|Vietnam's stock market is set to grow in a stable, safe, healthy, effective and sustainable manner__Photo: VNA
By 2025, Vietnam’s stock market would be upgraded from a frontier to an emerging market in line with international rating organizations’ standards, joining the group of four major stock markets in the Association of Southeast Asian Nations (ASEAN).
Such target is provided in Decision No. 1726/QD-TTg dated December 29, approving the stock market development strategy until 2030.
As per the draft, the stock market is set to grow in a stable, safe, healthy, effective and sustainable manner.
Improving risk resistance for the market, the project aims at making it an important medium and long-term capital mobilization channel for the national economy.
Green, sustainable finance tools will be promoted, digital transformation will be stepped up in the sector, and international integration will be enhanced to narrow development gaps between the domestic stock market and those in developed countries.
Stock market capitalization would equal to 100 percent of GDP by 2025 and 120 percent by 2030. Outstanding bonds would represent at least 47 percent of GDP by 2025 and 58 percent by 2030.
The proportion of Government bonds held by non-banking investors would rise to 55 percent by 2025 and 60 percent by 2030. The number of stock traders would reach 9 million by 2025 and 11 million by 2030.
To that end, the strategy puts forth a range of solutions such as strengthening the management, supervision and inspection capacity of related forces, and increasing supplies and raising their quality.
The strategy also mentions the issuance of a variety of terms of government, government-guaranteed and local government bonds; encourages businesses to issue a variety of bond types suitable to their capital mobilization needs; and promotes green bonds to create more capital mobilization channels for the budget and enterprises and attract investors to sustainable economic development.
It emphasized the approach to international practices regarding accounting and auditing standards, and applying International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), thus improving transparency and efficiency of information provision to investors.- (VLLF)