Finance Minister Ho Duc Phoc calls on Singaporeans to invest in Vietnam's stock market

Chairing the Vietnam financial investment conference on August 6 in Singapore, Minister of Finance Ho Duc Phoc noted that Vietnam has maintained its momentum for development after the Covid - 19, ranking as one of the fastest growing economies in the world as well as favorite destination for both direct and indirect foreign investments.

According to the minister, Vietnam's GDP growth rate reached 5.05 per cent in 2023. In the first half of 2024, the figure stood at 6.42 per cent and is projected to reach 6.5 per cent for 2024. Vietnam's public debt stands at approximately 37 per cent of GDP, significantly lower than the set limit of 60 per cent. The budget deficit is under 4 per cent. Vietnam has also maintained stability in the VND/USD exchange rate.

Growing potential in the stock market

In  his remarks at the conference, Minister Ho Duc Phoc highlighted  potentials of  Vietnam's stock market, which serves as an important indicator of the country’s economic development.

“Under the supervision and proactive guidance of the Government,  Vietnam's stock market has maintained effective and sustainable growth, becoming a reliable mid- and long-term capital channel for the economy”, he noted. 

“In over 24 years of operation, the stock market has demonstrated its appeal through the number of listed securities, high liquidity scale, and strong participation from both domestic and international investors,” the minister emphasized.

According to the minister, as of July 2024, there were a total of more than 1,600 stocks and fund certificates listed for trading on the market, with market capitalization reaching about $278 billion, equivalent to 65% of GDP in 2023. The number of investors has grown strongly with approximately 8 million accounts, equivalent to more than 10% of the country’s adult population.

“Vietnam is making efforts to meet the criteria for upgrading its stock market which is expected to be upgraded to an emerging market in the near future,” the minister said.

Commit to creating favorable conditions 

Within ASEAN, Vietnam’s stock market is a dynamic market with liquidity of up to about $1 billion per day, the minister said, adding that ”the liquidity level of Vietnam is equal to that of Singapore, ranking 1st or 2nd in the region”.

The minister called on Singaporean investors to invest in Vietnam's stock market, stating that the Vietnamese Government always considers foreign investment as an important part of the economy. Therefore, the Government will strive to create favorable conditions for long-term mutual cooperation.

"Vietnam ensures the legitimate rights and interests of investors, while continuously improving the business investment environment so that investors can confidently operate long-term investment and business activities in Vietnam", he emphasized.

"We are committed to accompanying and creating favorable conditions for partners, enterprises, and investors to seek investment opportunities and cooperation that yield the highest effectiveness. We welcome Singaporean enterprises and investors, as well as investors from the region and around the world, to increase new investments and expand their investment scale  in Vietnam for the win-win results. We will always listen  and focus on resolving issues so as to ensure businesses can invest in and operate most effectively," Minister Ho Duc Phoc affirmed.

Also at the conference, the State Securities Commission (SSC) of Vietnam provided Singaporean investors with an update of the country’s stock market, prospects and goals, and market development policies in the future. 

Representatives from securities companies, fund management companies, and large listed enterprises on Vietnam's stock market talked about the growth potential of the country’s stock market, their preparations as well as cooperation opportunities in the context of the future upgrade of the stock market.