Developing a stable, safe, healthy, efficient, sustainable and integrated stock market

NDO - On the morning of February 21, Minister of Finance Nguyen Van Thang chaired the "Symposium and orientation for stock market development in the integration trend" organized by the State Securities Commission and a series of events of the Asia-Pacific Regional Subcommittee Meeting (APRC) of IOSCO.

The conference was also attended by Mr. Rodrigo Buenaventura - Secretary General of the International Organization of Securities Commissions (IOSCO); Ms. Julia Leung - Chairwoman of the IOSCO Asia-Pacific Regional Subcommittee (IOSCO APRC); delegates representing securities regulatory agencies, organizations operating in the regional financial sector; representatives of leaders of Quang Nam province and Da Nang city; Ms. Vu Thi Chan Phuong - Chairwoman of the State Securities Commission; representatives of leaders of a number of units under the Ministry of Finance, the State Securities Commission; leaders of the Stock Exchanges, the Vietnam Securities Depository and Clearing Corporation and representatives of Vietnam's stock markets...

Vietnam's financial markets continue to recover and grow.

Speaking at the opening of the Conference, Minister of Finance Nguyen Van Thang said that 2024 is a difficult year for the world economy in general and Vietnam in particular. However, with the leadership of the Communist Party of Vietnam, the determined participation of the entire political system; the proactive, flexible, drastic and effective direction and management of the Government and the Prime Minister; Vietnam's economic situation in 2024 continues to show a clear recovery trend, with growth gradually improving month by month and quarter by quarter.

Accordingly, inflation is lower than the target, major balances are ensured, results in many important areas have reached and exceeded the set targets, which is a bright spot in economic growth in the region and the world. The confidence of businesses, investors, and people is strengthened. The digital economy and green economy have become new growth drivers, in line with the global sustainable development trend.

The year 2024 has come to an end, and Vietnam has achieved many impressive results. Vietnam has fulfilled all socio-economic targets, with a GDP growth rate of 7.09%, an economic scale of over 476 billion USD, ranking 33rd in the world. State finance and budget work has recorded many impressive results; public debt, government debt, and foreign debt continue to be consolidated and guaranteed.

The Minister also said that financial markets, capital markets in general and stock markets in particular continued to recover, grow, and operate more safely and transparently. Despite being affected by the global situation, the Vietnamese stock market last year remained stable, safe, smooth, with good liquidity and enhanced transparency and sustainability.

Along with that, under the strong direction of the Government, the State management of the stock market has received special attention from the Ministry of Finance and the State Securities Commission. Not only has the management, operation and supervision been well done, but the legal system has also continued to be improved over the past year, with the promulgation of the amended Securities Law as a typical example. The guiding documents for the law are being accelerated to continue to "create the greatest convenience for people and businesses" and the regulations are approaching international practices.

In addition, state management agencies have been very proactive and made efforts to resolve market bottlenecks to help improve the ability to mobilize capital for businesses, while removing obstacles to create conditions for market access for investors, especially foreign investors. The highest effort is to perfect the criteria so that the Vietnamese stock market can soon be upgraded from a frontier market to an emerging market.

Minister Nguyen Van Thang speaks at the conference

Speaking at the Conference, Minister Nguyen Van Thang affirmed that the Vietnamese Government has set a very important goal of developing a stable, safe, healthy, efficient, sustainable, and integrated stock market; enhancing risk tolerance, having a reasonable structure between market components, becoming an important medium- and long-term capital mobilization channel, mainly for the economy; maintaining growth in scale, focusing on improving quality; developing green financial instruments and sustainable finance; promoting digital transformation in the securities sector; building a market management and supervision system associated with the application of modern information technology; strengthening international linkages and integration, gradually narrowing the development gap between the Vietnamese stock market and the stock markets of developed countries.

Vietnam needs many resources, of which resources from the capital market are very important.

Minister Nguyen Van Thang said that 2025 is the final year of implementing Vietnam's 5-year socio-economic development plan for 2021-2025, a year of acceleration, breakthrough, and completion, creating the premise for the development plan for the next 5 years of the 10-year socio-economic development strategy (2021-2030), marking the time when the country enters a new era of strong, prosperous development of the nation. Therefore, the Vietnamese Government has set a target of GDP growth in 2025 of at least 8% or more, creating a foundation for double-digit growth in the 2026-2030 period.

To achieve the 8% growth target by 2025, in addition to growth drivers such as exports and consumption, resource mobilization is the core issue for Vietnam's growth.

And to achieve that, Vietnam needs capital of more than 4 million billion VND, equivalent to about 160 billion USD - this is a very large number. Therefore, besides the capital prepared from the state budget, the capital market is a very important mobilization channel for the economy, especially to serve the growth target.

The Minister said that in order to achieve the common goals of the economy, the tasks of the securities industry, the State Securities Commission and the Vietnamese stock market are very large. In 2025, we must develop rapidly, establish a foundation for the 2026-2030 period, but still ensure sustainable growth.

To overcome these huge challenges, the Minister said that in the coming time, it requires not only determination and effectiveness in direction, leadership and management of the Government, the Ministry of Finance and the State Securities Commission, but also cooperation and support from regional and international partners, international organizations and the consensus of market members to mobilize capital for economic development.

“In the coming time, in addition to the solutions proposed by the State Securities Commission, today's Conference will be attended by all partner management agencies who are members of the IOSCO Asia-Pacific Regional Subcommittee, international organizations, associations, and members of the Vietnamese stock market. This is a very favorable opportunity for us to share experiences and valuable lessons in the management and operation of the securities sector and the stock market,” Minister Nguyen Van Thang emphasized.

Today's conference will listen to the exchanges and discussions of speakers and experts participating in the discussion on two very practical topics today and also the innovation challenges of securities management agencies: challenges in digital asset/virtual asset management; and promoting information disclosure on sustainable development and ESG in the stock market.

* Within the framework of this Symposium, witnessed by Minister of Finance Nguyen Van Thang, representatives of Quang Nam provincial government and representatives of the Asia-Pacific Regional Subcommittee (APRC), International Organization of Securities Commissions (IOSCO), Chairwoman of the State Securities Commission Vu Thi Chan Phuong, on behalf of the State Securities Commission, signed the Multilateral Memorandum of Understanding on Supervision of APRC (S-MMOU).

This is an event to enhance the cooperation in securities market supervision between the State Securities Commission and market management agencies of APRC member countries in particular and IOSCO in general, as well as to enhance the image of Vietnam's securities market on par with other countries in the region.

Source: https://nhandan.vn/phat-trien-thi-truong-chung-khoan-on-dinh-an-toan-lanh-manh-hieu-qua-ben-vung-hoi-nhap-post860981.html