Stock market to be long-term capital channel of Vietnam

HANOI: After 25 years of development, the Vietnamese stock market is playing a more important role in attracting capital, supporting the commercial banking system.

Therefore, the target is to turn the market into the main channel of medium and long-term capital for the economy.

At the seminar “The stock market: Releasing resources for businesses, profitable investment channels and assets” launched by Bao Dau tu (investment newspaper) last week, Nguyen Duc Chi, Deputy Minister of Finance, said that the ministry is working with other ministries to report to the government and the Prime Minister on the development strategy of the country’s stock market to 2030, with an outlook to 2045.

The fundamental factors for creating the strategy are based on the country’s socio-economic development, the party’s orientations and resolutions, and the party’s guidelines and policies. The general target is to build and develop the stock market into the main medium and long-term capital channel for the economy, Chi said. The 25 years of development show that the stock market is playing a more crucial role in attracting capital, supporting the commercial banking system.

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

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

In addition, it has to be developed on the basis of technology and requirements of digital transformation.

“The stock market needs to link 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. — Viet Nam News/ANN