Stock market to growth sustainably in 2023: Deputy Finance Minister

Solutions must be implemented to ensure that the market develops substantively and sustainably, increases liquidity, and continues to be an important capital channel for the economy in 2023.

After 2022, the stock market will move toward sustainable development, Deputy Finance Minister Nguyễn Đức Chi said at a conference held by the State Securities Commission (SSC) to review the Vietnamese stock market in 2022 and deploy tasks for 2023.

The Deputy Minister highly appreciated the results achieved by SSC, adding that in 2022, the securities industry has strengthened supervision, inspection, and examination, thereby detecting and strictly handling violations.

"This is what we did well in the past year and was recognised by the market, contributing to the enhancement of confidence in the market and creating a premise for more transparent and sustainable development," Chi said.

Although the stock market struggled and was under significant pressure from international market movements, with correction sessions, it was still regarded as an attractive market in comparison to others in the region in 2022, as foreign capital flows returned strongly in the final months of the year.

Under the close direction of the Government and the Ministry of Finance (MoF), has completed the assigned tasks, increased inspections on illegal acts, strictly handled manipulation activities of securities prices, stabilised investor sentiment, and helped increase market liquidity.

According to the Deputy Minister, after 2022, the stock market will head toward sustainable development. As a result, solutions must be implemented to ensure that the market develops substantively and sustainably, increases liquidity, and continues to be an important capital channel for the economy in 2023.

Chi recommended that the SSC concentrate on examining the Securities Law to update it to reflect current market conditions, creating a strategy to implement the Securities Market Development Strategy until 2023, and continuing to implement disciplines at a higher level.

The commission also needs to improve service quality, ensure timely and legal regulations, focus on applying the KRX project, strengthen the human capacity of SSC, exchanges, and the Vietnam Securities Depository Center (VSD), and enhance communication about the market as well as policies so that market participants always have full and timely access to official information from SSC and exchanges.

As of December 23, the market capitalisation of three exchanges: the Hồ Chí Minh Stock Exchange (HOSE), the Hà Nội Stock Exchange (HNX) and UPCoM, was estimated at nearly VNĐ5.3 quadrillion (US$223.2 billion), down 32 per cent over the end of last year and equivalent to 62.2 per cent of GDP, according to SSC. The market size of listed shares continued to grow.

By the end of November, the market's listed and registered trading scale reached VNĐ1.97 quadrillion, a gain of 13.26 per cent compared to the end of 2021, with 757 shares and fund certificates listed on the two main exchanges and 859 shares traded on UPCoM.

On the bond market, during the same period, the market had 447 listed bond codes with a value of over VNĐ1.7 quadrillion, up 10.7 per cent over last year and equivalent to 20.1 per cent GDP.

The number of new accounts more than doubled despite the sharp downtrend in the market. Generally, in the first 11 months of 2022, domestic retail investors opened more than 2.48 million new accounts, about 2.58 times higher than at the end of last year.

The total number of securities accounts in Việt Nam was nearly 6.8 million, up 57.7 per cent compared to the end of 2021. Of which, the number of domestic investor accounts reached 6,755 million, an increase of 58.18 per cent and the number of foreign investor accounts was 42,458, a rise of 7.46 per cent compared to the end of 2021.