Prime Minister: 'Trump-Kim meeting is an opportunity to improve Vietnam's investment environment'
The US-North Korea summit is considered by the Prime Minister to be an international event and brings many opportunities for Vietnam.
On the morning of February 12, attending the gong-beating ceremony of the first trading session of the year at the Hanoi Stock Exchange (HNX), Prime Minister Nguyen Xuan Phuc mentioned the summit between US President Donald Trump and North Korean leader Kim Jong-un.
The head of the Government affirmed that Vietnam needs to demonstrate its international role, so that "the two words Vietnam resound on this important occasion". He said that the event is an opportunity to demonstrate that Vietnam's investment environment is good, its development model is on the right track, and especially Vietnam's security and safety are excellent.
According to Donald Trump's Twitter announcement, the second summit with Kim Jong-un will take place in Hanoi on February 27-28.
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Prime Minister Nguyen Xuan Phuc beats the gong to open the stock exchange trading in the year of the Pig. Photo:VGP. |
Referring to the stock market in 2018,The Prime Minister affirmed that confidence in the market is increasing along with the general confidence of the country. The stock market plays a role as a channel for mobilizing medium- and long-term capital, together with the credit market, helping the financial market structure become more effective and balanced.
The stock market capitalization has increased 17 times in the past 12 years, reaching 72% of GDP by the end of 2018. Capital mobilization by the private sector through the issuance of stocks and corporate bonds reached more than VND86,000 billion, making Vietnam the most successful capital mobilization market in Southeast Asia.
However, the Prime Minister also acknowledged that there are still many shortcomings, such as the modest scale, especially in the corporate bond market. Transparency has improved a lot, but compliance with discipline and order is still not high. Many enterprises have been equitized but are slow to list on the stock market. Investors are not really professional, mainly small investors with a herd mentality with high contagion risks, and the ability to withstand market shocks is still weak. The mechanism to protect minority investors is not commensurate with the market's position and is lower than that of countries in the region.
The Prime Minister requested the Ministry of Finance to complete the legal framework of the market, especially the amended Securities Law, the Project on Development of the Vietnamese Securities Market, and market restructuring, including the goal of establishing the Vietnam Stock Exchange on schedule.
In addition, management agencies continue to improve market standards, soon upgrading the Vietnamese stock market from a frontier market to an emerging market. The Prime Minister also directed to continue to make the market transparent, increase penalties for manipulation and false transaction reporting, to ensure the development of the market into a safe investment channel for investors and people.