Stock Market as Vietnam’s Long Term Capital Channel

HANOI: After 25 years of development, the Vietnamese stock market plays a more important role in raising capital to support the commercial banking system.

Therefore, the goal is to make the market the main medium- and long-term channel of capital for the economy.

Speaking at the seminar “The Stock Market: Releasing Funds for Businesses, Profitable Investment Channels and Assets” launched last week by Bao Dau tu (Investment Newspaper), Vice Minister of Finance Nguyen Duc Chi said the Ministry is working with other ministries to report to the government and the prime minister on the country’s stock market development strategy to 2030, with a outlook to 2045.

The fundamental factors for formulating the strategy are based on the socio-economic development of the country, the orientations and resolutions of the party, and the guidelines and policies of the party. The overall goal is to build and develop the stock market into the primary medium- and long-term capital channel for the economy, Chi said. The 25 years of development show that the stock market plays a more crucial role in raising capital, supporting the commercial banking system.

In the past, before the creation of the stock market, short, medium and long-term capital channels were the responsibility of the banks. Now the stock market accounts for a larger share of the capital channel.

The market development perspective should refer to synchronous and uniform development of the financial market, associated with innovation in the growth model and economic structure and linkage with the global market and economy.

In addition, it must be developed based on technology and digital transformation requirements.

“The stock market needs to connect with the regional stock market, integrate with the international stock market and apply the right international practices and standards to develop the Vietnamese stock market,” Chi added. — Vietnam News/ANN