Prime Minister opens New Year’s trading session

Economy, Vietnam, Vietnam Finance News
Prime Minister Nguyen Xuan Phuc beats the gong to open the New Year’s trading session in Hanoi on February 12 (Photo: VNA)

Hanoi (VNA) – Prime Minister Nguyen
Xuan Phuc highlighted a bright outlook for Vietnam’s economy while opening a
stock trading session after the Lunar New Year holiday in Hanoi on February 12.

Citing international organisations’ forecasts,
PM Phuc said the World Bank has predicted that Vietnam will record an economic
growth rate of over 6.6 percent in 2019. Meanwhile, Standard Chartered and ANZ
believe the economy will enjoy the fastest growth in ASEAN and be a highlight
in the world’s economic panorama.

Some organisations also perceived that there is
room for Vietnam’s economy to grow at a pace of 7 percent this year. Echoing
the view, the National Financial Supervisory Commission said the economy is
likely to expand by 7 percent.

The Government leader said those forecasts show
the confidence in Vietnam’s economic development in 2019 and the following
years.

He expressed his delight at the vigorous
expansion of the stock market in the past nearly 20 years, noting that the
market capitalisation has increased by almost 17-fold in 12 years to be
equivalent to 72 percent of the gross domestic product (GDP) last year,
compared to only 22.7 percent in 2006.

Private businesses’ capital mobilised through
issuing corporate bonds and stocks soared by 70 percent in 2017 and 30 percent
in 2018 to 68 trillion VND (2.9 billion USD), turning Vietnam into one of the
Southeast Asian nations with the largest amount of capital raised through stock
exchanges.

Via the stock market, the Government has
mobilised capital with between 20- and 30-year terms, helping it gear up
long-term capital for public investment and public debt restructuring, the PM
said.

Pointing out the stock market’s shortcomings and
the complicated international situation, PM Phuc said the Government will press
on with improving the investment and business climate, stabilising the
macro-economy and reforming the growth model. It will also keep the viewpoint
of considering the private sector as an important driving force for economic
development.

He underlined the importance of sustainably
developing the stock market and promoting its role in creating medium- and
long-term capital for the economy, enhancing growth quality and boosting the
economy’s transparency.

In his speech, the PM asked the Ministry of
Finance and relevant agencies to improve the legal framework for
securities-related activities, take measures to upgrade Vietnam’s stock market
from the frontier to the emerging market status in the rankings of rating
agencies, and apply achievements of the Fourth Industrial Revolution in the
stock market.

He also requested inspection, monitoring and
settlement of violations be stepped up to boost discipline in the market and
consolidate the public and investors’ trust.-VNA

QBCA

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