The Decision of the Prime Minister approving the Stock Market Development Strategy until 2030

On 29/12/2023, the Prime Minister issued Decision No. 1726/QD-TTg approving the Stock Market Development Strategy until 2030.

According to the Decision, the overall goal of the Strategy is to develop a stable, safe, healthy, efficient, sustainable and integrated stock market; improve risk resistance, have a reasonable structure among market components, become an important medium and long-term capital mobilization channel, mainly for the economy; maintain growth in scale, focus on improving quality; develop green financial tools and sustainable finance; promote digital transformation in the stock sector; build a market management and monitoring system associated with the application of modern information technology; strengthen international connectivity and integration, gradually narrow the development gap between Vietnam's stock market and the ones of developed countries.

* The detail goals are as follows

- Stock market capitalization reaches 100% of GDP by 2025 and 120% of GDP by 2030. Outstanding bond market debt 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 reaches 9 million accounts by 2025 and 11 million accounts by 2030, with a focus on developing organized investors and professional investors and attracting the participation of foreign investors. To increase the proportion of Government bonds held by non-bank investors to 55% by 2025 and 60% by 2030.

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

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

- To 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.

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

* The strategy also offers four development perspectives, specifically:

- To stick closely to the viewpoints, goals, tasks, and solutions on capital market development (stock market) 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; a part of the Financial Strategy until 2030 approved by the Prime Minister in Decision No. 368/QD-TTg dated March 21, 2022 and synchronized with the development strategies of related industries and fields.

- To 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.

- To continue to develop the stock market in scale while focusing on improving market quality, enhance 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, access international practices and standards.

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

In addition, the Decision also provides solutions, funding and technical facilities for the stock market and the implementation of the Strategy.