In 2023, the stock market has experienced some fluctuations but with a series of effective management solutions from the Government, Ministry of Finance, and the State Securities Commission, the stock market has stabilized and continued to play its role as a channel for mobilizing medium and long-term capital for the economy.
The State Securities Commission will implement many solutions to make the stock market an effective capital mobilization channel.
The market has maintained a stable growth momentum with a market capitalization of stocks on the three exchanges HoSE, HNX, and UPCoM reaching 5.937 trillion VND, up 13.6% compared to the end of 2022, equivalent to 58.1% of GDP in 2023. The VN-Index as of December 29, 2023 is 1,129.93 points, an increase of 12% compared to the end of 2022, with stock market liquidity reaching 17,500 billion VND/session.
In 2023, the management of public companies, securities companies, asset management companies, and securities investment funds continues to be strengthened.
In addition, the State Securities Commission and relevant agencies have strengthened market supervision, thereby strictly handling legal violations, stock price manipulation, maintaining market discipline, stability of investor psychology, and increasing market liquidity to continue sustainable development.
Regarding 2024, Ms. Vu Thi Chan Phuong, Chairwoman of the State Securities Commission, said that the market situation in the future will still depend largely on macroeconomic policies and economic prospects both domestically and globally.
Vietnam’s economy in general and the stock market in particular are forecasted to continue facing many difficulties and challenges in the context of climate change, increasing political tensions, global economy, and unpredictable financial markets.
Chairwoman of the State Securities Commission mentioned that the stock market in 2024 will be supported by positive factors. “The Government, Prime Minister, and relevant ministries and localities have resolutely directed the implementation of many solutions to overcome difficulties, stabilize, and promote economic growth such as reducing interest rates. Along with that, stabilizing the foreign exchange market; promoting the disbursement of investment capital; implementing credit support packages for sectors” – Ms. Vu Thi Chan Phuong emphasized.
In addition, the positive trend will continue to be maintained in many industries and fields; Vietnam’s economic prospects are still highly regarded by international organizations. When the new KRX information technology system is put into operation, it will create the foundation for the implementation of many new trading solutions.
Leaders of the State Securities Commission said that in 2024, they will continue to improve the legal framework and policy system for market development, with a focus on completing the development strategy plan for the period 2023 – 2030.
At the same time, developing the market in a sustainable direction through improving the quality and infrastructure of the market, enhancing the application of technology in market management and operation. Reviewing the overall regulations to promptly address any shortcomings and obstacles for market development.
Emphasizing the role of modernizing technology infrastructure, mastering and enhancing the application of scientific and technological advancements, Ms. Vu Thi Chan Phuong said that the State Securities Commission will soon put the new information technology system into official operation, creating conditions for the birth of new products and services in the market.
Diversifying the investor base, developing institutional investors, and encouraging long-term foreign investment, training individual investors.
Chairwoman of the State Securities Commission Vu Thi Chan Phuong expects that this year the positive trend will continue to be maintained in many industries and fields. Vietnam’s economic prospects are highly regarded by international organizations, raising its rank.
Regarding the Ministry of Finance, Deputy Minister Nguyen Duc Chi requested the State Securities Commission to coordinate with relevant units to continue to strengthen supervision and maintain strict order, discipline, market discipline, and take a step further than 2023. Close coordination with the Ministry’s units to detect and handle violations, support the stock market to operate more transparently and healthily.
According to Deputy Minister Nguyen Duc Chi, the Government has set a target to upgrade the stock market to a newly emerging market by 2025. To achieve this goal, in 2024, the Ministry of Finance will collaborate with relevant departments to address issues regarding the requirement of reserving pre-trading margin for investors, especially foreign investors.
Furthermore, the requirements of international credit rating agencies must be transparent and clear regarding the ownership ratio of foreign investors in listed companies on the stock exchange. To accomplish this, Deputy Minister Nguyen Duc Chi said that close coordination with the Ministry of Planning and Investment to implement and publish full, clear, and transparent information has been carried out.
Regarding the requirement for bilingual transparency of information for listed companies on the stock exchange in Vietnamese and English, the leaders of the Ministry of Finance said it will be implemented in the first half of 2024.
“The Ministry of Finance will actively put the new stock trading system into operation in the market and ensure the requirements of the market clearing and settlement transactions” – Deputy Minister Nguyen Duc Chi said. The Ministry of Finance also requires the State Securities Commission to actively coordinate with relevant ministries and units to upgrade the stock market as soon as possible.
