Prime Minister requests urgent upgrading of Vietnam's stock market

The Prime Minister requested urgent implementation of necessary measures to upgrade Vietnam's stock market from frontier to emerging by 2025.

On February 28, chairing the Conference on deploying the task of developing the stock market in 2024, Prime Minister Pham Minh Chinh emphasized that the Government always pays attention to and puts itself in the position of investors, issuers... to design policies in the spirit of win-win, harmonious benefits, shared risks, protecting the rights and legitimate interests of subjects related to the stock market.

In 2023, the stock market will continue to affirm its role as an effective capital channel for the economy , with a total capital mobilization value of more than 418 trillion VND, an increase of nearly 34% compared to 2022. Over the past 10 years, the market has continuously developed in scale and subjects, of which mobilizing medium and long-term capital for the economy reached 3.8 million billion VND. The capitalization scale of the stock market increased from 33.5% of GDP in 2010 to more than 58% of GDP in 2023.

Speaking at the conference, Prime Minister Pham Minh Chinh thanked and highly appreciated the relevant entities in developing the Vietnamese stock market, contributing to the country's economic development.

Reviewing the milestones and important results over the past 25 years, the Prime Minister emphasized that developing the stock and bond market is an objective requirement for economic development, an important channel for mobilizing medium and long-term capital for enterprises, promoting production and business, creating jobs and livelihoods for people. The Party and the State are very interested and have issued many guidelines, policies, institutions, mechanisms and policies to promote market development.

Thủ tướng yêu cầu khẩn trương nâng hạng thị trường chứng khoán Việt Nam - Ảnh 1.

The Government has issued 28 relevant Decrees and regulations and by the end of 2023, the Prime Minister has approved the Stock Market Development Strategy until 2030. The Prime Minister shared that every day and every week, the Prime Minister listens to reports and watches news about the financial and monetary markets, including the stock market, to have timely policy responses.

In addition to the basic advantages, the Prime Minister also frankly pointed out a number of shortcomings and limitations related to the Vietnamese stock market such as the unsynchronized legal framework, the situation of price fixing and stock manipulation causing damage to investors and market confidence; the standards and ethics of a number of enforcement officers are problematic; and the information disclosed by some enterprises is not accurate.

In response to the requirement to develop the young Vietnamese stock market in an open, transparent, stable, safe, healthy, comprehensive, inclusive, sustainable, effective and integrated manner, the Prime Minister emphasized 6 important tasks. The Prime Minister emphasized many specific tasks and solutions for relevant ministries, branches and entities.

In particular, it is necessary to urgently amend current inadequate regulations, especially those related to regulations on transparency of business information, rights and responsibilities of entities. Improve the effectiveness of supervision, inspection and strict handling of violations. Continue to cut cumbersome and overlapping administrative procedures related to production and business activities in general, and in the securities sector in particular. The Prime Minister also suggested focusing on improving the understanding, qualifications and analytical ability of investors.

The Prime Minister requested urgent implementation of necessary measures to upgrade Vietnam's stock market from frontier to emerging by 2025, attracting indirect investment capital of about 25 billion USD/year.

According to VTV

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