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Tuesday, July 23, 2024

Stock market marks 20th anniversary

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HCMC – Prime Minister Nguyen Xuan Phuc beat a gong to mark the 20th anniversary of the Vietnamese stock market and the Hochiminh Stock Exchange (HOSE) at a ceremony this morning, July 20.

Phuc noted that the stock market is a barometer of the economy, a vital part of the market economy, an important and effective channel to mobilize capital and a window for connecting with international financial and monetary markets. Therefore, building and developing the stock market has always been a priority of the Party and the State during the reform and integration process.

The prime minister said the Vietnamese stock market has overcome many obstacles and challenges to develop and grow strongly over the past 20 years.

Phuc stated that the stock market should make breakthrough development in terms of scale and quality to meet the economy’s demand for medium- and long-term capital, become an effective channel for capital mobilization beside the banking system and contribute to the sustainable development of businesses.

He expected the stock market to have better competency and rise to regional and global stature, thus helping Vietnam become a modern industrial and prosperous country in the next 15-20 years, with a vision to 2045.

Phuc asked the Ministry of Finance, the State Securities Commission and relevant ministries to work together to ensure the comprehensive development of the monetary, stock and insurance markets, thus boosting economic development and contributing to macroeconomic stability and inflation control.

They were also tasked with encouraging private companies to list and trade on the stock market, improving the market’s transparency, ensuring sufficient technical infrastructure for the sustainable and stable development of the market and applying international standards in terms of financial services, accountancy and auditing.

They should also improve the forecast capacity, take timely measures to deal with sudden changes in the domestic and international markets, take advantage of the achievements of the Fourth Industrial Revolution to utilize the market performance and ensure safety for enterprises and investors trading in the stock market.

The HCMC Stock Trading Center, which is now the Hochiminh Stock Exchange, was established on July 20, 2000. From the first session with only two stocks on July 28, 2020, the Vietnamese stock market now has over 1,600 enterprises listed on HOSE and the Hanoi Stock Exchange, with market capitalization amounting to VND4 quadrillion, equivalent to 65% of the country’s gross domestic product.

HOSE has always been the country’s leading stock exchange, accounting for some 80% of the total market capitalization.

Over the past 10 years, total capital mobilized through the stock market has reached more than VND2.4 quadrillion, equivalent to 14% of the society’s total investment. The stock market has been a lever for many enterprises to develop strongly in terms of both scale and quality, contributing to the stable economic growth.

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