11:10 | 17/07/2019 Finance - Banking
Vietnam’s stock market has been evaluated as a bright spot in the region in terms of growth speed and foreign capital absorption for years, according to Chairman of the State Securities Commission (SSC) Tran Van Dung.
|Vietnam’s stock market has been evaluated as a bright spot in the region in terms of growth speed and foreign capital absorption - Source: NDO|
He said the foreign indirect investment (FII) in Vietnam reached US$1.28 billion in the first six months of 2019.
Between 2016 and 2018, the FII sector continuously net purchased local stocks worth US$1.98 billion per annum, he said.
He added that Vietnam’s stock market has continued growing in scale and liquidity in recent years with the total market capitalisation touching nearly US$4.3 million as of the end of June 2019, equivalent to about 78% of the gross domestic product (GDP) in 2018, up 11.2% against the early 2019.
After 19 years of operation, the stock market has basically completed its structure and diversified products such as stocks, bonds, fund certificates, derivatives and most recently covered warrants - securities that have collateral assets issued by securities companies, Dung said.
Vietnam’s stock market has also been added to the watch list for possible upgrade to Secondary Emerging Market by FTSE Russell, a leading global provider of financial services, he added.
According to Dung, these achievements were attributed to the Government’s efforts in improving policies to develop the stock market and attract overseas investment in the field.
The Ministry of Finance and the SSC have been actively implementing policies to upgrade the stock market from marginal level to emerging one according to the MSCI Emerging Markets Index.
Along with improving the macro policies, the Government has been continuously promoting equitisation and divestment of State-owned enterprises in association with the listing and registration of trading on the stock market, Dung said.