Vietnam’s capital marketwas formed 70 years ago, with the first milestone being the Decree No. 15 signed by President Ho Chi Minh, which established the State Bank. During the first 50 years, the banking industry played the role of a capital conduit in the economy. In 2000, when the Government opened the Vietnamese stock market, the function of raising capital for the new economy began to be shared with the stock market system. After more than 20 years of operation, the stock market has made great progress, promoting its role as an effective capital conduit in the economy. If in 2000, when the stock market just opened, the market capitalization was only 986 billion dong, equivalent to 0.28% of GDP; Enterprises almost have to mobilize capital through bank credit channels; By the end of 2020, Vietnam’s stock market capitalization is equivalent to 83% of GDP in 2019. Hundreds of trillions of dong have been mobilized by businesses and banks through the stock market, creating a balanced picture of the market. Vietnam’s capital market. In 2020, Vietnam’s stock market had an impressive growth year and was rated as one of the top 10 most resilient and resilient markets in the world during the pandemic. According to the General Statistics Office, in 2020 the total capital mobilization for the economy of the stock market will reach VND 383.6 trillion, up 20% over the same period last year; the average trading value on the stock market reached VND 7,056 billion/session, up 51.5% compared to the average in 2019; average trading value on the bond market reached 10,247 billion VND/session, up 11.3%; The average trading volume of futures products on the VN30 index on the derivatives stock market reached 157,314 contracts/session, up 77%. In the first quarter of 2021 alone,
the stock market grew quite well with the total capital mobilization on the stock market estimated at VND 55,562 billion, up 42% over the same period last year; the average trading value on the stock market reached VND 18,907 billion/session, up 155% compared to the average of the previous year; average trading value on the bond market reached 12,433 billion VND/session, up 19.6%; The average trading volume on the derivatives stock market reached 174,324 contracts/session, up 11%.Notably, the number of newly opened domestic investor accounts increased to a record in 2020. The number of newly opened domestic investor accounts on the Vietnamese market reached nearly 394 thousand accounts, an increase of 109% compared to the number of new accounts. number of new accounts opened in 2019; foreign investors opened 2,856 new accounts; the total number of securities accounts in Vietnam reached more than 2.77 million accounts, up 16.7% compared to the end of 2019.According to the State Securities Commission, the stock market is becoming a powerful capital mobilization channel for the Vietnamese economy and is becoming more and more solid and complete in structure. State-owned enterprises are tending to be equitized to expand investment opportunities from outside investors. Besides, the Covid-19 pandemic has changed all aspects of socio-economic life. Activities through the Internet and digital platforms flourished. People’s awareness of the capital market has increased rapidly. Investors in Vietnam’s stock market are becoming more and more mature, not overreacting to external information, but more and more behave in accordance with basic fundamentals.Along with the development of the stock market, the capital channel through banks continues to develop and plays a key role in providing capital in the market, accounting for 70%. Notably, in the money market in 2020, although deposit interest rates decreased continuously, capital mobilization continued to increase and exceeded the credit growth rate. This, on the one hand, helps commercial banks increase liquidity and reduce the cost of mobilized capital, on the other hand, also makes the growth rate of total means of payment increase rapidly, while aggregate demand remains weak.
Faced with the increasing requirements of the market’s capital needs, besides the familiar mobilization channels such as banks and the stock market, the bond channel (including government bonds (Government bonds) and corporate bonds (Corporate bonds). It is also a good investment channel for investors for many years and still offers opportunities, specifically, for the Government bond market, which is currently considered to have the leading growth rate of emerging economies in the region. East Asia and ASEAN + 3 regions, with an average annual growth rate of 31% and increasingly becoming an important capital mobilization channel for the Government.In terms of corporate bond market, it started forming in 2000 but really strongly developed since 2011, when Decree No. 90/2011/ND-CP on issuing corporate bonds took effect.In 2018, the size of corporate bond market grew strongly compared to previous years, increasing by about 53%. compared to 2017 and increased 32 times compared to 2011, showing that businesses are increasingly interested in and participating in raising capital through bond issuance in addition to bank credit loans. The issuance term is mainly from 3 to 5 years in line with the investment cycle of the enterprise.Assessing the role of capital market in economic development, experts believe that capital market development will promote State-owned enterprises to participate in capital mobilization in the direction of reducing the proportion of commercial credit loans, reducing pressure
