Stock market viewed as sustainable during 2022

Despite Vietnam being greatly affected by Covid-19, 2021 was considered a successful year for the country’s stock market. With that solid foundation, it is forecast to thrive in the new year.

2021 was a special year in terms of market results. While the VN-Index grew quite well in 2020, it peaked at over 1,500 points in 2021 and by the end of the year had increased 35.7 per cent compared to the beginning of 2020.

Liquidity increased 3.6-times last year compared to 2020. For the final nine months of the year, the average trading value reached over $1 billion per session,

The number of newly-opened securities accounts also reached record levels, at 1.53 million; nearly four-times higher than in 2020 and more than the previous five years combined.

2021 has provided a solid foundation for the stock market to confidently move forward in 2022 towards sustainable development and affirm its role as a key medium and long-term capital mobilization channel for the economy, as stated in Party Resolutions.

The Ministry of Finance and the State Securities Commission will focus this year on developing the stock market towards sustainable, long-term goals. Along with development in terms of scale, more emphasis will be placed on quality and sustainability in the market.

Low interest rates will be maintained this year, so the stock market is likely to continue to attract cash. Growth potential will remain significant with the government accelerating the equitization of State-owned enterprises. The impact of economic stimulus packages and the opening of new securities trading accounts will continue to increase.

Though there are many positives for the market, the Chairman of the State Securities Commission also noted that 2022 will continue to be a difficult time due to the linger effect of Covid-19.