The HCM City chairman has hailed the Ho Chi Minh Stock Exchange for contributing to the steady development of the country’s stock market and the city’s financial market and to the equitisation of State-owned enterprises in the city.
|Nguyen Thanh Phong, chairman of the HCM City People’s Committee, beats the gong at the HCM Stock Exchange on February 12 to mark the beginning of the Year of the Pig. (Photo: Xuan Huong)
Speaking at the gong beating ceremony at the exchange on February 12 to mark the reopening of the exchange after the Lunar New Year holidays, Nguyen Thanh Phong said it has grown rapidly in terms of scale to become an important source of capital for enterprises.
By the end of last year the bourse had 375 listed companies with a combined charter capital of VND780 trillion (US$33.5 billion).
Its market capitalisation is already over 70 per cent of the city’s GRDP, a target set only for 2020, and the daily average trading is VND5.6 trillion, or 85 per cent of the country’s total, he said.
“These clearly demonstrate the significance of the securities market to the country.”
“The establishment of the Vietnam Stock Exchange based on a parent-subsidiary model by rearranging the Ho Chi Minh and Ha Noi stock exchanges along with speeding up of the equitisation of State-owned enterprises will be the focal point of the city’s as well as the country’s stock market.
“In particular, in 2019 the Government and the National Assembly are preparing to approve the Securities Law (amended). This will be a solid basis for the stock market to develop sustainably.”
He expected HOSE, as a pioneer of the Vietnamese securities market, to continue to perform its role well, contributing more to the development of the country’s securities market and socio-economic development.
The city would continue to strongly back the exchange and speed up equitisation of State-owned enterprises to create investment opportunities for investors and enable businesses to mobilise capital, he said.
“The city will also enhance the transparency, management and supervision of the securities market to protect investors’ interests.”
Deputy Minister of Finance Huynh Quang Hai said: “In 2019, besides positive factors, the economy can also face many challenges, and so the management of the stock market should focus on steady and sustainable development.
“I hope HOSE will co-ordinate with relevant agencies to map out and implement measures to fulfil its assigned tasks.”
He also spoke about some key measures to make the stock market stronger and more effective and transparent.
They included improving the legal framework with a focus on amending the Securities Law, restructuring the stock market to improve the competency and quality of brokerage units, speeding up modernisation of infrastructure and IT systems, launching stock warrant products and new indexes at HOSE, and implementing measures to upgrade Viet Nam’s status from a frontier market to an emerging market this year.
Le Hai Tra, a member of the HOSE board of managers, said: "In 2019, though the market is forecast to face many challenges, it is expected to upgrade its status this year."
Tran Thanh Tan, CEO of Vietfund Management, said Viet Nam’s economic stability offers a good platform for its stock market to grow strongly.