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Stock market development strategy approved

Vietnam’s stock market is set to grow in a stable, safe, healthy, effective and sustainable fashion under a freshly-approved strategy.
Stock market development strategy approved ảnh 1Vietnam’s stock market is set to grow in a stable, safe, healthy, effective and sustainable fashion. (Photo: VNA)
Hanoi (VNA) – Vietnam’s stock market is setto grow in a stable, safe, healthy, effective and sustainable fashion under a freshly-approvedstrategy.

Deputy Prime Minister Le Minh Khai on December 29signed Decision No. 1726/QD-TTg approving the stock market development strategyuntil 2030.

The strategy also aims to improve risk resistance forthe market, making it an important medium and long-term capital mobilisationchannel for the national economy.

Green, sustainable finance tools will be promoted, digitaltransformation will be stepped up in the sector, and international integrationwill be enhanced to narrow development gaps between the domestic stock marketand those in developed countries.

According to the strategy, stock market capitalisationwould equal to 100% of GDP by 2025 and 120% by 2030. Outstanding bonds wouldrepresent at least 47% of GDP by 2025 and 58% by 2030.

The proportion of Government bonds held by non-bankinginvestors would rise to 55% by 2025 and 60% by 2030. The number of stocktraders would reach 9 million by 2025 and 11 million by 2030.

Among the important targets set in the strategy are upgrading the market from a frontier to an emerging market in line with international rating organisations' standards by 2025, and joiningthe group of four major stock markets in the Association of Southeast Asian Nations(ASEAN) by 2025.

To that end, the strategy put forth a range ofsolutions such as strengthening the management, supervision and inspectioncapacity of relevant forces, and increasing supplies and raising their quality.

The strategy also mentioned the issuance of a varietyof terms of government, government-guaranteed and local government bonds; encouragingbusinesses to issue a variety of bond types suitable to their capital mobilisationneeds; and promoting green bonds to create more capital mobilisation channelsfor the budget and enterprises, and attract investors to sustainable economicdevelopment.

It emphasised the approach to international practices regardingaccounting and auditing standards, and applying International Accounting Standards(IAS) and International Financial Reporting Standards (IFRS), thus improving transparencyand efficiency of information provision to investors.

The role and responsibility of credit rating organisationsin the corporate bond market should be enhanced, towards requiring bond issuersto be rated, the strategy said./.
VNA

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