Prime Minister Nguyen Xuan Phuc (third, right) presents a merit certificate to the Ho Chi Minh Stock Exchange at the ceremony on July 20th (Photo: VNA)

There are more than 1,600 businesses listed on Vietnam’s two exchanges, with market capitalisation surpassing 4 quadrillion VND (172.9 billion USD) - equivalent to 65 percent of GDP.

HoSE has most of the major firms, which account for nearly 80 percent of total market cap.

Vietnam’s stock market has developed strongly in both quantity and quality over the last two decades and become an important capital channel for the economy. More than 2.4 quadrillion VND has been mobilised in the last ten years, accounting for 14 percent of total investment in society.

The market is also said to be a “launching pad” for many enterprises to capitalise on resources to make breakthrough developments and contribute substantially to economic growth and reach regional and international levels.

Addressing the ceremony, PM Phuc said the stock market has made every effort for the last 20 years to overcome numerous difficulties and challenges to develop strongly.

Facing the COVID-19 pandemic, which has triggered the worst global economic downturn since the Great Depression in 1929-1933, the country took dramatic moves to control the pandemic early. It is therefore necessary to make use of this unique chance to recover and develop the country’s economy and society, in particular by attracting domestic resources and regional and global capital flows to meet the huge financial demand for development investment both in the short and long terms, the PM said.

He underlined the necessity for breakthrough development in the stock market to better meet the medium and long-term need for capital in the economy and to join hands with the banking system in capital mobilisation.

The PM 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 optimising combined resources to promote growth, ensure macro-economic stability, and control inflation.

To expand the stock market and better its quality, he requested accelerating the equitisation and listing of State-owned enterprises (SOEs), encouraging private companies to list on the market, enhancing the market’s transparency, and applying international standards and practices.

Urging the early completion of the market’s structure and infrastructure, PM Phuc called on market members, businesses, and domestic and foreign investors to continue standing side-by-side with the Government to contribute more to the sustainable development of the stock market and the economy as a whole./.

CPV/VNA