Pham Ngoc Minh, General Director of Vietnam Airlines, receives an insignia marking the company's joining UPCoM transaction floor. (Source: VNA)

Hanoi (VNA) – The stock market has provided 25 percent of the total capital for Vietnam’s economy, according to Minister of Finance Dinh Tien Dung.

Speaking at the ceremony to open the year’s first transaction session of the stock market in Hanoi, Dung said after 20 years of operation, the stock market has become an important channel to mobilize capital for the economy.

Total stock market capitalisation was equal to 74 percent of GDP in 2016.

In 2016, the total amount of capital mobilised through the stock market was 348 trillion VND (15.7 billion USD), up 54 percent from 2015.

Of which, 312 trillion VND (14 billion USD) was raised from the government bond, and 36 trillion VND (1.62 billion USD) came from the securities market.  

The Finance Minister said the stock market is an effective tool to promote the restructuring of State-owned enterprises and attract foreign indirect investment.

In 2016, 118 State-owned enterprises joined the UPCoM market after equitisation, bringing the number of enterprises joining UPCoM to 408 and quadrupling the UPCoM market capitalisation.

Dung predicted positive developments for the stock market in 2017 and affirmed the Party and State’s policy to develop a modern stock market in line with international practice to create an effective capital mobilisation channel.

He urged the stock market sector to continue perfecting mechanisms and policies, restructuring the stock market and the management agency.

The integration of the two stock markets should be accelerated and supervision be boosted to ensure transparency, he said.

The MoF will continue researching and submitting solutions to the government, the National Assembly to develop the stock market comprehensively, he added.-VNA