of issuing new bond products to diversify products on the market. Regarding the development of the corporate bond market, focus on promoting the public offering of corporate bonds associated with listing; encourage enterprises to issue a variety of bonds suitable to capital mobilization needs; develop corporate bond products for the purpose of implementing projects and investment projects in the form of public-private partnerships (PPP) to promote capital mobilization for infrastructure development; operate a secondary market for individual corporate bonds for professional securities investors to increase market liquidity and transparency.

The strategy encourages the issuance of green government bonds, green local government bonds and green corporate bonds to create additional capital mobilization channels for the budget, for businesses and attract investors towards sustainable economic development goals.

Regarding the development of derivative securities products and new products, continue to deploy futures contracts based on stock indices and government bond futures contracts; gradually deploy stock index option contracts, futures products, option contracts based on single stocks or groups of stocks; improve the quality of current indices, amend the index rules in accordance with international practices, and develop additional underlying indices as underlying assets for the derivatives market...; aim to develop a variety of derivative products based on many different underlying assets.

Research and deploy a variety of secured warrant products, structured products, depository certificates, securities investment fund certificates, and green financial instruments suitable for the development level of the stock market.

Improve transparency and quality of goods, including arranging and classifying listed stocks and stocks registered for trading on the Vietnam Stock Exchange based on scale and quality, while improving listing conditions and conditions for maintaining listing for stocks.

Appraise and closely monitor the issuance of securities; strengthen inspection, examination and supervision of the use of capital for the right purpose according to the issuance plan licensed under the law; inspect and supervise the information disclosure of enterprises raising capital on the stock market; strictly handle violations. Inspect and promptly handle enterprises that do not comply with the law on listing/registration for trading.

Strengthen inspection of compliance with financial reporting information disclosure; inspect and supervise the provision of auditing services by auditing firms and auditors to improve the quality of financial reporting and accounting and auditing services; strictly handle violations by auditing firms and auditors when auditing listed enterprises and public companies.

Approaching international practices and adapting to Vietnamese conditions for accounting and auditing standards. Applying international accounting standards (IAS) and international financial reporting standards (IFRS) contributes to improving transparency and increasing the effectiveness of information provision for investors.

Improve the quality of information disclosure of public companies on the basis of promoting the dissemination and popularization of regulations on information disclosure; encourage entities to disclose information in English; organize inspections to rectify and remind enterprises, members, major shareholders, insiders, and related persons to fulfill their reporting obligations and disclose information fully and promptly; modernize the information disclosure system of the State Securities Commission to support enterprises and market members to fully disclose information in accordance with regulations.

Coordinate with domestic and foreign units to promote training and propaganda programs on corporate governance, annual corporate governance assessment and ranking programs for listed companies; enhance the role and responsibility of Stock Exchanges in supervising the implementation of regulations on information disclosure and corporate governance.

Improve the quality of public companies' annual reports, aiming at sustainable development factors based on the application of environmental, social and corporate governance standards (ESG standards) according to international practices.

Strengthen the role and responsibility of credit rating organizations in the corporate bond market, moving towards requiring bond-issuing enterprises to be credit rated, forming habits and practices of using credit rating results when issuing and investing in corporate bonds.

Research on organizations providing bond valuation services, organizations providing green bond and sustainable bond valuation services; standardize regulations on the responsibilities of organizations representing bondholders and organizations managing collateral assets to increase professionalism for the corporate bond market .

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