Approval of the Stock Market Development Strategy until 2030 in Vietnam

Approval of the Stock Market Development Strategy until 2030 in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On December 29, 2023, the Prime Minister issued Decision 1726/QD-TTg approving the Stock Market Development Strategy until 2030.

Approval of the Securities Market Development Strategy until 2030 in Vietnam

The Prime Minister approved the Securities Market Development Strategy until 2030 with the following main contents:

1. Development perspective

- Stick closely to the viewpoints, goals, tasks, and solutions on capital market and stock market (stock market) development in Documents and Resolutions of the Party, Resolutions of the National Assembly, and the Government; in accordance with the 10-year socio-economic development strategy 2021–2030; is a part of the Financial Strategy until 2030 approved by the Prime Minister in Decision 368/QD-TTg dated March 21, 2022; and is synchronized with the development strategies of related industries and fields.

- Develop a synchronous and unified stock market in the country's overall financial market, associated with innovating the growth model and restructuring the socialist-oriented market economy; promote restructuring of the stock market to complete the structure of the financial market in general and the stock market in particular.

- Continue to develop the stock market in scale while focusing on improving market quality and enhancing the financial capacity and competitiveness of organizations participating in the market; Focus on innovation, application, and development of advanced information technology and effectively utilize the achievements of the technological revolution, accessing international practices and standards.

- The State manages and supervises the stock market by law; strengthens management and supervision and ensures market security and safety; promotes the self-management role of social and professional securities organizations; and ensures that market participants fully comply with the law and have their legal rights and interests protected by the State.

2. General goal

Develop a stable, safe, healthy, effective, sustainable, and integrated stock market;

Improve risk resistance, have a reasonable structure among market components, and become an important medium- and long-term capital mobilization channel, mainly for the economy;

Maintain growth in scale and focus on improving quality;

Developing green financial tools and sustainable finance; promoting digital transformation in the securities sector;

Building a market management and monitoring system associated with the application of modern information technology;

Strengthen international connectivity and integration and gradually narrow the development gap between Vietnam's stock market and the stock markets of developed countries.

3. Specific goals

- Stock market capitalization will reach 100% of GDP by 2025 and 120% of GDP by 2030. Outstanding debt in the bond market reaches a minimum of 47% of GDP (of which outstanding corporate bond debt reaches a minimum of 20% of GDP) by 2025 and reaches a minimum of 58% of GDP (in which outstanding corporate bond debt reaches a minimum of 25% of GDP) by 2030; The derivatives market will grow on average about 20%–30% per year in the period 2021–2030.

- The number of securities trading accounts of investors on the stock market will reach 9 million accounts by 2025 and 11 million accounts by 2030, which focuses on developing organized investors and professional investors and attracting the participation of foreign investors. Increase the proportion of Government bonds held by non-bank investors to 55% by 2025 and 60% by 2030.

- Improve the quality of listed company governance above the average level in Southeast Asia; apply good practices in environmental, social, and corporate governance standards (ESG standards) at Stock Exchanges and Vietnam Securities Depository and Clearing Corporation towards sustainable development according to international practices.

- Complete the division of listed stocks at the Stock Exchange in 2025.

- Strive to upgrade Vietnam's stock market from a frontier market to an emerging market by 2025, according to the stock market classification standards of international organizations.

- Actively integrate into the world financial and stock markets, meet financial security requirements, improve competitiveness and risk management, and apply international standards and practices; aiming to reach the development level of the group of 4 leading countries in the ASEAN region by 2025.

More details can be found in Decision 1726/QD-TTg, taking effect on December 29, 2023.

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