TA 2018 vol 1 - page 5

4
increased by 59% compared to 2016, according
to the Vietnam Securities Depository (VSD).
Foreign ownership rate in the stock market is
estimated at 19.7% and bond market is estimated
at 5.3%.
Insurance market
The size of the market increased from 37
(2006) to 62 (2016), of which 30 non-life insurers,
two reinsurers, one non-insurance foreign life
insurance; 17 life insurance companies and 12
insurance brokers. There are 26 representative
offices of foreign insurers, 14 non-life insurance
companies, 9 life insurers, 1 reinsurance company
and 2 insurance brokers.
Monetary market
Monetary market and banking activity
showed positive changes. The interest rate was
relatively stable, the interest rate was reduced
by decreasing the interest rate by 0.25% per
annum and adjusting the interest rate by 0.5%
per annum for maximum short-term lending in
priority areas. Exchange rates, foreign exchange
market was stable, foreign exchange reserves
increased to record high USD 46 billion, creating
a good balance for stabilizing the exchange rate.
In order to meet the demand for capital for the
economy, especially the production and business
sectors and priority sectors, the target of striving
for credit growth for the whole economy in 2017
is about 21% compared to 2016.
VIETNAMESE FINANCEMARKET:
MORE REDUNDANCY FOR INTERNATIONAL COOPERATION
VU NHU THANG, PhD., NGUYEN THI THU HIEN, MA. *
In line with globalization, international economic integration of the world and the region, Vietnam
has made continuous efforts to promote the process of international economic integration towards
international principles and standards of the economy and gobal market. This will help Vietnam integrate
its economy into the regional and world markets through the establishment of bilateral cooperative
relationships and participation in the multilateral institution. To achieve integration target, one of the
important tasks of the Party and State is to develop and stabilize the domestic financial market so that
there is more room for international cooperation.
Keywords: International cooperation, financial market, foreign investors, securities market, stock market, payment organizations
Received: November 5
th
, 2017
Revised: November 6
th
, 2017
Accepted for publication: December 10
th
, 2017
Vietnam’s financial market
and the participation of foreign investors
Securities market
The securities market is becoming an
important channel for raising capital for the state
budget and contributing to the development of
the financial market in general.
As of the end of November 2017, the market
capitalization (equity for fund certificate
shares) was VND 3272 trillion, an increase of
68% compared to the end of 2016, equivalent
to 72.7% of the GDP, highest since the market
opened. As of November 2017, there were 2,016
listed companies registered to trade on the stock
market, up 18.17% against 2016. Total revenue
reached VND 873.3 billion, up 17.49% over the
same period last year.
With investment funds, up until November
2017, there are about 35 investment funds on
the stock market. The number of individual and
corporate investment accounts was 1,901,649, an
increase of 9.98% over the same period last year,
of which the number of accounts of individuals
and organizations being foreign investors was
22,114, accounting for 1% of the total account.
As of November 2017, the total value of
the market portfolio holdings held by foreign
investors was estimated at USD 32.5 billion,
*
Email:
1,2,3,4 6,7,8,9,10,11,12,13,14,15,...47
Powered by FlippingBook