Vietnam's financial market: Prospects and policy orientation

On December 12, 2024, in Ninh Thuan, the National Financial Supervisory Commission in collaboration with the Korea International Cooperation Agency (KOICA) organized an international workshop with the theme “Vietnam’s financial market: Prospects and policy orientations”. The workshop is part of the project “Improving early warning and risk management capacity for the Vietnamese financial sector” funded by the Korean Government.

The workshop attracted the attention and participation of many representatives from ministries, research organizations, financial institutions, and leading experts in the field of finance and economics. The event is not only a forum to discuss strategic issues of the Vietnamese financial market but also contributes to improving the capacity of national financial management and supervision.

Mr. Vu Nhu Thang, Vice Chairman in charge of the National Financial Supervision Committee - Photo: VNA

Speaking at the opening of the workshop, Mr. Vu Nhu Thang, Vice Chairman in charge of the National Financial Supervision Committee, emphasized that the workshop was organized to identify risk limitations, identify opportunities and policies to ensure stable and healthy development of the financial market. The key contents mentioned include the impact of the world economy on Vietnam, the financial market outlook in 2025, and methods of financial market risk management. Thereby, contributing to supplementing information and improving the capacity of the National Financial Supervision Committee to effectively perform its assigned functions and tasks in advising and advising the Prime Minister on general supervision of the financial market, assessing the interaction between the macro economy and the financial market.

Sharing at the workshop, Mr. Jung Jae Woo, Deputy Director of KOICA Vietnam Office, assessed that Vietnam is not only a beneficiary of the global financial market but is also emerging as an important driving force for economic innovation and stability in the region and the world. Therefore, early detection of financial risks and the development of response measures are key factors in strengthening the national financial foundation in the context of a volatile world.

Mr. Jung Jae Woo, Deputy Director of KOICA Vietnam Office - Photo: VNA

The workshop shared many valuable presentations from domestic and foreign experts. Mr. Le Xuan Sang, Deputy Director of the Vietnam Economic Institute, analyzed the global economic context with prolonged risks but also mentioned opportunities from the ability to control inflation in developed economies.

Mr. Nguyen Manh Ha, Deputy Head of the Department of Research and Coordination of Supervision Policy, gave comments on the impact of the macro economy on the Vietnamese financial market and the financial market outlook in 2025. Ms. Nguyen Thi Hue, Deputy Head of the Department of Securities Market Development, State Securities Commission, gave a presentation on upgrading the Vietnamese stock market.

Another topic that received much attention was the impact of climate change on the economy, presented by Ms. Dahyun Kang, an expert from the Bank of Korea. She introduced the financial solutions of the Bank of Korea to reduce risks related to climate change, contributing to promoting sustainability in the economic system. In addition, international experts also shared many new perspectives.

Mr. Jean-François Bouchard, World Bank expert, introduced macroprudential management tools, while Mr. Jungil Kim from the Korean Financial Supervisory Service presented on stress testing in banking supervision, a modern method to assess the resilience of the financial system to shocks.

In addition to the main topics, many additional studies were also presented, including the use of heatmap tools to assess financial security, optimizing portfolio structure using the Markowitz model, and the impact of monetary policy on economic growth. These papers not only provide an overview of the current financial market but also propose many specific solutions to improve governance quality and minimize risks.

According to experts, in the context of the world economy continuing to face constant risks and complicated developments, the Vietnamese economy is also placed in a position of uncertain risks but also has certain advantages. Although facing many challenges, the Vietnamese financial market is still expected to develop positively thanks to efforts to improve the business environment, attract foreign direct investment... FDI figures realized in the first 11 months of 2024 grew positively compared to the same period last year, demonstrating Vietnam's attractiveness to international investors.

The project “Improving early warning and risk management capacity for the financial sector in Vietnam” funded by the Korean Government for the National Financial Supervisory Commission and a number of relevant agencies of Vietnam through the Korea International Cooperation Agency (KOICA) will be implemented in 5 years from 2021 to 2025. The objective of the project is to develop early warning tools for the financial sector, including a set of monitoring indicators, early warning models, and stress testing models, contributing to ensuring the stability of the financial sector, thereby supporting Vietnam's economic development goals, while contributing to strengthening the friendly and cooperative relationship between Vietnam and Korea.

Source: https://thoibaonganhang.vn/thi-truong-tai-chinh-viet-nam-trien-vong-va-dinh-huong-chinh-sach-158760.html