The Hanoi Stock Exchange has solidified its role in raising capital for businesses and the State budget, with the bourse celebrating five years since its establishment.

The exchange, launched in 2009, has succeeded in developing three separate markets, including the stock exchange, unlisted public company market (UPCoM) and bond market, said Tran Van Dung, the exchange's General Director, at its fifth anniversary celebration on June 24.

Dung said the number of companies listing on the northern bourse had increased 42 percent from 2009, reaching 364 companies. The value of listings had also risen by 140 percent during the period, totaling 90 trillion VND (4.3 billion USD).

Meanwhile, total market capitalisation had reached more than 120.5 trillion VND (5.71 billion USD), while companies had raised 45 trillion VND (2.1 billion USD) over the past five years by issuing additional shares to expand operations.

Listings had also helped boost the transparency of firms, with about 97 percent of listed companies regularly updating information on their websites.

Trading has also seen improvement, with market value rising from 127 billion VND (6 million USD) per session from 2005 to 2009, and to 530 billion VND (25.1 million USD) between 2010 and 2013. Value of trades this year also climbed to 768 billion VND per day in the first five months.

The exchange has also developed seven new indices that have diversified the base of products traded on the market: the HNX30, tracking the top 30 shares by market value and liquidity, the HNX Free Float Index, three sector indices and two sets of indices based on the scale of shares.

Regarding UPCoM development, the number of companies registered for trading rose to 147 with total market capitalisation reaching 28.93 trillion VND (1.37 billion USD), seven times higher than in 2009.

To date, seven companies have moved their listings to the stock exchange.

The Hanoi Stock Exchange has also succeeded in expanding the government bond market which raises funds for the State budget. Over the past five years, the exchange has raised 586 trillion VND (27.8 million USD) worth of bonds through auctions. The value of bond listings on the secondary market reached 625 trillion VND (29.6 million USD) this year through May, four times higher than in 2009.

The exchange also enabled IPOs (initial public offering) for 83 State enterprises, raising 6.784 trillion VND (321.5 million USD), including large enterprises like Vietnam Steel Corporation, PV Oil and Bao Viet Holdings.-VNA