Prime Minister Nguyen Tan Dung has approved a financial strategy through2020, under which the stock market will be restructured to ensure amore co-ordinated and balanced development among the stock, bond andderivatives markets.
Under the strategy, total stockmarket capitalisation will reach around 70 percent of national grossdomestic product (GDP) by 2020, while the outstanding bond market willbe valued at about 30 percent of GDP.
The strategy willrequire all markets including financial services markets to bedeveloped in co-ordination with an aim of establishing a healthynational financial system and maintaining financial security andeconomic stability. The total revenues of the insurance sector, forinstance, are expected to reach 4 percent of GDP by 2020.
By improving the relationship between savings and consumption,meanwhile, savings were targeted to reach 33.5-35 percent of GDP by2015. Foreign reserves will equal 0.8 or 1 percent of GDP by 2015.
Public debt, including Government debts, debts guaranteed by theGovernment and municipal debts, will not be allowed to exceed 65percent of GDP, while the nation's total revenues from taxes and feesare planned to account for 22 – 23 and 21 – 22 percent of the GDP duringthe two periods of 2011-15 and 2016-20, respectively.
The State budget deficit will be held below 4.5 percent per year by 2015 and 4 percent by 2020.
By that time, the country will expect to have in place a uniform taxsystem in line with international standards while capable of brining insufficient revenues for the State budget. At the same time, the wagescale for civil servants will be reformed to ensure that they willbe able to cover living expenses in a middle-class society.
The financial strategy, with a vision to 2030, will be carried outin two phases in co-ordination with five-year budget plans to 2015 and2020.-VNA