In 2017, green bonds were issued.

(Baonghean) - The State Securities Commission (SSC) held a gong-ringing ceremony to inaugurate the first trading session of 2017 on January 3rd. The sound of the gong signaled a new year with many promising successes for the Vietnamese stock market, contributing increasingly to the national economy.

Speaking at the bell-ringing ceremony, Minister of Finance Dinh Tien Dung commended the efforts of the regulatory agencies, stock exchanges, securities deposit centers, and all market participants for the achievements in 2016. The Minister stated: “After 20 years of operation, the Vietnamese stock market has become an important capital channel for the economy, supplying 25% of the capital for the economy.”

The market capitalization, including both bonds and stocks, in 2016 was equivalent to 74% of GDP, an increase of over 35% compared to 2015. The stock market is an effective tool for promoting the restructuring of state-owned enterprises and attracting foreign indirect investment. The equitization and divestment process linked to the stock market has been well implemented, from policy to specific operations.

The Minister of Finance rang the bell to officially open the stock market in 2017.

Entering 2017, the stock market is expected to experience more positive developments as the Party and State attach great importance to the role of the stock market in the process of economic reform and restructuring. The consistent policy focuses on developing the stock market in a modern direction, in line with international practices, to create an effective channel for mobilizing capital for the economy and investment for development, contributing to promoting growth and economic restructuring, and innovating the growth model towards improving productivity, quality, and competitiveness of the economy.

The Ministry of Finance will continue to study and submit to the Government and the National Assembly a comprehensive system of solutions to develop the stock market in both breadth and depth, aiming to remove obstacles and difficulties faced by businesses in their operations, protect the legitimate interests of the investing public, and direct the State Securities Commission and related units to continuously improve the operating mechanisms of a modern and transparent stock market. The Minister also assigned the Securities sector the task of continuing to improve the institutional framework and policy mechanisms, especially the new generation of Securities Law, in line with the country's economic conditions and international practices, creating all favorable conditions for the stock market to develop and increasingly fulfill its functions and roles in the economy.

Furthermore, continue restructuring the stock market and regulatory bodies. Accelerate the merger of the two stock exchanges, ensuring the principle of developing a multi-tiered stock market, increasing the scale and quality of operations, diversifying products and services to ensure safe, efficient, and sustainable market operation. Simultaneously, strengthen management and supervision to ensure the transparency of all participants in the stock market. Ensure the necessary conditions are prepared to launch the derivatives market from Q2/2017; research and develop derivatives products according to a roadmap from simple to complex, suitable to the needs and development of the stock market, ensuring the ability to manage and monitor market risks. Complete the legal framework and technical system for the corporate bond market to enable its implementation from 2018.

Furthermore, it is necessary to continue organizing the bidding and trading of government bonds effectively to mobilize capital promptly and efficiently for the budget and for development investment; combine this with restructuring domestic debt by extending the average maturity of government bonds; diversify the investor base and issuance products; develop local government bonds in conjunction with tightening discipline and order in state budget revenue and expenditure, reducing the retention rate for local budgets to encourage localities to strengthen capital mobilization (issuing local government bonds) on the government bond market and issue green bonds.

At the same time, it is necessary to continue implementing effective equitization auctions to contribute to supporting and promoting equitization, divestment, and sale of shares of state-owned enterprises; implement solutions to promote equitization auction activities associated with listing and trading registration on the stock market, contributing to accelerating the restructuring of state-owned enterprises; continue to proactively cooperate with corporations, general companies, and state management agencies to effectively implement the State's policies on equitization, restructuring, and development of the stock market.

On behalf of the entire securities industry, Chairman of the State Securities Commission Vu Bang thanked the leaders of ministries and sectors for their attention to the securities industry and affirmed that the State Securities Commission and its members will continue to strive and work together to build a transparent stock market, bringing confidence to investors and market participants, and making effective contributions to the economy in 2017 and the following years.

In the festive atmosphere of the ceremony, the Hanoi Stock Exchange held the opening ceremony for trading shares of two privatized state-owned enterprises: Vietnam Airlines Corporation and Vietnam Textile and Garment Group. Vietnam Airlines Corporation - JSC (HVN) was formerly Vietnam National Airlines (Vietnam Airlines). The participation of these two entities in the centralized stock market demonstrates the proactive approach and commitment of the corporation's leadership in implementing the policies of the Party and State, aiming for transparency in operations, building a foundation for sustainable development, creating conditions for shareholders and investors to effectively exercise their rights and obligations, and opening up an effective capital mobilization channel for the enterprise.

Speaking at the stock listing ceremony, a representative of Vinatex's leadership stated that listing Vinatex shares on the stock exchange not only mobilizes capital from existing shareholders but also provides access to future investors. Sharing this view, a representative of Vietnam Airlines' leadership added that listing Vietnam Airlines shares will enhance the transparency and liquidity of HVN shares, serving as a foundation for Vietnam Airlines to continue its restructuring roadmap, issue shares to increase capital, and become a leading company in terms of quality and management efficiency within the Vietnamese business community and globally.

Red River

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