Developing a transparent, healthy, fair and sustainable stock market: Minister of Finance

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Minister of Finance Ho Duc Phoc

Facing many unpredictable factors in the country and in the world in 2022, the financial market in general and the stock market, in particular, have fluctuated very strongly. Looking back over the past year, what is your assessment of the fluctuations in Vietnam's stock market?

The world has recovered since 2022 after the Covid-19 pandemic was brought under control but has faced new difficulties caused by political instability and conflicts between Russia and Ukraine.

In that context, under the direction of the Party Central Committee, the National Assembly and the Government promptly issued policies to support socio-economic recovery, which have been drastically implemented by all central and local agencies and appreciated by the people and the business community. Thus, the country has achieved many very positive socio-economic results.

The GDP growth in 2022 is estimated at 8.02% - among the highest rates in the world. Macro balances were ensured: State revenue, public debt, and budget deficit met the targets assigned by the National Assembly; interest rates, inflation, and exchange rates were controlled. The budget ensured important spending tasks, met the needs of socio-economic development, national defense and security, state management and repayment of due debts, funded recovery after disasters, epidemics and ensured social security spending tasks.

Last year, the stock market experienced many strong fluctuations due to unpredictable "aftershocks" from both the international and domestic markets. Objectively, 2022 is basically a successful year of overcoming difficulties for Vietnam's stock market when maintaining stable, safe and smooth operations under the difficulties.

I think that, although there are many shortcomings and inadequacies, requiring great efforts, Vietnam’s stock market is still developing more and more stably, healthily and sustainably.

The most important thing for the stock market is good liquidity, both promoting its role as an effective medium and long-term capital mobilization channel for the economy and businesses, and proving to be an attractive and safe investment channel for genuine domestic and international investors.

In the past year, a number of violation cases on the stock market or impacts on the stock market have reduced the confidence of the public. However, from the perspective of a state management agency, we need to develop an increasingly transparent, healthy, fair and sustainable stock market.

Regarding the corporate bond market, the Ministry of Finance is urgently submitting a draft amendment to Decree 65/2022/ND-CP on private placement of corporate bonds. Do you have any comments about this draft?

In fact, the provisions of Decree 65/2022/ND-CP are reasonable, but in the context of a difficult market, the draft decree is to extend the application period of some regulations to support issuers and investors in the private corporate bond market.

In the longer term, we requested competent units to review relevant regulations and discuss with other ministries and agencies to amend and supplement legal regulations on enterprises and banking and advise solutions to submit to competent authorities for consideration and adjustment to meet reality.

We also directed competent units to strengthen supervision and inspection of issuers, service providers such as securities companies and auditing firms, etc., related to this market; and enhance coordination with relevant ministries and agencies to agree on solutions to develop a healthy and unified bond market.

Also, the Ministry of Finance requested issuers to strictly abide by the law on bonds and disclose information so that investors can grasp and make reasonable investment decisions. In addition, as shared above, it is necessary to regain confidence in this market.

In addition, information and training have been accelerated to help investors have a deep understanding before entering this market, to avoid boycotting and discriminating against corporate bonds.

Furthermore, I think it is necessary to promote the role of the State Bank and other management agencies, especially focusing resources on enterprises’ development, contributing to improving the capacity of the economy.

Vietnam's stock market still has great growth potential. As for you, do we have sufficient grounds to affirm this?

Vietnam's stock market has proven that the development strategy of the Party and State is correct. The stock market has great potential for development and can contribute more effectively to the country’s economy. Leaders of the Party, State and Government are always interested in developing a stable and sustainable stock market.

The financial market in general or the stock market in particular must experience development stages according to market rules and we believe in the sustainable development of Vietnam's stock market a thermometer of the economy.

The difficulties caused by the Covid-19 pandemic will pass and Vietnam's economy will develop. When enterprises operate more efficiently and on a larger scale, they need to have good cash flow. The core of the economy is still production and business development and the capacity of enterprises. That is also the condition and motivation for the stock market to develop better.

Therefore, every action of state management agencies is to create a foundation to support businesses and people to operate more effectively.

So what are the solutions to arouse the potential of Vietnam's stock market in the future?

Under the attention of the leaders of the Party and State and the close direction of the Government, the Ministry of Finance and units under the Ministry will continue to be determined, proactive, creative, and make efforts to develop a more quality and sustainable stock market.

We need to join hands to continue building solutions to develop the stock market so that businesses can see the benefits and opportunities to list and register for trading and domestic and foreign investors at have more confidence and peace of mind when investing in the market.

Vietnam’s stock market still attractive to investors: report

For the stock industry, in 2023 and years ahead, I have requested to implement five words: "Unity – Initiative – Reform - Efficiency - Creativity". To strongly arouse the potential of Vietnam's stock market, there is still a lot of work to be done, but we must prioritize and arrange for the highest efficiency.

Thank you!