HÀ NỘI — Despite the many fluctuations of the world stock market, Việt Nam has maintained positive growth rates, as one of South East Asia’s five markets with the highest potential for development, said Vũ Bằng, Chairman of the State Securities Commission of Việt Nam (SSC).

He remarked that increases in listings, mobilisation, transactions and investment on the stock exchange had had great impacts on the overall growth of Việt Nam’s securities market.

National indexes experienced growth of 30 per cent in 2016. The VN-Index on the HCM Stock Exchange experienced growth of 15 per cent, the HNX-Index on the Hà Nội Stock Exchange increased by 0.8 per cent, with the total amount of market equitisation reaching VNĐ1.76 quadrillion (US$79.67 billion), equal to 42 per cent of total GDP in 2016.

At present, there have been 695 listed stocks and fund certificates, and 377 registered stocks with total listed value reaching VNĐ712 trillion ($32.1 billion), up by 22 per cent, together with 590 bonds at a total listed value of VNĐ934 trillion ($42.1 billion), up by 22.5 per cent.

Liquidity also improved greatly, while the average level of transactions reached VNĐ6.8 trillion ($309.6 million) per session, up 39 per cent compared to the end of 2015.

Asset management companies had also increased their charter capital by 17.7 per cent compared to the end of 2015.

Simultaneously, governmental control over joint stock companies had also improved the market’s quality greatly, as well as their financial and risk management ability.

Bằng, on behalf of the SSC, announced the conclusive results from the stock market in 2016 and the SSC’s plan for 2017, at the SSC’s year end conference held in Hà Nội last week.

The Ministry of Finance and the Government of Việt Nam highly regard the SSC’s efforts in their construction of legal documents and policies, their active role in mobilising capital and funding for the reconstruction and development of the stock market, as well as their overall monitoring and inspection of the market to ensure a transparent and streamlined process for investors and stockholders alike, said Deputy Finance Minister Trần Xuân Hà at the conference.

Hà also encouraged the SSC to focus on improving the Law on Securities, reengineering the stock market to maintain the market’s regular activities. The SSC should also prepare to bring the derivative market into operation, and tighten the regulatory procedure on listed companies in 2017.

The SSC had also continued to improve external activities and international co-operation in 2016, by initiating bilateral co-operation with the USA, Japan, Germany, Republic of Korea, Singapore, Laos and Cambodia, as well as successfully collaborated with the World Bank on managerial activities over securities and capital markets.

Bằng and Hà expressed great optimism for Việt Nam’s securities market in 2017, and committed to continue collaborating with other administrative authorities to maintain market stability and development in the year to come. — VNS