Hanoi (VNA) - The State Bank of Vietnam (SBV) will coordinate with the Ministry of Finance in seeking measures to upgrade the stock market status from “frontier” to “emergin𒆙g”, SBV Deputy Governor Pham Thanh Ha told a conference chaired by Prime Minister Pham Minh Chinh on February 28.

Ha stressed that the development of the market plays an important role in the country’s economic growth. This is demonstrated by supporting enterprises to mobilise capital from issuing bonds and shares to meet their capital needs for investment, production and business activities. Following the instructions of the Government and the Prime Minister, the central bank is working with the Ministry of Finance and relevant ministries to develop monetary and fiscal policies to stabilise the macro-economy, control inflation, and support economic growth, as well as supporting the development of the stock market. The SBV collaborated with two renowned rating organisations, MSCI and FTSE Russell, to address inquiries and concerns related to the banking sector. The aim is to facilitate the prompt upgrading of the stock market, which is currently categorised as a frontier market by both organisations. Notably, FTSE Russell has included Vietnam in the list of countries awaiting an upgrade to an emerging market. The SBV remains committed to closely monitoring market trends, both domestic and international economic situations, and maintaining strong coordination with fiscal policies. This approach ensures proactive, flexible, and harmonised management of monetary tools and policy solutions, thus helping control inflation, contributing to macroeconomic stability, and fostering sustainable economic growth, he said. According to Ha, to achieve synchronised, transparent and sustainable financial market development, the SBV recommends three key solution groups to the Ministry of Finance and the State Securities Commission. Continued research, review and enhancement of the legal framework for the stock market is needed. This will create a conducive environment for securities companies to issue shares and bonds in the market. Additionally, close coordination with relevant ministries and agencies will be vital to implement synchronised solutions for stock market development. He stressed the diversification of types of investors in the market by encouraging the broader and deeper participation of funds, insurance companies, foreign investors and other entities. Close and effective communication cooperation between the Ministry of Finance and the SBV is crucial to strengthen coordination between monetary and fiscal policies. This collaboration will facilitate a comprehensive approach to managing the financial market.   Addressing the event, PM Chinh stated that the Government always protects the legitimate rights and interests of investors and relevant players in the stock market. The stock market is an important part of the financial market and the socialist-oriented market economy of Vietnam. It is a flexible and attractive investment channel, a channel for mobilising medium- and long-term capital for businesses, and a critical contributor to economic restructuring, State-owned enterprise equitisation, growth model reform, and socio-economic development, he affirmed. The PM went on to say that for nearly 25 years of development, though Vietnam’s stock market is still relatively young compared to others in the region and the world, it has matured quickly. This is evident in its potential and positive outlook, and it has gradually established itself as a channel for medium- and long-term capital mobilisation in the economy, thereby considerably helping with socioeconomic development. He underscored the task of developing a comprehensive, safe, healthy, and sustainable stock market is consistent with the country’s financial market and integration into the world./.