Stock market considered as launching pad for many businesses over last two decades

Prime Minister Nguyen Xuan Phuc beats the gong at the 20th anniversary of the Viet Nam's stock market in Ho Chi Minh City on July 20, 2020. Photo: VGP

More than 1,600 businesses have been listed on the two exchanges, with market capitalization surpassing 4 quadrillion VND (US$172.9 billion USD) - equivalent to 65%of GDP.

The country’s stock market has developed strongly in both quantity and quality over the last two decades and become a major capital mobilization channel for the economy. More than 2.4 quadrillion VND has been mobilized over the past decade, accounting for 14% of total social investment.

The market is also considered as a “launching pad” for many enterprises to mobilize resources to make breakthrough developments and contribute substantially to economic growth and reach regional and international levels.

Speaking at the ceremony, PM Phuc said over the past 20 years, the Vietnamese stock market has overcome challenges caused by regional and international financial, monetary crisis and economic downturns.

Particularly, it is said to be one of the fastest recovering and most stable stock markets in the region despite heavy impacts of the COVID-19 pandemic, the Government chief highlighted.

Phuc stressed the need for breakthrough development in the stock market to meet the medium and long-term capital demand of the economy and to join hands with the banking system in capital mobilization.

He asked for close coordination between the Ministry of Finance, the State Securities Commission, and relevant ministries and sectors to synchronously develop markets, including the stock, monetary, and insurance markets, thereby optimizing combined resources to promote growth, ensure macro-economic stability, and control inflation.

Legal documents guiding the implementation of the Laws on Securities, Enterprises, and Investment must be issued this year while it is necessary to mull over amendments to other regulations in order to build a business environment that is conducive and fair for enterprises and investors, Phuc ordered.

Phuc requested accelerating the equitization and listing of State-owned enterprises, encouraging private companies to list on the market, enhancing the market’s transparency, and applying international standards and practices./.

By Huong Giang