Prime Minister opens New Year’s trading session

Prime Minister Nguyen Xuan Phuc highlighted a bright outlook for Vietnam’s economy while opening a stock trading session after the Lunar New Year holiday in Hanoi on February 12.

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Prime Minister Nguyen Xuan Phuc beats the gong to open the New Year's trading session in Hanoi on February 12 (Photo: VNA)

Citing international organisations’ forecasts, PM Phuc said the World Bank has predicted that Vietnam will record an economic growth rate of over 6.6 percent in 2019. Meanwhile, Standard Chartered and ANZ believe the economy will enjoy the fastest growth in ASEAN and be a highlight in the world’s economic panorama.

Some organisations also perceived that there is room for Vietnam’s economy to grow at a pace of 7 percent this year. Echoing the view, the National Financial Supervisory Commission said the economy is likely to expand by 7 percent.

The Government leader said those forecasts show the confidence in Vietnam’s economic development in 2019 and the following years.

He expressed his delight at the vigorous expansion of the stock market in the past nearly 20 years, noting that the market capitalisation has increased by almost 17-fold in 12 years to be equivalent to 72 percent of the gross domestic product (GDP) last year, compared to only 22.7 percent in 2006.

Private businesses’ capital mobilised through issuing corporate bonds and stocks soared by 70 percent in 2017 and 30 percent in 2018 to 68 trillion VND (2.9 billion USD), turning Vietnam into one of the Southeast Asian nations with the largest amount of capital raised through stock exchanges.

Via the stock market, the Government has mobilised capital with between 20- and 30-year terms, helping it gear up long-term capital for public investment and public debt restructuring, the PM said.

Pointing out the stock market’s shortcomings and the complicated international situation, PM Phuc said the Government will press on with improving the investment and business climate, stabilising the macro-economy and reforming the growth model. It will also keep the viewpoint of considering the private sector as an important driving force for economic development.

He underlined the importance of sustainably developing the stock market and promoting its role in creating medium- and long-term capital for the economy, enhancing growth quality and boosting the economy’s transparency.

In his speech, the PM asked the Ministry of Finance and relevant agencies to improve the legal framework for securities-related activities, take measures to upgrade Vietnam’s stock market from the frontier to the emerging market status in the rankings of rating agencies, and apply achievements of the Fourth Industrial Revolution in the stock market.

He also requested inspection, monitoring and settlement of violations be stepped up to boost discipline in the market and consolidate the public and investors’ trust.

VNA