Stock market development strategy approved

Deputy Prime Minister Le Minh Khai on December 29 signed Decision No. 1726/QD-TTg approving the stock market development strategy until 2030.

Vietnam’s stock market is set to grow in a stable, safe, healthy, effective and sustainable fashion. (Photo: VNA)

The strategy also aims to improve risk resistance for the market, making it an important medium and long-term capital mobilisation channel for the national economy.

Green, sustainable finance tools will be promoted, digital transformation will be stepped up in the sector, and international integration will be enhanced to narrow development gaps between the domestic stock market and those in developed countries.

According to the strategy, stock market capitalisation would equal to 100% of GDP by 2025 and 120% by 2030. Outstanding bonds would represent at least 47% of GDP by 2025 and 58% by 2030.

The proportion of Government bonds held by non-banking investors would rise to 55% by 2025 and 60% by 2030. The number of stock traders would reach 9 million by 2025 and 11 million by 2030.

Among the important targets set in the strategy are upgrading the market from a frontier to an emerging market in line with international rating organisations' standards by 2025, and joining the group of four major stock markets in the Association of Southeast Asian Nations (ASEAN) by 2025.

To that end, the strategy put forth a range of solutions such as strengthening the management, supervision and inspection capacity of relevant forces, and increasing supplies and raising their quality.

The strategy also mentioned the issuance of a variety of terms of government, government-guaranteed and local government bonds; encouraging businesses to issue a variety of bond types suitable to their capital mobilisation needs; and promoting green bonds to create more capital mobilisation channels for the budget and enterprises, and attract investors to sustainable economic development.

It emphasised the approach to international practices regarding accounting and auditing standards, and applying International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), thus improving transparency and efficiency of information provision to investors.

The role and responsibility of credit rating organisations in the corporate bond market should be enhanced, towards requiring bond issuers to be rated, the strategy said./.