The Hanoitimes - The stock market has become an important channel to mobilize capital for the economy, Minister of Finance Dinh Tien Dung noted when attending the first trading session of 2017 on the Hanoi Stock Exchange.
Addressing the ceremony to start the stock market's first transaction session in Hanoi on January 3, Minister of Finance Dinh Tien Dung highlighted after 20 years of operation, the stock market has provided 25 percent of the total capital for Vietnam’s economy.
The stock market has become an important channel to mobilize capital for the economy, he noted.
In 2016, total stock market capitalisation was equal to 74 percent of GDP. The total amount of capital mobilised through the stock market was 348 trillion VND (15.7 billion USD) during the year, up 54 percent from 2015. Of which, 312 trillion VND (14 billion USD) was mobilised from the government bond, and 36 trillion VND (1.62 billion USD) was raised from the securities market.
The minister said the stock market is an effective tool to promote the restructuring of State-owned enterprises and attract foreign indirect investment.
At the trading session on the Hanoi Stock Exchange.
The Minister of Finance will continue researching and submitting solutions to the government, the National Assembly to develop the stock market comprehensively, the minister added.
He expected positive developments for the stock market in 2017 and affirmed the Party and State’s policy to develop a modern stock market in line with international practice to create an effective capital mobilisation channel.
The minister urged Government agencies and market members to improve the current conditions of the securities market to promote it as a channel to raise funds for socio-economic development and increase the competitiveness of the economy.
He stressed the need to keep restructuring the securities market and regulatory agencies, including the merger of the two local exchanges, increase the scale and quality of the market, diversify the products and make sure the market runs efficiently and sustainably.
The finance ministry needs to be well-prepared to launch the derivatives market in the second quarter of 2017, study and develop derivative products to meet the demand of investors and improve risk management for the derivatives market, he affirmed.
The minister urged Government agencies to complete the legal and technical system so that corporate bond market can operate in 2018.
He also stressed that it is necessary to push State-owned enterprises (SOEs) to sell the State’s capital and get listings on the securities market, work with large-scale corporations and Government agencies to deploy more effectively the policies on equitisation and restructuring of the SOEs.
Translated by Thu Minh
Source: Nha Trang-Kinhtedothi.vn