14
29
th
, 2018 reached VND 3.89 trillion, equivalent to
77.7% of GDP. The bond market currently has a
listing size of VND 1,056 trillion, 4% higher than
the end of 2017 (equivalent to 21% of GDP) with
over 590 listed bonds. By the end of June, the
market had 743 shares and fund certificates listed.
There are 756 companies trading on UPCoM with
the total listed value andregistration transactions
of nearly VND 1.083 trillion.
The structure of the market has been
increasingly improved including stock market,
bond market and derivatives market. Particularly,
since its inception (August 10
th
, 2017), the stock
market has been operating safely with growth
in terms of contract volume, trading value and
number of securities. The average trading volume
reached 10,399 contracts per day and the value
of transactions was VND 889 billion per session.
The derivatives market has provided a tool to
prevent risks for investors, contributing to stable
development of the stock market.
Besides, the quality of goods on the stock
market has been constantly improved. The stock
market has attracted a large number of domestic
and foreign investors. Statistics by the end of May
2018 reveals that there were nearly 2.1 million
accounts, of which nearly 25.9 thousand accounts
belonged to foreign investors. The quality of
investors is growing and expanding, so far there
are 39 active securities investment funds, including
some new types of funds such as open funds,
member funds, swap funds, listing portfolio, real
estate investment funds and securities investment
THE RAPID AND SUSTAINABLE DEVELOPMENT
OF VIETNAM’S STOCKMARKET
ASSOC. DOAN HUONG QUYNH, PhD.
- Academy of Finance*
Vietnam has successfully established the stock market in line with the characteristics and level of
development of the economy, closer to the international standards and practices, contributing to
international integration and ensure safe and sustainable market development. With the strong
development in the right direction, the stock market has become the driving force for the establishment
and development of a more active and effective private sector, contributing to the promotion of SOE
equitization and economic restructuring both in terms of sector, field of activity and participants.
Keywords: Stock market, sustainable development, macro economics, SOEs
Received: July 12
th
, 2018
Revised: September 20
th
, 2018
Accepted for publication: October 1
st
, 2018
Completing the structure and expanding the size
of Vietnam’s stock market
Over many years of preparation, Vietnam
stock market officially came into operation in
July 2000. Like many other stock markets in the
early stages of development, it has experienced
several ups and downs, including the impacts
of the macroeconomic fundamentals and the
unpredictable effect of the geopolitical situation
in the world. Vietnam stock market has developed
strongly with increasingly strengthened
foundation, step by step perfected its structure
and expanded in scale and gradually affirming its
role as the medium and long term capital channel
for the economy, which contributes significantly
to the socio-economic development of the country.
So far, Vietnam has successfully created
the stock market institutions in line with the
characteristics and development of the economy,
closer to the international standards and practices
as well as promoted international integration to
ensure safe and sustainable market development.
The scale of the stock market has developed
rapidly compared to the first years in operation.
The scale of capital mobilization through the
stock market has reached nearly VND 2.2 trillion,
of which the Government has mobilized VND 1.6
trillion billion, enterprises have mobilized VND
571 trillion through public auction and stock and
bond issuances; Market capitalization as of June
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