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 forVietnam’s economy, according to Minister of Finance Dinh Tien Dung.
Speaking at theceremony to open the year’s first transaction session of the stock market inHanoi, Dung said after 20 years of operation, the stock market has become animportant channel to mobilize capital for the economy.
Total stock marketcapitalisation was equal to 74 percent of GDP in 2016.
In 2016, thetotal amount of capital mobilised through the stock market was 348 trillion VND(15.7 billion USD), up 54 percent from 2015.
Of which, 312trillion VND (14 billion USD) was raised from the government bond, and 36trillion VND (1.62 billion USD) came from the securities market.
The FinanceMinister said the stock market is an effective tool to promote the restructuringof State-owned enterprises and attract foreign indirect investment.
In 2016, 118State-owned enterprises joined the UPCoM market after equitisation, bringingthe number of enterprises joining UPCoM to 408 and quadrupling the UPCoM marketcapitalisation.
Dung predictedpositive developments for the stock market in 2017 and affirmed the Party andState’s policy to develop a modern stock market in line with international practiceto create an effective capital mobilisation channel.
He urged thestock market sector to continue perfecting mechanisms and policies,restructuring the stock market and the management agency.
The integrationof the two stock markets should be accelerated and supervision be boosted toensure transparency, he said.
The MoF willcontinue researching and submitting solutions to the government, the NationalAssembly to develop the stock market comprehensively, he added.-VNA
