PM Calls for Changing Mindset on Stock Market

2:42:09 PM | 13/2/2019

Prime Minister Nguyen Xuan Phuc struck the gong on Tuesday morning to open the first securities trading session of 2019 after the Lunar New Year holiday at the Ha Noi Stock Exchange (HNX).

Speaking at the event, PM Phuc called for bringing the stock market closer to citizens by helping them to see it as an effective investment channel instead of a kind of games playing.

He said that the steady development of the stock market will lay foundation for Viet Nam to create breakthroughs in the years to come amid positive comments on the country’s growth outlook from international experts and organizations.

The World Bank forecasted that the Vietnamese economy may expand at least 6.6% while Standard Chartered and ANZ said the economy may grow 7% in 2019, making Viet Nam the fastest-growing economy in ASEAN.

Whether the predicted growth rates could be achieved depends on how we organize our work, including the stock market, the Government chief stressed.

He reaffirmed the country’s consistent policy that the development of the stock market aims to mobilize capital for medium and long-term development.

The scale of the stock market increased 17 times over the past 12 years, reaching 72% of the GDP in 2018 compared to 22.7% in 2006, according to Prime Minister Phuc.

Private sector’s capital mobilization through issuing corporate shares and bonds rose by 70% and 30% in 2017 and 2018, respectively, amounting to VND 86 trillion, he added.

The stock market has become a launching pad for many big enterprises and supported the equitization process of the State-owned enterprises but more importantly it has helped balance the country’s capital market, Prime Minister Phuc said.

However, more solutions should be devised to spur the development of the stock market as it still remains modest in terms of scope while transparency has not been significantly improved.

He urged the Ministry of Finance to work with relevant stakeholders to improve the legal framework, including the amendments to the Law on Securities so that the bill could be submitted to the National Assembly for approval in 2019.

The Ministry needs to enhance legal corridors to protect minor investors as Viet Nam only ranks 89th out of 190 countries and territories in this field.

He also urged the Ministry to quickly submit a draft decision on the establishment of Viet Nam Stock Exchange in a roadmap to formulate a professional and united stock market.

Phuc took the occasion to talk about the significance of the upcoming second Summit between US President Donald Trump and Leader of the Democratic People’s Republic of Korea Kim Jong-un in Ha Noi later this month, saying it reflects the fact that Viet Nam has a good business environment, right development model, and especially the country is safe.

VGP