Finance Minister: Investment capital flows contribute positively to GDP growth

On March 28, the Ministry of Finance held a conference on “Investment funds and foreign investment in Vietnam’s new development era” to prepare resources for the country to enter a new development era.

Speaking at the Conference, Minister of Finance Nguyen Van Thang said that Vietnam has achieved many great achievements in socio-economic development after 40 years of development, with a consistent policy of promoting socialization, diversifying resources for development investment, and effectively attracting both domestic and international capital sources.

Minister of Finance Nguyen Van Thang speaks at the conference. (Photo: Ha Linh)

2024 marks a successful year for Vietnam's economy and capital market, with total mobilized capital reaching nearly VND 930 trillion, 1.3 times higher than in 2023, equivalent to 25% of total social investment capital.

The stock market capitalization in 2024 will reach 62.5% of GDP, and the outstanding debt of the bond market will reach 31.5% of GDP. Notably, foreign investors have opened nearly 48,000 investment accounts, with a total transaction value of nearly VND 1.1 million billion.

Along with the growth of indirect investment capital, total foreign direct investment (FDI) in 2024 also increased by nearly 10%, reaching 25.4 billion USD, the highest level ever.

According to Minister Nguyen Van Thang, these results have positively contributed to GDP growth in 2024 reaching 7.09%, bringing the size of Vietnam's economy to 476.3 billion USD, ranking 33rd in the world.

As for securities investment funds, the total net asset value of funds by the end of 2024 is equivalent to 1.2% of the stock market capitalization; the total value of assets managed by fund management companies is equivalent to 6.5% of GDP.

However, according to the head of the Ministry of Finance, the number of investors is continuously increasing in the market, but foreign investors' trading accounts only account for 0.5%, leading to the operation of the securities investment fund system not being commensurate with its development potential.

“The Party and Government have directed the determination to clear bottlenecks, release all resources for development, contributing to the successful implementation of the economic growth target of 8% or more in 2025, creating the premise for double-digit development in the coming time to soon bring the country into the era of national development.

To achieve this goal, we focus on mobilizing all domestic and foreign resources, including investment capital through investment funds and foreign direct investment capital," Minister Nguyen Van Thang emphasized.

The conference also contributed to conveying the message of the Party and Government always accompanying domestic and foreign investors. This is also an opportunity to connect Vietnamese enterprises with domestic and foreign corporations and investment funds, to seek opportunities and expand investment cooperation. In which, focusing on priority areas such as infrastructure development; science and technology development, innovation, digital transformation, renewable energy, etc.

In addition to proposing solutions to develop investment funds, in order to attract domestic and foreign resources for development investment; Vietnam wishes to improve the efficiency of foreign investment, promote the shift of investment structure to industries and fields with high technology content, high added value, environmental friendliness, spillover effects, and connections to contribute to the country's economic development in the new era.

Vietnam always affirms its role as a reliable destination for investment capital.

Vietnam has always affirmed its role as a reliable destination for domestic and international investment capital. The stock market development strategy until 2030 sets the goal of focusing on developing institutional investors and attracting the participation of foreign investors.

Along with the development of the capital market, the participation of the investment fund system plays an increasingly important role. Because these are professional investors with financial capacity, playing a pioneering role, leading the market.

To date, the securities investment fund system has been established with 43 fund management companies and 123 investment funds.

Ha Linh

Source: https://vtcnews.vn/minister-of-finance-supports-investment-voluntary-investment-in-the-country ...