Mechanisms and policies will be further improved to develop a safe, transparent, efficient and sustainable capital market for stabilizing macro-economy and mobilizing resources for socio-economic development.
Such is one of the objectives set forth in Government Resolution 86 dated July 11, on development of the country’s capital market.
Another objective is to effectively restructure and improve the efficiency of the securities market and monetary market, thereby ensuring the financial system’s wellbeing. Accordingly, the stock market will be maintained as the main channel for mobilizing medium-term and long-term capital for the economy, while the structural interrelationship among the monetary market, capital market, stock market and bond market will be further rationally regulated.
By 2025, the stock market capitalization is expected to equal the gross domestic product (GDP), with the outstanding debts on the bond market accounting for at least 47 percent of GDP, of which funds raised through corporate bonds will equal 20 percent of GDP.
At the same time, information technology will be modernized to facilitate the management and supervision of the stock market, while the restructuring of the system of credit institutions will be stepped up together with the bad debt settlement, thereby striving for the target that the bad debt ratio of credit institutions will be under 3 percent.
To achieve the above targets, the Resolution requires the development of the government-guaranteed bond market into a standard market on the financial market in order to efficiently mobilize funds for the state budget and support the budget and public debt restructuring in a safe and sustainable manner.
It is also required to enhance inspection and supervision in the process of issuance, distribution, putting in depository, investment and trading of corporate bonds, and properly regulate the use of funds raised through the issuance of corporate bonds, thereby protecting lawful rights and interests of investors and mobilizing more medium- and long-term funds.
Violations in the stock market for the purpose of market and stock price manipulation will be strictly handled to ensure the healthy, transparent and sustainable development of the market.
Other tasks set forth in the Resolution include ensuring the safe and thorough operation of the financial system, investing in information technology innovation, and expeditiously implementing measures to upgrade the Vietnam’s stock market from a frontier market into an emerging one.- (VLLF)