HoSE aims for exponential market capitalisation increase hinh anh 1Investors are trading at the Ho Chi Minh Stock Exchange (Source: VNA)

The Chi Minh Stock Exchange (HoSE) will strive to have its market capitalisation equal to the country’s gross domestic product (GDP) by 2020, said Tran Dac Sinh, Chairman of the exchange’s Board of Directors.

Sinh said it is a major but feasible goal, adding that HoSE now accounts for 88 percent of the market capitalisation of the country’s entire stock market, with its daily traded stock value reaching 2.1 trillion VND (97 million USD), or 70 percent of the country’s total traded value.

“Government Decree 60, which opens rooms for foreign investors, is a good legal framework for us to develop the capital and stock markets,” he noted.

The HoSE has strengthened investment promotion in Japan and the US , where many investors showed their interest in the Vietnamese stock market, he added.

It has cooperated with stock exchanges and financial organisations in 20 markets around the world, including four G7 markets while being a member of the ASEAN stock market, the Asian and Oceanian Stock Exchange Federation and the Wesfarmers Insurance (WFI).

According to Sinh, the exchange is focusing on renovating technology with its aim of becoming the largest and most modern system in Southeast Asia .

Set up in 2000, Vietnam ’s stock market is currently home to nearly 700 listed shares, with a market capitalisation of 1.2 quadrillion VND (roughly 60 billion USD), equal to 32 percent of the country’s GDP.

The country has more than 80 securities companies and close to 1.5 million accounts, including 20,000 held by foreign investors.-VNA